World

Tenders worth R10.6 billion for giant bridge, roads scratched after ‘irregularity’

In the evaluation of the relevant tenders, a decision of the board of Sanral has not been implemented.

Gallo Images / Michael. D. Kock

  • Sanral’s board decided not to approve the award of four tenders valued at more than R10.6 billion over a “material irregularity” and another tender with a value of R6.8 billion expired.
  • One of the projects includes Mtentu Bridge, which would be one of the tallest bridges in Africa and one of the longest in the world.
  • The cancellations will delay the implementation of “critical” infrastructure projects, Sanral said.

The board of the South African National Road Agency (Sanral) decided not to approve the award of four tenders valued at R10.6 billion, over a “material irregularity.”

Another tender valued at R6.8 billion passed.

In a statement, Sanral noted that the cancellations delayed the implementation of “critical” infrastructure projects, but stressed that management procedures were important to keep.

“… It can not be said that administrative procedures should be thrown out the window because we are now all in a hurry to implement them,” the statement read.

The material irregularity in question has to do with a resolution passed by the board in January 2020, which was not implemented in the evaluation of the tenders.

“It is common knowledge that for the existence of a good governance environment, governance decisions must be executed by management – unless, of course, the argument is about the legality of the relevant governance decision.

“Any alternative to this will result in a breach of government and indeed in chaos, something that Sanral has avoided so far,” the statement read.

The board’s decision to cancel the tender prices was informed by an internal insurance process and an external legal advice.

“No prudent board would have allowed such prices to go forward in the face of legal opinion and the conclusions drawn by internal control,” Sanral said.

Among the tenders that were not awarded included the Mtentu Bridge project, valued at about R3.4 billion, which is part of the N2 Wild Coast Road Project – aimed at connecting four provinces; Western Cape, Eastern Cape, KwaZulu-Natal and Mpumalanga. The bridge, once completed, is set to become one of the tallest bridges in Africa and one of the longest in the world once completed, Sanral said earlier.

Other tenders include the Ashburton Interchange on the N3 (R1.8 billion), rehabilitation of the R56 Matatiele (R1.057 billion) and improvements to the EB Cloete Interchange (R4.302 billion).

The tender for Open Road Tolling, valued at R6.8 billion, has expired.

Earlier on Wednesday, Transport Minister Fikile Mbalula submitted his department’s budget vote to parliament. The transfer to Sanral accounts for about a third (33.5%) of the department’s budget in the medium term.

The bulk of this allocated amount (59.3%) or R45.3 billion is intended for non-toll road upgrades and redevelopment. The N2 Wild Coast Project is allocated R3.7 billion and R2.1 billion is directed to the Gauteng freeway improvement project to fund reduced projects.

Tenders worth R10.6 billion for giant bridge, roads scratched after ‘irregularity’

Source link Tenders worth R10.6 billion for giant bridge, roads scratched after ‘irregularity’

Back to top button