Sanral scraps panel procurement system after court ruling

The South African National Roads Agency (Sanral) has abandoned its panel system for procuring services from contractors for routine road maintenance (RRM) and engineering consultants, reverting to using an open tender process. Outgoing Sanral CEO Reginald Demana announced this on Tuesday and said the agency has already started the process to procure these services through an open tender process. The decision follows last week’s Pretoria High Court ruling declaring the tender award that reduced the number of RRM contractors from 340 to 20 unconstitutional and unlawful.

The court reviewed and set aside the award following legal challenges by Botle Ba Africa Roads and BCB Solutions. Judge Anthony Millar ordered Sanral to procure future RRM services through an open tender process, which shall be evaluated on both functionality and the preference points system. He also ordered that the incumbent contractors may remain in place until 30 November, unless Sanral requires and approaches the court for an extension at least five days before the deadline.

In June, Sanral’s engineering consultants panel award was also declared unlawful because of irregularities in the tender adjudication process, following legal challenges by Zutari and Lathiso. There are currently no existing service providers for this service and no extensions were therefore required. Demana said that given the irregularities identified, Sanral accepted that the procurement processes were indefensible and proposed to the court and the parties that the tenders be declared constitutionally invalid, reviewed and set aside.

He said this would allow fresh tenders to be issued while ensuring national road maintenance continues uninterrupted. ‘New’ tender process Demana said the new open tender process must be designed and launched without delay, and Sanral has already prepared the tender packs and is running a live proactive internal assurance process. It will be issuing tenders in batches in the coming days.

A limited number of tenders have already been issued in the Western Cape and Northern Cape – “signalling our intention to move with speed.” Demana said it is not Sanral’s intention to go back to court to request an extension to the 30 November deadline. Demana said the procurement lapses and breaches in the RRM tender included that: Tenders were not opened at the tender box about one hour after closing…