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ramaphosa
President Cyril Ramaphosa has vowed to take a firm stand against the criminal organization known as the construction mafia, which has wreaked havoc on South Africa’s building sector by extorting billions of dollars and halting major projects. Speaking at a recent infrastructure event, he pledged to do everything possible to root out these syndicates, which have blocked more than 180 developments worth a total of R63 billion. The pledge comes as the government rolls out a major R1 trillion infrastructure program aimed at revitalizing the economy and creating jobs. The construction industry is showing signs of recovery with 130,000 new jobs, and authorities are determined to maintain momentum by protecting sites, streamlining approvals and keeping criminals out.
Construction mafia control over South African projects
These so-called mafias, often made up of armed groups disguised as business forums, invade construction sites and demand reductions in contracts (usually 30%) or the employment of their members. Refusal to do so will result in resorting to intimidation, violence and closures, causing delays and causing significant economic damage. Over the past few years, they have targeted everything from roads and bridges to homes and water systems, resulting in abandoned workshops and ballooning costs.
In KwaZulu-Natal alone, one of the worst-hit provinces, the mafia has stalled billions of dollars’ worth of projects, including major highways and public infrastructure. Similar problems have occurred in Gauteng province, where groups have threatened contractors and even killed those who resist. Nationwide, this problem has been growing since 2016, with more than 200 incidents reported in recent years. Such disruptions not only waste public funds, but also scare away investors and slow the country’s efforts to rebuild after years of economic strain.
Prime Minister Ramaphosa’s announcement builds on earlier warnings calling these actions “economic sabotage” that hurts growth. He stressed that the government will not tolerate such acts and vowed to use all means to bring perpetrators to justice.
Government’s multi-pronged strategy to combat threats
To tackle this problem head-on, states are launching a coordinated effort involving police, intelligence agencies, and prosecutors. The task force set up in 2019 has already achieved results, with more than 700 arrests related to extortion and related crimes. This includes high-profile busts in provinces such as the Eastern Cape and Limpopo, where syndicates targeted renewable energy projects and mining operations.
New measures include increased security on the ground, fast-tracking trials and working with private companies to share information. The government is also considering legislation that would classify these acts as treason and make it easier to impose harsh penalties. Mr Ramaphosa stressed the need for community engagement and called on locals to report suspicious activity without fear.
The crackdown is linked to a broader R1-trillion infrastructure plan announced in 2020 as part of the economic recovery and recovery plan. The initiative focuses on road, rail, port and energy projects to create more than 400,000 jobs by 2030. R340 billion has been injected into the economy so far, but the mafia is siphoning off the funds through forced subcontracting and false invoicing.
Experts say poverty and inequality are fueling these groups, and that some groups, which started out as legitimate forums for black economic empowerment, have become criminalized. The government aims to address the root causes by promoting a fair bidding process and providing legal support for small and medium-sized enterprises.
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