Emily Mgidi

When a business crisis hits, a frozen bank account, a SARS alert or a rejected CIPC filing, many entrepreneurs are left unsure of where to turn. Compliance and tax experts say these moments are becoming increasingly common, particularly among SMEs. Bank account freezes, in particular, are often linked to FICA compliance issues, outdated company records or flagged transactions.

Government blacklisting of a company can go further than simply barring the business from state contracts and has far-reaching implications for banking and funding dynamics. The National Treasury has at its disposal the Database of Restricted Suppliers, which includes entities that are barred from engaging in any business transactions with the government for transgressions that include fraud, corruption, defaulting on contracts, or for serious cases of noncompliance.

In South Africa’s public and private procurement processes, bank confirmation letters are consistently cited by contracting authorities as a mandatory compliance document for tender submissions.