The South African government has intensified its crackdown on the so-called “construction mafia,” with law enforcement agencies investigating more than 700 cases of criminal disruptions at construction sites across the country. The initiative, led by the Department of Public Works in collaboration with the police, aims to dismantle extortion syndicates that have plagued infrastructure projects.
Public Works Minister Dean Macpherson announced on Friday that the government had made significant strides in restoring order at construction sites through intelligence gathering, data tracking, and law enforcement operations. A national summit held in November marked a turning point, bringing together stakeholders to develop a unified approach to tackling these criminal groups.
“We have made substantial progress in re-establishing the rule of law at construction sites and ending the extortion tactics used by these criminals,” Macpherson said. He highlighted the deployment of economic infrastructure task teams in high-risk areas, ensuring swift arrests and protecting South Africa’s infrastructure projects.
Since November, authorities have recorded 745 extortion cases linked to the construction mafia, resulting in 240 arrests. Gauteng has been the most affected, with 241 cases and 81 arrests, followed by the Western Cape with 198 cases and 73 arrests. KwaZulu-Natal reported 102 cases with 16 arrests, while the Eastern Cape recorded 86 cases and six arrests. These four provinces account for 84% of all construction-related extortion cases.
The department’s anonymous extortion hotline has also received 779 reports, leading to 30 cases being referred to provincial authorities. “The public is no longer afraid to come forward with information, which is a major breakthrough in our efforts to reclaim infrastructure projects for the benefit of communities,” Macpherson stated.
In response to the growing threat, the Department of Public Works and the Construction Industry Development Board (CIDB) are working with the Private Security Industry Regulatory Authority to clamp down on extortionists posing as security personnel. Additionally, discussions with the National Treasury are underway to reform procurement regulations and close loopholes that criminal groups exploit to demand a 30% share of infrastructure projects.
“If we are to dismantle these syndicates, we must remove the financial incentives that allow them to operate,” Macpherson emphasized. He also acknowledged the need for stricter accountability within government departments, saying difficult conversations had taken place with provincial leaders about ending impunity.
A report from the Auditor-General revealed that only one company had been delisted from government tenders since 2002, highlighting the slow response to corruption and underperformance. In response, Macpherson announced reforms to the government’s blacklisting policy, which will bar unethical contractors from securing public contracts. More than 40 companies are currently facing blacklisting, and the process of delisting non-compliant contractors will be expedited in the coming months.
To enhance oversight, provincial MECs have agreed to improve coordination and accountability in managing public works projects. Additionally, the Expanded Public Works Programme (EPWP) is set to undergo reforms to focus on skills development, ensuring participants gain pathways to permanent employment.
The government is also restructuring its Property Management Trading Entity into a state asset management unit. As part of this initiative, 31 state properties have been released for public and private sector proposals, expected to attract over R10 billion in investment and create nearly 165,000 jobs.
Further development plans include the release of state-owned small harbours such as Hout Bay and Saldanha Bay for private sector investment, aiming to boost tourism and local economies. Meanwhile, a special projects unit is being established to fast-track the completion of stalled infrastructure projects, including the long-delayed Sarah Baartman Centre of Remembrance in the Eastern Cape.
Infrastructure South Africa has also launched a R180 million bid window for project preparation, attracting 220 bids worth a total of R1.23 trillion. The winning bids will be announced on May 26, marking another step in the government’s efforts to drive investment and economic growth through public works initiatives.