Construction mafias in for a rude awakening

South Africa’s minister of public works and infrastructure, Dean Macpherson, has warned construction mafias in the country that they will be treated as enemies of the state.

Construction mafias, also euphemistically called local business forums, use intimidation tactics to demand a percentage of pay or a protection fee from contractors working in their areas.

They do so under the premise of a legislative requirement that developers must subcontract 30% of public sector projects to local contractors.

During his budget vote speech on Tuesday, 16 July 2024, Macpherson highlighted several priorities for his department and committed to a strong stance against construction mafias.

“I want to be very clear: anyone who seeks to hold back infrastructure projects will be treated as an enemy of the State, and they will be dealt with appropriately,” said Macpherson.

“There is no room for negotiations or delays to our projects.”

These groups are a significant threat and nuisance to developers and contractors working in rural areas of the country, particularly in KwaZulu-Natal.

KwaZulu-Natal public works and infrastructure MEC Martin Meyer issued a similar warning in late June 2024.

He said his department would partner with roleplayers in the construction industry and from civil society to form a strong task team to tackle the scourge of construction mafias.

The task team will also feature community policing forum members and “people on the ground”.

“Let us be clear. The construction mafia is not there to help the people. They are not there to get money to share in the communities,” said Meyer.

According to specialist investigator Mike Bolhuis, construction mafias have proliferated in South Africa due to the involvement of powerful individuals and law enforcement.

This is coupled with the authorities’ failure to act against such organisations.

Bolhuis said this is because authorities fear construction mafias and the consequences of fighting against them.

“Today, it’s one of the most lucrative crimes committed in the country because it has so many authorities involved,” he said.

Dean Macpherson, South Africa’s Minister of Public Works and Infrastructure

Bolhuis added that corrupt police officers are highly involved in construction mafias, which makes the South African Police Service afraid of them.

“So, they do not get involved, and they do not stop and prevent this crime,” he said.

During one incident in KwaZulu-Natal in September 2022, a developer working to complete two township projects was approached and intimidated by armed construction mafia members who demanded payment for allowing them to work there.

“These guys have felt marginalised and were not being given opportunities, and felt that they needed to force it to happen,” the developer said.

They contacted the police for help, who advised that they should work with the construction mafia.

“When we went to report to SAPS to intervene they told us that we need to find a way to work with these guys,” the developer said.

They were forced to make a temporary arrangement with the armed men to continue working.

Cape Town nailing construction mafia suspects

Thirteen suspects arrested for their alleged ties to Cape Town construction mafias appeared in court on Friday, 28 June 2024.

It is alleged that some of the suspects are linked to the murder of Cape Town city official Wendy Kloppers in February 2023.

“It’s important to recognise that this is part of a broader web of individuals who wanted to capture human settlements in the City of Cape Town,” said Cape Town Human Settlements MMC, Carl Pophaim.

“This broader group of people who want to stop delivery unless they are benefitting from it.”

Pophaim said Cape Town was forced to re-advertise security service tenders and increase its tender cap for such services to keep officials safe.

He explained that the metro has had to increase its tender cap for security services to protect officials.

“We are going to re-advertise to ensure that we protect our contractors, protect our officials, to make sure that we do justice to what Wendy Kloppers and her family went through so no other official has to go through it as well,” he said.