The construction mafia in Cape Town regularly operate through legally registered entities with valid bank accounts and tax clearance certificates.
The construction mafia in Cape Town regularly operate through legally registered entities with valid bank accounts and tax clearance certificates, making it difficult to detect any connections to criminal activities through standard procedures, said Atterbury Group CEO Louis van der Watt.
Van der Watt made the comments as the City, Atterbury, Old Mutual Properties and others on Monday announced they were joining forces to eradicate construction mafia in development projects.
This followed a series of meetings to address the involvement of alleged underworld-linked businesses in property development projects, with the role players committing to prevent any future engagement with alleged criminal enterprises in development and construction projects, they said in a joint statement.
The statement comes after reports this year that entities and associates linked to a Cape Town gang boss were tied to a major industrial development property project.
Van der Watt said there were complexities in detecting illegality in business, especially when these entities operate under the guise of legitimacy.
He explained that these businesses possess all necessary legal documentation, making it challenging to identify their true nature through standard vetting processes, and emphasised the need for collaboration with national and local government, including police and SARS to help identify these entities.
“The construction mafia in Cape Town regularly operate through legally registered entities with valid bank accounts and tax clearance certificates.
Financial statements, company registration documents, directorship information and other business certifications are in order, making it extremely difficult to detect any connections to criminal activities through standard procedures,” said Van der Watt.
Atterbury was further strengthening their vetting processes for sub-contractors, ensuring they adhere to ethical business practices, on a continuous basis.
Cape Town Mayor Geordin Hill-Lewis said the City committed to introducing a process of vetting approved Community Liaison Officers, representing local communities in various development projects.
The City was further investing in enhanced security measures at its own public infrastructure projects impacted by extortion, and has launched a City-wide anti-extortion hotline.
Old Mutual welcomed the City's involvement in assisting businesses in identifying companies with under-world links.
Neil Gopal, CEO of the South African Property Owners Association (SAPOA), expressed his support for the collaborative efforts.
“We welcome the collaborative efforts of the City and the private sector to address and eradicate the negative influence of the construction mafia that has long hindered property development in our cities,” Gopal said.
Cape Times