Sameera Casmod |sameerac@radioislam.co.za
2 December 2024 | 22:28 CAT
2 December 2024 | 22:28 CAT
2-minute read
The “Durban Declaration”—a partnership agreement to stop the criminal disruption of construction sites countrywide—was signed on Tuesday at the National Construction Summit.
The so-called “construction mafia” is an extortion network that has significantly affected both the public and private construction sectors—and, ultimately, South Africa’s economic climate.
Minister Macpherson, in an interview on Radio Islam International, differentiated between the two: “The practice of extortion is found in two parts. The first is the very visual delay of projects like infrastructure projects, where we are building bridges, where we’re building large wastewater treatment plants, transmission, et cetera. And then the extortion that we are now seeing, particularly in places like townships, where criminals and gangs terrorise communities unless they are paid protection.”
Over 50 public construction projects have been delayed due to demands from extortionists, costing the country R64 billion. The delay in constructing essential infrastructure has far-reaching implications for communities that “desperately require this infrastructure to either better their lives or to drive economic growth”.
According to Minister Macpherson, extortionists found a way in through the “30% set aside rules”, a treasury regulation introduced by then-president Jacob Zuma to broaden participation in government contracts.
“The problem with good intentions is they often have bad consequences, and the consequence of that is that we have effectively monetised participation in state-led infrastructure projects, and ironically, to the detriment of black businesses that it was supposed to target,” the minister said.
One solution is to improve regulations in the construction industry to facilitate participation in a more structured manner.
The Durban Declaration, signed by the National Treasury, the Department of Public Works and Infrastructure, and the Ministry of Police, outlines 5 key strategies to stop the scourge. These include regulating procurement, the use of data to predict potential extortion sites and enable fast responses, rules of best practice to facilitate a uniform approach to social facilitation, the requirement for construction businesses to register with the Development Board, and to start consulting with construction businesses at least 6 months prior to a project’s commencement.
The Minister acknowledged Police Minister Senzo Mchunu’s commitment to ending the scourge and emphasised his confidence in the new agreement between the various role-players.
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