Durban — The construction mafia was mentioned in one of the eight critical pillars in urgent need of reform for the Department of Public Works and Infrastructure (DPWI) to realise its dream of increased infrastructure investment.
This was according to Minister Dean Macpherson, who led a briefing on the department’s progress.
The pillars are:
- Address institutional arrangements
- Centralised planning and prioritisation
- Accelerate broader budget reforms
- Address regulatory bottlenecks and red tape
- Address municipal bulk infrastructure constraints
- Unlock other sources of funding
- Economic regulation in the construction industry
- Cancellation of tenders, social unrest, damage to infrastructure, and crime.
On the cancellation of tenders, social unrest, infrastructure damage and crime, Macpherson said: “We are working closely with law enforcement agencies to mitigate these risks, with a special focus on reducing the influence of the construction mafia.”
He said they have started discussions on the possibility of restructuring the Property Management Trading Entity, or PMTE, into a South Africa Property Company. The entity would focus on converting state-owned assets into income-generating properties, with the revenue generated being reinvested into the maintenance of critical public infrastructure such as police stations, hospitals, and schools.
He said their department is the largest land and building owner in the country, and they must leverage these assets to support their broader economic goals.
“But, one of the most pressing issues we face is the influence of the construction mafia, which has disrupted the construction sector and eroded investor confidence. The 30% local procurement rule, intended to empower local communities, has unfortunately been hijacked by criminal syndicates. We are committed to policy changes that will protect legitimate construction businesses and ensure that infrastructure projects proceed without interference,” Macpherson explained.
“This is why I welcome the views expressed by the Black Business Council’s deputy president, Gregory Mofokeng, over this past week, who has acknowledged that the 30% rule has been taken advantage of and hijacked by the construction mafia.
“This highlights the growing consensus that the support meant for small, medium, and micro enterprises, or SMMEs, has been misappropriated, serving instead to enrich the pockets of the construction mafia rather than empowering legitimate businesses.”
DA Public Works and Infrastructure deputy spokesperson Edwin Bath welcomed the war on the construction mafia.
“For a long time, the DA has been calling on national government to effectively combat the construction mafia, which has crippled the construction industry. Now, Minister of Public Works and Infrastructure Dean Macpherson has announced that a national summit will be convened to abolish the criminal syndicates,” Bath said.
Meanwhile, next week, five men believed to be members of the construction mafia will appear in the Camperdown Magistrate’s Court after they were remanded in custody.
The men, believed to have disrupted construction sites in and around Pietermaritzburg, were arrested by the KwaZulu-Natal Provincial Reaction Task Team established to curb construction mafia-related activities. They face charges of intimidation and infrastructure disruption. The State has also added charges of extortion.
Last week, another government construction site was disrupted when “business forum” members stormed the R109 million site, demanding subcontracting work. The site belongs to the Transport Department. Several other sites were also disrupted.
This prompted a visit by Public Works and Infrastructure MEC Martin Meyer, who warned the group his department would not tolerate the disruption of government construction programmes. Meyer said he was prepared to listen to the grievances of genuine business people but not a disruptive group in the name of business forums.
Macpherson and Meyer also announced a summit on the matter which will assist the government in identifying legitimate business forums and separate them from criminals masquerading as business forums.
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