South Africa: Construction mafia shifts to sophisticated economic coercion

A case in Gauteng highlighted this trend, where a contractor, Kabelo, allegedly lost control of a R12.8 million wastewater infrastructure subcontract after refusing demands from local business interests. Kabelo's company, which employed 19 people, secured an excavation subcontract on a major wastewater project in Ekurhuleni. Problems arose when representatives of a local business structure demanded that two nominated companies receive 40% of the subcontract's value, despite not participating in the procurement process.

After Kabelo refused, his trucks faced repeated access restrictions, leading to delays. Further pressure to channel labor and equipment through selected companies was also rejected. The situation escalated with damage to a truck and threats to his foreman.

Although criminal complaints were filed, direct evidence linking threats to the companies was not found. Eventually, Kabelo's role was reduced, and a newly registered company took over part of the work. Investigations allegedly uncovered links between supposedly independent suppliers, revealing shared contact details and services.

By the time the network was removed, Kabelo had retrenched seven workers, and the project was completed nine months late with significant financial losses. Criminologist Prof Kholofelo Rakubu noted t