Police going after big fish in construction mafia rings, says Mchunu

Police Minister Senzo Mchunu says authorities have set their sights on the “big fish” in organised syndicates and extortion rackets which threaten not only individual construction projects but the safety and stability of communities in which the projects are undertaken.

Mchunu was speaking at the Department of Public Works and Infrastructure (DPWI) national Construction Summit with a focus on the department’s drive towards crime-free construction sites.

In the Western Cape, identified as one of four provinces most hard hit by the so-called “construction mafia”, 22 cases are currently under investigation.

This includes the matter of alleged underworld gang boss Ralph Stanfield, his wife Nicole Johnson and former mayco member Malusi Booi, who are co-accused in what could be the province’s largest criminal matter for tender fraud amounting to a staggering R1 billion.

Mchunu said that 141 extortion-related cases were under investigation in the Eastern Cape. Gauteng reported 20 cases, and KZN, 16 cases.

Mchunu said the construction sector has been targeted by organised syndicates and extortion rackets which threaten individual projects and the safety and stability of communities in which the projects are undertaken.

Mchunu warned extortionists against their criminal activities as a specialised Murder and Robbery Unit was established and finalised by SAPS this week.

“The four provinces are the economic hubs of the country and we cannot afford to hand them over to criminals. Those people that are busy on sites are actually the extension of some of the people who are sitting in posh suburbs who stand to benefit from the activities on the ground, while directing others to carry guns. We are escalating our investigations and saying to those, you are no longer safe and we will reach out for everybody. We are no longer chasing the small fish, we want to go for the bigger fish,” said Mchunu.

DPWI Minister Dean Macpherson said the 30% procurement rule has been abused by criminals and this cannot continue.

“We will no longer be negotiating with criminals just to be able to build the essential roads, dams, schools and hospitals that our people need. To end the influence of these criminal syndicates at infrastructure projects, it will require that we remove the incentives for these criminal syndicates to operate at construction sites. Once we open the door to negotiations, and once we give in to paying what is, essentially, a bribe, it means that these criminal syndicates are incentivised to repeat their actions elsewhere. We must never be complicit in bribery, corruption, extortion and racketeering.

“We remain fully committed to the empowerment of local communities.

But it is clear that the 30% local procurement rule which was introduced by the National Treasury... has been used by criminal syndicates to extort contractors,” said Macpherson.

Deputy Minister of Finance, Ashor Sarupen, said construction mafia criminal groups had disrupted over 180 projects worth R63 billion since 2019, using tactics such as extortion, intimidation, violence, and sabotage.

“Let us be clear: these disruptions represent a critical stress test for our economic governance,” said Sarupen.

Cape Times