SANRAL Defends R53 Billion Tender Awards Amidst Media Scrutiny
Reginald Reg Demana SANRAL CEO
Pretoria, South Africa – The South African National Roads Agency Limited (SANRAL) has firmly defended its previously announced R53 billion tender awards, following a report that questioned the figure. SANRAL issued a press release on December 18, 2024, stating the total value of tenders awarded since the start of the financial year on April 1, 2024.
The agency has clarified that the R53 billion figure encompasses all work procured through various methods, including open tenders, requests for quotations (RFQs), procurement by other means, and procurement from a pre-approved list of bidders (panel).
A Breakdown of the R53 Billion
SANRAL has provided a breakdown of how the R53 billion was reached:
Open Tenders: These refer to advertised Requests for Proposals (RFPs) open to any bidder registered in South Africa, included in the National Treasury Central Database, and meeting the specified criteria. These tenders are advertised on the National Treasury e-Tender system, SANRAL’s website, and the Construction Industry Development Board’s (CIDB) website for construction projects. The total value of awards made through open tenders amounts to R51.7 billion.
Requests for Quotations (RFQs): This method involves issuing requests to a minimum of three bidders from the National Treasury Central Database for tenders below R1 million. The total value of awards made through RFQs is R293 million.
Procurement by Other Means: This includes sole source, urgent, and emergency procurement, which do not follow the open tender process. Instead, bidders are invited to submit proposals for specific work. Awards made through this method are not advertised on the e-Tender system or SANRAL’s website. The total value of awards through procurement by other means was R1.4 billion.
Procurement from a Pre-Approved List (Panel): This involves an open tender process to select a panel of bidders. Once a panel is appointed, requests for quotes are sent to the panel. These requests are also not advertised on the e-Tender system or SANRAL’s website. The total value of awards made through the panel system is R49 million.
These figures combined make up the total of R53 billion as previously stated.
Clarifying Misconceptions SANRAL has taken issue with a reporter’s claim that “open tenders and requests for quotes generally refer to tenders that have not yet been awarded”. SANRAL has stressed that all the cited tenders have been awarded. The reporter’s assertion was “far from the truth”, the agency said.
SANRAL also addressed the discrepancy between the R53 billion figure and the total value of awarded tenders published on its website. The agency explained that there are time gaps between the awarding of tenders and the uploading of data. Furthermore, SANRAL only publishes awards made through the open tender system (RFPs) on its website. Therefore, awards made through RFQs, the panel system, or by other means are not reflected on the website.
The agency said it is regrettable that some media outlets have published stories that have not been verified with SANRAL. SANRAL has met with the reporter to clarify its procurement terminology and procedures, and to explain the details of the R53 billion in tenders that have been awarded.