DA demands the real reasons for the cancellation of SANRAL projects worth R17 billion

Issued by Tim Brauteseth MP – National Council of Provinces (NCOP) Spokesperson for Public Works, Transport, Public Service and Administration
20 May 2022 in News

The DA has written to the acting CEO of SANRAL, Lehlohonolo Memeza, to demand the reasons for the cancellation of road projects due to begin shortly in various locations including KwaZulu-Natal and the Eastern Cape.

These contracts, worth over R17 billion, were awarded to effect essential work on the Mtentu River Bridge (R3.4 billion), The EB Cloete N3 interchange in Durban (R4.3 billion), the N3 Ashburton interchange in Pietermaritzburg (R1.8 billion) and the R56 in Matatiele, amongst others.

A spokesperson for SANRAL defended the decision citing a ‘material irregularity’ in the tender process and a failure to implement a ‘board resolution’ from 2020.

This cancellation decision create a crisis for the construction industry and the recovery of the South African economy. The tenders involved are instrumental to the survival of the construction industry and become a lost opportunity cost.

Not only are local companies affected, but the international partners involve will now view any project in South Africa with great scepticism.

SANRAL must urgently answer the following questions:

  • What is the material irregularity discovered at the 11th hour and why was it not detected in the bid evaluation and adjudication processes?
  • What is the resolution of the SANRAL board that was not complied with that is so serious to cause the cancellation of these contracts?

Until these reasons are revealed, uncertainty in the road construction industry will continue to the detriment of the infrastructure and credibility of our country.

The DA will always fight for transparency in government function and will not rest until this situation is resolved.