Only the audit division of black ac counting house Gobodo Incorporated is likely to forge ahead with the proposed merger with global services firm PriceWaterhouseCoopers (PwC).

This development emerged after the company's management vowed to go ahead with the merger despite fierce opposition from three of its subsidiaries who have threatened to disaffiliate from the holding company should the merger take place.

The merger, which was expected to be official by January 1, was delayed because of simmering dissent from the corporate governance, information technology and forensics divisions.

Disgruntled Gobodo subsidiaries are questioning the rationale behind the merger, saying the move will not only dilute black economic empowerment, but betrays the vision and ideals that informed the creation of the firm.

Staffers in these divisions feared the merger might result in duplication of their duties, thereby triggering possible job losses.

Management argued the merger will result in skills transfer and will accelerate the development and training of black people in the accounting profession.

The audit arm of the company represents the largest division with a staff complement of 240 employees, while the forensic, IT and corporate governance subsidiaries employ 36, 12 and 35 staff members respectively.

Chief executive officer of Gobodo Mveleli Booi said they are currently negotiating with the disgruntled subsidiaries with a view to ``facilitating their departure'' from the group.

``It is unfortunate that things had to turn out this way and in as much as we are reluctant to accept the state of things, we cannot let the impasse hold us for months.

``The holding company is the one that is driving strategy. We cannot allow a situation where a tail wags a dog,'' said Booi.

Responding to concerns that the merger will dilute black economic empowerment, Booi said his company chose PwC because of their commitment to transformation within the profession.

``We did not just wake up one day and decide to hold talks with PwC this was a well thought out process.''

Should the merger be official, Booi conceded that Gobodo's affiliation to the Abasa Practitioners' Forum might be revoked because the firm would no longer be regarded as an empowerment company.

Sikkie Kajee, director for corporate governance at Gobodo, confirmed his division had proposed a buy-out offer to Gobodo management to facilitate the independence of the subsidiaries.

``There is still a place under the sun for an independent black accounting firm,'' said Kajee.

However, former chief executive officer of Gobodo Thabo Msololi criticised the merger as a quick fix solution employed by PwC to abide with government legislation.

``PwC simply achieves transformation overnight by swallowing up a black company and increasing their black staff complement.''

He cast doubt as to whether ten Gobodo partners would accelerate transformation within PwC.

With acknowledgements to Maphamola Lebelo and City Press.