Construction World August 2023

COMMENT

The construction mafia phenomenon first started in KwaZulu-Natal before swiftly spreading to most provinces. It has a dire impact on an already battling industry, with some estimates saying that it is costing the industry R63b. T he start of so-called ‘construction mafias’ can be traced back to 2014 when local business forums realised they could force construction companies to pay them a certain percentage of the money they received for a certain project. In practical terms, a group of people (the so-called ‘local forums’), often brandishing heavy weapons as a form of intimidation, invade construction sites and demand payment from the companies working on those sites. These groups are known to be violent, especially when their demands are refused. There have been cases where the members of these groups damage infrastructure and make it difficult for the project to continue until owners give in to their demands. Between 2016 and 2019, construction companies filed various interdicts against such extortion groups, but this did little to stop the phenomenon. The result was that construction companies and developers gave in to the demands of these business forums as they have delivery targets, and penalties if these are not met. This has led to the practice of business forums being legitimised

– inadvertently so. Giving in to the demands meant the projects could continue without any violence, which may have been the case if the developers or project owners had resisted these. In some cases projects budget up to 30% as payment for such forums. It seems that the industry has now adapted to and incorporated these practise – in the name of getting the job done. So far government and the police have not been able to get a handle on the construction mafia. Government has drafted policies and legislation to tackle extortion syndicates in the construction sector with the Critical Infrastructure Protection Act (CIPA), the National Infrastructure Plan (NIP) and the Critical Infrastructure Programme. CIPA does not only focus on securing a select list of landmarks, but aims to secure sites, projects and developments on an ongoing basis in the interest of the protection of economic stability, public safety and the preservation of basic public services. However, protection or the recovery costs of the critical infrastructure will fall on the owners and not the state. Even though there are various

BEST PROJECTS difficulties that now increasingly involve the construction mafia, still produces excellence. TWENTY-SECOND LAST CALL FOR ENTRIES In this issue we publish the last call for entries for Best Projects 2023. Entry is free and by submission only. An independent panel of judges will adjudicate entries in various categories. Winners will be announced at an event in November. Best Projects is Construction guidelines being prepared and measures put in place to combat this practice, it is still rife. There is fear that if there is not a solution found soon, the country could become a mafia state. Wilhelm du Plessis Editor World's way to recognise an industry, that despite severe

2023

EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & GRAPHIC ARTIST

PUBLISHER Karen Grant

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2 CONSTRUCTION WORLD AUGUST 2023