GIGABA BOOSTS BLACK ACCOUNTING FIRM SIZWENTSALUBAGOBODO
Public Enterprises Minister, Mr Malusi Gigaba, today announced that he has appointed SizweNtsalubaGobodo as Transnet SOC Ltd's external auditors, a major milestone in the transformation of the accounting and auditing profession in South Africa.
The appointment is the first in South Africa for a locally grown and black-owned firm to handle the entire audit account of a corporate the size of Transnet.
Speaking at the announcement of the ground-breaking milestone in Sandton, Minister Gigaba says: "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."
"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," Minister Gigaba adds.
"We encourage the private sector to use the services of firms such as SizweNtsalubaGobodo which have demonstrated skills and expertise in their area of competence. As a society, we are collectively responsible for eradicating the apartheid patterns of development and ushering a national democratic society giving effect to the principles and goals set out in our Constitution," Minister Gigaba adds.
In addition to Transnet, Minister Gigaba is also in charge of Eskom, SAA, Denel and SAFCOL among others.
SizweNtsalubaGobodo was selected out of three bidders based on the following criteria set by the Audit Committee of the Board of Directors chaired by Mr Peter Moyo, an independent nonexecutive director:
Technical Ability;
Black Economic Empowerment; and
Price.
"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. Consequently, the Audit Committee was not going to compromise on the quality and ability of our audit partners. I have no doubt that we have selected one, if not the best in the country," says Mr Mafika Mkwanazi, Chairman of the Board of Directors.
Transnet, which recently announced that it would increase its capital investment programme to R300 billion over the next seven years from the current R110 billion rolling five-year programme, raises its funding on the strength of its balance sheet without subsidies or guarantees from the fiscus.
During 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.
"This is an honour, not only for SizweNtsalubaGobodo, but for the whole of our 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," says Mr Victor Sekese, CEO of SizweNtsalubaGobodo.
"I am confident that this is the first of many such contracts to be awarded by state-owned companies," concludes Minister Gigaba.
About Transnet
Transnet SOC Ltd is a state-owned transport and logistics company under the auspices of the Department of Public Enterprises
Brian Molefe is the Group Chief Executive of Transnet
The Company has five operating divisions:
- Transnet Freight Rail
- Transnet National Ports Authority
- Transnet Port Terminals
- Transnet Rail Engineering
- Transnet Pipelines
About SizweNtsalubaGobodo
SizweNtsalubaGobodo's vision of being the leading and innovative assurance and advisory partner of choice permeates into their superior service delivery philosophy.
SizweNtsalubaGobodo provides innovative solutions to both public and private sector clients including those listed on the Johannesburg Stock Exchange.
Nonkululeko Gobodo serves as Executive Chairman of SizweNtsalubaGobodo, and Victor Sekese as the Chief Executive of the firm.
Statement issued by Mboniso Sigonyela, spokesman for Transnet SOC Ltd on behalf of The Chairman of the Board of Directors, February 20 2012
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