PRETORIA, Gauteng — The Department of Public Works and Infrastructure has blacklisted 75 fraudulent contractors in a sweeping crackdown aimed at protecting state funds and ensuring the delivery of quality public infrastructure. Minister of Public Works and Infrastructure Dean Macpherson, joined by Construction Industry Development Board (CIDB) Chairperson Khulile Nzo and CEO Bongani Dladla, announced the latest enforcement actions during a briefing in Pretoria, highlighting a historic shift in holding non-performing and deceitful construction firms accountable.
A Historic Shift in Construction Accountability
For more than two decades, enforcement against fraudulent contractors in the sector was virtually non-existent. Between 2002 and 2024, the CIDB blacklisted only a single contractor. However, under the current leadership, the regulatory approach has fundamentally changed.
By September 2025, 40 contractors had been removed from the National Register of Contractors. This number rose to 60 by September 2026, and the latest October 2026 announcements bring the total to 75 blacklisted firms in just over two years.
“We are not interested in removing contractors for the sake of producing statistics,” Macpherson stated. “Our objective is to protect the public purse, safeguard the quality and safety of infrastructure, and restore confidence in the procurement process.”
October 2026 Blacklist and Named Companies
Acting under Section 19(1) and (2) of the CIDB Act of 2000, the board resolved to remove a further 15 contractors in October 2026 following findings of misrepresentation in their applications to upgrade registration grades. While 15 firms were removed in this batch, 13 specific companies were publicly named for holding fraudulent grades ranging from Grade 1 to Grade 9.
The Moriel Infrastructure Group Controversy
A significant portion of the briefing addressed Moriel Infrastructure Group. The company’s removal follows widespread public scrutiny after a viral video circulated in September 2026, showing a man linked to the company, identified as Lawrence Mzinga, threatening women at a restaurant in Sandton.
Macpherson clarified that the CIDB’s investigation into the company began in 2025, well before the social media incident. The company held several high-level grades, including 8 CE, 8 SB, 8 SK, 7 EP, 7 ME, and 7 GB. Following a formal notice served in September 2026 and a subsequent review, the board officially removed Moriel from the National Register on October 15.
“Threats against women will never be tolerated, and certainly not in the construction sector,” Macpherson emphasized. He noted that while criminal conduct falls under the jurisdiction of law enforcement, the regulatory removal was based on concrete evidence of the company misrepresenting its financial and technical capabilities to secure high-value public contracts.
Systemic Reforms, Audits, and Government Compliance
To prevent future fraud, the CIDB is overhauling its verification processes. Historically, the regulator relied heavily on documents submitted by applicants, such as project completion certificates and bank statements, which were sometimes falsified to secure higher grading designations.
“We are moving towards more direct verification of information submitted by contractors rather than relying solely on the documents supplied by them,” Macpherson explained, noting that suspected criminal conduct will now be accompanied by direct referrals to law enforcement authorities.
CIDB Chairperson Khulile Nzo added that the board has engaged a partner to conduct a comprehensive audit process. “Each and every contractor will be audited, and that information will be verified,” Nzo stated, confirming that the era of relying solely on a fraud hotline is over and that proactive quality assurance is now in effect.
Furthermore, Macpherson issued a strict plea to public sector clients and government departments. Under the CIDB Act, these entities are legally required to register construction projects with the board. Currently, compliance sits below 30%. This failure to register projects creates a loophole allowing contractors to misrepresent the scale and value of their past work to artificially inflate their grading.
Leveling the Playing Field for Honest Businesses
The overarching goal of the blacklist and systemic reforms is to protect legitimate construction businesses. When fraudulent companies secure high grades through forged documents, they undercut honest entrepreneurs who have legitimately invested in skills, track records, and financial capacity.
“South Africa needs a strong, capable, and competitive construction industry,” Macpherson concluded. “We must create an environment in which contractors that invest in their capabilities, comply with the law, and deliver quality work are able to compete fairly, grow their businesses, and be rewarded for doing so.”
