The South African National Roads Agency (Sanral) has revealed irregularities in the adjudication process of the R1.57 billion Masekwaspoort tender awarded to the Chinese Base Major Construction-CSCEC joint venture (JV). As a result, the agency plans to apply to the High Court to review and potentially set aside the tender award, according to industry sources.
Sanral initiated its investigation in February 2025, following an agreement with Hillary Construction, the second-lowest bidder, after the latter sought a court order to halt the implementation of the contract.
Findings of the Investigation
While Sanral confirmed the completion of its investigation, it has remained tight-lipped about the findings, citing confidentiality. Media relations manager Lwando Mahlasela stated that details will not be shared with third parties at this time, but that actions arising from the investigation will be made public during forthcoming court proceedings.
The investigation was prompted by allegations from Hillary Construction regarding the evaluation and awarding of the tender. Following the launch of the investigation, Sanral suspended the contract’s implementation until the inquiry concluded.
Background on the Tender
The Masekwaspoort project involves improvements to a section of National Route 1 in Limpopo and was awarded to the Base Major Construction-CSCEC JV on November 27, 2024. However, the Construction Industry Development Board (CIDB) had suspended Base Major Construction’s registration prior to the award due to failure to submit an annual update, which was later resolved.
Hillary Construction’s urgent application in the High Court aimed to prevent the JV from commencing work until the review of the contract award was finalized. The court ordered that this application be addressed, leading to the current situation where Sanral seeks to review the tender award.
Broader Implications
Sanral’s announcement highlights the ongoing complexities and challenges within the South African tendering process, particularly in the context of multi-billion rand contracts. The agency emphasized its commitment to legality, transparency, and fairness in its procurement processes.
As the situation unfolds, industry observers will be closely watching the developments surrounding the Masekwaspoort tender and the implications for future contracts. Sanral’s full-year results and any potential legal outcomes will be critical in shaping the agency’s operational landscape moving forward.