Sarupen says there's a rise in armed gangs invading construction sites.
has disrupted over 180 construction projects worth R63 billion since 2019, according to Finance Deputy Minister Ashor Sarupen.
The Public Works and Infrastructure Department, police, National Treasury and the Construction Industry Development Board have agreed to work together to end criminal disruption at construction sites.“They invade sites and generally demand 30% of payment from the contractors of the value of the project or prevent work from going on or halt active sites and extort the contractors and subcontractors on site to prevent anything from continuing.
“2.7% just the actual act of extortion and the disruptions from that. What happens is firms have to pay for external security and that costs 4% of GDP. Then the spillover effect of not having the infrastructure completed or the project completed actually costs even more. Many of them are actually quite critical for communities, bridges – we have seen flooding in KwaZulu-Natal and bridges need to be rebuilt that cut communities off from the main city centres and so on.
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