Should the company be found guilty of fraud, Sanral will terminate the R4.7 billion contract

When the South African National Roads Agency (Sanral) granted Aqua Transport and Plant Hire a contract worth R4.7 billion to renovate a section of the N3 highway, they were fully cognisant of the fraud allegations levelled against the company’s directors.

The South African minister, Sindisiwe Chikunga said a provision had been built to terminate the contract should the company’s directors be found guilty. In response to parliamentary questions from EFF MP Lorato Florence Tito, she said: “The Department has confirmed that Sanral is aware of the allegations Aqua Transport and Plant Hire is facing.”

Chikunga added that according to information at Sanral’s disposal, Aqua is neither blacklisted nor restricted on the National Treasury’s Central Supplier Database and, as such, the company is not prohibited from doing business with government and/or its entities.

“The Department shall also monitor the developments and any future Court Rulings, with regards, Aqua and ensure that Sanral complies with implementing the laws,” – she said.

Chikunga also confirmed that Aqua Transport and Plant Hire is not on Sanral’s list of blacklisted or restricted service providers.

According to Minister of Transport Sindisiwe Chikunga, there were no legal barriers to awarding the R4.7 billion contract to Aqua Transport and Plant Hire. The company was chosen as the recipient of the contract because it scored the highest among bidders. This contract entails the renovation of a 6km stretch of the N3 highway, extending from the Westville Viaduct to the Paradise Valley Interchange.

Chikunga mentioned that Sanral sought external legal counsel to assess any potential legal consequences associated with awarding the contract to Aqua Transport and Plant Hire. The legal advice indicated that, in accordance with South African law, the directors of Aqua Transport and Plant Hire are considered innocent until proven guilty in a court of law. Therefore, Sanral had a legal obligation to grant the tender to the Aqua/EXR joint venture as the highest-scoring bidder. However, should the company’s directors be found guilty of the charges against them, Sanral retains the right to terminate the contract.

The directors of Aqua Transport and Plant Hire have been accused of defrauding the KwaZulu-Natal Department of Transport of over R1.5 billion, and the company faces several allegations of irregularities in its public sector contracts.

The substantial road upgrades are expected to take approximately 51 months to complete, and motorists using that segment of the N3 Highway should anticipate delays during this period. Construction commenced in early September, and Ravi Ronny, Sanral’s director of design and construction, outlined the various upgrades to be undertaken:

Increasing the number of lanes from four to six in each direction.

Upgrading the Westville and Paradise Valley interchanges.

Enhancing overpasses on the highway section.

Upgrading around 1.5km of the M13, which crosses over the N3.

Improving the local road network.

The N3 is known for heavy traffic, particularly with respect to heavy freight transport, which could result in significant congestion during the roadworks. Ronny also outlined several measures to assist motorists during the upgrade process:

Maintaining three open lanes in each direction throughout the upgrade period.

Allowing one lane to remain open at each interchange.

Upgrading several M-roads, including the M1, M5, M7, and M19, to accommodate diverted traffic.