By Roy Cokayne.
A historic partnership agreement to decisively stop the criminal disruption of construction sites countrywide by the so-called construction mafia was signed at the National Construction Summit on Crime-Free Construction in Durban on Tuesday.
Minister of Public Works and Infrastructure Dean Macpherson also committed to bring to an end collusion within state departments that, together with internal efficiencies and corruption, contribute to contractors not being paid on time.
“Payment delays not only harm contractors but also provide fertile ground for criminality to take root,” he said.
Durban Declaration
The Durban Declaration of Crime Free Construction Sites was signed by Macpherson, Deputy Minister of Police Cassel Mathale, Deputy Minister of Finance Ashor Sarupen, and Construction Industry Development Board (CIDB) chair Khulile Nzo at the end of the summit.
Macpherson said the signing of the declaration was “historic” and marks the beginning of a collective effort to put an end to the criminality that has plagued construction sites in the country for far too long.
He stressed the summit was not just a once-off event but the first of what will become an annual gathering to measure its progress and to ensure that participants’ commitment remains steadfast “to bring an end to disruptions once and for all”.
“We are drawing a line in the sand to say that lawlessness will no longer be tolerated,” he said.
“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.”
Time to eradicate extortion and violence
Macpherson said the declaration is more than just a symbolic gesture and is a unified road map for rebuilding trust and integrity in the construction industry.
“The purpose of the declaration is to outline a collective commitment to eradicate extortion and violence on construction sites and [pledge an] initiative mechanism to urgently and immediately give effect to this commitment,” he said.
Macpherson said the five key pledges in the declaration represent a decisive and multifaceted approach to this crisis.
It proposes a series of interventions to be implemented over the course of next year to end the disruptions at construction sites.
These pledges include:
- Strengthening the legislation governing the construction industry;
- Implementing appropriate policies for the development of the construction industry;
- Prioritising law and order through enhanced data collection and reporting systems;
- Enhancing the rapid response to lead to arrests for extortion on construction sites and prosecutions;
- Developing standard frameworks and guidelines for embedding social facilitation in project planning and implementation;
- Providing for the systematic and structured development of emerging enterprises and skills development;
- Establishing collaborative platforms for industry stakeholders to share best practices; and
- Collaborating on solutions to the problems faced by the construction industry.
‘Critical stress test’
Sarupen said the 2024 Medium-Term Budget Policy Statement (MTBPS) outlined government’s commitment to infrastructure-led growth, with more than R900 billion in planned investments over the next three years.
However, Sarupen said the construction industry faces many challenges, the most urgent of which is the persistent site disruptions by criminal syndicates and community protests.
“The so-called ‘construction mafia’ epitomises this crisis. These criminal groups have disrupted over 180 projects worth R63 billion since 2019, using tactics such as extortion, intimidation, violence, and sabotage.
“Their demands for up to 30% of contract value undermine the integrity of our procurement systems and delay critical infrastructure delivery.
“Let us be clear: these disruptions are not merely operational challenges,” said Sarupen.
“They represent a critical stress test for our economic governance.
“They expose the vulnerabilities in our institutional frameworks and the socio-economic fractures within our communities.”
Sarupen said the construction industry is a vital cog in South Africa’s economic engine, contributing about 3% to GDP and employing more than 1.3 million South Africans, with 176 000 jobs added in the third quarter of 2024.
He said the sector is a lifeline for low-skilled workers, who often struggle to find opportunities elsewhere.
“Construction projects also have an unmatched multiplier effect. For every R1 million invested in construction, more than three jobs are created – the highest multiplier across all sectors in our economy.
“It is no surprise the government has identified infrastructure development as a cornerstone of our economic recovery.
“The 2024 MTBPS reaffirmed our commitment to shifting government spending from consumption to investment.
“This aligns with the president’s call to transform South Africa into a ‘construction site’ to drive inclusive growth and job creation,” he said.
‘Ambitious but achievable’
Macpherson said the commitments outlined in the Durban Declaration are ambitious but very achievable.
He said the commitment to strengthening the frameworks that govern the construction industry includes tightening regulations on who can operate in the sector and introducing stricter selection criteria to ensure only qualified and reputable contractors are awarded projects.
“This will reduce disputes over sub par work and enhance the industry’s credibility and … we will work towards the regulation of the private industry to eliminate the exploitation of loopholes by criminal elements,” he said.
Macpherson said enhanced law and order data collection and reporting systems that will be introduced will help to detect and address threats a lot earlier, while anonymous whistleblowing hotlines that have been established will continue to enable contractors and workers to report extortion without fear or favour.
He said the rapid response mechanism to be established to ensure swift arrests will be complemented by “accelerated court proceedings” to hold those responsible accountable in a timely manner.
“These actions send a clear message that criminal behaviour will not be tolerated in any shape or form, “he said.
Out with confrontation, in with cooperation
Macpherson stressed the need to embed social facilitation as a cornerstone of project planning and execution by standardising frameworks for engaging with local communities and clarifying the roles of community forums.
“By addressing potential conflicts early and ensuring transparency in the allocation of jobs and contracts, we can foster cooperation rather than confrontation,” he said.
“Social facilitation is essential to aligning the interests of communities with the broader goal of national development.”
Macpherson said they are also committed to creating a clear pathway for success for emerging enterprises and through initiatives like the CIDB’s build programme, they will systematically develop skills and empower small and medium-sized businesses, particularly those owned by previously disadvantaged individuals.
Stringent measures will be implemented to ensure transparency and accountability within the Department of Public Works and Infrastructure to eradicate any form of collusion that hinders the progress of their projects.
“One of the most heartbreaking realities of the construction mafia is the devastating impact on small to medium-sized black owned businesses, “he said.
“These businesses often lack the means to protect themselves and become the primary victims of extortion and intimidation.
“Their assets are hollowed out, their staff live in fear and their dreams are crushed.
“The economic ripple effect of this violence and intimation cannot be overstated. These businesses employ thousands of people across South Africa, many of whom are sole breadwinners in their families.
“When these businesses collapse under the pressure of extortion, the impact is felt far beyond the construction site. It devastates entire communities.”
Macpherson said it is equally critical to not allow criminal syndicates to weaponise well-meaning policies in local procurement.
He said that while the 30% rule for emerging contractors was designed to empower local communities, it has been exploited as a tool for extortion.
“We must urgently review and refine policies to ensure that their original intent is upheld, empowering the rights of people and promoting genuine growth in local economies.”