By Staff Reporter
Parliament’s Portfolio Committee on Trade, Industry and Competition has strongly supported recent efforts to criminalise the extortion tactics of the construction mafia.
Committee chair Mzwandile Masina expressed his approval of the proposed legal measures that will target those who demanded a 30% share of government contracts without offering any actual work.
“The government allocates 30% of the value of projects to small, medium and micro enterprises with a view to empower them, and those they employ. Unfortunately, this has led to thuggish behaviour with criminals demanding payment and bringing projects to a halt,” Masina said.
The 30% set-aside rule is a policy that aims to help historically disadvantaged individuals, offering them opportunities to grow within the mainstream economy.
However, the policy’s implementation has been marred by criminal actors who force contractors to comply with their demands for a percentage of the contract value, often without contributing to the work in any meaningful way.
Masina said these groups have caused significant delays on construction sites and have led to numerous projects being abandoned.
The committee heard in a briefing from the National Treasury on Thursday that the actions of the mafia have been a significant barrier to the successful implementation of the government’s infrastructure projects.
Contractors have been forced to abandon sites, leading to inefficiencies, cost overruns and the complete abandonment of projects in some cases.
A report from the National Treasury highlighted the challenges in enforcing compliance with the Public Procurement Act, which was designed to ensure fair participation in government procurement and contribute to industrialisation and inclusive growth.
Masina expressed concern over the widespread hijacking of infrastructure and housing projects in the name of the 30% empowerment initiative.
He said the measure was never intended for criminals to exploit, but for legitimate businesses and individuals eager to contribute to the economy and gain valuable skills.
“This intervention was never intended for criminals, but well-meaning South Africans who want to come into the mainstream economy, be equipped with skills and grow. This frustrates the good intentions of the government, and we call on law enforcement to act when the regulation is operationalised,” the chair said.
The committee has called for stronger law enforcement action to ensure that these criminal practices are eradicated once the regulation is fully operational, saying it remains firm in its stance that the government must act swiftly and decisively to curb these extortionist practices.
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