Transnet has announced that it is “repositioning and strengthening” its internal audit function to improve its governance and internal controls.
Transnet spokesperson, Ayanda Shezi, said in a statement on Monday that a key part of the state-owned entity’s strategy was to move away from a fully outsourced internal audit service - as was the case in the past - to a co-sourcing of the function, on a 40/60 basis, with 60% of the service outsourced.
Shezi added that to build audit capacity for the entity and the economy broadly, it was also reviving its role as one of the leading trainers for auditors, and would be scaling up its training programme. She said the entity aimed to train a minimum of 100 trainees over the next few years through the Institute of Internal Auditors’ (IIA) accredited programme.
“This will provide trainees with an excellent workplace opportunity to gain the practical experience required to support their field of study. To support implementation of its co-sourcing strategy, Transnet has appointed a new set of professional services firms for the provision of internal audit services following a competitive, open market procurement process.”
The appointment takes place with effect from May, for five years, after the contracts of the outgoing professional services firms end this month (April).
Deloitte & Touche, together with their transformation partners Thamani Advisory, Africa Rise and Shine Inc, and Isibani Chartered Accountants & Auditors, and Ernst & Young Services with their transformation partner, Motlanalo Chartered Accountants & Auditors Inc, will work with the entity’s internal audit department to improve risk management, governance and internal controls.
Shezi said the services were split into two parts, including assurance and related services, awarded to Deloitte and Ernst & Young and their partners, while the second part focused on proactive assurance on high value, which had been awarded to Deloitte and partners.
“Transnet will also work with its new internal audit partners to help rebuild its capacity in the training of audit professionals.”
