South Africa Blacklists 75 Construction Firms In Major Industry Crackdown

South Africa’s government has blacklisted 75 construction companies since June 2024, marking a major shift in efforts to enforce compliance and protect public funds in the construction industry.

Public Works and Infrastructure Minister Dean Macpherson announced the figures during a media briefing in Pretoria on Tuesday, 27 October 2026. He said the companies had been removed from the national contractors registry after being found to have breached registration requirements under the Construction Industry Development Board (CIDB) Act.

According to Macpherson, only one contractor was blacklisted between 2002 and June 2024. The sharp increase in enforcement action since June 2024 highlights the department’s intensified efforts to address non-compliance among construction businesses.

One of the companies affected is Moriel Infrastructure Group, which is among 13 firms removed from the national contractors registry between September and October 2026.

Moriel attracted public attention in September after its director, Lawrence Mudzinganyama, was filmed allegedly threatening a group of women at a restaurant in Johannesburg. The incident drew widespread attention, although the reported registry action relates to compliance with construction industry registration requirements.

The government is also introducing stricter verification procedures to prevent companies from relying solely on documents submitted during registration. Under the new approach, the CIDB intends to verify information directly with banks, government clients and other relevant institutions.

These checks are designed to strengthen the assessment of contractors and improve confidence in the information used to determine their registration status.

Macpherson also indicated that suspected fraud and forgery could be referred to law enforcement authorities for further investigation. This means that cases involving potentially falsified information may face scrutiny beyond the industry’s registration process.

In addition, the department is conducting a comprehensive audit of graded construction companies. The exercise is intended to identify compliance concerns, strengthen accountability and help safeguard public money spent on construction projects.

The measures form part of a broader effort to ensure that companies operating in the sector meet the requirements expected of registered contractors.

The government’s latest announcement signals tougher oversight of the construction industry, with verification checks, audits and possible criminal referrals forming key parts of the enforcement approach. The impact of the changes will depend on how consistently the rules are applied and how effectively suspected violations are investigated.

Source: https://x.com/sowetan1981/status/2115117640037384334?s=46

SApoliticss [email protected]