CIDB Deregisters 13 Contractors Under Act 38 of 2000 Over Grading Misrepresentations
Brought to you by SAnews: The Construction Industry Development Board has removed 13 construction contractors from the National Register of Contractors due to misrepresentation in their grading upgrade submissions, bringing total deregistered entities to 75 since June 2024.
In terms of sections 19(1) and 19(2) of the Construction Industry Development Board Act, No. 38 of 2000, the Board resolved on 15 October 2026 to deregister contractors that breached statutory registration conditions or secured grading designations in error through false representations. The statutory provisions empower the Board to cancel registrations where financial capability, track record, or documentation submitted to establish contractor grading designations (Grades 1 through 9) fails to reflect verified capability.
The 13 entities removed from the national register 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
- Ithembalenkosi (Pty) Ltd
Enhanced Audit and Verification Framework
To curb grading fraud, the cidb has introduced an additional verification protocol for higher-risk applications and elevated grading bands. Under the revised audit process, the Board validates supporting documentation directly with commercial banking institutions, public sector clients, and relevant third-party authorities, rather than relying on contractor-submitted materials. Matters involving suspected fraud or forgery are referred for criminal investigation alongside administrative sanction.
The Department of Public Works and Infrastructure is also enforcing public sector compliance under the cidb Regulations, mandating that organ of state employers register all construction procurement awards with the cidb. This project register will serve as a cross-referenced database to evaluate contractor track-record claims during grading renewals and upgrades.
What this means for you, your business, or your clients
- For yourself: Built-environment professionals, engineers, and project managers acting as nominated competent persons must verify that professional credentials and experience schedules are not falsely leveraged or cited in contractor upgrade filings without consent.
- For your business: Accounting officers and procurement teams in public sector entities and main contractors must immediately verify active subcontractor and supplier registrations on the cidb register to avoid awarding public tenders to deregistered or blacklisted entities.
- For your clients: Construction contractors applying for grade improvements or renewals must undergo third-party bank and client audit verifications; clients must ensure that all financial statements, track records, and completion certificates submitted to the cidb are strictly verifiable to avoid administrative deregistration and criminal referral.
Originally published at https://www.sanews.gov.za/south-africa/construction-companies-removed-cidb-register