The City of Cape Town, Atterbury, Old Mutual Properties and other role-players have joined forces to address the growing occurrence of the so-called construction mafia at developmental projects.
Group CEO of Atterbury, Louis van der Watt, highlighted the
complexities in detecting illegality in business, especially when these
entities operate under the guise of legitimacy. Van der Watt explained that
these businesses possess 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 the South African Police Service (SAPS) and the South African 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,’ said Van der Watt.
Atterbury is further strengthening their vetting processes
for sub-contractors, ensuring they adhere to ethical business practices, on a
continuous basis.
Cape Town Mayor Geordin Hill-Lewis pledged that the City
would continue holding National Treasury to account in maintaining an updated
black-list, which is available on the Treasury website. The City further
committed to introduce 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,’’ said Mayor Hill-Lewis.
Old Mutual welcomed the City of Cape Town's involvement in assisting businesses in identifying companies with underworld links. The business ensures a robust procurement and screening process is in place for all service providers and has never considered using any suppliers that have been black-listed.
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,’ Gopal stated. ‘This decisive action is crucial for the growth
and sustainability of our urban areas and the broader South African economy. We
hope that this initiative will establish a standard for other municipalities to
follow, ensuring a safer and more conducive environment for property
development.’’
The City says it is further investing in enhanced security
measures at its own public infrastructure projects impacted by extortion, and
has launched a City-wide anti-extortion hotline (0800 00 6992 or SSIMS.SSIUReporting@capetown.gov.za.).
A rewards system is also in place for information leading
to the arrest and prosecution of extortionists. Anonymous tip-offs are welcome.
Public Works and Infrastructure Minister, Dean Macpherson,
has welcomed the joint partnership.
“From my very first day in office, I have been clear that
the South African government would not be negotiating with criminals such as
the construction mafia, but would rather work with all role-players to address
this scourge in our communities to safeguard our infrastructure projects.’’
“To eradicate the rise of lawlessness at construction sites
across the country, it will require that we all work together, and make use of
new and innovatory approaches to fight crime. The construction sector should be
playing a bigger and more important role in growing our country’s economy. This
is only possible if we ensure our sites are safe and public and private sector
investments are secure from lawlessness and extortion,” he said in a statement.
The Minister said he looks forward to meeting with both the
City of Cape Town’s Mayor, Geordin Hill-Lewis and eThekwini Municipality Mayor,
Cyril Xaba later in August to discuss how the national and local government can
work together to address the construction mafia after he met with the City of
Tshwane Mayor at the end July.
“By working together, we will be able to turn the tide
against the construction mafia in South Africa to ensure that they no longer
operate with impunity. I look forward to working with the South African Police
Service and the South African Revenue Service to further identify these
criminals and expedite accountability.”
“It is imperative that to grow the economy and to create
jobs, we turn South Africa into a construction site, which can only take place
if we break the back of the construction mafia,’’ added Dean Macpherson, Public
Works and Infrastructure Minister.
Done by: Mitchum George
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