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In the bustling city of Durban, the shadow of the 'construction mafia' looms large over the infrastructure sector, threatening the stability and progress of critical development projects. At a recent Fraud Awareness Seminar held at the Durban International Convention Centre, advocate Roshiela Benimadho, a senior member of the National Prosecuting Authority (NPA), illuminated the troubling challenges facing legal authorities in taking on the criminal syndicates known for site invasion and extortion.
Despite the well-documented toll these syndicates have taken on construction businesses, the NPA finds itself at an impasse, with a single active case on record amidst a swath of unaddressed incidents. Such groups, colloquially dubbed the 'construction mafia', disrupt project operations by unlawfully demanding work and siphoning off profits meant for legitimate contractors and workers.
Benimadho detailed the malicious practices of the business forums, including their misinterpretation of procurement rules. Some forums demand up to 30% from construction projects, a misunderstanding of regulations meant to empower local subcontractors in government contracts exceeding R30 million. This inflated sense of entitlement has led to significant setbacks for private companies, causing project failures and business closures due to relentless extortion attempts.
The brazen activities of these forums do not only stifle economic progress but also propagate a sentiment that powerful entities can afford these losses, rendering the extorted sum inconsequential. This dangerous underestimation overlooks the array of victims left in the wake of such rackets. From delayed court construction in Durban to the forfeit of countless jobs, the consequences of the construction mafia's actions are palpable and far-reaching.
Legal efforts to curtail such behavior suffer due to a lack of cooperative witnesses, often deterred by the threats and influence wielded by the syndicates. Benimadho recounted prior attempts at legal blitzes, which fell short at the point of trial due to this evident intimidation. The NPA's earnest plea to construction entities is to stand firm, to proceed with legal actions, and to help bring these cases to rightful closure.
In response to the escalating situation, President Cyril Ramaphosa assured Parliament of his commitment to addressing the problem head-on. A specialized task team has been commissioned to disrupt the operations of the construction mafias and to protect infrastructure as a national priority.
The gravity of the situation is cemented by statements from industry leaders such as Minister of Public Works and Infrastructure Sihle Zikalala, highlighting losses upwards of R68 billion due to the mafias' extortion. Melanie Veness, chairperson of the Association of South African Chambers, echoes the sentiment, recognizing the risk posed not only to businesses but to the South African economy as a whole.
The intricate web of corruption, fraud, and violence spun by the construction mafia is a clear and present danger to South Africa's development. It is in the resilient response of legal bodies, industry champions, and public officials that hope for curbing this menace lies.