Concerted effort required to tackle construction mafias

Ending the intricate web of construction site disruptions which threatens lives and thwarts government’s mission of turning the country into a giant construction site that creates jobs and grows the economy, requires a concerted effort from all.

Public Works and Infrastructure Minister Sihle Zikalala is acutely aware of this problem and the importance of the construction sector to the South African economy.

He has condemned these disruptions and subsequent extortions linked with it.

“It is important that we all speak with one voice in condemning site disruptions and extortion affecting this sector.

“It is even more important that we act together to root out these illegal practices which are bringing disrepute and dragging away investment in the South African construction and property sector,” the Minister told a recent Creamer Media webinar.

This as government and role-players have expressed concern over site disruptions which over time, have gained media coverage.

Zikalala has described the construction sector as the “backbone of the economy and social development” and a pillar for economic growth and recovery as per the instruction of President Cyril Ramaphosa when he presented the Economic Recovery and Reconstruction Plan (ERRP).

Head of the Justice and Violence programme at the Institute for Security Studies (ISS), Gareth Newham said disruptions cause damage and affect the ability of the country to use construction in a way that drives economic development and prosperity.

Since taking office in March, the Minister has visited several construction projects to monitor progress.

Among these were blocked and delayed projects caused by the hijacking and disruption of project sites in KwaZulu-Natal.

The rising phenomena of so-called construction mafia who invade, intimidate and disrupt the delivery of projects on the ground has resulted in the opening of 605 cases.

Impact

While some arrests have been made, Zikalala has highlighted the importance of arresting, prosecuting and sentencing of those involved in the scourge that is mostly affecting KwaZulu-Natal.

According to the Minister, site disruptions have cost the economy R68 billion.

Vice President of the Black Business Council, Gregory Mofokeng said the industry is actively cooperating with the police on the matter while contractors have also obtained court interdicts in efforts to curb the scourge.

“Unfortunately, in most of these instances the very criminals do not respect the court interdict. So we find ourselves in a situation where once again we either have to go back and rely on the police to make sure that those court interdicts are enforced.”

He adds that the sector is not seeing “increased activity in terms of making sure that these very criminals are arrested and brought to book.”

Minister Zikalala said that following the intervention of the President, a police unit is now in place.

 “I would say that since the unit came into being … there are results that we’ve seen though we have not reached a point where we see kingpins being arrested and sentenced which is quite key.”

Grievances

Meanwhile, a number of reasons have been given as to why some people engage in site disruptions.

Some feel marginalised and excluded from participating in economic opportunities that are available. According to the Minister, these individuals argue that government contracts are given to one and the same companies.

“They argue that when government says for any contract [awarded] that [is] above R30 million then 30% must be subcontracted. They argue that they are not given space to participate, even in that 30%,” said the Minister.

This is in light of the 2017 Preferential Procurement Regulations that state that public works contracts above the R30 million mark, should subcontract an element of 30%, if feasible to advance designated groups.

Commenting on the matter, Director of MDA Attorneys, Euan Massey said employers should be participative in the identification of work that can be subcontracted. 

“This requires that employers are participative in the process of identifying work which can be subcontracted. They are therefore required to undertake a number of things firstly to ensure that the work that’s being awarded in that contract contains sufficient work that can be subcontracted to advanced designated groups,” he said.

While the country continues to battle historic challenges including poverty and inequality, site disruptions cannot be condoned.

“I must hasten to say there is no grievance among these that would justify site disruptions, extortion and sabotage of the economy,” said the Minister.

On the other hand, others are of the view that while they try to accommodate small business, some of these companies don’t deliver quality work and therefore fail to fulfil their obligations.

“The argument further says that those who are disrupting [sites] are sometimes given work but don’t want to work … they demand money. Now we must be able to confront this situation and deal with it in a way that will ensure that legality is preserved,” said the Minister.

Empowering communities

On the other side of the coin, is the imperative to ensure that companies are committed to transformation agenda of the country in that they should support small business, the youth, women and people with disabilities.

“In doing so, the policy commitment of localisation must be preserved in all areas.

“It is important that we continue to work together to meet the targets that we’ve agreed upon in the transformation charter of the built environment,” said Zikalala.

He added that when construction projects are commissioned, communities must be briefed to ensure their buy-in in the project adding that the Department of Public Works and Infrastructure (DPWI) will strengthen its internal social facilitation unit.

Mofokeng said the industry is geared towards empowering communities.

“As the construction industry we are geared towards empowering local subcontractors. We are geared towards …creating employment for the locals but the problem comes in where people are saying it is me who is not benefiting therefore this project must stop.”

Sector observations

Chairperson of the Construction Association of South Africa’s (CASA), John Matthews said site disruptions largely occur in the post-implementation stage of a particular contract. That it is often accompanied by the threat of violence or the act of violence itself.

One of the other worrying observations made by the industry when coming to site disruptions is that in some areas, councillors were also being co-opted by criminal elements.

“[This is] especially at the local level where you find that some of these criminals in fact pitch up on construction sites to talk to main contractors with the counsellors.  You find that the counsellors are now also involved in this whole unfortunate incidents where they are actually encouraging people to come and stop projects simply because certain individuals in the community are not directly benefiting,” Mofokeng said.

Responding to this, Zikalala said this needs to be addressed. “If we get that report, we will be able to engage with councils through speakers and then be able to take disciplinary actions against those councillors.”

The Minister also called on contractors to refuse to pay bribes while also adding that whistleblowers must be protected.

The District Development Model said the Minister, could be used as an anchor to working together with industry.

The model is a practical mechanism to enable the three spheres of government to work together, with communities and stakeholders, to plan, budget and implement in unison.

Mathews also spoke of the cost implications incurred as a result of disruptions in having to secure project sites and more importantly, protecting the lives of those working on site.

”Such disruptions have many facets from community groups wanting a piece of the pie so to speak, with real and legitimate concerns, to the extreme threats of the so-called construction mafia-type organisations wanting 30% of profits.”

Kile Mteto, of the South African Women in Plumbing and Trades, said site disruptions not only increase the cost of doing business, but their impact is felt “mostly by the SMMEs, especially women-owned entities as they are at the bottom of the food chain in accessing opportunities of the sector.”

Taking action

Despite the various challenges, Massey said it is encouraging to see that there is interest to tackle this issue.

“… I completely agree with Minister Zikalala that we have to act with one voice in terms of addressing this issue.

“I think that up until now, that hasn’t happened. There’s been a lack of unity amongst all role players in how this is addressed and it seems that more recently, there’s been a real desire to work together to get to the bottom of this problem.”

Massey said proactivity is needed in order to “properly remove the scourge that we are faced with.”

The Minister said a thorough discussion on how to grow infrastructure is necessary.

“I believe we do need to look at whether we need a construction sector master plan.”

Removing all the spanners in the works, definitely requires a societal response. –SAnews.gov.za