Human Settlements

(1) Whether there are any government projects that have been stopped or delayed due to demands for extortion money in the province in the period 2014 to 2020; if so, what are the relevant details;

Yes.  Details are as follows;Blue Downs: Forest Village: Many of the individual construction contracts have been stopped but not permanently

• Blue Downs: Forest Village: Implementation of Bulk services infrastructure Phase 2
• Blue Downs Military Veterans project
• Blue Downs: Malibu- Conifers: Gau Flora, Nozomi and Nokhanya
• Blue Downs Infill sites
• Blue Downs: Our Pride Phase 2
• Kuils River: Highbury: Lebo Thebo and Valostar

Our understanding of the word extortion not only means threats to persons and their property, but also threats and intimidation as experienced from the Business Forums operating in the Western Cape. Extortion money is demanded by the Business Forums from the emerging contractors appointed on some of our projects.

This is either in the form of payments, or the Business Forums act as "gatekeepers" and instruct the emerging contractors who to employ, which subcontractors to use, where to source materials, etc. They effectively take control of the project and cripple the contractor's ability to operate effectively as an enterprise. As such these emerging contractors fail to meet their targets and have no working capital.   My department will eventually be forced to terminate their contracts.   A contractor even terminated their contract on their own accord.

(2) Whether there are any official from his Department or municipal officials who have been robbed while implementing projects in the province in the period 2014 to 2020; if so, what are the relevant details;

 Yes. Details are as follows;

• A Stakeholder Relations employee had his GG car set on fire in Delft.
• A Housing Development Agency (HDA) employee was threatened regularly
• Another HDA official was attacked whilst with family over weekend 

(3) What are the details of measures that his Department has put in place to prevent delays in government projects due to demands for extortion money in the province, particularly on the Cape Flats;

• Where feasible, table discussions with the alleged gang members are held but are seldom constructive meetings
• As the Department, we work closely with sub-council chairperson, - managers and councillors
• We apply for court interdicts as in the case of Delft, Forest Village, Military Veterans projects
• Extensive contracts with CoCT Law Enforcement
• Regular contact with South African Police Service and the Public Order Policing Service
• Private security deployment to various projects

(4) Whether there have been any instances where gangs demanded extortion money from contractors in his Department in the period 2014 to 2020; if so, (a) what are the relevant details and (b) how was the matter addressed;

(a) In Forest Village a contractor part of portion 9 suffered physical harm and the business suffered financially. When demands were not met, the contractor's employees were violently attacked sustaining bodily fractures, and they were locked up in a site container. Further extensive damage was done to a motor vehicle.

In addition, four Emerging Contractors regularly reported interference from the business forum

(b) Successful Court Interdict against the respective Business Forums.
(5) Whether there are any contractors in his Department who awarded security contracts for housing projects to gangs in the province in the period 2014 to 2020; if so, what are the relevant details;

None

(6) Whether his Department awarded any contracts to (a) gangsters, (b) families of gangsters or (c) wives or girlfriends of gangsters in the period 2014 to 2020; if so, (i) what are the relevant details and (ii) what were the value of the contracts?

(6) (a) None

      (b) None

      (c) Yes

     (c) (i)  It was reported through the media in March 2019 that a tender was awarded on 21 January 2019 to Glomix Housing Brokers, for the Valhalla Park housing project Phase 3A construction of 30 housing units, registered as a CIDB GB4 graded contractor.

         (ii)  R 3 998 496.90