Sanral flags flawed bid

CHINA JV: AGENCY ADMITS TO IRREGULARITIES IN R1.57BN TENDER AWARD

- Roy Cokayne

CRASHED. Sanral wants to start the tender award process afresh. That certain individuals chose to bypass its internal whistle-blower protection mechanisms 'speaks volumes'. Picture: Shutterstock

(Shutterstock)

The award by the South African National Roads Agency (Sanral) of the R1.57 billion Masekwaspoort tender to a Chinese joint venture (JV) was marred by a host of irregularities that undermined the lawfulness, rationality and fairness of the procurement process, Sanral chair Themba Mhambi said in court papers.

He also confirmed that on 22 November last year, an initial regional bid evaluation committee recommendation that the Base Major-China State Construction Engineering Corporation (CSCEC) JV be awarded the tender had "inexplicably" again been placed before the bid adjudication committee without the revised bid evaluation committee recommendation, due diligence report, legal assurance report or draft audit report.

The revised bid evaluation committee recommendation was that the tender should be awarded to Hillary Construction, the next highest responsive bidder, because the Base Major-CSCEC JV "failed to submit any past performance experience of its own and is therefore non-responsive".

The Base Major-CSCEC JV submitted six projects to demonstrate completion of projects of a specified value and scope.

But, said Mhambi, none of the projects relied on by CSCEC SA were completed by the SA entity itself. The experience pertained "to related but distinct entities being CSCEC Middle East and CSCEC China".

Mhambi added that following the initial regional bid evaluation committee recommendation, the management bid adjudication committee declined to make a final recommendation in the absence of key assurance reports.

"These assurance reports, once completed, raised significant concerns about the JV's responsiveness and capacity," he said.