PRETORIA — The Department of Public Works and Infrastructure has officially blacklisted 52 companies from conducting business with the state as part of a major crackdown on procurement fraud and poor performance. Minister Dean Macpherson confirmed on Friday that the Construction Industry Development Board (CIDB) added 12 new contractors to the restricted list since the beginning of 2026.
This latest move brings the total number of barred entities to 52, marking a significant departure from previous years. Minister Macpherson noted that between 2002 and late 2025, only two companies had faced such sanctions. The current administration blacklisted an initial batch of 40 contractors in September last year, citing corruption and a failure to complete public projects.
The blacklisted firms are now prohibited from bidding for state tenders or receiving any government work. Macpherson described the initiative as a decisive action plan intended to professionalize public works and ensure that public funds are utilized for high-quality infrastructure. He emphasized that the era of inaction regarding contractors who inflate prices or abandon sites has ended.
To prevent barred contractors from reappearing as new shell companies, the department is implementing a national database to name and shame non-performing consultants and firms. This system follows a model established in Limpopo, where restriction committees track individuals and companies that fail to deliver. All provinces are now required to establish similar committees to feed data into a central CIDB database.
This central registry will be shared with the National Treasury and all spheres of government. Once a contractor is flagged on this list, no arm of the state is permitted to conduct business with them. The department is also refining its internal processes to recover money from failing contractors to safeguard public funds.
The crackdown is part of a broader strategy to ensure that all professionals working on state projects are properly qualified and registered. By tightening procurement processes and filling key vacancies, the department aims to restore public trust in the state’s ability to deliver economic infrastructure that can grow the economy and create jobs.
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