Construction mafia disrupts Gauteng projects to the value of R2, 5 billion, severely impacting employment opportunities
11 September 2023
The so-called construction mafia, also known as business forums, has disrupted nine public sector projects in Gauteng to the value of R2,5 billion. This has severely impacted service delivery and employment opportunities because hundreds of jobs could have been created through these projects.
This was revealed in a written reply to my question to the Infrastructure Department, which in addition indicated that these extortionist and criminal activities have been prevalent in Gauteng since 2017.
In South Africa, the first business forums arose in KwaZulu Natal more than 10 years ago and then spread to the rest of the country. Individuals or groups of people approach developers of infrastructure and demand to be given contracts to participate in the project. Failure to agree has resulted in assaults of construction workers, equipment on site being damaged, projects being halted and even deaths.
Procurement regulations promulgated in 2017 made it obligatory on projects in the public sector over R30 million for subcontracts to be awarded to designated individuals to promote local economic development.
The unintended consequence of this has been a scramble by SMMEs to participate in these tenders and an attempt by business forums to intimidate the SMMEs as well as developers. The fact that this legislation is only applicable to the public sector has not stopped the construction mafia from demanding subcontracts and disrupting projects in the private sector.
According to the Gauteng Infrastructure Department, projects in Gauteng that have been affected are:
Randfontein Clinic
Philip Moyo Clinic in Etwatwa
New Eersterus Clinic, where the contractor eventually abandoned the project
Dr George Mukhari Hospital
Jubilee Hospital
Kopanong Hospital
Baragwanath Hospital
AngloGold Ashanti Hospital
Rustervaal Primary School.
The government's response to this criminality has been underwhelming, with the South African Police often refusing to intervene. The Infrastructure Department indicates that it has set up a project anti-disruption strategy. In addition, its Security Management Directorate has regular meetings with the Priority Committee Against Illicit Business Forums.
There is no expectation that the dysfunctional Gauteng Department of Infrastructure will be able to deal decisively with this scourge and undertakings from them are met with skepticism.
Hope and trust in government have been eroded. Surely, it’s time for a change in government that will stop the construction mafia and prioritise the completion of projects to ensure uninterrupted service delivery and create employment opportunities.
Statement issued by Alan Fuchs MPL - DA Gauteng Shadow MEC for Infrastructure Development and Property Management, 11 September 2023
