- The Construction Industry Development Board permanently deregistered 75 contractors after uncovering alleged fraud in their registration applications
- Investigations revealed that some contractors allegedly submitted falsified bank statements and misrepresented their project histories to secure government work
- Moriel Group, linked to Sandton businessman Lawrence Chamurwa Mudzinganyama, was removed from the register following a hotline tip received in late 2025
Source: Facebook
SOUTH AFRICA — The Construction Industry Development Board (CIDB) has permanently removed 75 contractors from its register.
This bars them for life from doing business with the government after investigations uncovered evidence of fraudulent conduct and misrepresentation.
Government confirms blacklisting
CIDB board chairperson Khulile Nzo confirmed that the deregistration process began in 2024 amid mounting concerns about the integrity of the construction sector. Investigators found that certain companies had manipulated their financial records and work histories to qualify for registration or to obtain higher 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.
How contractors allegedly gamed the system
To qualify for registration, contractors are required to submit verifiable records of completed projects alongside financial documents demonstrating their capacity to deliver construction work. Nzo said some of the implicated companies went as far as manufacturing bank statements to give the impression of adequate funding.
The CIDB is now collaborating with banks to tighten its document verification processes and close the gaps through which fraudulent submissions had passed.
Nzo cautioned that awarding contracts to companies lacking the skills, resources and qualifications to carry out the work put construction workers at risk, compromised build quality and left government projects unfinished. He also noted that such conduct placed legitimate businesses at an unfair disadvantage when competing for state contracts.
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Moriel Group deregistered after hotline tip
Among the 75 companies removed from the register is Moriel Group, which is linked to Sandton businessman Lawrence Chamurwa Mudzinganyama. Nzo confirmed the investigation into the company was launched in late 2025 after concerns were submitted through the CIDB's tip-off hotline.
Investigators found that Moriel Group had misrepresented information in its registration submission, including its bank statements and project track record. The company was ultimately unable to verify or authenticate the documentation it had originally provided to the board.
Mudzinganyama drew public attention in September 2026 after a video allegedly showing him threatening three women at a restaurant was widely circulated online. He currently faces 10 criminal charges in connection with that incident.
The CIDB described the mass deregistration as part of a wider drive to safeguard public funds, enforce accountability and ensure that government construction contracts go to companies with the proven capacity to deliver.
Businessman appears in court after viral video
Briefly News reported that Lawrence Chamurwa Mudzinganyama was granted R15,000 bail at the Randburg Magistrate's Court after appearing on 1 October 2026. The Zimbabwean businessman faces 10 charges, including fraud, intimidation, crimen injuria, and assault with intent to cause grievous bodily harm. The case originates from a video recorded at Vlamo restaurant in Sandton on the evening of 18 September 2026.
Source: Briefly News
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