Public Works Minister
By Mpho Moloi
Public Works and Infrastructure Minister Dean Macpherson met with MECs from all nine provinces in Polokwane on Thursday to address the ongoing battle against the construction mafia, a criminal network that has plagued South Africa’s building industry for decades. The mafia’s reign of extortion, violence, and sabotage has cost the sector over R63 billion, disrupted more than 180 projects since 2019, and slowed down vital service delivery across the country. While progress has been made, Macpherson raised serious concerns about the mafia’s alleged ties to political figures, complicating efforts to root out this deep-seated problem.
A Heavy Toll on the Industry and Economy
The construction mafia’s grip on the industry has been devastating. Criminal syndicates, often demanding up to 30% of a project’s contract value, use intimidation and brute force to halt developments ranging from roads and schools to water systems and clinics. These disruptions don’t just hit contractors’ pockets—they stall economic growth and job creation, leaving communities without essential infrastructure. Since 2019, the mafia’s actions have derailed projects worth billions, with the R63 billion loss reflecting only part of the broader damage to South Africa’s economy.
Macpherson, who has made fighting this scourge a top priority since taking office in mid-2024, told MECs that the mafia’s tactics have chased away private investment and undermined public trust. Small businesses, especially black-owned firms, suffer the most, often folding under the pressure of extortion and threats. The minister’s vision—to turn South Africa into a thriving construction hub—hinges on breaking this cycle of lawlessness.
Progress Made, but Challenges Remain
Thursday’s meeting in Polokwane, held on 27 March 2025, was a chance to take stock of efforts to curb the mafia’s influence. Macpherson noted that recent initiatives have “moved the needle.” Since the National Construction Summit in Durban in November 2024, authorities have reported 745 extortion cases and made 240 arrests nationwide. Gauteng leads with 241 cases and 81 arrests, followed by the Western Cape with 198 cases and 73 arrests. A joint task force between the South African Police Service (SAPS) and private security firms, formed after the summit, has been key to this crackdown, using data-driven tactics like predictive analytics to stop crimes before they escalate.
An anonymous extortion hotline, set up under the Durban Declaration, has also proven its worth, receiving 779 reports and fast-tracking 30 cases to provincial authorities. “No longer can you disrupt our sites without consequences,” Macpherson said in a follow-up briefing on 28 March in Sandton. Yet, he admitted the fight is far from over, with four provinces—Gauteng, Western Cape, KwaZulu-Natal, and Eastern Cape—accounting for 84% of all incidents.
Political Links Raise Alarm
What worries Macpherson most isn’t just the violence—it’s the mafia’s alleged connections to political circles. “That’s why I find it particularly concerning when there are some quarters in society who try and paint these thugs and gangsters as nothing more than emerging businesses,” he said in Polokwane. These groups, often masquerading as legitimate community forums, wield AK-47s and use murder as a bargaining chip, a far cry from the small enterprises they claim to represent.
The minister hinted at a tangled web of influence, with whispers of ties to factions within the ruling African National Congress (ANC), particularly its Radical Economic Transformation wing. While he stopped short of naming names, the suggestion aligns with growing suspicions that the mafia’s impunity stems from high-level protection. This political shadow complicates law enforcement’s job, as some police officers reportedly fear retaliation from these well-armed, well-funded syndicates.
Roots of the Problem: The 30% Rule
A major talking point in Polokwane was the 30% local procurement rule, introduced under former President Jacob Zuma to empower local communities. Instead, it’s become the mafia’s golden ticket. Criminals exploit the policy to demand a cut of every project, claiming it’s their “right” as locals. Macpherson, backed by voices like the Black Business Council’s Deputy President Gregory Mofokeng, called for a hard look at this rule. “It’s been hijacked by syndicates,” he said, pushing for reforms under the Public Procurement Act to close these loopholes and protect genuine small businesses.
The Construction Industry Development Board (CIDB) is now working with the Private Security Industry Regulatory Authority (PSIRA) to weed out fake security firms—another front for mafia operations. Talks with National Treasury are also underway to overhaul procurement regulations, a move Macpherson sees as critical to starving the mafia of its incentives.
A United Front Against Crime
Macpherson’s strategy isn’t just about arrests—it’s about teamwork. In Polokwane, he urged MECs to deepen ties with SAPS, municipalities, and communities to safeguard projects. “They know who these people are because they’re being bullied too,” he said of local residents, encouraging them to share intel. Earlier efforts, like the uMkhomazi water project in KwaZulu-Natal where three died in a mafia clash, underscore the human cost of inaction.
The minister’s zero-tolerance stance—echoed since his first day in office—resonated in Polokwane. “We don’t negotiate with extortionists,” he’s said before, a line he’s sticking to as he pushes for longer prison terms over roundtable talks. KwaZulu-Natal, dubbed “ground zero” for the mafia, remains a hotspot, with MEC Martin Meyer facing death threats for his defiance. Yet, Macpherson sees hope in collective action, praising Police Minister Senzo Mchunu and SAPS leadership for stepping up.
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