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Sanral spent R3.3bn irregularly, says AG

The South African National Roads Agency Limited (Sanral) incurred R3.3 billion of irregular expenditure in the year to March, according to the auditor-general. In Sanral’s latest annual report published on its website, a report by the auditor-general said the spending was irregular because of deviations from supply chain management processes laid down in the Public Finance Management Act and Treasury regulations. This included R2.44bn that was awarded using a benchmarking instrument to determine the most realistic lowest acceptable price. “Though the intention is within the Preferential Procurement Policy Framework Act objectives, it is not compliant with the letter of the law. An extra R2 099 702 000 incurred in the prior year was identified,” the auditor-general said.

Sanral reported an operating profit of R1.388bn after deducting finance costs for the year compared with a R2.4bn loss the previous year. Revenue increased to R11.85bn from R6.5bn. Cash and cash equivalents fell to R4.4bn from R9.2bn. It attributed this to the lack of toll income and limited ability to borrow, using cash reserves to service and repay debt. E-tolling on the Gauteng Freeway Improvement Project will start on December 3.

Source: www.iol.co.za

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Sanral spent R3.3bn irregularly, says AG

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