NATIONAL NEWS - The South African National Roads Agency SOC Limited (SANRAL) will return to an open tender procurement process for routine road maintenance and engineering consultancy services after court rulings found its contractor panel system to be unlawful and unconstitutional.
SANRAL Chief Executive Officer Reginald Demana announced the decision during a media briefing in Centurion on Tuesday, where he addressed the agency's procurement challenges, including allegations of corruption, ongoing litigation and the issues that have placed SANRAL's procurement processes under public scrutiny.
Open tender process to begin immediately
Demana confirmed that SANRAL will launch a new round of open tenders without delay to ensure continuity in road maintenance projects across South Africa.
"The incumbent contractors remain in place until 30 November 2026, and SANRAL must ensure uninterrupted road maintenance during the transition. All panel appointments have fallen away and no work may be allocated under the set-aside tender," he said.
The agency plans to issue the new tenders in phases over the coming days.
"We have prepared the tender packs, and we are running a live proactive internal assurance process. In the Western Cape and Northern Cape, a limited number of tenders have already been issued, signalling our intention to move with speed," Demana explained.
He added that, under the settlement agreement relating to the routine road maintenance contractor panel, SANRAL is required to complete contractor appointments by the end of November 2026.
"Should it become necessary, we will return to court to request an extension."
Court rulings reshape SANRAL's procurement strategy
The decision follows a series of legal setbacks for the agency.
Earlier this year, the High Court in Pretoria ruled that SANRAL's decision to award routine road maintenance contracts to a panel of 20 companies was unconstitutional and unlawful after construction firms BCB Solutions (Pty) Ltd and Botle Ba Afrika Roads (Pty) Ltd successfully challenged the procurement process.
In a separate matter last month, the appointment of a Category 2 panel of engineering consultants was also declared unlawful because of irregularities in the tender adjudication process.
The panel had been established to provide engineering consultancy services for periodic maintenance, strengthening projects and other specialised road infrastructure work.
Demana said SANRAL currently has no existing service providers for these engineering consultancy services, meaning no contract extensions are required while a new procurement process is undertaken.
Lessons learned from the panel system
According to Demana, the litigation has prompted SANRAL to reassess both its procurement model and its internal processes.
"We have learned important lessons from the two panel litigation matters," he said.
"Internally, we needed more time to prepare for this change in our core business operating model and to align our management processes and systems accordingly."
He also acknowledged the wider impact on the construction industry.
"Externally, we needed to better understand the socio-economic impact on service providers, some of whom may have been established primarily to work with SANRAL and who would have been affected by not being included in five-year contractor panels."
Why SANRAL introduced contractor panels
Before introducing the panel system, SANRAL managed routine road maintenance through approximately 251 contractors.
Following recommendations from its Supply Chain Management division, the agency decided to reduce that number to 20 contractors, believing that a smaller panel would simplify procurement, improve efficiency and make contract management less complex.
The proposal was viewed as one of the key advantages of the panel procurement model.
During the tender process, SANRAL received approximately 401 bids, from which 20 companies were recommended for appointment.
Focus shifts to transparent procurement
Demana said SANRAL will now proceed with open competitive tenders while working to meet the deadlines set out in the court orders.
The agency's decision marks a significant shift in procurement policy and is expected to affect road maintenance contracts and engineering consultancy appointments across South Africa as SANRAL seeks to restore confidence in its procurement processes while ensuring that essential road maintenance continues without interruption.
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