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The construction mafia: Changing the cycle

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What began as isolated incidents of extortion on construction projects in early 2015, has now evolved into a nationwide threat. 

South Africa’s construction industry continues to be held ransom, costing the country billions of rands in revenue and jeopardising vital infrastructure development. The perpetrators of these criminal activities, who disrupt and extort construction projects in all aspects of the project value chain, are known as the construction mafia. 

Sentebale Makara, director of dispute resolution at Cliffe Dekker Hofmeyr (CDH), and Thobeka Dhlamini, candidate attorney, share insights from a legal perspective.  

Sentebale Makara, director of dispute resolution at Cliffe Dekker Hofmeyr.

False fronts and fear tactics 

Disruptions on sites are caused by a group of people, usually posing as local business forums and local community interest groups demanding their “piece of the pie”, without using the proper channels, such as stakeholder engagement forums, to air grievances and encourage collaboration.  

Demands range from employment to contract opportunities, and even demands for cash. These “business forums” are, more often than not, unregistered and it is extremely difficult to track down any “members” acting under the auspices of the said forums or interest groups.  

The use of the socio-economic illness of unemployment in the affected communities results in the unemployed being the convenient tool used in disrupting projects. 

The modus operandi 

These mafias usually approach the site manager/project manager on the construction site, or anyone in a position of seniority, to channel their demands.  

Their extortion strategy relies on recruiting residents who are allegedly part of the affected community. Residents are then used to stage disruptive protests and hinder construction activities, effectively strong-arming the construction companies to adhere to their demands.  

The construction companies have no alternative in the circumstances, but to approach the High Court to get an interdict against any party involved in such unlawful actions. As part of the modus operandi, the use of non-residents of the relevant affected communities has been an effective means of concealing the identity of the perpetrators who cause disruptions.  

The true effect of this tactic is that the unknown community members complicate the enforcement of any relief sought and granted in the High Court interdict proceedings. 

Government’s response  

The government is trying to address the issue through the introduction of certain policies and legislation to curtail mafias in the construction sector. The legislation and policies include: 

A community-centric approach 

The solution to the construction mafia, according to CDH, lies in a multi-pronged approach that addresses the root causes and fosters collaboration. The December 2022 Western Cape Property Development Forum town hall discussions highlighted the crucial role of community engagement. 

Alternative remedies 

In the unfortunate case where construction companies, employers and communities are faced with a threat of disruption caused by the construction mafia, affected parties must continue to seek legal recourses through proper channels, with relief such as interdicts. These have previously led to arrests and discontinuation of mafia activities. 

In order to get the best outcome, CDH suggests collating the following when legal recourses are sought: 

Disclaimer: Note that this information and material are provided for general purposes only, and do not constitute legal advice. Please consult with a lawyer on any specific legal problem or matter. 

 

At a glance 

 

Anyone who is aware of any illegal disturbances that impact construction sites should report these activities to the following contacts: 

Thobeka Dhlamini, candidate attorney at Cliffe Dekker Hofmeyr.

 

Full acknowledgement and thanks go to https://www.cliffedekkerhofmeyr.com/ for the information in this article. Original authors: Sentebale Makara and Thobeka Dhlamini. Copyright © 2024 Cliffe Dekker Hofmeyr. All rights reserved.  

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