Real Estate Investor April 2022 | Page 85

With President Cyril Ramaphosa ’ s recent announcement that the government is setting up a special police unit to deal with the construction mafia that has been disrupting businesses in the country for years , it seems that there is hope on the horizon for the property and construction industry .

Ask any South African property developer about the entrenched construction mafias and they will recount horror stories of how “ mafia ” style gangs intimidate workers , foremen , project managers and construction bosses by invading building sites to illegally demand a monetary stake or a protection fee .
At a conservative estimate , construction projects worth at least R25 Billion have been violently disrupted and halted in South Africa over the past five years , according to the Association of South African Quantity Surveyors ( ASAQS ).
The construction mafia extorts a ‘ protection fee ’ from local business owners in the form
of a portion of the cost of an infrastructure project , or that specific individuals are recruited to work on the site . If this is refused , the groups retaliate by attacking their targets , damaging and disrupting their operations or intimidating staff . The extortion results in extended delays , erosion of investor confidence , and denied opportunities to many legitimate small businesses that would otherwise benefit from subcontracts and job creation .
The announcement by President Cyril Ramaphosa was welcomed by ASAQS who have made numerous calls since 2019 for SAPS to get involved in the matter , as the issue affects infrastructure projects and
SA Real Estate Investor Magazine APRIL 2022 83