The finances of Eskom, Transnet and other companies owned by South Africa’s government have deteriorated to such an extent that they now pose a significant risk to the nation’s finances, the auditor-general said.

“State-owned companies are not applying proper accounting controls and the ministries responsible for oversight of these entities” are not doing a proper job, Kimi Makwetu told reporters in Cape Town on Wednesday.

The Trans-Caledon Tunnel Authority, Alexcor and Broadband Infraco were also identified as being in parlous financial states, while there were doubts that the SABC, PetroSA and the South African Post Office could continue operating without government assistance, Makwetu said. He expressed concern that audits still had to be undertaken on South African Airways, SA Express and armaments group Denel.

Key highlights of the auditor-general’s annual report on government departments and state-owned companies: