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    SANRAL Reponses 1 PDF

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    Leila Dougan
    SANRAL roped in the DBSA to oversee bids and tenders for five strategic projects after lapses were identified in SANRAL's initial procurement process. The DBSA was not involved in designing, estimating costs, or documenting the tenders. Its role included evaluating compliance, technical, and financial aspects of tenders, as well as providing independent construction oversight. SANRAL will use its project management procedures and oversight from DBSA and its own team to ensure the successful and timely completion of the project, as well as timely payment of suppliers within 30 days to avoid liquidity issues.

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    SANRAL Reponses 1 PDF

    Uploaded by

    Leila Dougan
    63K views2 pages
    SANRAL roped in the DBSA to oversee bids and tenders for five strategic projects after lapses were identified in SANRAL's initial procurement process. The DBSA was not involved in designing, estimating costs, or documenting the tenders. Its role included evaluating compliance, technical, and financial aspects of tenders, as well as providing independent construction oversight. SANRAL will use its project management procedures and oversight from DBSA and its own team to ensure the successful and timely completion of the project, as well as timely payment of suppliers within 30 days to avoid liquidity issues.

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    SANRAL Reponses 1 PDF

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    SANRAL roped in the DBSA to oversee bids and tenders for five strategic projects after lapses were identified in SANRAL's initial procurement process. The DBSA was not involved in designing, estimating costs, or documenting the tenders. Its role included evaluating compliance, technical, and financial aspects of tenders, as well as providing independent construction oversight. SANRAL will use its project management procedures and oversight from DBSA and its own team to ensure the successful and timely completion of the project, as well as timely payment of suppliers within 30 days to avoid liquidity issues.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    63K views2 pages

    SANRAL Reponses 1 PDF

    Uploaded by

    Leila Dougan
    SANRAL roped in the DBSA to oversee bids and tenders for five strategic projects after lapses were identified in SANRAL's initial procurement process. The DBSA was not involved in designing, estimating costs, or documenting the tenders. Its role included evaluating compliance, technical, and financial aspects of tenders, as well as providing independent construction oversight. SANRAL will use its project management procedures and oversight from DBSA and its own team to ensure the successful and timely completion of the project, as well as timely payment of suppliers within 30 days to avoid liquidity issues.

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    SANRAL RESPONSES TO DAILY MAVERICK

    1] Could SANRAL kindly indicate why it decided to appoint the CCCC-MECSA JV, despite what appears to
    be very clear warning signs contained in that DBSA BEC report? Is SANRAL saHsfied or confident that
    the CCCC-MECSA JV will be able to successfully conclude this project without running into dire financial
    difficulHes?

    SANRAL approved the appointment of CCCC-MECSA based on the recommendaCon made by DBSA BAC
    aFer following the procurement prescripts. SANRAL also based its decision on the SANRAL and DBSA
    Internal Audit and Legal proacCve assurance reports. At any rate, SANRAL makes its decisions based on
    informaCon at its disposal at the Cme the tender is evaluated and adjudicated.

    SANRAL has proper project management throughout the implementaCon of the project to ensure its
    success. In addiCon to the SANRAL project management team, DBSA has also been appointed to
    provide project management oversight.

    2] Another concern, as highlighted in the DBSA report, involves the number of days, on average, that the
    CCCC takes to seOle its invoices/bills from sub-contractors or service providers. The report shows that the
    CCCC in 2021 took a full seven months to seOle such bills. If they conHnue this trend while execuHng the
    Mtentu Bridge project, the JV’s South African sub-contractors and service providers will no doubt face
    severe liquidity issues if the JV does take that long to seOle their invoices. Does this not concern SANRAL?
    How will SANRAL ensure that South African suppliers/sub-contractors are not disadvantaged in such a
    way?

    As indicated above, the SANRAL project management team working with DBSA, will use the risk
    assessment results to manage the delivery of the project adequately and appropriately Moreover,
    SANRAL has its own Project Management standard operaCng procedures, which ensures that
    contractors perform in accordance with the signed contract. Specifically, SANRAL pays its suppliers
    and contractors within 30 days from receipt of an invoice and ensures that subcontractors are also
    paid within the same Cmelines. Any default by a contractor will be managed through contractual
    provisions.

    3] Could SANRAL describe what the DBSA’s role was in these tender processes? Why did SANRAL rope in
    the DBSA to oversee these bids/tenders?

    On 30 June 2022, the Minister of Transport, Fikile Mbalula, and the SANRAL Board announced that
    an agreement had been reached with the Development Bank of Southern Africa (DBSA) to act as
    the infrastructure procurement and delivery management support agency on the five strategic
    projects whose awards the Board had declined to approve. There had been lapses in the iniCal
    procurement process that was carried out by SANRAL and hence the DBSA was approached to
    carry to manage the process.

    The SANRAL Board Chairperson, Mr Themba Mhambi, at that Cme said: “It must be noted that the
    DBSA was not in any way involved in the design, cost esCmaCon and tender documentaCon stages
    of the cancelled tenders. This should reassure all interested parCes and the public about the
    integrity and independence of the new procurement processes for the projects. DBSA’s profile and
    record in regard to ma[ers of this nature speaks for itself.”

    The scope of the services to be rendered by the DBSA included the evaluaCon of compliance,
    technical and financial aspects of relevant tenders, as well as providing independent construcCon
    management oversight throughout the construcCon period of the projects emanaCng from the
    tenders.
    The procurement phase of the idenCfied projects was characterised by, inter alia, the following key
    stages or acCviCes, the establishment of the required team, a review of tender documents prior to
    the invitaCon of bids, submission of the tender documents for relevant approval, the invitaCon of
    bids, the management and handling of tender briefing sessions, the opening and recording of bids
    received, the determinaCon of the completeness or incompleteness of the bids, the determinaCon
    of the responsiveness of the bids, the evaluaCon of the bids, risk analysis, development of bid
    evaluaCon and adjudicaCon reports, recommendaCon of bidders for appointment, and awarding
    of the tenders. All the above procurement phases were subjected to probity checks.

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