South Africa Blacklists 75 Construction Firms for Fraud

Minister of Public Works and Infrastructure Dean Macpherson announced the removal of 75 construction companies from the Construction Industry Development Board (CIDB) National Register of Contractors since June 2024. The crackdown targets firms that misrepresented their capabilities in applications to upgrade registration grades. This marks a sharp increase in enforcement; between 2002 and June 2024, only one contractor had been blacklisted.

In the most recent wave of removals following an October 15 board resolution, the CIDB blacklisted 13 additional companies. Among the firms removed since September is Moriel Infrastructure Group. Macpherson stated the measures are intended to protect public funds and ensure that only capable companies receive state infrastructure contracts, noting that honest contractors have previously been forced to compete against those who manipulate the system.

To prevent future fraud, the CIDB is implementing an additional audit and verification layer for high-risk applications, including direct data checks with banks and public sector clients. The department is also conducting a full audit of all graded construction companies and may refer cases of forgery to law enforcement. These reforms come as the public sector struggles to spend a R1-trillion infrastructure budget, with Business Leadership South Africa reporting that only one in six government tenders were awarded in 2025.