The removal of 13 construction firms follows findings of misrepresentation in grading applications. For procurement teams, the practical issue is verifying a contractor’s current registration and capabilities.

Public Works and Infrastructure Minister Dean Macpherson announced on 27 October 2026 that 13 construction companies had been removed from the Construction Industry Development Board’s National Register of Contractors following findings of misrepresentation in applications to upgrade their grades.

The announcement followed a cidb Board resolution on 15 October, according to SAnews. The report attributes the decision to powers under the Construction Industry Development Board Act. SA Business Lens has not independently obtained the underlying Board resolution.

Why the grading matters

A cidb grade helps public-sector clients assess which construction work a contractor is qualified to undertake. The board’s registration guidance explains that the system combines a grading level with a class of works. Grades 2 to 9 require evidence of financial capacity and a track record.

For businesses competing for public infrastructure work, accurate grading is therefore more than an administrative detail. It helps prevent firms with overstated capabilities from competing on the same terms as contractors whose applications reflect their actual experience and resources.

The companies named

SAnews lists the following 13 contractors in the announcement:

  • 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

The SAnews report does not include responses from the named companies. SA Business Lens has not contacted them for this report.

The reported action concerns their registration. The announcement does not establish that these companies have been criminally convicted or individually placed on a National Treasury restricted-supplier list.

More checks at the application stage

According to SAnews, the cidb is introducing additional audit and verification checks for higher-risk applications and applications for higher grades. These include checking information directly with banks, public-sector clients and other institutions, rather than relying only on documents supplied by applicants.

The department also wants stronger compliance with public-sector project registration. Its stated aim is to improve the independent project records against which contractors’ claims can be checked. The report says matters will be referred to law enforcement where appropriate if fraud or forgery is established, alongside administrative action.

What procurement teams can check

The cidb says it does not issue registration certificates and that clients should verify grading and registration status online. Its contractor search portal provides fields for a company’s name, CRS number and class of work.

A practical response is to check the current registration entry and relevant grading, rather than relying on a document supplied by a bidder. Treasury restriction checks should be treated separately: the cidb portal links to both the National Treasury Database of Restricted Suppliers and the Register for Tender Defaulters.

The latest announcement does not detail what happens to each company’s existing contracts. Claims that specific projects have been cancelled, transferred or delayed would therefore require separate confirmation.

Reporting sources: SAnews and cidb public guidance. Company names are reproduced as listed by SAnews.

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