Sanral’s Tenders: A Matter of Clarification
The South African National Roads Agency (Sanral) recently made headlines with its announcement that it had awarded tenders worth R53 billion in its financial year to date. However, a closer examination of the information provided by Sanral has raised questions about the accuracy of this claim.
Clarification from Sanral
Sanral CEO Reginald Demana issued a statement on 18 December 2024, stating that the agency had awarded R53 billion worth of tenders across the country since the start of the current financial year on 1 April 2024. However, Sanral spokesperson Vusi Mona clarified that the R53 billion figure represents the total value of tenders awarded, including those that have not yet been finalized.
“The total value of R53 billion comes from the award value of Sanral tenders, whether it is open tenders, request for quotes (RFQs), or procurement by other means,” Mona explained.
Open Tenders and RFQs
Mona also clarified that the R53 billion figure includes open tenders and RFQs that have not yet been awarded. Open tenders and RFQs are typically considered “live” tenders that are still in the process of being evaluated or negotiated.
This clarification has significant implications for the accuracy of Sanral’s initial statement. Analysts have questioned whether the R53 billion figure is inflated, and whether Sanral has been overly optimistic in its claims.
Recent Tenders Awarded
Despite the controversy surrounding Sanral’s tender awards, the agency has recently awarded several high-value tenders. These include a R1.235 billion award to Jodan Construction for the improvement of national road R516 section 1, as well as a R3.3 billion award to WBHO Construction for the improvement of national route N2 section 34.
Sanral’s CEO, Reginald Demana, has hailed the latest update on tenders awarded as a “major boost” for the road construction industry. However, some analysts have questioned whether Sanral is meeting its own targets for tender awards.
Sanral’s Performance
Peregrine Capital executive chair David Fraser has expressed concerns about Sanral’s performance in awarding tenders. He noted that the agency has consistently failed to meet its own targets, despite having the required funding.
Fraser emphasized the importance of Sanral’s role in stimulating economic growth and job creation, particularly in rural regions where most of the roads are being constructed. He argued that the agency must sort out its internal bottlenecks and get back to delivering on its mandate.
Implications for the Economy
The controversy surrounding Sanral’s tender awards has significant implications for the South African economy. The agency’s failure to meet its targets has raised concerns about the effectiveness of its procurement processes and the impact on the construction industry.
Fraser emphasized the importance of creating employment opportunities for South Africans, particularly in the wake of the recent announcement of the closing of ArcelorMittal Newcastle and the potential loss of 3 500 jobs.
Conclusion
The controversy surrounding Sanral’s tender awards highlights the need for transparency and accountability in the agency’s procurement processes. While Sanral’s CEO has hailed the latest update on tenders awarded as a “major boost” for the road construction industry, analysts have questioned the accuracy of the agency’s claims.
As the South African economy continues to grapple with the challenges of unemployment and economic growth, the performance of Sanral and its tender awards will be closely watched.
