Violence, extortion and intimidation: Cape Town's 'construction mafia' headache

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12-01-2023
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News 24
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The Western Cape government and the City of Cape Town have forked out millions in a bid to protect crucial housing projects that have been affected by extortionists. 

The latest housing project that came to an unexpected halt is the Airport Precinct Infills project, after four security guards were shot last month. 

The City said it was extremely concerned about the increasing trend in criminal activities that stalled and sometimes completely blocked housing projects.

An array of housing projects in the Western Cape have unexpectedly ground to a halt due to extortionists and the so-called "construction mafia" operating in Cape Town.

The Western Cape Department of Human Settlements and Infrastructure confirmed that work had abruptly stopped at the Tambo Village and Luyolo construction sites in Gugulethu, which could have potentially yielded thousands of housing opportunities for the most vulnerable.

Department spokesperson Muneera Allie said that, following confirmed cases of extortion at Western Cape housing projects, the department had been forced to stop work on the site in order for investigations to be conducted, and to put measures in place for work to recommence.

"Any work stoppage on developments impacts the overall delivery of Human Settlements to Western Cape residents that have already been waiting a very long time to be allocated a housing opportunity," she said.

These incidents, Allie said, did not only hamper the department's efforts to meet its targets but, more importantly, delayed delivery of housing opportunities in vulnerable communities.

She added that, during this year, the department had experienced challenges related to extortion at the Tambo Village and Luyolo construction sites in Gugulethu.

She said:

These sites form part of the department's Airport Precinct Infills project, which is set to develop five sites within the Gugulethu area. Work on site was initially stopped in February 2022, following incidences on site, and recommenced work in September 2022. During early November, work on-site was stopped again following a shooting incident where four security guards were severely injured.

The site remains closed, and the department is spending approximately R1.5m a month on additional security.

The Airport Precinct Infills housing development project comprises four sites which are allocated in Lusaka, New Rest, Luyolo and Tambo Village.

The beneficiaries would be sourced mainly from surrounding areas, including Kanana, Barcelona, Europe, Vukuzenzele, Zimbabwe, Lusaka.

Allie said the department, through its contractors, had previously arranged for additional security on the site following incidents that resulted in work stoppages.

In the most recent incident, the security on the site was targeted in an  attack.

'Extortion endemic to contracts'

"The department will continue to work closely with SAPS, as well as all stakeholders linked to the project, in an effort to find solutions for construction work to continue. The safety of workers on site is, however, paramount, and thus construction on site has again come to a halt," she said.

While the police did not respond to detailed questions sent, they did confirm they were investigating a number of cases. 

"All cases registered with SAPS are being investigated by the relevant offices," Warrant Officer Joseph Swartbooi said.

He added that the police could not openly share operational plans to deal with the scourge of extortionists targeting housing projects.

The City of Cape Town's housing projects have also been severely affected by extortionists.

Over the past two years, the City's Human Settlements Directorate has experienced many disruptions at key housing projects, which aim to benefit some of the most vulnerable residents of the metro.

The City said these instances of gang violence, alleged extortion, sabotage, vandalism, theft, unlawful occupation of land, and damage to property had cost it more than R131 million in 2020 and 2021, and that thousands of qualifying beneficiaries had been denied a state-subsidised housing opportunity.

The City's Beacon Valley housing project has experienced significant delays due to violence and intimidation on the site. Four separate shooting incidents have taken place, as well as petrol bombings of construction machinery.

"Both contractors have since been de-established due to the unsafe working environment. The City is looking at all available options so that work can resume. This project, as with all City projects, is dependent on community support and cooperation. The issue of gang violence and alleged extortion experienced at project sites is endemic to contracts in the human settlements sector nationally," it said in a statement.

'The City can only do what it can'

It added that it was extremely concerned about the increase in these criminal activities, which had stalled or completely blocked projects.

"The City deploys additional security and law enforcement and has some contingencies in place; however, the lead crime-fighting authority is the SAPS, and this is where the action and resolution are required. The City can only do what it can, but it is not the lead crime-fighting agency," it added.

Earlier this year, President Cyril Ramaphosa announced in Parliament that a special SAPS unit would be created to deal with extortionists targeting construction sites.

Deon van Zyl, chairperson of the Western Cape Property Development Forum (WCPDF) said the construction interruptions have had a severe impact on construction sites. 

He said:

Although these disruptions are nothing new in South Africa, it is new in the Western Cape. The origin can be traced back to the national government’s cancelling of set-asides for small and upcoming sub-contractors and suppliers, and the skills development that went with that.

"In many ways the disruptions illustrate a call for help in an economy in which real jobs and new opportunities are not being created."

Van Zyl said blamed government because of the public sector's lack of infrastructure procurement. 

"Government is missing in action in its responsibility to support the economy. Ironically, government construction sites are attracting the bulk of the disruptions."