The South African National Roads Agency (Sanral) has suspended a R1.57 billion contract awarded to a Chinese joint venture, pending an investigation. The contract was for the improvement of a section of National Route 1.
Sanral reached an agreement with Hillary Construction, the second-lowest bidder, to suspend the contract. The investigation will look into allegations related to the evaluation, adjudication, and awarding of the tender.
Sanral said disputes can be expected in large tenders and that the investigation will be conducted quickly. The agency also noted that its procurement processes have multiple checks and balances to prevent irregularities.
Interestingly, the winning bidder, Base Major Construction, had its registration suspended by the Construction Industry Development Board (CIDB) at the time the contract was awarded. However, Sanral claims it followed proper procedures and that the bidder’s registration was active when the tender was evaluated.
The suspension of the contract has raised questions about Sanral’s procurement processes and the awarding of large tenders.