Swazi Observer

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FAKE CERTIFICATIONS, SHODDY WORKMANSHIP THREATEN CONSTRUCTION INDUSTRY

By Nomfanelo Maziya | 2024-11-20

The Construction Industry Council (CIC) is facing a growing concern as fraudulent CIC certificates are being submitted during tendering processes.

This alarming trend, according to Registration and Grading Analyst, Lomalungelo Dlamini was not only tarnishing the industry's reputation but also posing significant risks to public safety.

Project owners, especially those in the residential sector, had reported a surge in complaints about substandard workmanship delivered by contractors.

This not only damaged the industry's credibility but also endangers the lives of Eswatini citizens.
A key factor in uncovering these fraudulent activities had been the involvement of whistleblowers, often competitors who recognise the potential harm caused by such dishonest practices.

These individuals played a crucial role in safeguarding the integrity of the construction industry.
Fraudulent contractors often resort to deceptive tactics, such as last-minute registration with the CIC, forging certificates entirely, or altering existing certificates to replace names and grades.

“They manipulate physical copies of legitimate certificates by altering the name and grade information to reflect their own details. However, when these altered certificates are scanned, the barcode reveals the original owner of the certificate, exposing the fraudulent act,” she explained.
The consequences of fraudulent certificates were far-reaching.

“If individuals are willing to engage in such fraudulent activities as forging certificates, it raises serious concerns about their overall integrity,” Dlamini said.

Project owners were therefore understandably hesitant to entrust significant projects and financial resources to individuals who demonstrate such a blatant disregard for regulations and ethical conduct.

“This behavior can lead to disqualification from future projects and damage the reputation of the entire industry,” she said.
contractors who engage in fraudulent activities may face disqualification from future tenders.

The CIC and the construction industry as a whole suffer from this tarnished reputation.
She further highlighted that substandard construction could lead to structural failures and other safety hazards.

Project owners may incur significant financial losses due to poor workmanship.
Many complaints about substandard workmanship stem from contractors exploiting vulnerable individuals, such as female project owners who may lack construction knowledge, according to Dlamini.

She therefore emphasised the importance of ethical practices and urges contractors to deliver quality work, stating, "Give people the quality they deserve, do the best that you can."

To address this issue, Dlamini said the council had taken proactive measures, strengthening verification procedures, by introducing barcodes to the certificates.

“When tender owners conduct valuations, they can scan the barcode on the certificate using a smartphone. This barcode reveals the owner of the certificate’s information such as their grade,” she said.

CIC commits to easing
compliance burden

The Construction Industry Council (CIC) has committed to easing the compliance burden on businesses within the sector.

CIC CEO Maqhawe Mnisi, acknowledged the significant costs associated with compliance and emphasised the importance of streamlining processes.

“The council is actively working with various partners to develop Memoranda of Understanding (MoUs) that aim to simplify compliance procedures,” said Mnisi.

These partnerships would facilitate smoother operations for businesses and reduce administrative hurdles. By streamlining processes and fostering collaboration, The CEO highlighted that CIC aimed to create a more conducive environment for businesses to thrive while ensuring adherence to regulatory standards.

This commitment was highlighted during the construction good compliance practices Indaba at Happy Valley Hotel. it aimed to address the numerous challenges facing the construction sector.

The event brought together key stakeholders, including the Eswatini National Provident Fund (ENPF), the Eswatini Revenue Service (ERS), the Ministry of Labour, and the Construction Mediation and Arbitration Centre (CMAC), to discuss strategies for enhancing compliance and streamlining processes.

The indaba focused on various aspects of compliance, including provident fund contributions, tax obligations, labor compliance, and dispute resolution. ENPF representatives discussed the importance of adhering to the Eswatini National Provident Fund Order of 1974 and ensuring timely contributions.

ERS experts highlighted the tax implications for construction businesses and the need for accurate tax filings.

The Ministry of Labour emphasised the significance of adhering to labor laws and regulations, including minimum wage standards, working hours, and occupational health and safety.

CMAC representatives explored effective dispute resolution mechanisms within the construction sector, aiming to reduce delays and legal costs. CIC Research and Business Development Manager Cathrine Motsa, echoed these sentiments, emphasising the collaborative nature of the indaba.

She stressed the need to view compliance as an investment rather than a burden, as it could lead to numerous benefits, including improved project quality, enhanced safety standards, a stronger reputation, reduced disputes, efficient project timelines, and improved labor practices.

“By addressing bottlenecks and streamlining compliance processes, the construction industry can create a more efficient and sustainable environment for businesses,’ said Motsa.

Construction projects
worth E664m registered

The Construction Industry Council (CIC) has reported a significant increase in both contractor registrations and project values in the current financial year.

Making her presentation on ensuring compliance to the CIC Act, Registration and Grading Analyst Lomalungelo Dlamini reported that from April to September, the council registered 1 389 new contractors.

“These include general and specialist works contractors, consultancy practices, manufacturers, suppliers, individual artisans, and joint ventures,” said Dlamini.

This surge in registrations reflected the growing activity and opportunities within the construction sector. “Even young people are increasingly entering the industry, demonstrating a promising future for the sector,” she said.

In terms of project values, the CIC registered 215 projects worth a total of E664 million since April.

“Impressively, local participation accounts for a substantial 98 per cent of the total value, amounting to E654.4 million,” she said. Foreign participation, while minimal, contributes approximately two per cent or E10.7 million.

Comparing these figures to previous years, the trend is clear. In 2022/23, the council registered 1 480 contractors and 926 projects valued at E3.6 billion. In 2023/24, the figures were 1 639 registrations and 721 projects valued at E5.8 billion.

The council anticipated that the number of registrations would continue to rise by the end of the current financial year.

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