A construction company linked to Zimbabwean businessman Lawrence Chamurwa Mudzinganyama has been permanently deregistered and barred from doing business with the South African government, alongside 74 other contractors.
According to eNCA, the Construction Industry Development Board (CIDB) removed 75 contractors from its National Register of Contractors over breaches of registration requirements. The decision means the deregistered companies can no longer secure government construction work through the register.
The company linked to Mudzinganyama is Moriel Group, which has faced scrutiny over allegations that it misrepresented information submitted to the CIDB to obtain construction grading levels.
Investigation began before viral video
CIDB board chairperson Khulile Nzo said the board had begun the broader deregistration process in 2024 amid growing concerns about contractor registration practices.
However, the investigation specifically involving Moriel Group reportedly began in late 2025 after concerns about the company were reported through the board’s hotline.
Nzo said the investigation found that the company had misrepresented information, including documentation relating to its financial position and track record.
According to eNCA, the company was unable to verify or authenticate information it had previously submitted.
Public Works and Infrastructure Minister Dean Macpherson had previously directed the CIDB to investigate allegations that Moriel Infrastructure Group obtained multiple contractor grading levels on the same day without necessarily meeting all the requirements.
Macpherson has now confirmed that the company has been barred from doing business with the government. He said the investigation was already underway before a video involving Mudzinganyama went viral.
What led to public scrutiny?
Mudzinganyama attracted widespread attention in September after a video circulated on social media showing him allegedly threatening women during an altercation at a Sandton restaurant.
He subsequently faced criminal charges linked to the incident.
Following the video’s emergence, authorities also began scrutinising companies associated with the businessman and their dealings with government institutions.
The South African National Roads Agency (SANRAL) confirmed that it had two contracts with Moriel Infrastructure Group involving projects on the N1 and N2 national roads. Transport Minister Barbara Creecy ordered a review to establish whether the company had been appointed lawfully and was complying with its contractual obligations.
Why the deregistration matters
The CIDB said contractors must provide verifiable records of completed projects and financial documentation to demonstrate their capacity to undertake construction work.
Nzo said investigations had uncovered instances in which contractors allegedly submitted fraudulent bank statements and falsified project histories to qualify for registration or higher grading levels.
The board warned that contractors who lack the necessary skills, financial resources and qualifications can put construction workers at risk, compromise project quality and leave government projects incomplete.
The permanent deregistration of the 75 contractors is intended to protect public funds and ensure that government construction contracts are awarded to companies that meet the required standards.
The CIDB’s findings concerning Moriel Group relate to its registration and supporting documentation. The allegations concerning Mudzinganyama’s conduct at the restaurant form a separate criminal matter.
