Three SANRAL contracts worth R204.5 million awarded to Moriel Infrastructure Group are facing fresh scrutiny after the construction company was removed from the Construction Industry Development Board’s register, with Parliament demanding an audit of the work and questions over whether taxpayers received value for money.
The South African National Roads Agency Limited (SANRAL) has confirmed that Moriel received at least R61.2m for two of the projects. One contract was terminated before work began, another remains active, while a third has been completed.
Parliament’s Portfolio Committee on Transport has called for a performance audit following the CIDB findings, which raised questions about Moriel’s eligibility to undertake government construction work. The case adds to wider concerns about contractor compliance and companies removed from the CIDB register.
Committee chairperson Donald Selamolela said the findings raised concerns about accountability in public infrastructure spending.
“We agree with the Minister that misrepresentation and non-performance of contractors in the built environment has to be stamped out. SANRAL must investigate if it got value for the monies it paid to this gentleman,” Selamolela said.
He warned that contractors who failed to meet the necessary requirements undermined government’s infrastructure development plans.
“This finding as it related to the Moriel Group frustrates and works against stated government objectives of ramping up on infrastructure in order to create jobs and economic growth,” he said.
SANRAL outlines three contracts
SANRAL general manager for marketing and communications Vusi Mona confirmed that Moriel had secured three contracts covering road maintenance, road markings and construction management.
The largest, valued at R107m, involved resurfacing the N1 between Nelspoort and Three Sisters in the Northern Cape.
SANRAL terminated the contract in September 2025 after Moriel failed to meet requirements that had to be fulfilled before work could begin on site.
Mona said the company had breached its contract. SANRAL did not disclose whether any payments had been made before the termination.
The contract comes amid wider scrutiny of SANRAL's road maintenance tender processes.
Moriel also secured a R71.5m contract for training and construction management involving small contractors and communities along the N2 between Mount Frere and Ntabankulu.
SANRAL has paid R37.4m towards the project, which remains active. The agency is investigating the contract and intends to begin termination proceedings following the CIDB findings.
Despite concerns about the company’s progress, Mona defended the quality of the work completed.
“Regarding performance on the training and construction management for small contractors and communities on the N2 national road from Mount Frere (to) Ntabankulu, the work completed on this contract is of good quality, and none of it is substandard,” he said.
However, he acknowledged that SANRAL had raised concerns about the company’s performance during construction.
“As on any contract of this nature, there were performance matters along the way, and these were addressed through the contract as they arose,” Mona said.
He confirmed that Moriel received a formal notice to correct shortcomings on April 28, 2026, followed by further correspondence on September 16 concerning slow progress.
R23.8m paid for completed road-marking project
The third contract, worth R26m, involved road markings across the Western Cape’s national road network.
The project was completed in October 2025, with SANRAL reporting payments of approximately R23.8m.
The agency continued checking the quality of the completed work for a year after the project was finished. That period ended on October 16, 2026.
Mona said SANRAL conducts monthly checks on contractors’ work and raises concerns when they fail to meet the required standards.
He confirmed that the agency would also carry out the performance audit requested by Parliament.
“SANRAL will further undertake the performance audit as instructed by Parliament and if there are non-complacencies, contractual provisions will be applied,” Mona said.
SANRAL did not explicitly confirm whether it would recover money paid for any work subsequently found to be substandard or incomplete, or whether officials involved in awarding and overseeing the contracts would face action.
Mona said the CIDB findings would influence SANRAL’s investigation, particularly because they raised questions about whether Moriel qualified to do business with the roads agency.
“Findings by another organ of state – particularly because they go to the nub of eligibility to do with business with SANRAL – will certainly influence the roads entity’s own investigation and outcome,” he said.
CIDB removed 13 construction companies
Moriel was among 13 construction companies removed from the CIDB’s national register following findings of misrepresentation in applications for higher contractor registration grades.
Public Works and Infrastructure Minister Dean Macpherson announced the removals on October 27.
The company had previously been headed by Zimbabwean businessman Lawrence Mudzinganyama, who was arrested in September after allegedly threatening three women at a Sandton restaurant.
He appeared in the Randburg Magistrate’s Court on October 1, where he was granted R15,000 bail. He faces charges including intimidation, assault with intent to cause grievous bodily harm, crimen injuria and fraud.
Moriel announced in September that it had removed Mudzinganyama as executive chairman and director.
Transport Minister Barbara Creecy subsequently instructed SANRAL’s board to investigate the company’s appointment and compliance with its contracts.