In a deal that further builds on the transformation of the accounting profession in South Africa, a prominent emerging firm, MSGM Masuku Jeena Inc, has merged with immediate effect with PricewaterhouseCoopers, the world`s largest professional services firm.
The main motivation for the merger is to enhance empowerment in professional services in line with government`s black economic empowerment objectives. This merger strategically positions black professionals in leadership roles and provides them with expanded training and career opportunities.
MSGM, with 14 partners and 174 employees, is a black-owned South African firm of accountants and business advisors.
PwC in South Africa has a total staff complement of 3 450 and employs 830 black professionals, more than any other firm in the professional services industry, and has 24 black partners.
The merged entity, operating under the name PricewaterhouseCoopers, with 37 black partners and 1 000 black professionals, will boast the largest number of black professionals among the Big 4 firms.
Sakhile Masuku, MSGM`s Chief Executive Officer, says their growth has been constrained by an inability to further expand the firm`s capacity and infrastructure to meet demands and that the merger with PwC will accelerate the development of black professionals as industry specialists.
Akhter Moosa, MSGM`s Chairperson, says "The merged firm will accelerate the accessibility of black professionals to the private sector, and I am confident that the enhanced PricewaterhouseCoopers formula will act as a model in creating a conducive environment for black professionals to join the profession".
Colin Beggs, CEO of PwC for Southern Africa, says the transaction must be seen against the background of PwC`s long-standing commitment to the upliftment of the country generally and of black chartered accountants in particular.
MSGM has offices in Gauteng, Durban and Mafikeng, and the merger will promote stronger service offerings and capabilities in the public and private sectors, as well as the SMME sector.
"We are very excited about the opportunity created for new black recruits to relate to our large number of role models," says Beggs. "Fifty per cent of the merged firm`s executive is black and one-third of the 18-strong Governing Board consists of black directors. We will continue our quest to make the environment truly representative, and the merger will help ensure that we achieve our empowerment vision and objectives sooner."
A further boost to PwC`s transformation process was the internal appointments this month of Jabu Mahlangu (Gauteng Leader - Forensic Services), Roy Harichunder (National Leader - Public Sector Audit), Mohale Masithela (Deputy CEO - Corporate Finance) and Gerard Soverall (Deputy Leader - Gauteng Tax and Legal Services). On 1 July, PwC also promoted 14 managers, 50% of whom are black, to partner level.
Akhter Moosa will join the PwC Executive Committee while Sakhile Masuku has been appointed to the Advisory Services leadership team. Two MSGM partners will be appointed to the Governing Board and two partners to the Corporate Social Responsibility Board, while other partners from MSGM will be appointed as public sector leaders in Gauteng, KwaZulu-Natal and the North West Province, and as Partner in Charge of the Mafikeng office.
The merger has been widely endorsed by South Africa`s political and business leaders.
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