File image of a construction site.
Cape Town - Property developers have teamed up with the City to tackle the construction mafia, as they highlighted the challenge of identifying legitimate businesses from underworld organisations operating across the metro.
The City, Atterbury, Old Mutual Properties and other role-players have held a series of meetings in Cape Town to address the involvement of alleged underworld-linked businesses in property development projects.
The discussions resulted in a commitment to prevent any future engagement with alleged criminal enterprises in development and construction projects.
Atterbury Group CEO, Louis van der Watt, expressed the complexities in detecting illegality in business, especially when entities operate under the guise of legitimacy.
He said the businesses possessed all necessary legal documentation, making it challenging to identify their true nature through standard vetting processes.
He emphasised the need for collaboration with national and local government, including police and the SA Revenue Service (SARS), to help identify these entities.
“The construction mafia in Cape Town regularly operate through legally registered entities with valid bank accounts and tax clearance certificates. Financial statements, company registration documents, directorship information and other business certifications are in order, making it extremely difficult to detect any connections to criminal activities through standard procedures,” Van der Watt said.
Mayor Geordin Hill-Lewis said the City would continue holding the National Treasury to account in maintaining an updated black list.
The City further committed to introducing a process of vetting approved Community Liaison Officers, representing local communities in various development projects.
“Together, we can ensure that our construction projects contribute positively to the economy without falling prey to extortionists.
“The City will use all legal means to combat the construction mafia, collaborate and share information with the private sector, and protect our communities from the scourge of organised crime,” Hill-Lewis said.
The construction mafia has notoriously attempted to infiltrate property developments in Cape Town.
City manager Lungelo Mbandazayo previously revealed how companies were accused of colluding with Nicole Johnson, the wife of an alleged gang boss Ralph Stanfield, for a housing project.
CEO of the South African Property Owners Association (SAPOA) Neil Gopal expressed his support for the collaborative efforts to combat the construction mafia in Cape Town.
“We at SAPOA welcome the collaborative efforts of the City of Cape Town and the private sector to address and eradicate the negative influence of the construction mafia that has long hindered property development in our cities.”
Meanwhile, this week in Philippi East, extortionists held the community at ransom after sending a note warning residents to stay indoors.
EFF provincial chairperson, Unathi Ntame, said: “We encourage police to continue with these operations, particularly towards extortionists masquerading as tax collectors.
“They have no conscience nor shame to commit public mass shootings under the pretence of sending a message to businesses who refuse to cooperate with criminals and a quasi-illegal SARS.”
The public is encouraged to report extortion on 0800006992 or SSIMS. SSIUReporting@capetown.gov.za.
mandilakhe.tshwete@inl.co.za
Cape Argus
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