Taking the fight to construction mafias in South Africa

Public Works and Infrastructure Minister Dean Macpherson, through the Durban Declaration, signed in November 2024, wants to reform local procurement regulations and deploy specialised police units to combat the scourge of construction mafias.

Construction mafias have been a problem for nearly 15 years and in addition to impacting construction and development in South Africa, they also disrupt fibre rollouts in the country, leading to higher prices for customers.

Macpherson’s spokesperson, James de Villiers, said they have declared war on the construction mafia, which has held infrastructure projects hostage for too long.

“After just four months in office, Public Works and Infrastructure Minister Dean Macpherson helped sign the Durban Declaration with SAPS and the National Treasury to develop a unified approach to ending the construction mafia once and for all,” De Villiers said.

“The Durban Declaration, signed in November, provides a framework to restore the rule of law through coordinated law enforcement efforts, reforms to local procurement regulations, and the deployment of specialised police units to combat this scourge.”

De Villiers said reports of construction stoppages are already on a downward trend.

He explained that, with construction mafias abusing local procurement regulations, it is critical that these are updated.

“The Minister has publicly stated that local procurement regulations have been abused by the construction mafia to solicit bribes, while legitimate small businesses continue to struggle,” he said.

“Therefore, there is a clear need to reform these regulations to ensure they can no longer be exploited by criminal elements.”

Through the declaration signed in Durban and announced at the National Construction Summit on Crime-Free Construction Sites in November 2024, the parties committed to taking decisive action against construction mafias.

“We are gathering here today in Durban, KwaZulu-Natal, considered ground-zero for the so-called construction mafia, to take a stand and say enough is enough,” said Macpherson.

“We are drawing a line in the sand to say that lawlessness will no longer be tolerated. We will no longer be negotiating with criminals just to build roads, dams, schools, and hospitals that our people so desperately need.”

The Minister of Police, Premier of Kwazulu-Natal, various deputy ministers, MECs, and high-ranking police officers attended the summit.

“The calibre of people gathered here today proves our collective commitment to find solutions to this scourge,” said Macpherson.

Construction mafias, posing as “local business forums”, emerged in South Africa following the swift construction in the country in the lead-up to the 2010 FIFA World Cup.

These organisations back their claims by leveraging legislation mandating that 30% of public sector developers are subcontracted to local contractors.

They visit construction sites to extort money from the contractors and developers behind the construction.

Construction mafias are particularly prominent in KwaZulu-Natal, which Macpherson describes as “ground zero” for these organisations, which he also considers enemies of the state.

In July 2024, he announced that construction mafias would also be treated as such.

“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,” the minister said.

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

These criminal organisations have been allowed to operate because many members of the South African police force are afraid of intervening.

According to specialist investigator Mike Bolhuis, construction mafias have also flourished because members of law enforcement and other influential individuals are involved.

AK-47s for a cut of fibre network rollouts

Construction mafias also target fibre rollouts by fibre network operators (FNOs) in South Africa.

In May 2024, Link Africa chief sales and marketing officer Mark O’Donoghue detailed the FNO’s experience with construction mafias, adding that the company spends R1 million a month on private security.

Their approach generally involves intimidation and violence, leading to delayed rollouts and higher prices for customers.

Alternatively, the construction mafias demand “protection fees” and threaten violence or disruption of construction activities if these aren’t paid.

Alternatively, they threaten violence or disruption of construction activities unless paid “protection fees”.

“When you mention the construction mafia, this is what we deal with daily,” said O’Donoghue.

He explained that construction mafias had visited Link Africa’s offices with AK-47s and locked staff in boardrooms while they checked for information on the FNO’s rollouts.

“You can’t use your own staff. You have to outsource to their staff,” he added.

Another major challenge is that fibre rollouts often cover large distances, which span areas that different gangs control. The gang in control can also change frequently.

“During one fight over a weekend, somebody would have gained access to another area. So now you’re working in an area that you thought was part of one business forum,” said O’Donoghue.

“We have to consult and hand off staff to the next forum area and the next.”

He said that when FNOs don’t comply with construction mafias, staff are threatened with violence and company equipment and vehicles disappear.