Pensioner forced to live in hall after extortionists stall housing project

Pensioner Louisa Tsolo's persistent cough echoed through the Luyolo Recreation Hall in Gugulethu, Cape Town.

Fire-fighters had just extinguished a fire at the far end of the hall. Tsolo, 60, and 13 other families, beneficiaries of a stalled housing project next door, have been living in the hall thanks to threats by extortionists.  

Electricity infrastructure has already been installed and streets constructed on the site, but work was abandoned when extortionists demanded payment from the contractors. Tsolo said the contractors left after a shooting incident.

“We do not receive any services. Our shacks stood on this field and we moved into this hall when construction started. We were supposed to move into the homes once they were completed. But someone was shot at the site and the construction stopped.”

Tsolo said the project was meant for about 100 families. “Most people are unemployed. We live with small children. The city wants to renovate the hall, but we have nowhere to go. We don’t have privacy,” she said.

Provincial infrastructure MEC Tertius Simmers’ spokesperson Ntobeko Mbingeleli said the project had been delayed by 19 months. Mbingeleli added that extortionists had brought key infrastructure projects, worth about R400m, to a grinding halt in the province.    

These include housing initiatives set to deliver nearly 1,300 homes and a primary school. Mbingeleli said there had been “several incidents of threats, violence and extortion that were reported at projects across the [Cape] metropole”.

Major projects affected by extortion include the airport infills project — featuring the area earmarked for Tsolo and other housing beneficiaries — which is being developed on seven sites. They include Luyolo and Gxagxa, in Gugulethu, Tambo Village, Manenberg, Lusaka infill and New Rest. The department reported five extortion cases linked to the sites in 2022. 

“These sites are earmarked to produce 729 housing opportunities. The Gugulethu infills project is planned to yield 571 housing opportunities,” Mbingeleli said.

“There are some small to medium-scale projects that have been affected in several areas across metropole.”

Mbingeleli said the airport infills project was worth R248m and the Gugulethu infills project R150m.

“The reported incidents occurred through threats, intimidation, and violence by shooting of construction workers and security personnel,” he said.

“Some of the threats occurred in the form of destruction of property and arson (through the burning of site storage and security structures). Project stoppages hinder the provision of housing for vulnerable groups, including the elderly and people with disabilities. Delays force the department to divert funds towards security instead of direct services for beneficiaries.” 

Mbingeleli said the extra costs involved “enhanced security measures, including specialised tactical support”. He said the department reported incidents to the police.

“The department continuously engages local communities, seeking their support, and pleads with them to report the perpetrators who block the progress to the local police stations,” he said. 

City of Cape Town projects have not been spared. City spokesperson Luthando Tyhalibongo said that risks were being taken into account built into the management of contracts.

Airports Company South Africa (ACSA) housing construction in Delft, he said, had been “disrupted with reported cases of attempted murder, murder and arson”. Tyhalibongo said a Delft select roadworks project was also disrupted by extortionists “with a reported case of murder”.

Work on a MyCiTi bus service construction site, along Spine Road, was ongoing “despite extortion-related delays”.

The Beacon Valley housing project in Mitchells Plain was disrupted due to intimidation and arson while work related to a high-voltage cable in Eastridge had resumed after disruptions.

“Roadworks in Bishop Lavis were disrupted with reported cases of intimidation,” he said.

“Work is proceeding in Edward Street, Ottery, after disruptions. The Uitsig sewer pipe replacement project is on hold until further notice following extortion threats and safety concerns.” 

Tyhalibongo said organised crime and gangsterism in Cape Town had become a real threat to development and delivery over the past few years. 

“It is a phenomenon that is occurring in all metros in South Africa, impacting government projects and private large and small businesses like spaza shops, as well as vulnerable households where criminals are asking even for protection fees in return for not harming a particular household,” he said. 

“This is why this crime should continue to be elevated at the highest national policing forums and be a priority for those in charge of national policing, investigation and prosecution of crimes. 

“The degree of sophistication of these criminal networks makes it difficult even for the law enforcement agencies in the country to tackle. It is also important to note that we must handle this matter with great caution as these criminals directly threaten the lives of officials, their families and contractors. But we need to be transparent and open about the situation on the ground that is affecting residents, tourists and the economy.”

Meanwhile, a family is mourning the death of 64-year-old Nophumelele Makeleni, who sold cow head meat to support them. She was shot dead two weeks ago in Kraaifontein.

Simphiwe Makeleni, her brother-in-law, said: “We believe she was being extorted because her death does not make sense. She was accosted by youngsters who shot and killed her. She used the business to compliment her state grant. We suspect the assailants demanded the so-called protection fee, and she refused. We are shocked by what happened.”

Nophumelele was to be buried at Mqanduli in the Eastern Cape on Sunday.

“We are told that every small business is extorted in this area. What is sad is that she supported her four children, grandchildren and my brother. Our minds are fixed on giving her a decent burial. But whoever did this has deeply hurt us,” said Makeleni.