CoCT joins forces with role-players to deal with so-called construction mafia

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