Cape Town projects still halted as mafias intimidate contractors

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06-03-2024
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Cape Town Etc
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Several major urban mobility projects in the City of Cape Town have come to a standstill due to concerns at construction sites linked to the activities of ‘construction mafias’.

Councillor Rob Quintas, the City’s Mayco member for urban mobility, revealed that various incidents, including extortion attempts that started around mid-2023, have caused significant delays in public transport projects. In one instance, a contractor’s worker was murdered.

As reported by BusinessTech, the term ‘construction mafia’ refers to groups attempting to forcibly extract protection fees from local construction companies and contractors. These groups may also demand a portion of an infrastructure project’s cost or insist on specific individuals affiliated with the mafia being recruited to work on the site.

‘This has deterred contractors from completing projects and doing business in the City, and rightly so,’ says Quintas.

The issue extends beyond the Western Cape, with Public Works Minister Sihle Zikwalala noting that construction mafias are ‘majorly disrupting’ construction companies across the country.

During the Big Five Africa Construction Summit last year, he noted that the backlogs and hindrances caused by mafias have cost the South African economy more than R68 billion across 185 projects.

In June of last year, the City of Cape Town had to suspend R58.7 million worth of projects due to threats from mafia-style extortionists. Quintas says the City and its contractors were being held for ransom, impacting service delivery and the local economy.

Furthermore, the problem isn’t limited to large projects, as unemployed individuals attempting to create self-employment opportunities, such as selling food and snacks, have also reported being targeted. They are allegedly required to pay gangs R1 000 per month to operate.

The South African Police Service (SAPS) has prioritised addressing extortion in the Western Cape, forming dedicated task teams and making numerous arrests last year, with more investigations ongoing. SAPS confirmed that 712 cases referred for investigation resulted in 722 arrests and 52 convictions.

‘It is against this background that the Infrastructure Built Anti-Corruption Forum (IBACF) welcomes and congratulates the SAPS on their progress in addressing the construction sector mafia in South Africa,’ says SIU spokesperson Kaizer Kganyago.

In February last year, work on the R101 million Sir Lowry’s Pass Village housing projects resumed after alleged extortion by contractors.

The multi-million-rand project is expected to provide 307 housing units for qualifying beneficiaries once it is complete. According to the City, the project was plagued by several delays, including the alleged extortion of contractors.

If all goes according to plan, the project should be completed by mid-2024.