CIDB excludes Moriel group from contractor register after investigation into financial capabilities
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CIDB excludes Moriel group from contractor register after investigation into financial capabilities

Moriel Infrastructure Group, which previously held several high qualification ratings in the construction industry, has been excluded from the national contractor register. This occurred following an investigation into its financial and technical capabilities.

Moriel Infrastructure Group is associated with Zimbabwean businessman Lawrence Madzinganyama. The decision to exclude the company was made by the Construction Industry Development Board (CIDB) on October 15, 2026. The reason cited was suspicion of misrepresenting the company's qualifications.

Previously, Moriel held six high ratings: 8 CE, 8 SB, 8 SK, 7 EP, 7 ME, and 7 GB. These ratings determine the scope and type of construction work the company can undertake within the CIDB system. Contractors with a rating of 7 can bid on contracts worth up to 60 million rand, while contractors with a rating of 8 can participate in projects up to 200 million rand in the corresponding category of work.

The rating system is designed to ensure that companies possess the necessary experience and financial resources to execute projects at the declared level. However, concerns regarding Moriel's stated capabilities led to an official investigation.

Minister of Public Works and Infrastructure Dean McPherson stated that CIDB began investigating the company in 2025 and issued the first official notification that same year. A subsequent notification was issued on September 11, 2026, and a month later, the board decided to remove the company from the register.

The investigation was initiated long before Madzinganyama attracted widespread public attention after a confrontation with women in a restaurant in Sandton in September. Video footage of this incident circulated on social media, showing him threatening women. He later apologized for his behavior, calling his remarks unacceptable and unjustified.

Following this, Moriel announced that Madzinganyama had been removed from his positions as director and executive chairman. McPherson emphasized that the regulatory investigation was separate from the public outcry. He noted that although the investigation started earlier, it was 'definitely amplified by the video showing the man in the Sandton restaurant.'

The Minister also stated that Moriel was given an opportunity to respond to the allegations before the board's decision. 'The board's subsequent decision to exclude Moriel from the National Contractor Register on October 15 demonstrates that our approach is based on investigation, evidence, and due legal process, not speculation,' he said.

McPherson warned that providing false information about a company's experience or financial standing to obtain a higher rating can give it an unfair advantage over competitors who have honestly built their track records. He explained that when a company falsifies its data, it undermines the integrity of the system, creates an uneven playing field for legitimate businesses, and puts public projects at risk from contractors who may lack the necessary competence to complete the contracted work.

He cautioned that companies lacking the required skills, experience, or financial resources can jeopardize public projects, leading to delays, abandoned works, and financial losses. The Minister added that CIDB is strengthening application vetting, especially for higher ratings, and moving towards direct verification of information provided by contractors.

The exclusion of Moriel is part of a broader compliance campaign. McPherson reported that over two years, 75 contractors have been removed from the register for failing to meet registration requirements. He concluded: 'Ultimately, it is ordinary South African citizens who bear the costs when public infrastructure is not implemented or repaired because the work was not initially carried out to the required standard.'

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Moriel Group, linked to businessman Lawrence Mudzinganyama, excluded from CIDB registry
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Moriel Group, linked to businessman Lawrence Mudzinganyama, excluded from CIDB registry

Moriel Infrastructure Group, which is associated with Zimbabwean businessman Lawrence Mudzinganyama, has been removed from the Construction Industry Development Board (CIDB) registry following an investigation into alleged misrepresentation of contractor qualifications.

The Minister of Public Works and Infrastructure, Dean McPherson, announced this during a press briefing on Tuesday. He stated that 15 contractors were excluded in October as part of efforts to combat information distortion in the construction industry.

McPherson specified that CIDB began investigating the company in 2025 and issued its first official notification to it that same year.

Reasons for Moriel's Exclusion

According to McPherson, the company was under scrutiny due to concerns that it provided false information regarding its financial and technical capabilities to obtain higher contractor categories. This could have allowed it to secure government contracts for which it was not qualified.

He emphasized that the decision by the board to remove Moriel from the National Contractor Register on October 15 was based on an investigation, evidence, and proper legal procedure, not speculation. McPherson also noted that the investigation began before the public scandal involving Mudzinganyama.

This scandal was amplified by a video recording in which Mudzinganyama threatened to shoot women during a confrontation at a restaurant in Sandton in September. He later apologized for his behavior, calling his speech unacceptable and unjustified. Furthermore, Moriel released a statement confirming that Mudzinganyama had been removed from his positions as director and executive chairman of the company.

McPherson mentioned that Moriel held several high CIDB categories, including 8 CE, 8 SB, 8 SK, 7 EP, 7 ME, and 7 GB.

Significance of CIDB Categories

These categories determine the type and value of construction work a company can undertake. The investigation focused on suspicions that Moriel might have misrepresented its financial and technical capabilities to achieve higher classifications.

McPherson reported that Moriel was given an opportunity to respond to the allegations before the CIDB board made its decision on October 15, 2026. He added that this exclusion is part of broader measures to ensure that contractors provide accurate information about their experience and financial standing when applying for registration categories.

In McPherson's view, when a company misrepresents its experience or financial status to gain a higher category, it undermines the integrity of the entire system. He also announced that 75 contractors had been excluded from the CIDB registry over just over two years for violating registration requirements.

45 management organizations removed from the electronic register in Uzbekistan
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45 management organizations removed from the electronic register in Uzbekistan

Since the beginning of this year, 45 management organizations that service apartment buildings have been excluded from the electronic register in Uzbekistan.

One possible reason for this decision is repeated violation of management rules within one calendar year, although specific reasons for the exclusion of these 45 organizations were not disclosed at the meeting dedicated to apartment building management issues.

The procedure for creating and maintaining the electronic register is regulated by Cabinet of Ministers Decree No. 47, approved on February 1, 2022. This document establishes a number of conditions under which management organizations can be excluded from the register.

Among the listed grounds are confirmation by state bodies that the documents submitted for registration contain false or distorted information, as well as cases of the organization's liquidation. Exclusion is also possible if, within three months after owners refuse services, the organization does not manage any apartment buildings.

An additional ground is the triple violation of apartment building management rules within a calendar year, provided that authorized bodies have taken appropriate measures for each incident. A similar consequence is stipulated for companies that have been placed on the list of unscrupulous managers.

Additional methods for monitoring the work of management structures were also discussed at the meeting. A requirement was established for quarterly reporting on income for each serviced building; in case of untimely submission of the report, the accrual of mandatory contributions is suspended until it is provided.

It was previously reported that responsibility for illegal construction of apartment residential buildings has been strengthened in Uzbekistan.

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