Weekly News – 27 January 2025
The National Treasury has drafted regulations to the Public Procurement Act to create a specific framework within which the construction mafia will be prosecuted.
According to Roelof Viljoen, project manager at Business Against Crime, it is still unclear what these regulations will entail.
The construction mafia operates through opportunistically misconstruing the Public Procurement Act.
This legislation mandates that 30% of a construction project should be allocated to local Small, Micro and Medium Enterprises (SMMEs) to grow, equip and upskill them.
However, the construction mafia used this law to instead justify extorting people under the guise of being a local business forum or local youth group.
These groups make various demands at construction sites, including demanding subcontracting and that site managers bypass the procurement protocol to force their way onto a construction site.
Should they not get their way, the construction mafia is willing to kill and extort and economically cripple construction projects.
The actions of the construction mafia have reportedly cost the country R68 billion, but the real figure may be much higher than that, said Deputy Minister of Finance Ashor Sarupen.
Whilst extortion and the threat of violence are outlawed under the Prevention of Organised Crime Act (POCA), it is difficult to successfully prosecute the construction mafia because the legal process is very fragile, said Viljoen.
The construction mafia is difficult to prosecute because its members are constantly evolving, making it arduous to identify the culprits.
Additionally, culprits are regularly rather prosecuted for tangential crimes, such as the possession of illegal firearms.
These new regulations will likely just make it easier for prosecutors to describe the offences on the charge sheet.
Viljoen said the regulations to the law and the draft to amend the law being set up by the National Treasury would need to clearly set out how the prosecution will take place so the legal proceedings do not break down along the way.
This is because the legal system is so fragile, said Viljoen. “The issue is that a crime can only be a crime if there is a law against it.”
These new regulations and the draft are also aimed at making the cases easier to report.
Viljoen said that there is at least an intent from the government to finally try to address the issue of the construction mafia.
The Minister of Public Works and Infrastructure, Dean Macpherson, teamed up with other government officials to stop criminal disruptions on construction sites at the National Construction Summit on Crime-Free Construction.
“We will no longer be negotiating with criminals just to be able to build the essential roads, dams, schools and hospitals that our people need,” Macpherson said.
Among the pledges made in this agreement was the resolution to strengthen the legislation that governs the construction industry.
This will provide more structure for the collaboration and development of SMMEs, sharing stakeholders’ best practices, enhancing responses to crimes, and improving reporting systems to lead to more arrests.
“We must urgently review and refine policies to ensure that their original intent is upheld, empowering the rights of people and promoting genuine growth in local economies,” the minister said.
“Like any crime, it takes resources from building a country to actually breaking it down,” Viljoen said.
Small Business Development calls for applications for asset assist
10 Jan 2025
The Department of Small Business Development (DSBD) together with the requirements Small Enterprise Development and Finance Agency (SEDFA) call on Micro, Small, and Medium Enterprises (MSMEs) to submit applications to be assisted with machinery, equipment, working capital and acquisition of raw material to the maximum value of R250 000.
For funding requirement, eligibility and to apply, please visit: www.seda.org.za or www.dsbd.gov.za or www.sefa.org.za
The Free State Department of Economic Development and Tourism together with SEDFA office in the province will be running a support roadshow from 13 January 2025 to 17 January 2025 to assist interested MSMEs to apply for this incentive. Interested MSMEs should please visit the following offices for assistance:
Department of Economic Development Offices
District: Mangaung Metropolitan Municipality
Office Address: 113 St Andrew Street, Ground Floor
Contact Person: Ms. Moipone Mohono mohonom@destea.gov.za Tel: 082 559 7944
District: Mangaung Metropolitan Municipality
Office Address: Ratlou Complex, Office 205, Sation Road, Thaba Nchu
Contact Person: Ms. Selloane Ramabolu ramabolus@destea.gov.za Tel: 072 635 3674
District: Fezile Dabi District Office
Office Address: No 73, Corner Phillip and Schilbach Streets, Parys
Contact Person: Ms. Nnana Matlepe matlepen@destea.gov.za Tel: 082 443 5513
District: Lejweleputswa District Office
Office Address: Thusong Service Centre Shop 109, Cnr Ndaki and Nkoane Street, Boitumelo Mall Welkom
Contact Person: Ms. Motshidisi Maleka malekam@destea.gov.za Tel:066 051 1279
District: Thabo Mofutsanyane District Office
Office Address: Public Works Building (next to SASSA offices), Mampoi Road, Phuthaditjhaba
Contact Person: Ms. Rosemary Booi booir@destea.gov.za
Tel: 072 7175626
Small Enterprise Development and Finance Agency (SEDFA) Offices
District: Mangaung Metropolitan Municipality
Office Address: Shop No 133 Bloem Plaza Charles Street Bloemfontein 9300
Contact Person: Mr Thabo Ntsane Mr Mokgosi Legae 0514118300
District: Fezile Dabi District Office
Office Address: 37 Buitekant Street, Kroonstad 9499
Contact Person: Mr Nkululeko Cindi 0562161900
District: Metsimaholo Offices
Office Address: Eric Louw Street, Boiketlong Hall , Zamdela 1949
Contact Person: Mrs. Julian Koaho 0169745500
District: Lejweleputswa District Office
Office Address: Cnr Buiten Street and Stateway Ground and first floor Old FNB Building Welkom 9460
Contact Person: Kgauhelo Maruping 0579161960
District: Thabo Mofutsanyane District
Office Address: Cnr Ritcher and Malan Street Bethlehem 9701
Contact Person: Ms Zandile Mhlambi 058 718 5900
District: Xhariep District
Office Address: 53 Voortrekker Street Trompsburg 9913
Contact Person: Mr Sello Litabe 0517139500
Applicants are advised that all applications are done and submitted on-line; the above offices will support MSMEs with application process but will not accept any applications.
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