Gauteng developer halts project after jobs ultimatum from business forum

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24-04-2024
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News 24
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• A Gauteng businessman alleged he was threatened by business forum members.
• Rick Goncalves and his partners are expanding the Rondebult complex on the East Rand.
• Goncalves claimed to have been told that he could only continue once he adhered to the forum's demands.

The future of 150 workers remains in limbo after the Mzansi Business Forum allegedly told a Gauteng businessman to employ their members or close shop.

Rick Goncalves said that, two weeks ago, he received an unannounced visit from members of the forum. They demanded that their companies and members be employed.

Goncalves and his partners are building a shopping centre on his land in Rondebult, east of Johannesburg.

Construction has been halted temporarily.

"During construction, a group identified as the Mzansi Business Forum entered our site, without prior warning," Goncalves claimed.

He added:

They demanded that we halt our activities and employ their companies for various services. The group has not specified a precise monetary amount, but insisted on significant involvement in the project, which [has] substantial financial implications.

"We are developing the Rondebult shopping centre, aimed at enhancing local infrastructure and providing retail opportunities that cater to community needs.

"Our expansion is driven by the demand for more comprehensive and accessible retail options in under-served areas, aiming to stimulate local economies and create jobs. Continuous disruptions could undermine the financial viability of this project and future investments in the region.

"We are committed to finding a resolution that allows us to proceed without ongoing interference."

Goncalves said he and his partners had evaluated the legal and practical aspects of the situation, and had sought to engage with all stakeholders, including local authorities, to find a peaceful and fair resolution.

"Approximately 150 workers are directly impacted, with construction halted temporarily. These include local labourers, technical staff, and administrative personnel. This situation affects us operationally and financially.

"It delays project timelines, impacts our relationships with investors and partners, and could potentially affect future projects," said Goncalves.

He claimed that the group had targeted his project and others in the area.

He added:

The group made several threats regarding the safety and security of our workers and assets, if their demands were not met. We take these threats seriously and are in contact with local law enforcement.

"We are aware of similar instances impacting other developers in the region. We are in discussions with those who had received threats earlier to share insights and possible solutions," Goncalves said.   

The ward councillor, Sanele Hlongwane, is against the disruption of the project.

Hlongwane added that the project had created jobs, and more would be secured when retail shops began trading in the complex.

"The shopping complex is being built privately. It is not a government project. Goncalves met with us before he started the project. He asked not to be disrupted, and we assured him [it wouldn't be]. We called a meeting and introduced the project to locals. We even provided him with a community liaison officer and four general workers.

"The problems started when business forums demanded subcontract work. Last month, they stopped the project and demanded participation. I then met with them," Hlongwane said.

Hlongwane added that the complex would create 1 000 permanent jobs in his ward.

"Goncalves doesn't have a problem hiring locals for the project. The problem is the demands of business forums. He promised to employ some skilled locals. It is not our duty to check the status of immigrants working there.

"We recently suggested having a steering committee that includes business forums and locals. Our intention is for the complex to be there and to create jobs. Our people demand jobs. We can't look the other way when legit small businesses don't benefit from the site. The developer must prioritise SMMEs that comply," said Hlongwane.

"The government allowed the mushrooming of business forums for too long. We can't have forums that are not registered with the government. These activities put our lives at risk. Business forums must comply and be registered.

"They have been allowed to reign free for too long. This must be stopped before it spreads.

"Business forums want to work alone. They exclude other legitimate local businesspeople. Some of the forum members don't have the equipment and material to do the work. They don't invest their funds in their small companies."

Mzansi Business Forum

The president of the Mzansi Business Form, Clement Molobela, confirmed their members went to the site to demand employment as labourers.

However, he denied they were part of the construction mafia - and he also denied threatening Goncalves to give in to their demands to avoid disruptions.

"What happened was a joint effort between our business forum and local community members.

Molobela said:

The developer employs foreigners. He must prioritise South Africans. The developer must give people jobs, if he doesn't want future disruptions. People want to benefit from every construction in our midst.

"This matter can be easily resolved if the developer doesn't involve third parties. We don't only target government constructions because money doesn't have colour.

"We target everywhere we see business opportunists. We don't only seek work from government construction sites. We target every construction site in our area."