Crackdown on Construction Mafia Leads to 240 Arrests, BEE Chamber Applauds Action

South Africa’s efforts to clean up its construction industry are gaining momentum, with 240 arrests made and 745 cases of extortion reported since November 2024. The Department of Public Works and Infrastructure (DPWI) and the South African Police Service (SAPS) were praised for these strides during the Built Environment Indaba held on April 10, 2025.

The arrests mark a turning point in the government’s fight against the so-called construction mafia—criminal groups that have exploited procurement policies to extort businesses and hijack projects.

“This significant progress demonstrates a robust commitment to restoring integrity to South Africa’s construction sector and Broad-based Black Economic Empowerment (B-BBEE) legislation,” said Minister Dean Macpherson.

BEE Chamber Stands Firm on Transformation Goals

The BEE Chamber, a long-time advocate for genuine economic inclusion, welcomed the clampdown.

“The time for action is now. We fully support these efforts to root out criminal elements that undermine the real intent of B-BBEE,” said Yuneal Padayachy, the Chamber’s Chief Support Officer.

While the abuse of policies like the 30% local procurement rule—meant to empower black-owned businesses, youth, women, and persons with disabilities—is concerning, the Chamber believes it reinforces the need for better regulation, not a rollback of transformation initiatives.

Collaborating for Real Change

The BEE Chamber commended the DPWI, National Treasury, SAPS, and the Construction Industry Development Board for working together to safeguard the construction industry. The Black Business Council for the Built Environment (BBCBE) was also recognized for its reform advocacy.

One proposed solution is a national facilitation framework that would formalize how community engagement is handled in public construction projects—making the process more transparent and less vulnerable to criminal interference.

Impact Already Visible

The government’s actions are already producing results. Companies like WBHO have reported an 80% decline in lost construction hours, thanks to reduced interference from extortion groups.

“This shows what is possible when B-BBEE is implemented with integrity,” Padayachy added.

A Step Toward Inclusive Growth

At its core, B-BBEE aims to create sustainable economic participation for historically excluded communities. Legitimate Black-owned construction companies have been among the victims of the construction mafia’s coercion, often being pushed off sites and denied opportunities.

The crackdown sends a powerful message: South Africa is serious about transformation—and serious about protecting those it’s meant to uplift.

{Source: Bizcommunity}

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