Human Settlements
With regard to extortion and threats made to contractors and government officials relating to housing development in the province as was reporting in the Cape Times on 12 January 2021 (“Extortion racket, attacks derail housing delivery to beneficiaries”) and on 15 January 2021 (“‘Business forums’ fingered in alleged extortion of contractors”):
- (a) What steps is his Department taking to address the extortion of contractors and the safety of workers, (b) what are the details, including time frames and objectives, of these steps and (c)(i) how many contracts does his Department have with the City of Cape Town Law Enforcement (CCT Law Enforcement), (ii) what is the status of each, (iii) how does the CCT Law Enforcement secure these sites and (vi) what steps have they taken to stop the extortion and threats against construction contractors and other workers;
- how many reports of extortion took place in (a) 2014, (b) 2015, (c) 2016, (d) 2017, (e) 2018, (f) 2019 and (g) 2020;
- whether there has been a decrease in the number of reported cases of extortion in response to the government’s actions; if not, why not; if so, what factors have led to the improvement;
- (a) how many housing opportunities have been delayed by these criminal activities and (b) how many contracts have had to be terminated by his Department as a result of extortion delaying projects?
(1);(a);(b) I have requested my officials and contractors to be vigilant and to promptly report all threats and or intimidation to the law enforcement agencies.
c(i) My department currently has no contracts in place with the City of Cape Town Law Enforcement.
(ii);(iii);(iv) My department therefore has no status to report on.
(2);(a-e) No reports of extortion took place between 2014 – 2018.
(2);(f);(g) Reports of extortion however took place between 2019 -2020.
Details are as follows:
- Forest Village: Many of the individual construction contracts have been stopped
- Forest Village: Bulks Phase 2
- Blue Downs Military Veterans
- Malibu- Conifers: Gau Flora, Nozomi and Nokhanya
- Blue Downs Infills
- Our Pride Phase 2
- Highbury: Lebo Thebo and Valostar
3. My department’s Stakeholder and Communications Directorate have been very proactive in engaging with the entities interfering with construction contracts. Through this mechanism there has seemingly been a reduction in interference.
(4);(a) Details are as follows of the housing opportunities that have been delayed:
Forest Village ASLA Contract - portion 9, a contractor 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.
The following Emerging Contractors regularly reported interference from the business forums:
• PHP Building Supplies
• Dezzo Development
• A&P Civil & Trading
• Lawula Contract
(b) No contracts have stopped permanently. Resumption of works is at varying stages. This has had an impact on construction programmes and ultimately the delivery of the houses to the beneficiaries who have been waiting to be assisted.
