Reginald Demana, CEO of Sanral. Sanral says historical irregular spending referred to in recent reports dates back to before his term (Photo: Sanral / Facebook)
The South African National Roads Agency (Sanral) says allegations about irregular procurement practices at the agency are already being investigated internally and externally.
The agency says reports of a so-called “R9.5 billion tender storm” are largely related to historical irregular spending around routine road maintenance contracts awarded between 2011/’12 and 2018/’19 – long before Reginald Demana took over as chief executive on 1 January 2023.
Sanral says this matter has already been settled and fully disclosed in its public annual reports.
Sanral says that although this irregular expenditure was recorded, the agency received an unqualified audit opinion during this period because no confirmed irregular expenditure was linked to fraud or criminal intent.
The latest allegations of illegal procurement practices in Sanral’s supply chain management division stem from a whistleblower report received from the Transport Minister’s office. The report was referred to the new council after this council took office on 1 March 2026.
“The Sanral Board is committed to open and transparent procurement and will implement recommendations and outcomes arising from the investigations,” the statement said.
According to Sanral, the allegations are currently being investigated by its internal audit department as well as an external legal firm.
The agency also denied media reports that the Priority Crime Investigation Directorate (the Hawks) had raided Sanral.
“Nothing could be further from the truth. The Falcons simply made an inquiry and requested information about certain tenders. This is not unusual.”
Sanral emphasizes that it previously also cooperated with the Falcons by providing tender-related information.
“There was no raid on Sanral’s premises by the Falcons and this can be confirmed by the directorate.”
The agency also confirmed that three employees in its supply chain management division were suspended in April 2026 for gross misconduct believed to be unrelated to the whistleblower allegations.
The suspended employees have since brought an application in the labor court in Johannesburg to set aside their suspensions and return to work. Sanral opposes the application.
The case goes before the court on June 9, 2026.
Sanral says it is aware of the sensitivity of the investigation and that the labor matter is now before the court. The agency says it cannot provide further details at this stage due to the sub judice principle.
Sanral says it encourages whistleblowers to report irregularities, and deals with such complaints according to the applicable legal regulations. “Any official, regardless of seniority, who intentionally or negligently violated procurement regulations will at least be charged and subject to disciplinary action.”