The South African National Roads Agency Limited (Sanral) has appointed the Development Bank of Southern Africa (DBSA) as an independent and lead adjudicating body after Sanral’s board declined the contracts for five strategic projects in May.

As such, the DBSA will act as the infrastructure procurement and delivery management support agency for Sanral as the entity works to finalise awarding of the five contracts, which are worth R17.4-billion.

Sanral declined the five contracts on the basis of “lapses in the due process”, says Transport Minister Fikile Mbalula, adding that Sanral’s board, through its oversight mechanism, identified the flouting of due process and moved with speed to act – withdrawing the five tenders to preserve the integrity thereof.

Sanral chairperson Themba Mhambi says the DBSA was, in no 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.”

“Turning a blind eye to what would have resulted in irregular expenditure and possible litigation that would have held up some of these projects in courts for years, would have amounted to dereliction of duty on the part of the board,” explains Mbalula.

At the same time, he has tasked Sanral’s board with moving as quick as possible to address any anomalies in its procurement and contract awarding process and award the five outstanding tenders in a manner that is transparent and fair.

“I am pleased that 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 these tenders within the shortest possible time,” states Mbalula.

Sanral is planning to finalise a procurement project inception meeting and develop a memorandum of agreement soon.

Following that, the project team will be mobilised and information will be gathered in July and August. There will be a review of bid specifications, the approval of bid specifications and advertisements. This will be followed by advertising the tenders, receiving of bids, their evaluation and adjudication.

Sanral will release the tender advertisements in July.

In September, there will be the submission of bid evaluation and adjudication report to Sanral, whose board will thereafter consider recommendations and will be followed by the awarding of the tenders.

ADDRESSING TIME LOST

However, in acknowledging that cancelling the tenders in May would set back the timeline in which the projects could be rolled out, Mhambi says Sanral is resolved to accelerate the required readvertisement and awarding of the tenders. “We therefore set ourselves a four-month deadline during which, we told the country, the tenders would be readvertised, evaluated, adjudicated and awarded.”

In addition, because of pervasive corruption and maladministration, he says Sanral was urged to err on the side of caution when awarding tenders. “The hard lesson we have learnt from this ordeal is to remain vigilant and stop creeping lawlessness, greed and corruption dead in its tracks.”

Mhambi states that Sanral’s reasons for cancelling the tenders in May revolve around the agency’s obligation to ensure proper corporate governance; the requirement to comply with internal controls; the responsibility to conduct procurement in line with legislative, regulatory and policy prescripts; and the need to enforce subcontracting aimed at small, medium and micro enterprise development, black economic empowerment, and transformation.

Sanral acting CEO Lehlohonolo Memeza says 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.

Going forward, the DBSA will, in the procurement phase of t...