[imagesource:pixexid]

Tired of being held ransom by thugs, the City of Cape Town has taken the fight to the construction mafias, and big property groups are backing them.

Atterbury and Old Mutual Properties joined the city on Monday to declare that they would join forces to eradicate the scourge. The collaboration is also being supported by the SA Property Owners Association (Sapoa).

The pledge came as the city hosted a series of meetings “to address the involvement of alleged underworld-linked businesses in property development projects”.

“The collaborative discussions have resulted in a unified commitment to prevent any future engagement with alleged criminal enterprises in development and construction projects.”

Atterbury Group CEO Louis van der Watt highlighted that detecting illegality in businesses involved in the construction mafia is often complex, especially when these entities operate under the guise of legitimacy.

“The construction mafia in Cape Town regularly operate through legally registered entities with valid bank accounts and tax clearance certificates.”

“Financial statements, company registration documents, directorship information and other business certifications are in order, making it extremely difficult to detect any connections to criminal activities through standard procedures.”

According to Van der Watt, the property sector relies heavily on National Treasury to maintain and distribute an up-to-date list of blacklisted companies. He went on to say that the private sector lacks the resources and capacity that local and national governments have for finding non-compliant firms.

However, he stated that Atterbury is strengthening its vetting processes for subcontractors to ensure that they consistently adhere to ethical business practices.

Cape Town Mayor Geordin Hill-Lewis said the city would stay on Treasury’s case to ensure the blacklists are kept up to date. “Together, we can ensure that our construction projects contribute positively to the economy without falling prey to extortionists,” said Hill-Lewis.

“The city will use all legal means to combat the construction mafia, collaborate and share information with the private sector, and protect our communities from the scourge of organised crime.”

Last year the City of Cape Town established an anti-extortion hotline (0800 006 992), and a rewards system is in place for information leading to the arrest and punishment of extortionists.

Old Mutual welcomed the City of Cape Town’s involvement in assisting businesses in identifying companies with underworld links.

“The business ensures a robust procurement and screening process is in place for all service providers and has never considered using any suppliers that have been blacklisted.”

Sapoa CEO Neil Gopal said, “We welcome the collaborative efforts of the City of Cape Town and the private sector.”

“This decisive action is crucial for the growth and sustainability of our urban areas and the broader South African economy. We hope that this initiative will establish a standard for other municipalities to follow, ensuring a safer and more conducive environment for property development.”

Enough is enough.

[source:moneyweb]