City housing projects impacted by surge in criminality, gang violence, extortion rackets

19 September 2021  

In less than two years since February 2020, these instances of criminality have cost the City more than R131 million. In the five years since 2017, the City has spent more than R143 million, indicating a surge in these incidents in recent months. This is more than double the amount spent in the two previous years to counter this criminality.

Just some of the projects impacted since February 2020:

- Implementation of the City’s Beacon Valley housing project was delayed for more than 12 months; more than 1 800 opportunities impacted

- Backstage 2 Upgrading of Informal Settlement Project (UISP) was cancelled following unlawful occupation of 100% of the project site; cost of R33 million and 466 opportunities impacted

- Monwabisi Park UISP cancelled following unlawful occupation of 100% of the project site; cost of R94 million and 7 000 opportunities impacted

‘The issue of gang violence and alleged extortion experienced at project sites is endemic to contracts in the human settlements sector nationally, as are challenges relating to sabotage, vandalism, theft, land invasion and damage to property. We are extremely concerned about the increasing trend in these criminal activities which have stalled or completely blocked projects that are key to the well-being and development of the communities. In addition, some disruptions have been violent and resulted in property damage, injury of persons and, in some cases, loss of life.

'We shall consider alternative methods and mechanisms to deal with this issue, as contending with this state of affairs is not an option. Some of the proposals include more dedicated work to institute criminal charges with the South African Police Service, the reintroduction of community liaison officers, and greater partnerships with the Safety and Security Directorate. These proposals have already led to a proposed plan for security to be provided to contractors on site. The final aspects of this plan must still be finalised. This all comes at a cost, whether it be added security costs, delays or the loss of projects, but it is important to ensure that City contractors are willing to undertake the work and to prevent the loss of life in particular.

‘It is positive to see our proposals already bearing fruit. We know that these criminal acts at our projects cannot be tolerated. It is costing the City millions of rands, which it just cannot afford at a time when our budgets are being slashed by the national government which cut R118 million from our Urban Settlements Development Grant (USDG) last year alone while the need for affordable housing is increasing.

‘Despite these exceptionally difficult conditions, the City spent approximately 95% of its Urban Settlements Development Grant (USDG) in the 2020/21 financial year, earmarked for human settlements for the most vulnerable residents. We are doing all we can to protect our projects. If you look at our performance, against the background of the reality on the ground, you can see that we do our absolute best under trying circumstances to enable opportunities for our residents. We thank our project teams for their dedication in these difficult times and the community for their continued support and cooperation. We always want to see our projects being completed and our qualifying beneficiaries move into their new homes. It is in the interest of the City and our beneficiaries that projects are rolled out timeously and without delay. We look forward to providing many more affordable housing opportunities to residents,’ said the City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi.

Unlawful occupation and criminal activity: Anonymous tip-offs welcomed:

Residents can give anonymous tip offs if they are aware of illegal activity that is taking place; that has happened or is still to happen. Please call 112 from a cell phone (toll free) and 107 from a landline or 021 480 7700 for emergencies.

Issued by Media Office, City of Cape Town, 19 September 2021