The City of Cape Town is joining forces with the private sector in a bid to eradicate the presence of the construction mafia in development projects.

A collaboration between the City, Atterbury, Old Mutual Properties and other role-players was announced on Monday.

It follows a series of meetings to address the involvement of alleged underworld-linked businesses in property development projects.

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The City says the discussions have resulted in a commitment to prevent any future engagement with alleged criminal enterprises in development and construction projects.

Louis van der Watt, Group CEO of Atterbury, highlighted the complexities in detecting illegality in business, especially when these entities operate under the ”guise of legitimacy.”

Van der Watt explained that these businesses possess all necessary legal documentation, making it challenging to identify their true nature through standard vetting processes.

He says they need the help of the South African Police Service (SAPS) and the South African Revenue Service (SARS), to help identify these entities.

‘The construction mafia in Cape Town regularly operate through legally registered entities with valid bank accounts and tax clearance certificates. Financial statements, company registration documents, directorship information and other business certifications are in order, making it extremely difficult to detect any connections to criminal activities through standard procedures.’

He added that the property sector relies heavily on National Treasury to maintain and make available an updated list of black-listed entities, and that the private sector does not have the resources and capacity that local and national governments have in identifying non-compliant entities.

Atterbury is further strengthening their vetting processes for sub-contractors, ensuring they adhere to ethical business practices, on a continuous basis.

Cape Town Mayor Geordin Hill-Lewis has pledged that the City would continue holding National Treasury to account in maintaining an updated black-list, which is available on the Treasury website.

The City further committed to introduce a process of vetting approved Community Liaison Officers, representing local communities in various development projects.

‘Together, we can ensure that our construction projects contribute positively to the economy without falling prey to extortionists. The City will use all legal means to combat the construction mafia, collaborate and share information with the private sector, and protect our communities from the scourge of organised crime’

Hill-Lewis says the City is further investing in enhanced security measures at its own public infrastructure projects impacted by extortion, and has launched a City-wide anti-extortion hotline (0800 00 6992 or SSIMS.SSIUReporting@capetown.gov.za.).

A rewards system is also in place for information leading to the arrest and prosecution of extortionists. Anonymous tip-offs are welcome.

Old Mutual has welcomed the City of Cape Town’s involvement in assisting businesses in identifying companies with underworld links.

Neil Gopal, CEO of the South African Property Owners Association (SAPOA), also expressed his support for the collaborative efforts to combat the construction mafia.

‘We at SAPOA welcome the collaborative efforts of the City of Cape Town and the private sector to address and eradicate the negative influence of the construction mafia that has long hindered property development in our cities,’ Gopal stated. ‘This decisive action is crucial for the growth and sustainability of our urban areas and the broader South African economy. We hope that this initiative will establish a standard for other municipalities to follow, ensuring a safer and more conducive environment for property development.’

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