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FNB scores Gauteng deal

First National Bank (FNB) has been reappointed to manage the Gauteng provincial government’s multi-billion rand account for the next five years. ”We are really looking forward to work with FNB for the safekeeping of our province’ resources, and also ensure that all our staff and service providers are paid on time,” Finance MEC Barbara Creecy said during the announcement in Johannesburg on Tuesday. FNB, which is already the provincial government’s banker, beat the other three banks, Standard Bank, Nedbank and ABSA (now Barclays Africa), through an open tender process. FNB’s present contract with Gauteng comes to an end next year. Creecy said the bank would look after the province’s R93 billion budget for the present financial year, which would increase to R103 billion for 2016 and 2017.

”FNB will manage all the banking transactions of the provincial government, including the payment of salaries of 200 000 officials and payments of more than R3 billion a month to service providers.” The bank retained its status after achieving the highest points based on a scoring of the Preferential Procurement Policy Regulations. Creecy said: ”This scores and other matters were debated in the bid adjudication committee, which conducted a public meeting in the presence of the bidders and interested parties in July. The committee session recommended FNB as the preferred service provider.” FNB would in turn invest R200 million to support the province’s township enterprises and work with government agencies in helping start up companies. Danny Zandamela, FNB CEO of public sector banking said his bank was committed to achieving government’s objectives. ”We are greatly honoured and humbled as the selected banker for the next five years, we would also like to thank the province for going the open tender route and thus ensuring transparency,” he said.

Source: www.iol.co.za

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FNB scores Gauteng deal

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