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IOL News
02-07-2025
- Business
- IOL News
How bargaining councils are fighting the construction mafia
South Africa's construction sector is being systematically undermined by criminal syndicates. Image: Supplied South Africa's construction sector is being systematically undermined by criminal syndicates. Commonly referred to as the 'construction mafia,' these groups extort, intimidate, and sabotage construction projects across the country. Their actions not only threaten worker safety but also stall critical infrastructure development, increase costs, and damage investor confidence. According to Deputy Minister of Public Works Sihle Zikalala, disruptions caused by so-called 'construction mafia' groups have cost South Africa an estimated R63 billion between 2019 and 2024. In the Western Cape alone, six major construction projects, collectively worth over R400 million, were halted last year due to the actions of criminal syndicates. Danie Hattingh, spokesperson for business at the Building Industry Bargaining Council (BIBC) said these criminal networks were not simply disruptive, they're deeply embedded in some areas and operate with increasing sophistication. 'But through collaboration and responsible oversight, bargaining councils can help identify and isolate illegitimate players posing as contractors or community representatives,' said Hattingh. The 'construction mafia' initially emerged around 2015, often misrepresented as attempts at economic transformation. Exploiting clauses in procurement policy, particularly the requirement that 30% of public contracts benefit local communities, these groups claimed to represent local interests. 'What began as calls for inclusion quickly devolved into extortion and violence. We have seen armed site invasions, demands for 'protection fees,' sabotage of equipment, and even threats to life. These are not empowerment activists. These are criminal syndicates exploiting legitimate policies for personal gain,' said Hattingh Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading He said the impact has been severe. Forced stoppages and heightened security requirements have led to significant project delays and cost overruns. Investor and contractor confidence has declined, especially among smaller firms and international stakeholders. Job losses and slower infrastructure delivery have negatively affected both the economy and local communities. Skilled professionals are leaving high-risk areas, resulting in a loss of expertise and capacity. Critical projects such as schools, housing, and hospitals face mounting delays and ballooning budgets. Perhaps most concerning is the growing sense of fear and insecurity among workers and contractors on the ground. Contractors, workers, and even government officials have reported intimidation, assaults, and in some cases, killings. Armed gangs have stormed construction sites demanding a cut of the project usually 30%, under the false interpretation of local empowerment policies. Syndicates thrive in an environment of weak enforcement, vague regulation, and fragmented oversight. Labour laws are inconsistently enforced, and under-resourced inspectors struggle to monitor all sites. Procurement frameworks lack clarity, enabling unvetted individuals to claim community representation. Smaller contractors often operate informally and without legal support, making them particularly vulnerable. 'The construction mafia exploits every gap,' said Hattingh. 'They scare and threaten without facing any punishment or consequences, manipulate the tender process, and operate freely due to legal delays and poor coordination between stakeholders.' Despite these challenges, the BIBC believes that working with organisations like Business Against Crime South Africa (BAC) and dedicated SAPS anti-extortion task teams, can help to turn the tide by playing a key role in identifying fraudulent activity within its jurisdiction. 'We actively track contractor activity through our Employee Benefit Administration system,' explained Hattingh. 'If someone linked to corrupt activity attempts to bribe one of our agents or issues threats, we escalate the case immediately to SAPS and BAC.' The BIBC also engages with international organisations like the Global Initiative Against Transnational Organized Crime (GI-TOC) to stay informed about trends and emerging threats. This level of insight allows the BIBC to support coordinated action and encourage legitimate contractors to stand firm against criminal interference. 'We're no longer in a position where contractors feel totally alone,' said Hattingh, 'our partnerships give them a structured avenue to report incidents and push back with the support of the law.' Although the threat remains significant, there are signs of progress. 'Yes, we still need to convince more businesses to break their silence,' Hattingh admitted, 'but there's momentum now. We see greater willingness to collaborate and a shared recognition that this issue cannot be ignored.' The BIBC advocates for several practical interventions: Regional threat-tracking systems to improve early warning and response. Mandatory anti-extortion clauses in all subcontract agreements. Rapid response task teams, co-ordinated with SAPS and municipal governments. Legal toolkits and education programmes for small and mid-sized contractors. Stronger oversight of local business forums to distinguish legitimate voices from criminal fronts.
The South African
28-06-2025
- Business
- The South African
South Africa's millionaires pack their bags for UAE
South Africa continues to experience a significant outflow of wealth, as the country saw 250 high-net-worth individuals (HNWIs) – those with assets exceeding $1 million (R17.88 million) – emigrate in 2024, according to the latest Henley & Partners Wealth Migration Report. The departure of these individuals has resulted in an estimated R28 billion in wealth leaving the country. This forms part of a broader trend, with South Africa's millionaire population shrinking by 12% over the past decade. In 2014, there were approximately 46 800 dollar-millionaires in the country. That figure dropped to 37 400 in 2024, marking a net loss of over 9 000 HNWIs. Globally, 134 000 millionaires migrated in 2024, with that number expected to rise to 142 000 in 2025. The United Arab Emirates (UAE) led the list of top destinations, gaining 9 800 millionaires and roughly R63 billion in new wealth. In contrast, the United Kingdom experienced the greatest outflow, losing 16 500 millionaires, with R92 billion in wealth departing the country. Despite the trend of dollar-millionaires exiting South Africa, the country has seen growth in rand-based millionaires. Data from the South African Revenue Service (SARS) shows that 569 351 individuals earned over R1 million annually in 2024 – a 16% increase from the previous year. These individuals now make up 3.94% of the 14.45 million registered taxpayers, up from 3.45%. Henley & Partners note that economic uncertainty, political instability, and crime remain key push factors behind South Africa's ongoing wealth migration. However, the growth in the number of local tax-paying millionaires suggests that while global investors may be leaving, South Africans continue to build wealth locally – albeit in rands, not dollars. As pressure mounts to retain skilled professionals and investors, economists suggest that policy certainty, improved security, and economic reform will be essential to reverse the exodus and rebuild long-term investor confidence. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
21-06-2025
- Business
- The Citizen
Tshwane mayor vows to fix city's leasing system as illegal business closed during raid
Moya complained that business that were previously shut down by the City of Tshwane have reopened. While the City of Tshwane had its hands full with prolonged power outages and the switching on and off of its own reservoir, Mayor Nasiphi Moya was out on the streets this week with the Reclaim Our City campaign, which resulted in two arrests, illegal businesses being closed and notices issued. The two arrests were for illegal immigration and possession of stolen goods, while three vehicles were also impounded. Eviction notices served in Tshwane On Thursday night, Moya joined the bylaw enforcement operation in Sunnyside, with the Reclaim Our City campaign kicking off at the popular nightspot House 22. 'That club and many other businesses here have been served with eviction notices by the City of Tshwane. These businesses don't have valid permits and many are non-compliant. We were here a few months back and some of those we closed managed to reopen. We are closing them down again,' she said. Moya said the Sunnyside precinct is a strategic area that will be offered to the private sector for investment. 'All illegal businesses here will be evicted from this area. Another store we've closed. The people running this establishment supply food concoctions to predominantly Ethiopian nationals. There's no compliance with health regulations. They also don't have certification legalising the operation of a business. 'This man runs a spaza shop in Sunnyside. His visa states that he is an asylum seeker and, by law, he doesn't qualify to run a business in this city. He can only work and study in South Africa. But here he is overseeing a business operation. We've closed his store,' she added. This man runs a spaza shop in Sunnyside. His visa states that he is an asylum seeker and by law he doesn't qualify to run business in this City. He can only work and study in South Africa. But here he is overseeing a business operation. We've closed his store. @CityTshwane — Dr Nasiphi Moya (@nasiphim) June 19, 2025 ALSO READ: 'Even if it's Chinese, he's in SA' – China Town raid finds expired food, employee hiding in toilet Hijacked properties Earlier this week, Moya and her team discovered hijacked city properties in Danville, which led to the closure of five businesses. Three other premises were found to have illegal electricity connections, while one was found with an illegal water connection. ALSO READ: Pothole crisis: Tshwane mayor blames rain for municipality not fixing crumbling roads Moya said an illegal early childhood development centre, operating for 22 years from a city property without a lease, was also closed. Moya said the City of Tshwane's leasing system has not worked to benefit the municipality's income-generating capacity. 'We are determined to fix this,' she said. NOW READ: R63 million 'wasted' on Tshwane City Hall as historic site crumbles
Eyewitness News
12-06-2025
- Business
- Eyewitness News
Gauteng govt to inject additional R138m to complete construction of Sebokeng DLTC
JOHANNESBURG - The Gauteng government is set to inject an additional R138 million to complete construction of the long-delayed Sebokeng Driver's License Testing Centre (DLTC) in the Vaal. To date, more than R80 million has been spent on the project, yet the facility has remained non-operational a decade since construction began. Despite having a contracted security company in place, the centre has been vandalised. The first thing that catches the eye when glancing at the Sebokeng DLTC is the overgrown grass surrounding the vandalised double-storey building. Inside, piles of rubble have remained untouched for years, and the air is thick with the smell of dust. Although the initial projected cost was R63 million, more than R80 million has already been spent on the construction of the facility. Gauteng Roads and Transport MEC Kedibone Diale-Tlabela said more money would still be needed to complete the construction. "For the financial year 2025/2026, the budget allocation is R54.5 million and R84 million for the financial year 2026/2027." The Development Bank of Southern Africa has now been appointed as the implementing agent.
Eyewitness News
12-06-2025
- Automotive
- Eyewitness News
R87m Sebokeng DLTC still incomplete ten years after starting construction
JOHANNESBURG - It's been ten years since the Gauteng government began constructing a Driving Licence Testing Centre (DLTC) in the Vaal, yet the project remains incomplete. Construction of the Sebokeng DLTC began in 2015, with its completion initially planned for the following year. A decade later, its construction is still not finished despite R87 million already spent, including costs for a private security company. What was once envisioned by the Gauteng government to be buzzing with learner drivers in 2025 now stands abandoned with no sign of life. Ceilings have collapsed on every floor, while the grass outside grows taller by the day. The construction of the Sebokeng DLTC was originally budgeted at R63 million, but the cost soared to over R80 million. The Democratic Alliance (DA)'s Kingsol Chabalala said it comes as no surprise that millions have been wasted. "The ANC [African National Congress] cannot govern. They cannot manage projects very well. They cannot complete projects on time and within budget." The reconstruction of the DLTC is expected to resume on Friday, marking ten years since it first began. ALSO READ: Gauteng govt to inject additional R138m to complete construction of Sebokeng DLTC
