Extortion racket disrupts Cape Town townships

Extortion syndicates target City of Cape Town staff, contractors, and councillors, hindering or halting the provision of essential services and the progress of infrastructure projects.

The poorest communities suffer the most, and the City is working hard to make it difficult for these gangs.

EXTORTION RACKETS DISRUPTS SERVICE DELIVERY IN CAPE TOWN

Criminal groups are extorting small businesses in Cape Town’s townships, including spaza shops, salons, and even informal roadside traders.

Extortion extends beyond businesses to the state, with syndicates targeting areas like Philippi, Samora Machel, Gugulethu, Nyanga, and parts of Khayelitsha. 

In these areas, essential services like waste collection have sometimes been suspended to protect workers from extortion syndicates.

Workers have been threatened with guns and coerced by protection rackets to halt their work until their employers comply with payment demands.

According to GroundUp, A supervisor at a company contracted by the City to provide services in Khayelitsha, Philippi, and Samora, speaking anonymously due to safety concerns, verified this. They stated, “Workers refuse to work in crime-ridden areas unless escorted by law enforcement because gangs demand protection fees and rob them of their belongings.”

A waste collection worker mentioned that he and his coworkers have faced numerous threats. “We avoid going to certain townships without law enforcement escort because it risks our lives. We’ve informed our employer that we’re unwilling to endanger ourselves,” he explained.

The City urges all employees or contractors affected by extortion to report such incidents to understand the issue comprehensively.

Pophaim mentioned that the SSIU supports the SAPS anti-extortion unit, which leads investigations into these crimes.

SAPS spokesperson Colonel Andrè Traut informed GroundUp that questions regarding extortion have been directed to the Serious and Violent Crimes unit, and his office will respond once it’s received. We will include their response accordingly.

CRIMINAL GANGS TARGET CAPE TOWN

Extortion in Cape Town is damaging the local economy, with significant construction projects facing challenges from so-called ‘construction mafias,’ resulting in financial losses for the city. 

Additionally, individuals are affected by other criminal gangs. Safety concerns at construction sites have led to suspending at least seven major urban mobility projects in Cape Town.

“We have had several instances that have resulted in major setbacks in big public transport projects,” said Cape Town’s Urban Mobility MMC Rob Quintas.

He further noted that instances of extortion by construction mafias intensified significantly around the middle of last year. These incidents even involved the murder of a contractor’s worker.

According to BusinessTech, the term “construction mafia” describes organised groups of extortionists who coerce local construction companies and contractors into paying protection fees or extorting a portion of the project’s cost. 

Specific individuals linked to the mafia may also be recruited to work on the construction site.

“This has scared off contractors from completing and doing business in the City, and rightly so,” said Quintas. He noted this is still a massive concern, with reports of extortion attempts still coming in

Mafias are taking control of construction sites throughout South Africa, resulting in significant economic losses.

At the Big Five Africa Construction Summit last year, Public Works Minister Sihle Zikwalala highlighted that construction mafias severely disrupt construction companies striving to complete their projects.

According to the Engineering News, the City of Cape Town has announced that its annual review of the Supply Chain Management Policy includes proposed additional measures aimed at mitigating the risk of extortion affecting city projects. 

These proposed Supply Chain Management Policy amendments are open for public feedback until 10 May.

“Robust internal control interventions are proposed to reduce the impact of extortion on city projects,” says CoCT Finance MMC Siseko Mbandezi.

This entails adding individuals identified as high-risk to the city’s Red List and cancelling awarded contracts, even those connected through subcontracting to a high-risk primary contractor.

Last year, Cape Town Mayor Geordin Hill-Lewis initiated an anti-extortion campaign with the slogan “Enough! Genoeg! Kwanele!” The city has established a 24-hour toll-free hotline and offers cash rewards for information leading to the arrest and prosecution of individuals involved in extortion.

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