{"id":778683,"date":"2024-06-25T09:52:04","date_gmt":"2024-06-25T07:52:04","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=778683"},"modified":"2024-06-25T09:52:08","modified_gmt":"2024-06-25T07:52:08","slug":"war-declared-on-construction-mafias","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/778683\/war-declared-on-construction-mafias\/","title":{"rendered":"War declared on construction mafias"},"content":{"rendered":"\n<p>The KwaZulu-Natal (KZN) provincial government says it is working hard to tackle construction mafias, which are costing the economy billions.<\/p>\n\n\n\n<p>According to the State Investigating Unit (SIU), the construction mafia refers to extortion groups that seek to forcefully extract protection fees from local construction companies.<\/p>\n\n\n\n<p>They can also extort a portion of the cost of an infrastructure project or allow members of the mafia to work on the site. <\/p>\n\n\n\n<p>These mafias are estimated to cost the economy around <a href=\"https:\/\/dailyinvestor.com\/south-africa\/24482\/construction-mafias-cost-south-africa-r68-billion\/\">R68 billion.<\/a><\/p>\n\n\n\n<p>A report by Jenni Irish-Qhobosheane for the Global Initiative Against Transnational Organised Crime showed that South Africa\u2019s construction mafia originated in KZN in 2014\/15 when two \u201cbusiness forums\u201d emerged. <\/p>\n\n\n\n<p>The group would merge and start invading construction sites across the province, ordering a percentage of the contract value and employment for their forum members.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large is-resized\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/martin-meyer.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"683\" height=\"1024\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/martin-meyer-683x1024.jpg\" alt=\"\" class=\"wp-image-778713\" style=\"width:167px;height:auto\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/martin-meyer-683x1024.jpg 683w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/martin-meyer-200x300.jpg 200w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/martin-meyer-768x1152.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/martin-meyer-1024x1536.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/martin-meyer-1366x2048.jpg 1366w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/martin-meyer.jpg 1707w\" sizes=\"auto, (max-width: 683px) 100vw, 683px\" \/><\/a><figcaption class=\"wp-element-caption\">KZN Public Works and Infrastructure MEC Martin Meyer <\/figcaption><\/figure><\/div>\n\n\n<p>As reported by the <a href=\"https:\/\/www.youtube.com\/watch?v=7a_X_cWNtwI\">SABC<\/a> and <a href=\"https:\/\/www.youtube.com\/watch?v=7-aNaQpn3rw\">Newzroom Afrika<\/a>, newly appointed KZN Public Works and Infrastructure MEC Martin Meyer said the department is working on a plan to stop the construction mafia. <\/p>\n\n\n\n<p>Meyer said that a task team, including roleplayers from the construction industry, civic society, community policing forums and those on the ground, will be created. <\/p>\n\n\n\n<p>He added that the department is willing to work with legitimate business forums to ensure that tenders are more widespread and that certain companies do not receive beneficial treatment. <\/p>\n\n\n\n<p>However, he said that it is illegal for the construction mafia to come to building sites with rifles and threaten people&#8217;s lives and will not be tolerated. <\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Not going away anytime soon <\/strong><\/p>\n\n\n\n<p>Despite Meyer&#8217;s commitment to solving the province&#8217;s issues, construction mafias are not likely to disappear soon. <\/p>\n\n\n\n<p>\u201cExtortion in the construction sector has reached worryingly high levels, derailing and delaying projects worth billions of rands\u2026 [but] with no signs of this trend reversing, construction firms should build extortion preparation and best practices into their planning ahead of every project,&#8221; said <a href=\"https:\/\/businesstech.co.za\/news\/business\/763667\/construction-mafia-here-to-stay-in-south-africa-be-prepared-says-expert\/\">Roelof Viljoen from Business Against Crime South Africa (BACSA). <\/a><\/p>\n\n\n\n<p>With these mafias becoming engrained in South Africa, Viljoen said that construction firms need to plan for the worst. <\/p>\n\n\n\n<p><a href=\"https:\/\/businesstech.co.za\/news\/property\/758561\/mafias-targetting-sitting-duck-projects-in-south-africa\/\">Deon van Zyl, chair of the Western Cape Property Developers Forum<\/a>, also noted that construction mafias target public projects far more than private ones due to cumbersome government processes like procurement.  <\/p>\n\n\n\n<p>Unlike private sector projects, where individuals or teams work throughout an entire project, public projects are often a \u201crelay,\u201d where several departments carry out certain roles throughout the process. Van Zyl said that this leaves many projects as &#8220;sitting ducks.&#8221; <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/motoring\/778609\/big-win-for-uber-bolt-and-other-e-hailers-in-south-africa\/\">Big win for Uber, Bolt and other e-hailers in South Africa<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>KZN&#8217;s new Public Works and Infrastructure MEC Martin Meyer says the department will not tolerate threats from local &#8220;business forums.&#8221; <\/p>\n","protected":false},"author":95,"featured_media":711282,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-778683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/778683","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=778683"}],"version-history":[{"count":17,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/778683\/revisions"}],"predecessor-version":[{"id":778745,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/778683\/revisions\/778745"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/711282"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=778683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=778683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=778683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}