SANRAL response to Moneyweb on the cancellation of tenders

SANRAL response to Moneyweb on the cancellation of tenders

Pretoria 17 May 2022 – For the record, the tenders which Board did not approve the award thereof are the following:

  1. Mtentu Bridge: R3.428 billion
  2. R56 Matatiele rehabilitation: R1.057 billion
  3. Ashburton Interchange: R1.814 billion
  4. EB Cloete Interchange Improvements: R4.302 billion

The Open Road Tolling tender (TCH Operator) valued at R6.872 billion lapsed. The total value is R17.473 billion.

The tenders were cancelled due to a material irregularity in the tender process where a resolution made by the Board in January 2020 was not implemented in the evaluation of the said tenders.

It is common knowledge that for a proper governance environment to exist, Board decisions must be implemented by Management – unless, of course, the argument is about the legality of the Board decision in question. Any alternative to that will result in the breakdown of governance and indeed in chaos, something which SANRAL has hitherto avoided.

Also, Board’s decision was informed by the conclusion of the proactive assurance conducted by Internal Audit and Legal, both of which were bolstered by an external legal opinion.

No prudent Board would have allowed such awards to go ahead in the face of legal opinion and the conclusions reached by Internal Audit.

It is unfortunate that the cancellations will now delay the implementation of critical infrastructure projects. However, it cannot be said that governance procedures must be thrown out of the window because we are all now rushing implementation.