The South African National Roads Agency (Sanral) finds itself in the midst of controversy as it defends its decision to award a substantial R4.7 billion contract to Aqua Transport and Plant Hire, a KwaZulu-Natal company whose directors are currently facing fraud charges. Sanral argues that it was legally obliged to grant this contract to Aqua, as the company had submitted the highest-scoring bid for the project.
Aqua Transport and Plant Hire commenced construction on a critical 6km section of the N3, stretching from the Westville viaduct to the Paradise Valley interchange, just last week. However, this move has drawn attention due to Aqua’s history of irregularities within the public sector and the ongoing legal proceedings against its directors regarding an alleged R1.6 million fraud case involving the KwaZulu-Natal Department of Transport. The charges stem from allegations of inflating plant hire hours during the upgrading of a Nongoma road between 2010 and 2013, with the trial taking place in the KwaZulu-Natal High Court in Pietermaritzburg. Notably, the accused directors include Elaine and Vasuthevan Naicker.
Responding to these concerns, Vusi Mona, a spokesperson for Sanral, affirmed the agency’s awareness of the allegations against Aqua Transport and Plant Hire. He clarified that, based on the available information, Aqua was not blacklisted on the National Treasury’s Central Supplier Database, and thus, there were no legal restrictions preventing the company from engaging in government contracts. According to Mona, Aqua had submitted all the required statutory information and was in compliance with relevant regulatory bodies. Furthermore, Aqua had secured its position as the highest-scoring bidder during the tender evaluation process, solidifying Sanral’s legal obligation to award them the contract.
Mona emphasized that the contract contains a provision allowing Sanral to terminate it should the directors of Aqua Transport and Plant Hire be found guilty of the ongoing fraud charges. This measure underscores Sanral’s commitment to ensuring accountability and protecting public funds.
It’s worth noting that the National Treasury’s supplier blacklist is relatively short, having added only 180 firms and individuals since 1994. Despite its past encounters with impropriety, Aqua is not currently listed as a restricted supplier. Earlier this year, an Eskom preliminary investigation revealed that the Naicker directors had colluded with a company owned by their son in securing contracts at the Majuba power station. Additionally, Aqua had previously colluded with another family-owned company in tendering for work with Johannesburg’s waste disposal agency, Pikitup. This led Pikitup to express its intent to request Aqua’s blacklisting from the Treasury. Pikitup also reported the matter to the Competition Commission, which subsequently referred both companies to the Competition Tribunal for prosecution.
In November 2018, the Public Protector, Busisiwe Mkhwebane, recommended action be taken against Aqua in relation to another Pikitup contract for plant and equipment hire, as it had allegedly been improperly extended. This history of questionable dealings has raised concerns about Aqua’s suitability for government contracts, prompting ongoing scrutiny and debate.
