SA unveils tough plan to tackle construction mafias and failing contractors
Key topics:
South Africa launches Construction Action Plan to boost accountability.
Digital tracking platform to monitor all projects by March 2026.
Crackdown on construction mafia yields 240 convictions so far.
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Minister of public works and infrastructure, Dean MacPherson, has unveiled South Africa’s Construction Action Plan, which involves launching a digital construction tracking platform by March 2026.
The minister also provided an update on his department’s efforts to combat the construction mafia, revealing that crackdown efforts have resulted in 240 convictions.
MacPherson said the six-part plan will improve collective and individual accountability through measurable targets, real timelines, and enforceable consequences.
“Every official and accounting officer will now be measured against these metrics, and if they are unwilling to comply, they will have to make way for those who will,” he said.
“This plan is built on the belief that South Africa can deliver, and that the Department of Public Works and Infrastructure can, once again, become the engine that drives economic growth and job creation.”
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In his speech detailing the Construction Action Plan, MacPherson listed the six actions that make up the plan:
Action one: introduce accountability and contractor blacklisting.
Action two: fix cash-flow constraints.
Action three: Introduce digital infrastructure tracking.
Action four: procurement reform.
Action five: strengthen audit and governance outcomes.
Action six: professionalise the built environment in the public sector
The first action will prioritise identifying underperforming contractors who, for many years, have operated with impunity.
“They fail on one site, only to resurface in another province under a new name or company number. That will come to an end,” said MacPherson.
All national and provincial departments must now establish Restriction Committees to work with the Construction Industry Development Board to identify and blacklist defaulting contractors.
The second action aims to address one of the most prominent causes for stalled projects: cash-flow constraints.
“To end this cycle, we are advocating for the introduction of strict ring-fencing of project budgets,” the minister said.
“Our goal is to work with the National Treasury, provincial treasuries and departments to ensure that infrastructure funds are protected and cannot be diverted to other uses.”
Digital infrastructure tracking
MacPherson said the third action, introducing digital infrastructure tracking, will provide a real-time overview of every construction project in South Africa, including the contractor, timeline, budget, and progress.
“Every Public Works department, national and provincial, will implement a digitised, integrated Asset Information Management System based on modern Enterprise Resource Planning technology,” he said.
“For the first time, we will have a unified, live dashboard that shows where projects stand, what risks they face, and what interventions are required.”
He added that the digital infrastructure tracking platform will integrate financial, procurement, and asset data, bringing transparency to planning, building, and maintaining infrastructure in South Africa.
The fourth action will see every public works department launch a Procurement War Room to identify bottlenecks, expedite evaluations, and ensure that projects progress from bid to site without delay.
The Construction Action Plan aims to address governance issues through the fifth action. It seeks to address issues ranging from irregular expenditure and unauthorised work to weak billing systems.
“National and provincial departments will now work directly with the Auditor-General of South Africa to address audit findings in real time, rather than waiting for them to accumulate at the end of the year,” said MacPherson.
The final action examines the professionals who plan, design, and deliver the infrastructure that South Africans rely on.
“We cannot build a capable state without capable professionals,” said MacPherson.
“We need engineers who can design resilient bridges, architects who can build modern clinics, and project managers who can manage costs and timelines with precision.”
To achieve this, the department will require all built-environment professionals working for it or contracted by it to be registered with their statutory councils.
The department is also introducing a Professionalisation Programme through its partnership with the Council for the Built Environment and the National School of Government.
The project aims to strengthen ethics, competence, and accountability, thereby raising professional standards and reducing over-reliance on external consultants.
War against construction mafias
MacPherson provided an update on his department’s construction mafia crackdown, revealing that more than 850 people have been arrested.
“We’ve seen around 240 convictions now,” he said. “In some instances, according to construction companies, we’ve seen an 80% decline in lost construction hours.”
Construction mafias, also known as construction business forums, emerged in South Africa in 2010, with the construction boom in preparation for the FIFA World Cup.
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Their modus operandi is to intimidate developers at construction sites into giving them a portion of the work. Their operations have disrupted major construction projects nationwide, including fibre rollouts.
In August 2024, MacPherson pledged that his department would crack down on construction mafias through independent investigations into extortion cases at construction sites nationwide.
“It’s not something we take lightly, but we want to confront it head-on,” he said.
“I’ve said that there’s no room for negotiation. There’s no room for talks. We just need to get on with the job of building infrastructure across South Africa.”
He and other members of his department were targeted with death threats after speaking out and taking a stance against the construction mafia.
“What we can’t do is go and hide in a corner just because they’re making these threats. We need to ensure that law enforcement meets these people head-on,” said MacPherson.
“That’s why I’ve said there’s no negotiating because the only negotiating that we should be doing is the length of prison sentences that they should be serving for perpetrating crimes against the state.”
The minister added that the construction sector was being held hostage by thugs and thieves, urging law enforcement to make a move to tackle the issue head-on.
However, this is likely easier said than done. According to specialist investigator Mike Bolhuis, authorities in the country are afraid of the construction mafia.
He also believes there is high involvement of corrupt police officers within construction mafias, which is why the South African Police Service is afraid of them.
“They do not get involved, and they do not stop and prevent this crime,” said Bolhuis.
“Today, it’s one of the most lucrative crimes committed in the country because it has so many authorities involved.”
This article was first published by MyBroadband and is republished with permission