[imagesource: EPA-EFE/ Kim Ludbrook]

The rise of the notorious construction mafia is taking over KwaZulu-Natal.

The role of this criminal syndicate, which uses violent means to invade construction projects and demand stakes of contracts, is increasingly being formalised.

It has become so bad that the JSE-listed residential property developer Calgro M3 is trying to pull out of KZN entirely, hoping to trade out two projects it has already started.

News24 reported that the firm says the lives of its employees are constantly under threat, with Calgro CEO Wikus Lategan saying that “you get so close to AK47s. You get demands.” and that it’s ultimately “not the environment you’d like to work in”.

Calgro does good work for the community in various cities and neighbourhoods across the country, but the violent group is absolutely thwarting them:

Calgro has extensive experience working with communities in townships in other provinces, and has expanded its lifestyle estates in low-income suburbs such as Belhar in Cape Town and Jabulani in Soweto. It has also been involved in developing many government-subsidised social housing without the problems it has encountered in KwaZulu-Natal.

…Lategan said that in other parts of the country, the company could form relationships with the community – and it would establish education facilities that train women to sew or take cooking classes.

“In KZN, it’s just not possible because KZN has mafias that come in and make it impossible to do business. Even if you do good work in the community, the communities are scared of these people. It’s unfortunate, but that is hampering delivering in KZN,” said Lategan.

Now the company wants to “trade out” of the province, with Lategan confirming that it had started selling its projects as they are not willing to put the lives of its employees at risk any longer:

It is currently left with two of these: a 365-unit development at Bridge City in KwaMashu, and it was also planning to develop 720 housing units in Umhlanga Hills, next to Cornubia Mall. It will “trade out of” Bridge City, and won’t proceed with the Umhlanga Hills developments due to constant violence.

Having worked in gang-ridden areas in Cape Town before, the company thought it had the skin to handle the adversity and build affordable housing in areas that desperately need it anyway.

But everyone is so scared in KZN that they can’t manage to get the job done.

What a pity that economic transformation and a thriving construction industry have been wiped from the cards.

[source:news24]