State-owned Transnet says it is repositioning and strengthening its internal audit function to ensure improved governance and internal controls.

A key part of this includes implementation of a strategy 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.

Moreover, to build audit capacity for Transnet and the economy more broadly, the entity says it is reviving its role as a trainer for auditors, and will be scaling up its training programme, with the aim of training at least 100 people through an Institute of Internal Auditors-accredited programme over the next few years.

This will provide trainees with a 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 what it says was a competitive, open market procurement process.

The appointment is with effect from May, for a period of five years, following the contracts of the outgoing professional services firms coming to an end in April.

Deloitte & Touche together with its transformation partners Thamani Advisory, Africa Rise and Shine and Isibani Chartered Accountants & Auditors and Ernst & Young Services with its transformation partner, Motlanalo Chartered Accountants & Auditors, will work with Transnet’s internal audit department to improve risk management, governance and internal controls, for greater operational effectiveness of the business.

The services are split into two.

Part one entails assurance and related services and was awarded to Deloitte and Ernst & Young and their respective empowerment partners. Part two entails proactive assurance on high-value and was awarded to Deloitte and its empowerment partners.

Transnet will also work with its new internal audit partners to help rebuild its capacity in training audit professionals.

“Transnet would like to thank its outgoing professional services partners for the services rendered,” the entity states.