The Construction Mafia remains an ever-present threat to projects in both the public and private sectors – but there’s a limit to what the industry can do.
The 23 classroom construction project at Menzi High School, south of Durban, faced more than two years delay because of the threats from the construction mafia. Picture: Steven MakhanyaThe new Minister of Public Works and Infrastructure, Dean Macpherson, has been in the United Kingdom engaging with infrastructure investors to secure potential partnerships. He is on record as saying that he wants to make South Africa into one giant construction site.
Gavin Morrow, the CEO of construction company W3O and Vice-President of MBA North, agrees that a consolidated approach from government is important. He says that the activities of these illegal, so-called “business forums” are driving up the cost of doing business and reducing the industry’s margins.
Morrow identifies the lack of policy clarity as another issue that gives oxygen to the Construction Mafia. The current Preferential Procurement Policy does not properly define the 30% participation requirement and is thus used by so-called “community organisations” to demand 30% of the total project value, rather than 30% of the work that falls within the remit of the main contractor.
“The challenge is that expectations within the community are worlds apart from the reality of delivering work against tight deadlines and budgets,” Correia says. “It seems there is always a new business forum claiming it is entitled to the work and there is never enough work to service all these extortionists.”
However, these procedures cost money and, perhaps even more importantly, time – something that’s often in short supply on a building contract.
Gdp Free Market Economy National Government Finance Business Construction Crime And Courts Infrastructure Building
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Defence force may be called in to help deal with construction mafiaOn government-led infrastructure projects – with minister also announcing project preparation bid window to ‘turbocharge infrastructure investment’.
Read more »
South Africa: Tension High in Sharpeville Following Violent Protests - South African News BriefsTension High in Sharpeville Following Violent Protests
Read more »
South Africa: School Abuse Allegedly Lead to Learner's Death by Suicide - South African News BriefsAllegations of Abuse Lead to Learner's Suicide
Read more »
South Africa: Petition Wants to Block Chris Brown's South African TourSouth African women's rights campaigners have launched a petition calling for controversial U.S. award-winning singer Chris Brown to be barred from performing in December.
Read more »
South Africans fawn over Prince Harry as he extends his trip to South AfricaBritish Royal Family member Prince Harry, who planned to meet up with his wife in Los Angeles after visiting Southern Africa, extended his trip. SA loved it.
Read more »
COSATU marches against rising cost of living, says workers battling to keep upCOSATU is holding a nationwide strike on Monday, to highlight the plight of workers as the world observes World Day for Decent Work.
Read more »