Construction Industry Development Board (CIDB) Imposes Hefty Penalties

The CIDB in terms of the powers vested in it in accordance with the Regulations conducted a number of hearings against contractors registered with the CIDB.

This was the subject of Board Notice 138 of 2009 published in Government Gazette of No. 32694 of 13 November 2009.  The hearings were conducted by the Investigations Committee of the CIDB on 25 & 26 August 2009 and in all instances concerned either the presentation to the CIDB of information which was untrue/false or had submitted financial statements to the CIDB which did not comply with accounting/auditing standards. These investigations resulted in the following sanctions imposed by the CIDB Board with effect from 26 August 2009.

CASE 1

The nature of the complaint was that the registered contractor submitted financial statements to the CIDB which contained false information and/were not compliant with CIDB requirements and/or accounting standards.

The CIDB Board ordered:

• That the enterprise be barred from tendering under the auspices of the CIDB for a period until after the entity has re-applied, been re-assessed and again registered with CIDB.
• The enterprise pay a fine of R45 000-00 over a period of 12 months.

CASE 2

The nature of the complaint was that the errant Close Corporation had submitted false financial statements to the CIDB.

The CIDB Board ordered:

• That the guilty Close Corporation be barred from tendering under the auspices of the CIDB until it re-applied, been re-assessed and again registered with CIDB.
• The enterprise paid a fine of R25 000-00 over a period of six months.

CASE 3

The nature of the complaint against the registered errant Company was that in order to obtain a Grade 7 grading it submitted false information to the CIDB in respect of two persons registered with the Engineering Council of South Africa being affiliated to it in order to comply with the CIDB regulatory framework.

The CIDB Board ordered:

• That the enterprise be barred from tendering under the auspices of the CIDB until it has re-applied, been re-assessed and again registered with CIDB.
• That the enterprise be fined to pay R75 000-00 with equal installments over 12 months.
• That the enterprise retains previous gradings of 76BPE and 8 CEPE if it can prove through the re-application that the professional members are employed by the entity.  The arrangement being irrespective of the imposed fine not being paid in full.
• That enterprise not being considered for an upgrade application by the CIDB for a 12 month period and until the fine had been paid in full. 

Interested readers may access the full text below.

Pieter Rautenbach | Projects Facilitator

Board Notice 138 of 2009 (PDF)Post Your Comments Here