Transnet awards auditing deal to local firms

27 March 2013

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27 March 2013 | Adam Leach

Transnet has awarded a R1.5 billion (£107 million) internal audit contract that will initially see 60 per cent of the work carried out by domestic, black-owned firms, rising to 90 per cent by the fifth and final year of the deal.

Following a public tender process, the South African state-owned transport group has awarded the contract for carrying out internal audits to three firms, South African firms Nkonki and SekelaXabiso and global firm KPMG. For the first year, SekelaXabiso and KPMG will each carry out 40 per cent of the work, with Nkonki carrying out the remaining 20 per cent. But over the five-year term, 20 per cent of KPMG’s share will be transferred to the local firms, with 15 per cent allocated to Nkonki and the remaining 5 per cent to SekelaXabiso.

Mafika Mkwanazi, chairman of the Transnet board of directors, said in a statement: “The two appointments are just two of the examples by which we at Transnet, as a state-owned entity, are providing the blueprint for meaningful and broad-based empowerment and skills development targeting black people, especially black women.”

For the domestic firms – both of which are at least 51 per cent black-owned, to take on the extra work during the five-year period, they will be expected to show improvements in expertise around IT, infrastructure and engineering processes. The firms will also be required to grow and develop other black-owned firms through sub-contracting opportunities.

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