The SA National Roads Agency (Sanral) has persuaded the Development Bank of Southern Africa (DBSA) to oversee road improvement and construction projects valued at about R17bn that are crucial to support economic growth.
The agency halted at least five projects earlier this year due to “a material irregularity in the tender process”, including violation of internal control measures meant to prevent collusion.
The affected projects include improvements to the EB Cloete interchange connecting the N2 and N3 near Durban in KwaZulu-Natal, at an expected cost of R4.3bn, and the R3.4bn Mtentu River bridge project near Lundini in the Eastern Cape. On completion the bridge will be one of the highest in Africa and among the longest in the world.
While the cancellation of the tenders indicate the government is taking a firmer stance against corruption in public procurement, it also affected construction companies that had already invested heavily to submit bids and commence work.
The tenders have been re-advertised and Sanral says it has reached an agreement with the DBSA, the state-owned development finance institution, to manage infrastructure procurement and delivery.
Sanral chairperson Themba Mhambi said on Thursday that the DBSA was not in any way involved in the design, cost estimates and documentation 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. DBSA’s profile and record in regard to matters of this nature speaks for itself,” Mhambi said.
Sanral acting CEO Lehlohonolo Memeza said the DBSA’s services include the evaluation of compliance, technical and financial aspects of relevant tenders, as well as providing independent construction management oversight of the projects.
The procurement phase of the identified projects includes a review of tender documents before inviting bids; submission of the tender documents for relevant approval; the invitation of bids, the management and handling of tender briefing sessions, the opening and recording of bids received, evaluation of bids, risk analysis, recommendation of bidders for appointment, and awarding of the tenders.
Sanral said a bid evaluation and adjudication report will be ready in September, and the awarding of the tenders will follow soon thereafter.
“Once the tenders are awarded and Sanral’s project managers and consultants begin to supervise contractor performance and project delivery, the DBSA’s role will change to project oversight on behalf of the board, with regular reporting to the board,” Memeza said.
The procurement and implementation plan for the 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”.
Transport minister Fikile Mbalula again defended Sanral’s decision to halt the projects, saying turning a blind eye to what would have resulted in irregular expenditure and possible litigation, “would have amounted to dereliction of duty on the part of the board.
“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,” Mbalula said.
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