Mudzinganyama-linked company among 75 contractors banned from state work for life

JOHANNESBURG – A total of 75 contractors have been permanently deregistered and blacklisted from doing business with the government for bridges of registration requirements.

The Construction Industry Development Board (CIDB) has removed the companies from the National Register of Contractors in a move aimed at preventing underperforming and fraudulent contractors from securing lucrative state contracts.

Among the companies affected is Moriel Group, which is linked to Sandton businessman Lawrence Chamurwa Mudzinganyama. The businessman made headlines in September after a video of him allegedly threatening three women at a restaurant went viral. He currently faces 10 criminal charges.

CIDB board chairperson Khulile Nzo says the board began the deregistration process in 2024 in response to growing concerns within the construction industry.

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Nzo says investigations have uncovered widespread misrepresentation of information by contractors seeking registration or upgrades to their construction grading levels.

“There are 75 contractors that have been completely deregistered from the register of contractors for life, meaning that those companies will never enter and do business with government again,” Nzo said.

Contractors are required to provide a verifiable track record of completed work and financial records to demonstrate their capacity to undertake projects. However, Nzo says some companies have submitted fraudulent bank statements and falsified project histories to meet these requirements.

“In fact, it has gone to an extent that people even misrepresent the bank statements that they show as proof of the funds that have come into their account and manufacture bank statements that show transactions.”

According to Nzo, the CIDB is working with banks to strengthen verification processes and close loopholes that allow fraudulent documentation to go undetected.

He warned that appointing contractors who lack the necessary qualifications, skills and resources poses serious risks to construction projects, worker safety and service delivery.

He says unqualified contractors can compromise health and safety standards on construction sites, push legitimate businesses out of the market and leave government projects incomplete.

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Regarding Moriel Group, Nzo confirmed that the company had been removed from the register following an investigation that began in late 2025 after concerns were reported through the board’s hotline.

“It was flagged and through our hotline that this company had misrepresented and further investigation it was found to be true and part of the issues that we picked up especially around this contractor are the misrepresentation of bank statements and a check record.”

According to Nzo, the company was unable to verify or authenticate the information it had initially submitted.

The CIDB says the permanent deregistration of the 75 contractors is part of efforts to protect public funds, promote accountability and ensure that government construction projects are awarded to companies with the necessary capacity and proven track records.