Cape Town – Public Works and Infrastructure Minister Dean Macpherson has announced that the department is making progress in targeting security companies believed to be involved in the construction mafia across South Africa.
The department is working closely with law enforcement to gather intelligence and tackle criminal syndicates that have caused widespread extortion, with over 700 cases reported and more than 240 arrests made, EWN reported.
Macpherson described these criminal organisations as highly sophisticated, with wealthy individuals profiting from extorting the state.
“These are not benevolent community organisations; these are very rich people who are making a living off of extorting from the state,” the report quoted him as saying.
Watch the video, as the minister speaks (Courtesy of Newzroom Afrika)
[WATCH] Public Works Minister Dean Macpherson reveals that mafia groups are infiltrating security firms, using a 30% incentive to further their activities. Since 2022, only one company has been delisted, but over 40 companies now face blacklisting. #Newzroom405 pic.twitter.com/1TOhNAx1iL
— Newzroom Afrika (@Newzroom405) March 28, 2025
In addition to security firms, he highlighted companies that forge documents to secure tenders as part of the problem.
The department is also discussing regulatory reforms with Treasury, including changes to the Public Procurement Act to address the abuse of the 30% local procurement rule, which requires a portion of public infrastructure spending to go to local subcontractors.
Macpherson disclosed that mafia groups are infiltrating security companies, exploiting the 30% local procurement rule to advance their operations.
While only one company has been removed from the list since 2022, more than 40 others are now at risk of being blacklisted
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Compiled by Betha Madhomu
