Good morning. 

We are truly holding a historic gathering here today. Today, stakeholders from across the spectrum gather at the Inkosi Albert Luthuli International Convention Centre to develop a joint plan of action to end disruptions at construction sites across the country. We are gathering here today in Durban, KwaZulu-Natal - considered by many as ground zero for the so-called ‘construction mafia’ - to take a stand and say: ‘Enough is enough’. 

We are drawing a line in the sand to say that lawlessness will no longer be tolerated. We will no longer be negotiating with criminals just to be able to build the essential roads, dams, schools and hospitals that our people need. Together, this diverse set of stakeholders is making a public commitment to work together to restore the rule of law in the construction industry. 

Let me be clear: this is not just another talk shop; today we are taking action. The calibre of people gathered here – including but not limited to the Minister of Police, KZN Premier, Deputy Ministers and MECs - proves our collective commitment to find solutions to this issue. We are gathered here to have difficult conversations, to build understanding, and to develop a concrete plan to permanently bring an end to the criminality and the thuggery. Because, as South Africans have shown time and time again, by working together we are able to achieve anything we put our minds to. 

Ladies and gentlemen, 

When President Cyril Ramaphosa appointed me as Minister of Public Works & Infrastructure just over four months ago, one of my first commitments was to take on the so-called ‘Construction Mafia’ head-on. The criminal syndicates, who often present themselves as legitimate business forums, have simply delayed too many public and private construction projects because they demanded a portion of the project’s costs. It was clear to me that we would never achieve our vision to turn South Africa into a construction site if we were unable to bring an end to the disruption of construction sites.

And it is clear to me today that we cannot be negotiating with criminals to allow construction projects to continue. 
How can it be right that heavily armed criminals are allowed to freely enter construction sites? 
How are these thugs allowed to physically intimidate and threaten construction workers? 
What has happened to the rule of law in our country, if this behaviour is allowed to go unchecked and unpunished? 

Following a meeting on disruptions to construction sites encountered here in KwaZuluNatal with Public Works & Infrastructure MEC Martin Meyer in August, we agreed that an urgent summit is required to develop a joint plan to address the issue. Not only do disruptions to construction sites cost contractors, businesses and the state millions, but it also delay essential services to vulnerable communities. 

This means delays in sanitation, water, schools, hospitals and police stations to thousands of people who need it. We simply cannot continue to allow this to happen. Furthermore, disruptions to construction sites chase away private-sector investment. No business wants to build homes, factories or offices under these conditions. And this means fewer jobs are created at a time when unemployment is at historic levels. We will never be able to improve the lives of our people when this lawlessness continues. 

This is why today we must make the tough decisions required to put an end to the construction mafia.

Ladies and gentlemen,

The action required to bring an end to criminal syndicates at construction sites may not be easy. They may require that we compromise for the greater good. It will require that we work closely together with the private sector and the police to promptly identify and address issues experienced. It may require that we replicate the pioneering work of the City of Cape Town to join forces with the private and public sectors to join forces to fight the scourge at developmental projects.

The police will need to take stronger action to arrest those found guilty of disrupting infrastructure projects. In this regard, I want to commend the work the Minister of Police Senzo Mchunu, the National Police Commissioner, General Fannie Masemola, and KwaZulu-Natal Provincial Commissioner, Lieutenant-General Nhlanhla Mkhwanazi have done over the past few months to bring a new sense of urgency to address the issue head-on. They have been supported by our brave men and women in the South African Police Service who took the fight to extortionists and thugs. 

They deserve an immense round of applause. But, for us to succeed, the National Prosecuting Authority will also need to act quickly to hold those accountable. Delays to court cases against those accused of disruption of construction sites cannot be delayed for months on end, similar to the matter at the Camperdown Magistrate’s Court which I attended in August. To end the influence of these criminal syndicates at infrastructure projects, it will require that we remove the incentives for these criminal syndicates to operate at construction sites. 

Once we open the door to negotiations, and once we give in to paying what is, essentially, a bribe, it means that these criminal syndicates are incentivised to repeat their actions elsewhere. We must never be complicit in bribery, corruption, extortion and racketeering. For that is what this is. And, we need to have a frank discussion about the 30% local procurement rule which has been abused by the so-called construction mafia. Ladies and gentlemen, We remain fully committed to the empowerment of local communities. But, it is clear that the 30% local procurement rule which was introduced by the National Treasury under former President Jacob Zuma has been used by criminal syndicates to extort contractors.

The 30% local procurement rule which stipulates that 30% of spending on public infrastructure and procurement worth more that R30 million should go to subcontractors based in local communities. However, criminals use the 30% local procurement rule to demand that 30% of a project’s cost be paid to them directly. Or, they demand that only their people or contractors be hired for construction to continue. In many cases, these criminal syndicates demand the 30% payment without ever doing any work. They demand their 30% share, even if the construction project isn’t valued over R30 million. And now, they demand their 30% share from the private sector as well - even though the Treasury rule has never applied to their projects. 

Ladies and gentlemen, 

This simply cannot continue. We cannot turn a blind eye to something wrong we all know is happening. We need to have an honest conversation today about whether the 30% local procurement rule achieves its intended outcomes, or whether other interventions can be used to meaningfully empower our people. In the end, it is legitimate, hardworking black businesses in the built environment that have suffered the most, when they were supposed to benefit the most. We are unashamedly committed to the empowerment of all South Africans, but we cannot allow criminals to profit under the guise of empowerment.

 Let us draw a line in the sand today. Ladies and gentlemen, These are not victimless crimes. They have faces and they have a name. One such name is Matthew Horwill. The Regional Managing Director of Stefanutti Stocks Coastal, Matthew is one of those people who nearly lost his life to the construction mafia. In June, Matthew was approaching the company’s coastal office in Pinetown, Durban, when a gunman who was lying in wait for him started shooting at his car. His Toyota Land Cruiser was riddled with bullets, with at least seven visible holes on the driver's side door and windows. Matthew himself was shot in the arm, and rushed to a nearby hospital. Make no mistake, these criminals intended to murder Matthew in broad daylight because they could not get what they wanted. Because Stefanutti Stocks refused to negotiate with criminals, he nearly paid with his life. I call him now to come join me here on stage. I ask that you join me now in giving Matthew a standing applause. Matthew, your bravery is an inspiration to us all. We commend you for your commitment to South Africa and your determination to keep building infrastructure that will grow our economy and create jobs. Matthew, you can take your seat.

 Ladies and gentlemen, 

Nobody should have to risk their life to build South Africa. It is imperative that we use our time together today to develop a comprehensive response to bring an end to the so-called construction mafia once and for all. I encourage you that throughout our discussions, you keep people like Matthew at the top of your mind. And think of all the honest hard-working South Africans denied job opportunities because of the fear and intimidation wrought by criminal syndicates. I have no doubt that, today, we can work together to restore the rule of law. 

As we head into our different working groups, may we be guided with a sense of trust and collaboration, knowing that we are all working together towards a common goal. I have no doubt that the solutions we agree on today will break the back of these criminal syndicates once and for all. Now is the time to bring an end to the lawlessness, to protect our people and to deliver critical infrastructure to communities. It is time to build South Africa. Thank you. 

Enquiries
James de Villiers 
Spokesperson to the Minister 
Cell: 082 766 0276