The City of Cape Town, Atterbury, Old Mutual Property, and other role-players have held a series of meetings to address the involvement of alleged underworld-linked businesses in property development projects, resulting in a unified commitment to prevent any further engagement with alleged criminal enterprises in the built environment.
Highlighting the complexities in detecting illegality in business, especially when these entities operate under the guise of legitimacy, Group CEO of Atterbury, Louis van der Watt, says that these businesses possess all the necessary legal documentation, making it challenging to identify their true nature through standard vetting processes. He emphasises the need for collaboration with national and local government including SAPS and SARS to assist in identifying 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 adds that the property sector relies heavily on National Treasury to maintain and make available an updated list of blacklisted 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 pledged that the City would continue holding National Treasury to account in maintaining an updated blacklist, which is available on the Treasury website. The municipality further committed to introducing 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,” said Mayor Hill-Lewis.
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 welcomes the City of Cape Town’s involvement in assisting businesses in identifying companies with underworld links. The business ensures a robust procurement and screening process is in place for all service providers and has never considered using any suppliers that have been blacklisted.
Neil Gopal, CEO of the South African Property Owners Association (SAPOA), expressed his support for the collaborative efforts to combat the construction mafia in Cape Town.
“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,” he states. “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.”
The City of Cape Town, Atterbury, Old Mutual Properties and SAPOA stand united in their resolve to eradicate the influence of the construction mafia in Cape Town. Through collaboration, enhanced vetting processes and a commitment to transparency, they aim to create a safer, more ethical environment for future developments.
