The Construction Industry Development Board (CIDB) has excluded thirteen construction companies from the National Register of Contractors after discovering that they provided false information when applying to upgrade their registration categories.
The Minister of Public Works and Infrastructure, Dean McPherson, announced this measure jointly with the CIDB Board Chairman, Hulile Nzo, and Chief Executive Officer, Bongani Dladla, on Tuesday.
In a recent address to parliament, McPherson stated that since the beginning of 2024, the ministry, through the CIDB, has blacklisted 52 contractors who failed to execute or complete their contracts.
According to McPherson, these latest exclusions bring the total number of contractors removed from the register for violating registration requirements over the past two years to 75.
He also noted that by September 2025, 40 contractors had been placed on the blacklist since June 2024, and by September 2026, the number of entries in the National Register of Contractors exceeded 60.
McPherson stated: 'I can report that the CIDB Council resolved on October 15, 2026, to exclude another 13 construction companies from the National Register of Contractors following the discovery of instances of distorted information in their applications for upgrading registration categories.' He emphasized that these compliance actions have brought the total number of contractors excluded from the register for violating registration requirements over two years to 75.
The decision was made in accordance with Section 19(1) and (2) of the CIDB Act 2000, which empowers the council to suspend contractors who violate registration conditions or obtain categories by providing false information.
The 13 listed companies include: RTZ Construction and Projects, Shumani Development, Magagamela Trade and Projects, Exxeding Grace, Yem Yem Projects and Plant Hire, BBM Khanye Holdings, Lethabo Africa Engineering, TMR Industrial Solutions, Moriel Infrastructure Group (Pty) Ltd, Salinkata Trading (Pty) Ltd, King Tar Construction, Batho Vanhu Construction, and Ithembalenkosi (Pty) Ltd.
McPherson explained that these registration categories, ranging from Level 1 to Level 9, reflect the verified capability of the contractor. Providing false information about qualifications to obtain higher categories undermines the integrity of the system and exposes public projects to the risk of involvement by unqualified contractors. Removing non-compliant firms protects the trust in the register and ensures that registration matches actual capabilities.
He added: 'We need to identify fraudulent applications, verify claims before issuing permits, and intervene when evidence of malpractice emerges.'
McPherson also reported that the CIDB is strengthening oversight of high-risk registration applications by implementing additional levels of auditing and verification, directly cross-referencing applications with client departments and financial institutions, and referring fraud suspicions to law enforcement alongside administrative exclusions.
Furthermore, McPherson explained that under the CIDB Act, public sector clients are obligated to register construction projects from the tender announcement to completion or cancellation. However, the current level of compliance with this reporting requirement among government departments is less than 30%.
He insisted on the necessity of stricter adherence to project registration and reporting to create a verified national database for cross-checking contractor data.
Bongani Dladla specified that the legislation allows for the deregistration of a firm. He expressed a desire to avoid a situation where some companies start reappearing as Grade 1 despite significant violations of the CIDB.
He also reported that over 50 cases have been referred to the South African Police Service, and more cases are expected to be opened.
Hulile Nzo stressed that access to public procurement opportunities must be earned through genuine capability and adherence to rules. It cannot be obtained through fraud, forgery, or misrepresentation of information, as this undermines the integrity of the register and trust in the procurement system.
He concluded that the CIDB takes action upon identifying misconduct. Every issue is investigated, evidence is assessed, affected contractors are given an opportunity to respond, and decisions are made within established governance processes.