CIDB deregisters 13 contractors over grading application claims

NewsSportLifestyleEntertainmentOpinionNewsCIDB deregisters 13 contractors over grading application claimsconstruction companies deregisteredThobeka Ngema|Published 30 minutes agoCopy to ClipboardAsk AICIDB Chief Executive Bongani Dladla, CIDB Board Chairperson Khulile Nzo, Acting Minister’s spokesperson Luke Albert, and Public Works and Infrastructure Minister Dean Macpherson during Tuesday’s announcement.

The Construction Industry Development Board (CIDB) has removed 13 construction companies from the National Register of Contractors after finding that they misrepresented information in applications to upgrade their registration grades.

Public Works and Infrastructure Minister Dean Macpherson announced the action alongside CIDB Board Chairperson Khulile Nzo and Chief Executive Bongani Dladla on Tuesday.

In a recent parliamentary response, Macpherson revealed that since 2024, the department, through the CIDB, has blacklisted 52 contractors who failed to perform and deliver on their contracts. 

The latest removals bring to 75 the number of contractors removed from the register for breaches of registration requirements over the past two years, Macpherson said.

He said that by September 2025, they had announced that 40 contractors had been blacklisted since June 2024, and by September 2026, the figure from the National Register of Contractors rose to over 60. 

“I can announce that the CIDB board resolved on October 15, 2026, to remove a further 13 construction companies from the National Register of Contractors following findings of misrepresentation in their applications to upgrade their registration grades,” Macpherson said. 

“These enforcement actions now bring the total to 75 contractors that have been removed from the register for breaches of registration requirements in two years.” 

He said the decision was taken under Section 19(1) and (2) of the CIDB Act, 2000, which empowers the board to remove contractors who breach registration conditions or obtain grading designations through misrepresentation.

The 13 companies are: 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. 

Macpherson said that, ranging from Grade 1 to Grade 9, these registration grades indicate a contractor’s verified capability. Misrepresenting qualifications to secure higher grades undermines system integrity and exposes public projects to unqualified contractors. Removing non-compliant firms protects the register’s credibility and ensures registration reflects genuine capability.

“We need to identify fraudulent applications, verify claims before approvals are granted, and intervene when evidence of wrongdoing emerges.” 

He said the CIDB is strengthening its scrutiny of high-risk registration applications by introducing additional audit and verification layers, directly checking claims with client departments and financial institutions, and referring suspected fraud to law enforcement alongside administrative removals.

Public Works and Infrastructure Minister Dean Macpherson announced the CIDB’s removal of 13 contractors after finding misrepresentation in applications to upgrade their contractor grades.

He said they require stricter compliance with project registration and reporting is required to build a verified national database for cross-checking contractor data. 

Dladla explained that the legislation allows them to deregister a firm. He said they want to avoid a situation where some of the companies mushroom again as Grade 1s when they have caused significant offences to the CIDB. 

He said more than 50 cases had been reported to the South African Police Service, with further cases expected to be opened. 

Nzo said access to public procurement opportunities must be earned through genuine capability and compliance with the rules. It cannot be obtained through fraud, forgery, or misrepresentation, as it undermines the register’s integrity and confidence in the procurement system.  

He said the CIDB acts where wrongdoing is identified. Every matter is investigated, evidence is assessed, affected contractors are afforded an opportunity to respond, and decisions are taken through established governance processes.