Sanral’s R17.4 billion cancelled tenders could be awarded by September

The Development Bank of Southern Africa (DBSA) has been appointed to handle infrastructure development projects at the South African National Road Agency Limited (Sanral).

The move comes after Sanral’s board last month decided to cancel the adjudicated contracts – valued at R17.47 billion – due to “material irregularities” in the tender process.

Addressing the media on Thursday, Sanral board chairperson Themba Mhambi said one of the reasons behind the agency’s decision to cancel the contracts was the “lapses in corporate governance”.

Mhambi noted that Sanral was “attacked” for its decision, which the agency stood by, hence the appointment of DBSA, which will assist with five cancelled tenders.

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“Of course, some of the entities which had submitted tenders were infuriated by our decision, and some of them went on a national media and political offensive to portray us as nincompoops to be pilloried.

“None, however, has thus far proven us wrong in terms of our reasons. The reason for that is that our reasons were, and continue to be, right and in the best interests of Sanral, good governance, the construction industry itself, and the people of South Africa,” he said.

The DBSA, the Sanral board chair said, would “act as the infrastructure procurement and delivery management support agency on five strategic projects”.

“The DBSA was not in any way involved in the design, cost estimation and tender documentation stages of the cancelled tenders.

“This should reassure all interested parties and the public about the integrity and independence of the new procurement processes for the projects,” Mhambi continued to say. 

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In May, Sanral noted that the cancellations would delay the implementation of critical infrastructure projects across the country, with the agency setting a four-month deadline to re-advertise, evaluate, adjudicate and award the tenders.

“One area in which we and our detractors agreed was that the non-awarding of those tenders was a setback in terms of time. It meant a delay in the implementation of the projects intended by the tenders in the first place.

“Mindful of that, and concerned about the country’s economic recovery, the construction industry’s need for business, SMME development, and job creation, as Sanral we resolved to accelerate the required re-advertisement and awarding of the tenders,” Mhambi said on Thursday.

Procurement phase

Meanwhile, Sanral acting CEO Lehlohonolo Memeza revealed that there would be procurement phases of the identified projects.

Memeza said the awarding of the tenders is expected to be made in September.

He further indicated that once the tenders are awarded, among other things, “the DBSA’s role will change to project oversight on behalf of the board, with regular reporting to the board to ensure that these projects receive ongoing board monitoring and support”.

“Our procurement and implementation plan for these projects is therefore well and truly back on track, and we wish to reassure the nation that it shall be executed meticulously and with the independence and integrity required,” Memeza said.

‘Lessons learnt’

Transport Minister Fikile Mbalula was also present at Thursday’s briefing, saying he was pleased that Sanral moved with the necessary speed to address the due process lapses “with a clear plan on how to finalise the award of these tenders within the shortest possible time”.

“We have traversed a hard road in the aftermath of state capture and irregular award of tenders in some of our entities, and acts of downright malfeasance in others, which include Prasa and Acsa.

“The efforts to restore the integrity of our institutions and rebuild the hollowed out capacity has been painstaking at best.

“The hard lesson we have learnt from this ordeal is to remain vigilant and stop creeping lawlessness, greed and corruption dead on its tracks,” Mbalula said.

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