Sanral appoints DBSA to deliver on cancelled tenders worth R17bn

Transport Minister Fikile Mbalula and the SA National Roads Agency Limited (Sanral) board have reached an agreement with the Development Bank of Southern Africa (DBSA) to act as the infrastructure procurement and delivery management support agency on five strategic projects whose awards the board declined to approve in May.

The announcement follows the board’s media briefing in May in which it provided  “information and facts pertaining to our recent resolution not to approve the then intended awarding of five tenders collectively worth around R17-billion”.

In May, Mbalula said Sanral took the nation into confidence on the precautionary measures it applied when it declined to award a number of tenders as a result of lapses in the due process.

“The board of Sanral is bound by its fiduciary duties which, among others, enjoin it to act with fidelity, honesty, integrity and in the best interest of the company at all times.

“In appreciating the strategic nature of the affected projects and their importance in giving momentum to economic reconstruction and recovery, I have impressed on the board the need to move with speed in addressing the anomalies and award these tenders in a manner that is transparent and fair,” said Mbalula.

Mbalula added that he is pleased because the board has moved with the necessary speed to address the due process lapses, with a clear plan on how to finalise the award of the tenders within the shortest possible time.

Sanral board chairperson Themba Mhambi said it must be noted that the DBSA was not in any way involved in the design, cost estimation, and tender documentation stages of the call-ended tenders.

“This should reassure all interested parties and the public about the integrity and independence of the new procurement processes for the projects. DBSA’s profile and record in regard to matters of this nature speak for itself,” said Mhambi.

Sanral acting CEO Lehlohonolo Memeza said the scope of the services to be rendered by the DBSA includes the evaluation of compliance, technical and financial aspects of relevant tenders, as well as providing independent construction management oversight throughout the construction period of the projects emanating from the tenders.

Memeza added that all the procurement phases will be subjected to probity checks.

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