Statement delivered by the Minister of Transport, Mr Fikile Mbalula, on the occasion of a media briefing on sanral tenders held at Midrand on 30 June 2022 at 10h00
30 June 2022
On 23 May 2022, SANRAL took the nation into confidence on the precautionary measures it took, when it declined to award a number of tenders as a result of lapses in the due process. The Board of SANRAL is bound by its fiduciary duties which, amongst others, enjoin it to act with fidelity, honesty, integrity and in the best interest of the company at all times.
Turning a blind eye to what would have resulted in irregular expenditure and possible litigation, that would have held up some of these projects in courts for years, would have amounted to dereliction of duty on the part of the Board.
In appreciating the strategic nature of the affected projects and their importance in giving momentum to economic reconstruction and recovery, I have impressed on the Board the need to move with speed in addressing the anomalies and award these tenders in a manner that is transparent and fair.
I am pleased that the Board has moved with the necessary speed to address the due process lapses, with a clear plan on how to finalise the award of these tenders within the shortest possible time.
We have traversed a hard road in the aftermath of the state capture and irregular award of tenders in some of our entities, and acts of downright malfeasance in others, which include PRASA and ACSA. The efforts to restore the integrity of our institutions and rebuild the hollowed-out capacity has been painstaking at best.
The hard lesson we have learnt from this ordeal is to remain vigilant and stop creeping lawlessness, greed and corruption dead on its tracks.
Our electoral mandate is premised on a commitment that we will forge ahead on our march to a better South Africa through service delivery that is responsive to the needs and aspirations of our people. We are under no illusion that the road ahead requires us to be resolute and give practical expression to accelerated service delivery.
Our efforts to eliminate fruitless and wasteful expenditure and reduce irregular expenditure require of us and all our entities to put in place early warning system to detect and regularize actions that may otherwise result in irregular expenditure or costly litigation.
The Board, through its oversight mechanism, identified the flouting of due process and moved with speed to act, in order to preserve the integrity of the tenders. Good governance is a cornerstone of efficient service delivery and for that reason, we will always keep governance on our radar and expect quarterly reports to include governance by of our entities.
In appreciating the importance of the projects affected by the non-award of the tenders, SANRAL has taken steps to ensure that we move with speed in addressing the lapses and reach the point of award speedily.
In conclusion, the King IV Code on Corporate Governance is applicable to SANRAL like all other state- owned public entities listed in Schedules 2 and 3 of the PFMA. In internalizing the principles outlined in the SOE Sector Supplement of the Code, the Board as an accounting authority, must serve as a focal point and custodian of corporate governance at SANRAL.
The Chairperson of the SANRAL Board, Mr Themba Mhambi will present a detailed briefing on the steps SANRAL has taken to ensure that we reach the point of award of the tenders.
I thank you.
Issued by Department of Transport, 30 June 2022
