Transnet SOC Ltd has awarded its biggest contract – worth about R1.3 billion – to local accounting firm SekelaXabiso over the next five years.
“Transnet’s internal audit contract is arguably the biggest outsource contract of its nature in the world,” said Transnet spokesman Mboniso Sigonyela in a statement today.
SekelaXabiso was one of three companies chosen by the Transnet Board of Directors’ Audit Committee.
Another local firm, Nkonki Inc, and KPMG were also picked. During the first year they would each have a percentage of work to share.
SekelaXabiso would get 40%, Nkonki Inc 20% and KPMG 40%.
By the fifth year, Nkonki’s share was expected to rise to 35%, and SekelaXabiso’s to peak at 45%.
Another local firm was awarded an auditing contract – SizweGobodoNtsaluba would perform the state-owned company’s external audit.
“The external audit account is worth approximately R450 million over the next five years, while the internal audit contract is close to R1.3 billion over the same period,” Sigonyela said.
This meant local firms would be leading audit work for Transnet to the value of nearly R2 billion over five years.
Chairman of Transnet’s board of directors, Mafika Mkwanazi, said appointing such firms affirmed Transnet’s commitment to broad-based empowerment.
“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.”