Big accounting hurdle for Transnet’s R11bn tender
Bidder’s use of its market capitalisation to boost solvency ratio in the spotlight
Transnet ignored two opinions that it erred in allowing Philippines-based International Container Terminal Services Incorporated (ICTSI) to calculate its solvency ratio using its market capitalisation in its successful bid to win a 25-year contract to develop and manage the key Durban Pier 2 Terminal (DCT2).
DCT2 is Transnet’s biggest container terminal, handling 72% of the Port of Durban’s throughput and 46% of SA’s port traffic. The deal is a flagship public-private sector partnership that will demonstrate how the private sector can work with state-owned enterprises. It is critical to the economy and fiscus that Transnet’s performance improves fast...
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