Azra Hoosen | ah@radioislam.co.za
23 August 2024 | 18:30 CAT
2 min read

The rise of criminal extortion groups targeting construction sites across South Africa poses a severe threat to the country’s economic potential, particularly as the government aims to transform the nation into a construction hub. What began as a handful of “business forums” in KwaZulu-Natal extorting construction sites around 2014/15, as detailed in a report by Researcher Jenni Irish-Qhobosheane, for the Global Initiative Against Transnational Organised Crime, has evolved into a national crisis with the rise of widespread “construction mafias.”

“We saw it start in KZN, it has been one of the fastest growing extortion networks, from there it expanded across the province, there wasn’t a single construction site that wasn’t affected, now it operates across the country,” she said.

The construction sector, vital for job creation and infrastructure development, is increasingly destabilised by these criminal activities.

Irish-Qhobosheane highlighted that extortion groups often invade sites, armed and threatening, demanding up to 30% of a project’s contract value under the guise of “protection.” This practice is fuelled by weak state responses and alleged connections between some business forums and political figures.

“It becomes a little bit of a merry-go-round for the construction companies in terms of what they facing every day on site,” she said.

Department of Public Works and Infrastructure (DPWI) Minister Dean Macpherson emphasized that breaking the power of these mafias is crucial for achieving the government’s construction goals. The DPWI views addressing this issue as essential for maintaining investment confidence and ensuring job creation.

“You really needs to distinguish between local communities who are saying we want a greater stake in projects, which is a legitimate demand, and these criminal elements that using business forums going on site disrupting those sites, making threats against people heavily armed and demanding 30%, sometimes even putting down a bullet and saying is your life worth this bullet,” Irish-Qhobosheane said.

She emphasised that the impact of these criminal extortion groups extends beyond just white companies or larger companies. Smaller SMMEs are also being targeted and adversely affected, as the mafias impose their demands, often excluding these smaller businesses from opportunities and operations.

Efforts to combat this crisis include specialized units within law enforcement, the formation of the Infrastructure Built Anti-Corruption Forum (IBACF), and ongoing investigations leading to arrests and prosecutions. Despite these measures, the persistent nature of the problem necessitates a zero-tolerance approach and proactive strategies from construction firms to mitigate extortion risks.

LISTEN to the full interview with Ml Sulaimaan Ravat and Jenni Irish-Qhobosheane, a researcher at the Global Initiative Against Transnational Organised Crime, here.