DUE DILIGENCE AUDITS

The significant cost of environmental clean-up/rehabilitation, regulatory compliance with statutory provisions and best practise standards are paramount to, inter alia, business transactions. Companies are often exposed to hidden liabilities in a target company’s assets, as a result of their past and present operating practices. Environmental liabilities, especially those caused through long-term gradual contamination can remain for extended periods of time and can result in significant costs.

An environmental due diligence audit is a procedure for investigation, evaluating and making conclusions on actual or potential environmental liabilities in a transactional setting. It entails a type of site and organisational assessment.

A due diligence allows for the following:

  • Identifying, at an early stage, environmental issues;
  • Evaluating the likely costs and determining whether to proceed with the transaction, and to identify the grounds upon which to do so;
  • Revealing how, from an environmental perspective, the target was managed;
  • It is an invaluable tool, as the information obtained can be used in the on-going management of the target; and
  • Identifying, not only current environmental issues, but also those that will cause future responsibilities.

OBJECTIVES OF DUE DILIGENCE AUDITS

The objectives of a due diligence audit is to investigate all matters or issues, which have the potential to impact on a decision to purchase the target company’s assets. The objectives include:

  • Assess and allocate risks associated with environmental aspects;
  • To quantify the identified environmental risks; and
  • To establish a baseline environmental condition of the area in question.

DUE DILIGENCE AUDITS – GCS PROJECT DATA

YEARCLIENTPROJECTOPERATION
2014The Marvik GroupERPM Due DiligenceERPM Gold Mine and adjacent
2014AMECDue Diligence Peer ReviewIndustry
2013Monterey SandsMonterey Sands Due DiligenceBenoni
2013RSV GEM (a Read, Swatman & Voigt (Pty) LtdMooihoek Due DiligenceMooihoek Chrome Mine
2012Linked EnterpriseEnvironmental Due DiligenceKwa-Zulu Natal
2009Shanduka Kangra Coal/Union FenosaEnvironmental Due Diligence and Compliance for the Kangra GroupAll

Attachments

  1. Due Diligence Audits (411.3 KB)
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