A construction site in Cape Town on July 25, 2024. In 2023, the Inclusive Society Institute penned a document, titled “Overview of the Construction Mafia Crisis in South Africa”, revealing that constriction sites, seen as the bloodline of service delivery and much-needed jobs, had become prime targets of decentralised syndicates, commonly known as construction Mafias. Photographer: Armand Hough/Independent Newspapers
In 2023, the Inclusive Society Institute penned a document, titled “Overview of the Construction Mafia Crisis in South Africa”, revealing that constriction sites, seen as the bloodline of service delivery and much-needed jobs, had become prime targets of decentralised syndicates, commonly known as construction Mafias.
Last year, then-minister of Department of Public Works and Infrastructure (DPWI) Sihle Zikalala promised to deal with the syndicates who had wreaked havoc in some of the big projects under his department.
His comments on the scourge followed hot on the heels of a 2022 incident in which a group of Durban gunmen, believed to be from a business forum, forced their way onto a Durban High Court construction site and chased workers and contractors away.
Since then, there has not been much progress in ridding the country of the syndicates that continue to hijack private and government projects.
This week, newly appointed DPWI minister Dean Macpherson promised to hit hard against tender and constriction Mafias.
His tough stance comes hot on the heels of the recent kidnapping and murder of five men who are allegedly linked to a Mamelodi Boko Haram group.
The victims of the recent attack were reported to have been abducted on their way to Mamelodi after a construction site dispute in which they had demanded a 30% stake in the project and warned that there would be dire consequences if they did not get their stake.
Reacting to the latest developments, MacPherson said his department would not be held to random by those who were involved in the practice.
“We, as the department, have no room for construction Mafias and people who want to stop our projects. We will not be negotiating or discussing anything with them. We want to get our project running and deliver services to the communities. Mafias will not be getting away with that … Those who are involved must think twice,” he said.
This is not the first time the minister had issued a stern warning against construction Mafias. Last month during his budget vote of R23 billion, he had some choice words for those who destabilise infrastructure projects through extortion.
“I want to ask each one of you to join me in this incredible journey to turn South Africa into a construction site. We must be obsessed with infrastructure-led economic growth that will create jobs throughout South Africa.
“I want to be clear: anyone who seeks to hold back infrastructure projects must be treated as an enemy of the state and will be dealt with appropriately,” he said.
According to Inclusive Society, over the past 15 years, the country’s once-thriving construction sector has experienced a sharp decline because of construction Mafias.
“Construction Mafias, often labelled as ‘business forums’, are networks that employ violence and other illegal means of controlling access to public sector procurement opportunities. These groups typically invade construction sites, demanding money or a stake in development projects.
“In 2019, at least 183 infrastructure and construction projects worth more than R63 billion had been affected by the construction Mafias.”
The institute said construction Mafias’ interpretation of the Preferential Procurement Policy Framework Act (PPPFA) played a key role in their activities.
The PPPFA, aimed at promoting economic transformation and empowering historically disadvantaged individuals (HDIs), designates that 30% of public procurement contracts should be allocated to designated groups.
“Construction Mafias misuse this provision, demanding that 30% share of the contract value accrue directly to forum members or the forum itself.
“Despite portraying their actions as aligned with transformation goals, the National Treasury condemned this practice as illegal. Such exploitation undermines the intended objectives of the PPPFA, hindering uplifting of HDIs and small businesses,” it said.
Saturday Star
siyabonga.sithole@inl.co.za
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