ILLICIT BUSINESS FORUMS IN SOUTH AFRICA: A SURVEY

Abstract

Extortion is understood as one party taking from another a patrimonial or non-patrimonial advantage by intentionally and unlawfully subjecting them to pressure which forces them to submit to a bribe. Extortion is not an unfamiliar concept in South Africa. In this article it is contended that extortion has become a major concern in the construction industry. Sites where the installation of critical infrastructure occur and construction sites throughout South Africa are being invaded by what some may call the ‘construction mafia’.1 The South African Forum of Civil Engineering Contractors reports that in 2019 alone over 180 infrastructure and construction projects were affected by acts such as extortion perpetrated by groups who call themselves ‘local business forums’. The business forums often mislead construction companies by demanding 30% of the value of the contract awarded to such companies. They refer to the stipulations in the Preferential Procurement Policy Framework Act 5 of 2000 (PPPFA) and subsequent Preferential Procurement Regulation, 2017 (PPR) to create the perception that they have a rightful claim to 30 percent of the contract value. If their demands are not met the business forums resort to violence which halts construction site activities. The business forums justify their actions as ‘radical transformation’. This view is supported by some local politicians who actively encourage the activities by the forums or are involved for financial or political gain.