Construction projects in Gauteng, worth nearly R2 billion, are under threat as construction mafias proliferate throughout the country.
According to News24, as a project starts, “business forums” arrive to demand subcontracts worth 30% of the project’s value, threatening violence if they are not rewarded.
Many “business forums” comprise companies with questionable references and dubious skills. They are often about to be deregistered for breaching company law.
A R900-million project by WBHO Construction to revamp a shopping complex on Rondebult Road in Ekurhuleni has been disrupted four times in 2024 by “business forums”.
‘They demand work. They don’t demand money, like they do in KwaZulu-Natal. They want the 30% stake that is meant for local compliant businesses. There is nothing we can do. Our hands are tied,’ an official said.
Jan Smit, CEO of consultancy Proman Ops which works for WBHO, has been assaulted on three separate occasions by mafia members.
WBHO obtained a declaratory order to stop business forum members from entering their site.
Anti-money laundering legislation prevents companies from subcontracting to firms without following proper procurement processes.
One of the business forums that disrupted work on Smit’s site is the Mzansi Business Association (MBA). The company has laid criminal charges against MBA.
MBA chairperson, Clement Molobela, confirmed that some members had visited the site, demanding a 30% stake, but added: ‘We are not the construction mafia. We know nothing about the construction mafia.
‘We look for work for our SMMEs on construction sites. Our members must benefit and be upgraded. We have stopped construction at that site between four and five times.’