External Audit Services (5-Year Appointment)

The Automotive Industry Development Centre Eastern Cape (AIDC-EC), a subsidiary of the Eastern Cape Development Corporation, is seeking a reputable and reliable registered audit firm to provide external audit services for a five-year period. The appointment covers the audit functions required under the Public Audit Act, 2004 (Act No. 25 of 2004) and the Public Finance Management Act (PFMA). The successful firm must determine an audit plan aligned with Auditor-General of South Africa (AGSA) guidelines and legislative requirements, evaluate public finance management, and conduct audits in accordance with recognised auditing standards for the public sector. The scope includes evaluating compliance with financial legislation, auditing performance against predetermined objectives, performing other legislative functions, and attending four Audit and Risk Committee meetings per year.

The auditor must carry out the work necessary to form an opinion on whether the accounts are properly kept and whether the annual financial statements are prepared in accordance with the financial records and fairly present the financial position, financial performance and cash flows in accordance with International Financial Reporting Standards and the PFMA. Deliverables include communicating audit findings and recommendations to management, and providing a final report with management responses on corrective actions. The audit and management reports are due by the PFMA deadline of 31 July each year, or a mutually agreed extended period, with annual timeframes negotiated on appointment. AIDC-EC will provide access to management, staff, the Board, all information necessary for the audit, the current Memorandum of Incorporation, and the most recent annual report. Bidders should note that although the contract runs for five years, the statutory appointment of the external auditor under section 25(4) of the Public Audit Act is made one financial year at a time, so continued appointment depends on annual AGSA confirmation and ongoing compliance.

Mandatory requirements include valid SAICA registration, valid IRBA registration for the firm and designated auditor, the designated auditor's latest annual IRBA review, active CSD registration, tax compliance, a signed Form of Offer and SBD forms, and a delegation of authority. Bids must also include a firm profile, evidence of dedicated resources for the full contract term, and the key personnel schedule (audit partner, audit manager and audit clerk). Functionality is scored out of 50 points, with a minimum of 30 required to proceed. Points are awarded for the experience of the audit partner and manager (up to 15 years or more) and for completed external audits of public entities on contracts of three years or more, supported by contactable reference letters (more than five projects scores the maximum). Evaluation then applies the 80/20 preference point system, with 80 points for price and 20 for specific goals, including Eastern Cape locality, black, women and youth ownership. The estimated value is up to R10 million including taxes. Other conditions include professional indemnity insurance of at least twice the fees payable, a performance guarantee within 30 days of award, prices valid for 90 days, travel and subsistence charged per SARS guidelines, and annual CPI-linked fee adjustments. Hard-copy bids must be delivered in sealed envelopes to the AIDC-EC head office in Gqeberha by 11:00 on 6 November 2026. Late submissions will not be considered.