Construction World April 2020

FIRST STEP TO REVIVING INDUSTRY: ARREST MAFIA GANGS The Minister of Finance’s pronouncements on measures to revive the construction economy have been welcomed as a step in the right direction by the building industry.

causes of the decline in construction activity in the country, causing company closures and loss of employment. In only the last three years, several large construction companies such as Group Five, Basil Read, Liviero, NMC and Essor Construction have closed RSHUDWLRQV ZKLOH PDQ\ RI WKH UHPDLQLQJ RQHV KDYH UHSRUWHG ͤQDQFLDO GLͦFXOWLHV 6OXJJLVK HFRQRPLF JURZWK D GHFOLQH LQ JRYHUQPHQW infrastructure spending, late payment of contractors by the state and the lack of capacity to undertake public projects with approved budgets have been recorded as other leading causes of the problem. Minister Mboweni partly addressed these issues in his 2020 Budget Speech, announcing a government commitment of 5 ELOOLRQ WRZDUGV WKH 5 ELOOLRQ EOHQGHG ͤQDQFH LQIUDVWUXFWXUH programme by the Development Bank of South Africa (DBSA). While acknowledging the capacity challenge, little was said on how the problem would be addressed to ensure that bottlenecks in funding and implementation of public infrastructure projects would be cleared. Matthews said that contractors expected to see PRUH ͤUP FRPPLWPHQWV WRZDUGV DGGLWLRQDO LQIUDVWUXFWXUH VSHQGLQJ as the foundation on which the Minister would build his plan to LQFUHDVH WKH JURZWK UDWH WR DERYH ̸&RQVWUXFWLRQ KDV D ODUJH multiplier effect and produces essential economic infrastructure IRU IXUWKHU HFRQRPLF DFWLYLW\ VR ZH GHͤQLWHO\ H[SHFWHG WR VHH more spending on this and concrete measures to address capacity problems that are obstructing implementation of projects” he said. “We remain optimistic that the industry will start growing again and continue to transform, and we are happy that the government is taking steps in the right direction”. Master Builders South Africa (MBSA) is a Federation of registered employer Associations representing contractors and employers in the construction industry and is regulated in terms of Section RI WKH /DERXU 5HODWLRQV $FW RI 7KH )HGHUDWLRQ̵V QLQH 0DVWHU %XLOGHUV $VVRFLDWLRQV DQG WKUHH $ͦOLDWH $VVRFLDWLRQV represent more than 3 500 contractors and employers in the industry. ƒ

John Matthews of Master Builders South Africa.

“W e are pleased with the commitment to arrest criminal gangs that disrupt work on construction sites. It is a form of anarchy that has no place in any progressive society,” said John Matthews of Master Builders South Africa. In his 2020 Budget Speech, Minister Tito Mboweni called on communities to expose those behind high jacking of construction sites in the form of radical economic transformation. This followed President Ramaphosa’s 2020 State of the Nation Address announcement that the growing problem of extortionist criminal groups that target construction sites would be dealt with by specialised units of the SA Police Service and the National Prosecuting Authority. ̸,W LV WKH ͤUVW VWHS WKDW ZLOO SURYLGH

immediate relief to contractors who have construction sites in limbo, and we most welcome the commitment. We will be following up with the SA Police Service on how to prevent further disruptions,” said Matthews. However, he bemoaned that the LQIUDVWUXFWXUH VSHQGLQJ ͤJXUHV LQFOXGLQJ WKH R700-billion mentioned by the President in the SONA, were not accompanied by requisite spending plans, while contractors had ‘cranes waiting’ for roll-out of the announced programmes. The Minister’s speech had SURYLGHG ͤJXUHV EXW ZDV WKLQ RQ PHDVXUHV WR ensure effective spending that would provide long-term relief to the industry which was in distress, he said. Site invasions by armed extortionist groups have been cited as one of the leading

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CONSTRUCTION WORLD APRIL 2020