The South African National Roads Agency Limited (Sanral) has responded to allegations surrounding alleged procurement irregularities and a “R9.5-billion tender storm” at the roads agency.

In a media release, Sanral says the allegations of wrong practices in the procurement of routine road maintenance (RRM) contracts date back to 2013.

It acknowledges that the roads agency had been navigating historic irregular expenditure of about R9.5-billion linked to RRM contracts awarded between 2011/12 and 2018/19, but assures stakeholders that these matters have since been resolved, with full disclosure made publicly available in Sanral’s annual reports.

Despite these irregular expenditure figures, Sanral says it received an unqualified audit opinion during the period, since it was noted that no confirmed irregular expenditure was linked to fraudulent or criminal intent.

The agency says these matters predate the tenure of its current CEO Reginald Demana at Sanral, noting that he assumed the role of CEO on January 1, 2023.

Sanral says it has noted the interest that allegations of unlawful procurement practices in its supply chain management division have created.

The agency says these allegations initially arose from a whistleblowing report received from the Transport Minister’s office and referred to the new board for investigation on assuming office on March 1.

“The media interest is surfacing when the Sanral board had already embarked on investigations to determine the veracity of the allegations, with the allegations being the subject of investigations by Sanral’s Internal Audit Division, as well as an external law firm.

“The Sanral board is committed to open and transparent procurement and will implement recommendations and outcomes that emerge from the investigations,” Sanral says in the media release.

In addition, Sanral notes that it is currently going through the annual external audit of its business, including procurement, with the Auditor General of South Africa.

The roads agency says it encourages whistleblowing which is processed within applicable legal prescripts and takes such issues seriously.

“The organisation considers all serious allegations and where necessary, investigates them.

“Any officials (irrespective of seniority) found to have wilfully and/or negligently breached procurement prescripts, including through dishonesty and/or through collusion practices, will at the least be charged and subjected to disciplinary action.”

Sanral says there are ongoing reforms which are currently under way in its procurement environment under the leadership of the newly appointed board.

“Sanral is committed to dealing with the procurement challenges that the organisation has experienced in order to return it to an effective and efficient enabler of economic and social development through its road infrastructure projects.”