Construction mafia has disrupted projects worth R63bn; 240 arrests since November 2024 crackdown
Extortion syndicates have hit projects worth R63bn since 2019, demanding up to 30% of contract value - driving demand for site security as government plans R900bn in infrastructure spend.
Criminal syndicates known as the construction mafia have hijacked or disrupted South African construction projects worth R63 billion, Infrastructure News reported from the National Construction Summit, citing government figures.
More than 180 projects have been disrupted since 2019. Syndicates demand up to 30% of contract value, using extortion, intimidation, violence and sabotage - including infiltrating community forums.
Law enforcement made 240 arrests after escalating enforcement action from November 2024. Public Works and Infrastructure Minister Dean Macpherson said corruption is deeply entrenched in procurement systems and local government supply chains, but declared "We are turning the tide".
The construction sector contributes about 3% of GDP and employs more than 1.3 million South Africans, with government planning R900 billion in infrastructure investment over three years.
Adoption of the ISO 37001 anti-bribery management standard among South African construction firms remains "frustratingly limited", according to compliance consultancy WWISE. "This may be South Africa's last line of defence if we want to build infrastructure without bribery," said WWISE managing director Muhammad Ali.
Source: Infrastructure News, 4 June 2025 - infrastructurenews.co.za (also: sanews.gov.za)
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