Government promises crackdown on contractors bleeding South African taxpayers dry

Minister of Public Works and Infrastructure Dean Macpherson has promised to cut off non-performing contractors in an initiative aimed at tackling pervasive issues of inefficiency, delay, and lack of accountability within government-run building projects.

The plan, titled the South African Construction Action Plan (SACAP), was presented during a press briefing in Cape Town.

In the previous financial year, Macpherson noted that out of the current 206 infrastructure projects overseen by the Department of Public Works and Infrastructure (DPWI), 164 projects are experiencing delays for a number of reasons. 

This represented a 79% delay rate. Macpherson acknowledged the widespread frustration over unfinished and slow-moving construction projects funded by the taxpayer.

“They are tired of the delays, and the lack of accountability that has plagued our sector for too long,” he said on 29 October 2025.

Macpherson confirmed that R14 billion in government construction projects are currently underway.

Yet, he noted that the public witnesses “the waste, the inefficiency, the loss of confidence in the state’s ability to build”.

He said that a meeting was convened with the leadership of public works and infrastructure departments across the country, where officials agreed on this “new programme of action”.

The action plan, Macpherson said, is structured around six core actions intended to address the root causes of underperformance.

SACAP is designed as a framework built on “collective and individual accountability,” setting “measurable targets, real timelines, and enforceable consequences,” said Macpherson.

Officials and accounting officers will be measured against these new metrics, asserting that “those who cannot or will not deliver will be held accountable, whether they are contractors, consultants, or officials”.

This comes shortly after Parliament’s Select Committee on Security and Justice resolved to summon Macpherson over a long-delayed police station refurbishment project.

R63 million spent, 100% over budget: South African police station refurbishment seven years late

The plan to crack the whip

Macpherson said that action one introduces a rigorous contractor blacklisting process. “Underperforming contractors have operated with impunity,” often resurfacing in new provinces.

To end this practice, all departments will establish Restriction Committees to work alongside the Construction Industry Development Board (CIDB) in compiling lists of non-performing companies.

“If you have failed the state once, you will not be given a second chance to waste public funds”.

Action two addresses cash-flow constraints, identified as a primary reason for projects stalling.

The department is advocating for the introduction of “strict ring-fencing of project budgets” in collaboration with National and provincial treasuries.

This measure is intended to ensure that infrastructure funds are protected and cannot be diverted to other uses.

The Minister stressed, “we cannot build hospitals, schools, or police stations if the money meant for those projects is diverted to other needs halfway through the construction”.

Action three commits to introducing digital infrastructure tracking to improve visibility. By March 2026, all Public Works departments will implement a digitised, integrated Asset Information Management System based on Enterprise Resource Planning (ERP) technology.

This is expected to provide a “unified, live dashboard” for real-time tracking of budget, timeline, and physical progress across every construction project in the country.

He said that this will also allow the department to “publish quarterly data to the public so they can see first hand the progress that is being made”.

Under action four, “Procurement War Rooms” will be launched in every Public Works department, bringing together specialists to monitor awards in real time, identify blockages, and speed up evaluations.

The final two actions address governance and professionalism. Action five mandates departments to work directly with the Auditor-General of South Africa to address audit findings promptly, rather than waiting for annual accumulations.

Action six aims to professionalise the sector, requiring all built-environment professionals working for or contracted by Public Works to be registered with their statutory councils by June 2026.

This is intended to ensure “the skills to build the country reside inside the state, not outside of it”.

“We are turning the Department of Public Works and Infrastructure into the economic delivery unit of South Africa, one that builds faster, cleaner, and smarter”.

The turnaround, he noted, will not happen overnight, but progress will be measured, “transparently, quarterly, and publicly, through the SACAP reporting framework”.