The Accounting Definition vs. The Taxpayer Reality
In the world of professional accounting, the term “Going Concern” is fundamental. It refers to an entity’s ability to remain operational and meet its statutory obligations for the foreseeable future. It is the baseline for a healthy balance sheet.
However, in the context of many South African State-Owned Entities (SOEs), we are witnessing the rise of a different kind of status: the “Ongoing Concern.” These are entities that remain afloat only through the continuous “dumping” of billions in taxpayer funds to settle interest on high-level debt or to mask the fallout of poor audit reports.
The Statistical Basis for Skepticism
When new state-led financial initiatives are proposed, we must look at the track record of existing “ongoing concerns.” The list is long and the fiscal impact is heavy:
- Energy and Transport: Eskom and SAA
- Communications and Defence: SABC and Denel
- Social and Financial Safety Nets: UIF, RAF, and Landbank
From an accounting perspective, this track record forms a reliable probability analysis. If the underlying governance structures and operational efficiencies are not fixed first, creating a new entity simply risks creating another “ongoing concern.”
Moving Toward Sustainable Growth
Surely, the goal of national accounting is to build an economy of growth, not a portfolio of disasters. To move from an “ongoing concern” back to a true “going concern,” we need to focus on the fundamental pillars of governance:
- Technical Accuracy: Ensuring financial records are beyond reproach.
- Strategic Remediation: Fixing existing structures before expanding.
- Accountability: Exercising professional and taxpayer activism to demand value for money.
Altimax: Your Partner in Restoring Governance
At Altimax, we specialize in helping public and private sector entities navigate the journey from instability to sustainability. Our Strategic Support and Audit Quality divisions provide the specialized insight, policies, and processes needed to ensure your organization is a true “going concern.”
We help oversight structures and executives move beyond “ticking boxes” toward meaningful collaboration and technical excellence. By simplifying complexity and ensuring compliance, we deliver the peace of mind that comes from knowing your entity is built for the future-not just staying afloat on the taxpayer’s tab.
Is your entity a true “going concern”? or to ensure your organization is built for sustainable growth.
