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About R68-billion has been lost to the economy as a result of construction site disruptions since 2019, according to Construction Alliance South Africa chairperson John Matthews.
Speaking in a panel discussion hosted by Creamer Media, Matthews confirmed that 682 extortion-related cases were being investigated.
According to Engineering News, Euan Massey, director of law firm MDA Attorneys, pointed out that site disruptions first occurred around 2008 at the Medupi and Kusile power stations.
Procurement regulations in 2017 required a 30% local participation requirement for public sector contracts of more than R30-million. Much of the unrest around construction projects was related to the exclusion of small businesses or labour in an area.
Mafias invade construction sites demanding 30% of profits.
Massey stressed: ‘At the outset of projects, we need to identify the target enterprises for the 30% participation requirements and communicate how money will be spent to support local businesses.’
Massey recommended that standard contracts include a lead-in period to promote local participation and aspects on how to deal with site disruption to protect everyone’s rights.
Public Works and Infrastructure Minister Sihle Zikalala said construction site disruption was mainly a result of a lack of social cohesion in the country, which gave rise to criminality.
Gareth Newham of the Institute for Security Studies noted that crime was becoming more connected across illicit markets, more connected regionally and internationally, more connected with political leaders, and increasingly violent.
‘The most important intervention would have to be improving law enforcement and crime intelligence capabilities of the State.’
Black Business Council CEO Gregory Mofokeng commented: ‘We find that the councillors are more often involved and are encouraging people to stop projects, simply because certain individuals are not directly benefiting.’
source:Construction mafias cost economy R68 billion since 2019 – report – Daily Friend
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