Question NW2957 to the Minister of Transport
11 October 2023 - NW2957
Tito, Ms LF to ask the Minister of Transport
Whether she is aware that the SA National Roads Agency SOC Ltd awarded a R4,7 billion tender to a certain company (name furnished) whose directors are charged with fraud; if not, why not; if so, what are the relevant details?
Reply:
The Department has confirmed that SANRAL is aware of the allegations Aqua Transport and Plant Hire (‘Aqua’) is facing.
However, according to information at SANRAL’s disposal, Aqua is neither blacklisted nor restricted on the National Treasury’s Central Supplier Database and, as such, the company is not prohibited from doing business with government and/or its entities. Aqua is also not a blacklisted/restricted service provider on SANRAL’s database.
Aqua also provided all statutory information and secretarial information for a bidder which is in good standing with the relevant regulatory bodies. In the light of the above, there was no legal issue which prevented SANRAL from awarding the contract SANRAL N.003-010-2017/9: National Route 3 Section 1 from the Westville Viaduct (km 11.80) to Paradise Valley Interchange (km 17.54), in tendered amount of R4 726 396 217.26, to the Aqua/EXR joint venture as it was the highest scoring bidder in the evaluation and adjudication.
In consideration of the issues surrounding Aqua, SANRAL sought external legal advice to determine if there were any legal impediments to making the award in line with the tender outcome. Legal advice indicated that under South African law, Aqua directors are considered innocent until proven guilty in a court of law, and as such SANRAL was legally duty bound to award the tender to the Aqua/EXR joint venture as the highest scoring bidder.
To mitigate any possible risk down the line SANRAL has, however, built in an award provision that should the company’s directors be found guilty in a court of law, SANRAL reserves the right to terminate the contract.
The Department shall also monitor the developments and any future Court Rulings, with regards, Aqua and ensure that SANRAL complies with implementing the laws.