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Business Management analysis

Business people express anger after dodgy tenders are cancelled

The cancellation of dodgy tenders has angered some business people who are now thinking about heading to court. 

This week, Sanral announced the cancellation of tenders on some of the country’s mega infrastructural projects including the R3.4bn Mtentu bridge in Mbizana.

The R1bn tender to rehabilitate the R56 road in Matatiele was also cancelled.

President Cyril Ramaphosa visited some infrastructural projects in the Mpondoland area in September last year, including the R1.65bn Msikaba bridge project in rural Lusikisiki.

The president at the time said the project to construct the two bridges was enormous. It would create about 8,000 permanent jobs, and between 21,000 to 28,000 indirect jobs during construction.

When completed, the bridge will connect Durban and East London via the proposed Wild Coast tollway.

The cancellation of the Eastern Cape tenders means thousands of jobs have been effectively put on hold.

The office of the premier said the cancellation of the Mtentu tender was “quite disappointing”.

Mbizana businessman Dr Ntsizakalo Ngalo said over 50 small business owners will be adversely affected by the cancellation.

“We are going to take Sanral to court because they are taking people for granted.

“I was one of the people who facilitated and mediated when there were disputes over the construction of the Mtentu bridge.

“Small businesses have no capacity to borrow money.

Sub-contractors were ready to start working on the project.

“They bought the material and equipment.

“The cancellation means they are going to suffer severe financial loss,” Ngalo said.

Chief Sonwabile Jama from the nearby Kukhanyayo locality said they were not happy with Sanral’s conduct.


Content created and supplied by: Dizaldo (via Opera News )

Cyril Ramaphosa Durban East London Eastern Cape Msikaba


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