Mafia milking millions

Mafia

Cape Town – The BEE Chamber has welcomed the Department of Public Works and Infrastructure’s (DPWI) efforts to clamp down on the so-called construction mafia — criminal syndicates exploiting Broad-Based Black Economic Empowerment (B-BBEE) policies, particularly through the misuse of the Preferential Procurement Policy Framework Act.

According to Daily Investor, these groups have been using intimidation tactics and manipulating loopholes in the 30% community involvement rule to extort money and disrupt construction projects.

Since November 2024, authorities have made 240 arrests and recorded 745 extortion-related cases. The construction mafia’s activities have cost South Africa more than R60 billion in project losses since 2019, the report states.

The BEE Chamber, through its chief support officer Yuneal Padayachy, praised the ongoing crackdown and called for stronger oversight to protect legitimate businesses.

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The chamber also voiced its support for the DPWI’s proposed national facilitation framework aimed at standardising community engagement and ensuring B-BBEE policies are implemented as intended. Encouragingly, companies like WBHO have reported an 80% reduction in lost hours — a clear sign that these interventions are having a positive impact.

Last month, Public Works and Infrastructure Minister Dean Macpherson confirmed that the department is making progress in targeting security companies believed to be aiding these criminal networks across South Africa.

According to  EWN, the DPWI is working closely with law enforcement agencies to gather intelligence and confront the syndicates behind more than 700 reported extortion cases and 240 arrests since November 2024.

“These are not benevolent community organisations; these are very rich people who are making a living off of extorting from the state,” Macpherson said, as quoted in EWN.

Newzroom Afrika also broadcast footage of the minister addressing the issue, describing the criminal groups as highly sophisticated, with wealthy individuals profiting from state-funded projects through coercion and fraud.

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