Critical state-owned company in South Africa hits reset after R9.5 billion blowback

• The South African National Roads Agency (SANRAL) is returning to an open tender process for routine road maintenance and engineering consultancy services after the High Court deemed its system for a R9.5 billion tender unlawful and unconstitutional.
• The agency previously consolidated road maintenance work by awarding contracts to a smaller panel of 20 companies, but two construction firms successfully contested this decision in court, citing irregularities in the tender adjudication process.
• SANRAL will issue new open tenders in batches, with existing contractors remaining on board until the end of November to ensure continuous road maintenance during the transition, and the agency has acknowledged the need for improved internal preparations when changing its core operating model.