Finance
Interpellation 2
Given that entities such as Freeport Saldanha and Casidra continue to rely heavily
on government transfers and conditional grants to sustain operations:
What measures has her Department implemented to (a) strengthen financial
oversight and (b) improve the long-term sustainability of these entities?
(a) Strengthening Financial Oversight:
To enhance financial reporting, the Provincial Treasury conducts bi-annual reviews of all
entities’ Interim and Annual Financial Statements (AFS). These reviews ensure compliance
with the Generally Recognised Accounting Practices (GRAP), framework and support
improved audit outcomes by addressing risks before submission and reporting quality of
the Annual Financial Statements before submission to the AGSA.
(b) Supporting Long-Term Sustainability:
Both Freeport Saldanha and Casidra have confirmed in their 2024/25 Audited Financial
Statements, that their going concern status relies on adequate funding:
• Free Port Saldana: “The ability of the entity to continue as a going concern is dependent
on a number of factors. The most significant of these is that the Board of directors
continue to procure funding for the ongoing operations for the entity.”
• Casidra: “Based on a review of the projected cash flows for the next twelve months, the
short-term financial position of the company remains sound. However, the medium and
long-term sustainability of the company is dependent on continued and timely funding
from government and the identification of additional sources of revenue. The directors
believe that Casidra has adequate resources in place to continue operating as a going
concern”.
Importantly, government transfers remained stable between 2023/24 and 2024/25. The
absence of significant year-on-year increases indicates that the entities are beginning to
secure complementary funding sources, which supports improved financial resilience over
time.
Freeport Saldanha notes that the continued ability of the Board to source additional
operational funding is central to its sustainability. Casidra’s short-term cash flow position
remains sound, with longer-term sustainability dependent on ongoing government support
and the expansion of alternative revenue streams. Both entities have therefore demonstrated
efforts to diversify funding as part of strengthening their long-term sustainability.
Should further detail be required, the relevant Executive Authority need to be approached
in terms of Section 63 (2) of the PFMA. In this regard, the relevant Executive Authority is
the Minister of Agriculture, Economic Development and Tourism for both aforementioned
entities.
