Cancelled Sanral tenders to delay critical infrastructure projects

The cancellation of five tenders’ worth R17.47 billion, which were likely to impact the construction industry and economy severely, was due to the violation of a board resolution and outside influences in the evaluation of tenders.

This is according to South African National Roads Agency (Sanral) board chair Themba Mhambi, who said this week that the irregular provisions of tenders was one among the many reasons that contributed to the process coming to a halt.

He added that the attacks on the entity over the past few weeks had been “incessant”.

According to Mhambi, the cancellations would delay the implementation of critical infrastructure projects across the country.

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He said some bidders had disseminated negative information about the board’s decisions regarding tenders and that it was inappropriate for bidders to publicly discuss tenders and the organisations concerned.

“Bidders have angrily created the impression they have people’s best interests at heart.

“But actually they do not because those SMMEs and local communities will be largely kept out of benefitting from the projects if this board had not seen through the injustice,” he said.

“They said this board is killing the industry but we invite you to objectively check the records of the awards and payments made to the industry.”

Mhambi also said requirements without board approval had resulted in the exclusion of black economic empowerment companies at the subcontracting level losing billions.

He said R2 billion, which should have been as part of these subcontracting tenders, was withheld from small, micro and medium-sized entities and ordinary people.

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One of the tenders involved Mtentu Bridge, which was valued at around R3.4 billion.

This is a multi-span box girder bridge, currently under construction, spanning the Mtentu River, near Lundini in the Eastern Cape.

“R2 billion was taken and given to main contractors in relation to Mtentu and the Gauteng Freeway Improvement Project (GFIP) with the GFIP one reduced by 50% in terms of subcontracting and Mtentu had no subcontracting,” he said.

“All this results in thousands of South Africans being denied job opportunities.”

Minister of Transport Fikile Mbalula distanced himself from bidders’ identity issues and tendering processes.

Mbalula said he had no role in the procurement processes and no interest in the identity of bidders.

“Our interest is to ensure the board has given to the letter of the Sanral Act and other applicable prescripts in the exercise of its responsibilities,” he said.

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Mbalula further slammed contractors who requested his intervention after tenders were cancelled.

“You cannot ask the minister to intervene on matters of tenders which were condemned not so long ago,” he said.

While Sanral was continuing to operate without a chief executive, Mhambi said the process to appoint a permanent CEO was a process in motion.

“To the extent that it goes way beyond the board, one cannot give a specific date but it is a process that is fairly advanced at this stage,” he said.

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