Africa-Press – South-Africa. 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 take 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.
While capital investment on construction projects roads rose to R5.04 billion in its 2021/2022 year, from R2.54 billion in the prior year, the group also received R21.6 billion in grant funding. In its 2022 year, cash and cash equivalents climbed by about R12 billion to R41.25 billion, of which R35.280 billion relates to accumulated unspent grant funds.
Demana studied mining engineering at the University of the Witwatersrand and holds an MSc (with distinction) from Exeter University in the UK.
During his career, he worked at the Department of Mineral Resources and Energy, as a mine health and safety inspector, and at Anglo American Platinum as a trainee. He was also an analyst at BJM Securities and a mining advisor at Nedbank. During this time, he played a leading role in significant transformational transactions in the sector.
With assistance from Carin Smith
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