Over 700 extortion cases have been reported and 240 arrested - Macpherson

JOHANNESBURG - Public Works and Infrastructure Minister Dean Macpherson says they're closing in on security companies believed to be part of construction mafia across the country.

Macpherson’s warning comes as the department continues to clamp down on what it calls rogue elements operating in the industry

He met with MEC's from all nine provinces in Polokwane this week to discuss reforms currently underway within the department.

This includes progress made in tackling the construction mafia, addressing challenges in the expanded public works programme and corruption probes in the department

The department of public works and infrastructure has teamed up with law enforcement to get intelligence on the construction mafia crippling the industry.

As it stands, more than 700 extortion cases have been reported and more than 240 arrests have been made.

While public works and infrastructure minister Dean Macpherson says the criminal syndicates are highly advanced he adds a clearer picture is starting to emerge about who is behind what he calls the crime of the worst order.

“These are not benevolent community organisations; these are very rich people who are making a living off of extorting from the state.”

He says security firms demanding fees are not the only offenders - - adding companies that forge documents to qualify for tenders are also to blame.

Talks with treasury are also underway to reform regulations under the Public Procurement Act to scrap a 30 percent provision in procurement abused by syndicates.

The 30% local procurement rule stipulates that 30% of spending on public infrastructure and procurement worth more than R30 million should go to subcontractors based in local communities.