Portrait of Sihle Zikalala, wearing a suit and striped yellow and grey tie. Public Works and Infrastructure Minister Sihle Zikalala. Picture: File picture
Despite efforts to deal with extortion in the construction industry, the crisis is worsening, according to industry participants.
They warned that unless the criminal kingpins were put behind bars, arresting foot soldiers would not help stem the tide.
The construction industry has suffered about R68 billion loss due to extortions demanded by mafia rings.
CEO of the Black Business Council, Gregory Mofokeng, said the site disruptions had a direct impact on the economy, job creation and the infrastructure.
“The situation has worsened despite us co-operating with the police. In fact, some companies went to the extent of applying for and being granted court interdicts. The suspects are known but they are still not arrested,” said Mofokeng.
He also said the modus operandi of the criminals had evolved, making it difficult to execute the court interdicts.
Chairperson of Construction Alliance South Africa, John Matthews, said “site disruptions” also had many faces, from community groups wanting a piece of the pie, with “real and legitimate” concerns, to the extreme threats of the so-called “construction mafia” type organisations wanting 30% of profits.
“In many instances, parties that are affected by this are requested to come forward in order to stamp out this behaviour, but we know in reality it is not always possible to do so; because of threats, veiled or not and many contractors suffer in silence rather than risking their own lives or the lives of others.”
Public Works and Infrastructure Minister Sihle Zikalala said 682 cases of extortion-related cases were being investigated across the country.
“We must act and speak with one voice to root out this illegal practice,” he urged stakeholders in the built environment, adding that construction was the backbone of the economy and a pillar for economic recovery.
Zikalala said his department had set up a Social Facilitation unit which would prepare the ground before a project was started.
This, it was hoped, would help eliminate the losses suffered by contractors on site.
The Western Cape Property Development Forum (WCPDF) called for policy implementation across all spheres of government that would ensure all development projects incorporated proactive community engagement from the time projects were deemed viable and hit the planning and design stage.
The ground-up community engagement formed the backbone of the Conradie Park Precinct project, and enabled the contractor to deliver on the development without disruption.
WCPDF chairperson Deon van Zyl said the project's success is significant: “That there has been no disruption to date on this site is extremely noteworthy, given that the construction mafia has largely targeted public projects here in the Western Cape and indeed across the country.”
Women-owned entities bore the brunt of the extortionists.
"The latest tactic by the criminals is that they now invade incomplete housing projects and we are the ones who suffer. The criminals must be arrested", said SA Women in Plumbing’s Kile Mfeketo.
Head of the Justice and Violence Prevention Programme at the Institute for Security Studies, Gareth Newham, also called for the arrest of the kingpins.
“The decline in the capability of police crime intelligence has opened up a space for extortion. The kingpins must be put in jail, the foot soldiers are easily replaceable.”