21 February 2012
SizweNtsalubaGobodo has been appointed as the first homegrown, black-owned firm to handle the audit account of South African state transport and logistics giant Transnet.
In the previous financial year, Transnet achieved annual revenue of R38-billion with audit fees of just over R60-million, making it one of the biggest audit contracts in the country.
Public Enterprises Minister Malusi Gigaba said the appointment was a major milestone in the transformation of South Africa’s accounting and auditing profession.
“This reaffirms our commitment to ensuring that state-owned companies, as entrusted to us by the people of South Africa, are used as agents of change and transformation of our economy,” he said in Pretoria on Monday.
“We have identified our infrastructure rejuvenation programmes and provision of professional services among our entities as one of the key vehicles by which we will achieve this.”
Gigaba encouraged the private sector to use the services of firms that have demonstrated skills and expertise in their area of competence.
SizweNtsalubaGobodo CEO Victor Sekese described the contract as an honour for the industry: “We are delighted that a company of Transnet’s size with such an enormous responsibility in this economy has shown confidence in one of us.
“We are aware that our performance in the Transnet account will determine the fate of local players in future,” Sekese said.
Capital investment, fundraising
SizweNtsalubaGobodo was selected out of three bidders based on criteria – including technical ability, black economic empowerment and price – set by the audit committee of the Board of Directors.
“The integrity of our financial statements is one of the key elements that determine our ability to raise funds in both domestic and international markets – this is crucial for our capital investment programme,” said board chairman Mafika Mkwanazi. “I have no doubt that we have selected one of, if not, the best [audit partners] in the country.”
Transnet, which recently announced that it would increase its capital investment programme to R300-billion over the next seven years, raises its funding on the strength of its balance sheet without subsidies or guarantees from the National Treasury.
Source: BuaNews
