Transnet appoints audit firm in transformation move

[Steve Appleton]

From Business Day, 20 February 2012,http://www.businessday.co.za/Articles/C ... ?id=165353

Transnet appoints audit firm in transformation move.

Transnet has appointed SizweNtsaluba Gobodo as its external auditor at a cost of about R70m a year.

STAFF REPORTER
Published: 2012/02/20 12:05:26 PM

State-owned enterprise Transnet has appointed SizweNtsalubaGobodo, the accounting firm, as its external auditor, Public Enterprises Minister Malusi Gigaba said on Monday. "This is a sector that is struggling fully to transform ... Today’s announcement is a contribution towards changing the landscape of this industry," Mr Gigaba told reporters in Johannesburg. The audit firm has been appointed for five years at a cost of about R70m a year.

Mr Gigaba said the transformation of the accounting industry remained a "sore point in our democracy and society at large". The sector is still dominated by white South Africans, accounting for 89% of those working in the industry, while black Africans represent only about 3%. The minister said he had asked the boards of all state-owned enterprises to review their transformation progress. Where it was time to rotate suppliers, their choice of a new incumbent should be determined by the empowerment agenda, he said.

Peter Moyo, chairman of Transnet’s audit committee, said SizweNtsalubaGobodo had undergone a rigorous appointment process before being appointed. "When appointing black people, there is the question around compromise," he said. "We looked at the independence of people, their ability to do the work, the price and their transformation credentials. "SizweNtsalubaGobodo competed against very established firms … and met all our criteria without any compromise." He added: "Transformation is not equal to lowering standards."

SizweNtsalubaGobodo will provide a team of 150 people to the Transnet project.

Mr Gigaba said the audit firm’s appointment took place at a critical time as Transnet was rolling out a R300bn infrastructure programme over the next seven years.

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