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Public Works and Infrastructure Minister Dean Macpherson revealed that mafia groups and gangsters have infiltrated South African security firms.
He revealed this during a media briefing on the outcomes of meeting the nine Provincial Members of the Executive Council (MECs) for Public Works.
He said there is a collaborative effort to reduce construction stoppages by criminal syndicates, better known as the construction mafia.
“The latest police data shows major progress through intensified intelligence gathering, data tracking and law enforcement operations,” he said.
“745 construction-related extortion cases have been reported, and we have seen 240 arrests made related to these cases,” he said.
Gauteng is the highest contributor, with 241 reported cases and 81 arrests, followed by the Western Cape, with 198 reported cases and 73 arrests.
KwaZulu-Natal is third with 102 cases and 16 arrests, and the Eastern Cape fourth with 86 cases and 6 arrests.
Collectively, these four provinces account for 84% of all construction mafia extortion cases across South Africa.
He said they are engaging with the National Treasury to ensure a reform of the regulations under the Public Procurement Act.
This will close the loopholes used by the construction mafia to demand 30% of infrastructure project procurement.
“The 30% local procurement rule, introduced by the National Treasury under former President Jacob Zuma, has been used by criminal syndicates to extort contractors,” he said.
“If we want to end these criminal syndicates at infrastructure projects, we will have to remove the incentives these criminal syndicates use to operate.”
He added that they are collaborating with the Private Security Industry Regulatory Authority, or PSIRA, to address extortionists who pose as security firms.
He explained that they have seen gangsters and the construction mafia posing as security firms in South Africa.
He said working with PSIRA will ensure stricter monitoring and regulatory enforcement of security companies operating within the sector.
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