Tender News Wrap: South Africa's Procurement Landscape This Week (22–27 June 2026)
Welcome to the first edition of our weekly tender news wrap. Each week, we'll bring you the latest developments in South Africa's public procurement space—from major tender announcements to policy changes and enforcement actions that affect how businesses bid for government contracts.
This week has been eventful, with major infrastructure tenders, significant policy developments, and high-profile corruption cases making headlines. Here's what you need to know.
🚆 Transnet Issues Major RFP for Rolling Stock Leasing Company
The biggest tender news this week came from Transnet.
On Monday, 22 June, the state-owned freight and logistics company issued a Request for Proposal (RFP) to two shortlisted bidders for the establishment of a rolling stock Leasing Company (LeaseCo). This marks a key milestone in South Africa's rail reform programme.
What is LeaseCo? The company will be responsible for acquiring, managing, and leasing rolling stock (locomotives and wagons) to domestic and regional markets. It's designed to address one of the rail sector's biggest challenges: access to reliable rolling stock.
Why this matters for tenderers: This follows a Request for Qualification (RFQ) process launched in April 2025 that attracted 14 submissions. Transnet CEO Michelle Phillips noted that "significant unmet freight demand, driven by a shortage of available rolling stock, presents a compelling opportunity for a dedicated leasing entity".
The structure: Transnet will contribute a ring-fenced fleet of rolling stock assets as equity, along with Original Equipment Manufacturer capabilities through Transnet Engineering. The private sector majority partner will bring capital, technical expertise, and operational capability.
Market demand: Transnet has already secured five Train Operating Companies (TOCs) for LeaseCo's services, with demand expected to grow as the Transnet Rail Infrastructure Manager allocates more network slots.
For businesses in the rail and logistics sector, this represents a significant opportunity. The RFP process is now underway between the two shortlisted bidders.
📜 Major Procurement Policy Shift on the Horizon
National Treasury's proposed procurement regulations could fundamentally change how tenders are evaluated.
On 16 April 2026, National Treasury published the draft General Public Procurement Regulations, 2026, and draft Public Procurement Tribunal Regulations, 2026, for public comment. The comment period has been extended to 15 July 2026, reflecting the breadth of what's being proposed.
The key change: Under the current system, price drives the outcome—the lowest price often wins. The proposed Regulation 25 establishes a mandatory threshold-based model where procuring institutions must assign weight across four criteria:
Capability and capacity to deliver
Functionality and technical requirements
Preference (B-BBEE and other goals)
Price
Each of the first three criteria is subject to a mandatory minimum threshold of 70%—and a bidder who fails any one is excluded before price is even considered.
What this means for you: If these regulations are finalised, simply offering the lowest price won't be enough. You'll need to demonstrate capability, meet technical requirements, and score preference points—all at a minimum of 70%—just to have your price considered.
Other key provisions:
Contracts below R20 million must be reserved exclusively for identified categories including black people, black women, women, persons with disabilities, military veterans, youth, and small enterprises within a particular geographical area—provided the bidder demonstrates 100% ownership by that category.
Contracts of R100 million and above require successful bidders to subcontract at least 25% of the total contract value to enterprises 100% owned by South African citizens.
A direct payment mechanism protects subcontractors: if a supplier defaults on payment, the procuring institution may pay the subcontractor directly.
A retrospective eligibility requirement means bidders must show that at least 40% of their prior procurement spend was on enterprises at least 51% owned and managed by black people.
These changes are not yet law—the Public Procurement Act 28 of 2024 was assented to in July 2024 but is not yet in force. However, businesses should start preparing for a procurement landscape where capability and compliance matter as much as price.
⚖️ Tender Corruption: Major Developments in the SAPS Medicare24 Case
This week saw significant progress in one of South Africa's biggest tender corruption cases.
Cat Matlala Pleads Guilty
On Thursday, 25 June, businessman Vusimuzi "Cat" Matlala pleaded guilty to corruption, fraud, and money laundering charges in the Pretoria Specialised Commercial Crimes Court. This relates to a R228 million contract awarded to his company, Medicare24 Tshwane District, by the South African Police Service.
Matlala was among 17 accused facing charges linked to a broader R360 million health services tender scandal. At least R50 million was paid out to Matlala before the tender was cancelled in May 2025.
Matlala reached a plea deal with the state on 22 June and is expected to be sentenced as outlined in the agreement. Reports indicate he may serve up to eight years in prison and has agreed to turn state witness against other accused.
No Plea Deals for Police Officials
Meanwhile, 12 senior police officers, including suspended National Police Commissioner Fannie Masemola, appeared in the Pretoria Magistrates Court on 26 June facing corruption and money-laundering charges.
The state has indicated that more people could be added to the case, and some of those already before the court may face additional charges. None of the accused police officers have approached the state to negotiate plea deals.
The court is expected to decide whether to endorse or reject the plea and sentence agreement with Matlala on 1 July, after which the state will share its evidence with the defence.
Zuma Dragged into R3.8bn Telkom Tender Dispute
In another development, President Jacob Zuma has been dragged into a R3.8 billion legal war between Telkom and telecommunications company Phuthuma Networks over a tender to deliver telegrams.
🏛️ SIU Secures Victory in R25 Million Municipal Tender
The Special Investigating Unit (SIU) welcomed a Special Tribunal judgment that set aside an unlawful R25 million contract.
The contract was awarded to Rensh Close Corporation, owned by Rashida Cader, by the Ngaka Modiri Molema District Municipality in the North West for wastewater treatment and pump station refurbishment services.
The irregularities: The municipality advertised a tender through National Treasury on 27 November 2019. Several service providers responded—Rensh was not among the bidders. However, on 7 March 2020, a municipal technical director contacted Cader by telephone and requested a quotation. Rensh subsequently submitted a quotation for R25,884,435.75.
The municipality circumvented a legitimate tender process that had already attracted 17 bidders, instead using COVID-19 emergency procurement rules to appoint Rensh.
The outcome: Tribunal Judge Brian Mashile declared the contract constitutionally invalid and ordered Rensh and Cader to repay all monies due to the municipality. Themak Consulting and its owner have also been ordered to repay R3,882,665.37 received under the contract.
This case highlights the risks of circumventing proper tender processes—and the SIU's commitment to holding both companies and individuals accountable.
🏗️ Other Tender News This Week
SANRAL Contractor Development Programme: The South African National Roads Agency invited contractors to take part in its Contractor Development Programme, with expressions of interest closing 10 July 2026.
Zululand Energy Terminal: The Richards Bay LNG import project kicked off its contractor selection process with an Expression of Interest closing 9 July 2026.
Nuclear Procurement Transparency: New Energy Minister Mmamoloko Kubayi committed her department to public participation and transparency around the nuclear procurement programme, following a Western Cape High Court judgment that declared previous determinations unconstitutional.
💡 What This Means for Your Business
This week's news highlights several important trends in South Africa's tender landscape:
1. Major Infrastructure Tenders Are Coming
Transnet's LeaseCo RFP is just one example. With R1 trillion committed to public infrastructure, opportunities in rail, energy, and logistics are growing. Get your compliance in order now so you're ready when these tenders open.
2. The Rules Are Changing
The proposed procurement regulations represent a fundamental shift from price-driven to capability-driven evaluation. Businesses that invest in demonstrating capacity, technical expertise, and compliance will be better positioned.
3. Enforcement Is Increasing
The SIU and IDAC are actively pursuing tender fraud and corruption cases. Compliance isn't optional—it's essential for survival in the tender space.
4. Set-Asides Create Opportunities
The proposed regulations include mandatory set-asides for small enterprises, black-owned businesses, women, youth, and persons with disabilities. If you fall into these categories, now is the time to prepare.
🔍 How QuickTenders Can Help You Stay Ahead
With so much changing in South Africa's tender landscape, staying informed is only half the battle. QuickTenders helps you act on this information:
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📅 What to Watch Next Week
1 July 2026: The court will decide on the Matlala plea and sentence agreement
15 July 2026: Public comment period closes for the draft procurement regulations
More Transnet tender developments as the LeaseCo RFP process continues
Stay tuned for next week's edition of our tender news wrap. Have a question about a specific tender or policy? Reach out to us—we're here to help South African businesses win more tenders.