Government blacklists 75 construction firms as scrutiny of public contracts increases

The government has removed 75 construction companies from the national contractors registry since June 2024, Public Works and Infrastructure Minister Dean Macpherson announced. The action targets companies found to have breached registration requirements, including allegedly misrepresenting information when applying to upgrade their contractor grades.

Macpherson announced the figures during a media briefing in Pretoria. He said only one contractor had been blacklisted between 2002 and June 2024, contrasting that figure with the 75 removals recorded since the current period began.

The Construction Industry Development Board (CIDB) maintains the registry used to assess contractors’ financial and technical capacity for different types and sizes of projects. Registration grades help government clients determine whether a company is equipped to undertake work of a particular value and complexity.

One company named among those removed was Moriel Infrastructure Group. The firm attracted public attention after a video circulated on social media in September showing its director, Lawrence Mudzinganyama, allegedly threatening women at a Johannesburg restaurant. The reported conduct and the company’s removal from the registry are separate matters; the government’s stated reason for the blacklisting was misrepresentation in the registration process.

Macpherson said the CIDB was introducing stricter verification procedures. These measures include checking information directly with banks, government clients and other institutions rather than relying only on documents submitted by companies seeking registration or a higher grade.

The department has also indicated that suspected fraud and forgery may be referred to law enforcement. A broader audit of graded construction companies is under way, with the stated aim of strengthening accountability and protecting public money spent on infrastructure.

Industry voices have welcomed the blacklisting as a step towards improving trust in public procurement, while the announcement raises questions about how contractor applications were previously checked. The registry is meant to help prevent unsuitable companies from taking on projects they cannot properly deliver. Should government publish more details about blacklisted contractors so communities can better understand how public procurement is being protected?

Source: https://www.sowetan.co.za/news/2026-10-27-quick-take-state-blacklists-75-construction-firms-five-things-to-know/

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