Balance transformation to take out crime in construction sector: Zikalala

Criminal elements who disrupt construction sites must be dealt with by law enforcement agencies, but forums comprising entrepreneurs who want to participate in construction must be supported. 

This is the view of public works and infrastructure minister Sihle Zikalala who was in discussion with JJ Tabane on eNCA on Tuesday about the construction mafia and solutions for the future. 

Groups around the country have disrupted construction at sites, demanding a share of profits without doing any work. 

When asked if government was successful in dealing with the construction mafia, Zikalala said it must address the causes, which include crime and economic transformation. 

Zikalala said white collar crime is sophisticated and blue collar crime includes violence. 

“These two impact on transformation and economic growth which should be led through infrastructure. What we call construction mafia represents what we call blue collar crime. What we experienced post-2010 represents what is called white collar crime.” 

Zikalala's referral to white collar crime was in relation to the big construction companies referred to by the Competition Commission for years of collusion over hundreds of contracts, including those to build the 2010 Soccer World Cup stadiums. 

He said white and blue collar crimes happen parallel to each other.

“It is just that one is low lying and the other is visible,” he said.

 Zikalala said the challenge was how to address the issue of empowerment in a fair and genuine way.

One solution was for government to engage with industry with a view to create some kind of a social compact.

“Crime must be dealt with as crime. Transformation must be dealt with as transformation. Therefore those who disrupt sites, those who extort, must be dealt with correctly through law enforcement agencies. Those who commit white collar crimes must also be dealt with.”

Zikalala said what has given rise to the phenomenon of construction mafia was failure to provide opportunities to small players on the basis of clear processes.

“If we as government say if you build a project for more than R30m, you must subcontract 30% of that work to small companies.

“What has been a habit of big companies is they form subsidiaries and subcontract to them. How do we correct that? Do we allow people to go to disrupt sites? No, that would be lawlessness. We cannot allow lawlessness.

“We need to apply firm interventions on both, deal with crime as crime, but be firm in transforming the economy.”

Zikalala said government must ensure it builds the capacity of small companies.

“Those who are criminals do not want that. They do not want to work They want to be paid and leave. We must separate those who want to be empowered and those who want 30% of the profit without putting in work.”

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