Emperors Palace was abuzz with senior executives and VIPs, all in attendance to the much anticipated 17th annual South African Construction Awards.
Also in attendance was Human Settlements Minister Mamoloko Kubayi. She was there as the keynote speaker at the recent black-tie gala dinner.
Finalists were honoured for delivering various projects. These are ranging from constructing roads, rail, higher education facilities, hospitals, schools and government buildings. Also water infrastructure, among others.
Kubayi’s speech was largely congratulatory. It was laced with words of encouragement to industry leaders to climb to greater heights. She went further, saying her vision is “to build black billionaires in the property sector, and that is possible”.
Efforts disrupted by infiltration of construction mafia
Sadly, many of those would-be billionaires that Kubayi is talking about weren’t present at the glitzy dinner. Because they either had their once-thriving businesses collapsed through complicated extortion rackets. These are run by elements of the construction mafia.
The extortions in the space have become more sophisticated with time. They are known for their threats of violence and stoppages at construction sites. This is often the case should they not receive payments or subcontracts.
In an article published by Webber Wentzel last year, author Tyron Theessen gave accurate details.
“These activities are not confined to particular provinces or subsectors. In our experience, it has occurred everywhere. From remote rural areas to downtown areas of major city centres. And it has …afflicted everything from road works and the oil and gas sector. Building projects and renewable energy projects too,” he wrote.
“There may be some information-sharing across different construction mafia groups. But there does not appear to be a coordinated national organisation. And therefore no single of the proverbial snake to remove and thereby bring the racket to an end.”
Multi-headed monster
Just this chilling revelation alone shows that the industry is dealing with a multi-headed monster.
A trend is now emerging in the sector where companies are strategically infiltrated by the alleged extortionists. Their job is to commit acts of espionage, bribery of company owners. And also threats of death should they not pay over.
The industry has apparently identified a couple that has been successful in extorting millions from several black construction companies. This left them either broke or struggling to survive.
Tactics employed to extort money include threats of publicly revealing company and personal director details. Or the use of corrupt law enforcement officers for intimidation, including death threats.
Construction company owners who have fallen victim to extortion by the construction mafia account for huge losses. These include thousands of jobs that have been lost because companies simply can’t survive. Neither can they thrive under the current conditions.
Sophisticated value chain targets black construction firms
Black construction companies are targets and under constant threat from individuals and syndicates. These are largely aided by a corrupt system that includes a value chain. This can start with falsified academic credentials to get through to their desired construction company.
And this enables imposters — many whom are familiar with or have a background in the construction space. These infiltrate legitimate companies only to steal. And this ultimately starves the industry and the country with good organisations. Ones that had solid track records of delivering high-quality infrastructure across the construction sector.
What seems to frustrate those who have fallen victim are the barriers they need to overcome to get justice.
Well-resourced criminal syndicates
“I am informed that there are well over 50 interdicts and many more cases that have been opened. All due to these people. This is what they do. So, know that they are well resourced. And they will use your own money against you,” said a large construction company owner who requested anonymity for fear of victimisation.
“Remember that these are not legitimate business people. They set up very sophisticated fronts. And they buy the right qualifications and put together a compelling outfit. By the time you realise what’s happening, your company has been destroyed from the inside out.”
