DBSA to handle 'irregular' R17.5 billion tenders on behalf of Sanral

Last month the Sanral board cancelled tenders amounting to R17.5 billion citing irregularities during a procurement process that commenced in 2020.

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JOHANNESBURG - The Development Bank of Southern Africa has been appointed to handle a multi-billion tender procurement project on behalf of the South African National Roads Agency (Sanral).

Last month, the Sanral board cancelled tenders amounting to R17.5 billion citing irregularities during a procurement process that commenced in 2020.

The board also announced that another public entity would be roped in to handle the procurement process after discovering lapses during the Sanral process.

Speaking during a media briefing in centurion on Thursday, transport minister Fikile Mbalula hailed the development as part of efforts to prevent further incidents of state capture.

The process to appoint contractors for various road infrastructure projects around the country was expected to be concluded by December last year.

However, this deadline has been pushed forward to September this year owing to the failure of Sanral officials to adhere to processes aimed at curbing corruption.

"The design consultant was also involved in the evaluation of the bids. The second one is that we had instances where a bidder should have been disqualified [but that bidder was not disqualified," said Sanral board chairperson Themba Mhambi.

A new project team, tasked will handling the new procurement process, is expected to be appointed between July and August this year.

New tenders will only be advertised after the appointment of the project team.

Moreover, contractors are likely to be appointed in September with construction expected to begin in October.