By Karl Gernetzky.
The South African National Roads Agency (Sanral) says former Industrial Development Corporation (IDC) executive Reginald Demana has been appointed as CEO with effect from 1 January, following the completion of internal verification processes, as well as formal confirmation from the Minister of Transport.
Cabinet approved Demana’s appointment in October after a recommendation of the Sanral board to Minister Fikile Mbalula. He replaces Lehlohonolo Memeza, who had been the acting CEO of the roads agency since late 2021.
Demana was previously CEO of coal mining group Wescoal, now Salungano, stepping down from that position in early 2021 to join the IDC.
The Sanral board has said it believes Demana will contribute towards stabilising the roads agency’s finances – particularly the toll portfolio.
Sanral has been struggling with the fallout from its ill-fated electronic toll project in Gauteng. It told Parliament in October that it expected to forgo R10.1 billion in revenue in 2023 because of its inability to enforce revenue collection for etolls.
While a decision has since been made to scrap the etolls system, the planned deactivation on 31 December didn’t rtake place as planned, as final agreement with the Treasury wasn’t reached. The matter is expected to be finalised in 2023.
Sanral has also been battling with underspending as a result of delays in procurement processes, a problem exacerbated by Covid-19.