Built Environment Professional - Sibani Ntuli says the government; Industry bodies; and the private sector all have a role to play in dismantling the economic carnage that is being wreaked by the construction mafia.
As the most unequal country in the world , the government of the day has a pressing mandate to not only change and improve the social and economic prospects of its’ citizens but to also confront the widening gap between “the haves and have nots” that is largely attributable to the history of our country. Over the past 27 years efforts aligned to this mandate have been characterized by various policies (RDP, GEAR, etc.) and programs (Operation Phakisa, etc.) that sought to address the triple challenge of poverty, unemployment and inequality.
Infrastructure development (especially for a developing state) has in the past proven to be a reliable conduit for short-term and long-term impact in as a far as job creation and economic growth are concerned. This is partly because construction as an industry has low barriers to entry, unlike other industries (i.e., mining, banking etc.), which then provides a perfect platform to drive inclusivity and to achieve wider economic impact. While this is great, it also brings about and perpetuates a narrative that says construction is a lucrative get rich quick type of business that is a free for all and that whoever has the means (whether economic (capital); social (skills and/or connections); or physical (force) etc.) can participate.
The construction mafia is then a participation by physical force phenomenon that has its presence in other industries as well, and most prominently in the transportation industry. The history of the construction mafia is well documented, and the government appears to be sitting on the bench and has relegated the burden of managing this issue to the industry bodies and the affected companies. Although the President did announce that a special police unit will be established to deal with the construction mafia, I am highly skeptical about the prospect of that unit seeing the light of day.
The government; Industry bodies; and the private sector all have a role to play in dismantling the economic carnage that is being wreaked by the construction mafia.
Government Intervention
I believe that it is the government’s responsibility (in partnership with private sector) to create and sustain a conducive business environment through progressive and responsive policy making framework. Part of the construction mafia challenge is government’s failure to regulate the industry effectively. The government’s failure to create tangible and sustainable opportunities for upcoming and previously disadvantaged businesses; the failure to effectively fight this gross criminality; and the bystander stance has created a vacuum that is leaving the industry vulnerable to these attacks. Government needs to act and act now because this not only affects private sector but also government’s own infrastructure programme.
The Role of Industry Bodies
There are various statutory bodies in the industry that represent various segments, groups, professions, and various interests within the industry. I believe these bodies can play a much greater role in ensuring proper and sustainable participation. Institutions such as the CIDB need to be more active in ensuring that there is no gatekeeping and anti-competitive behavior in the industry with the support of other bodies like the CBE. Various mechanisms to drive this initiative can be implemented such as an introduction of a demerit system that would downgrade and fine (i.e., From grade 5 to 4) companies that are found to be anti-competitive (whether it’s the “construction mafia” or companies that collude etc.) for a set period..
Private Sector
The private sector also has an important role in the fight against “construction mafias” and as difficult as it may be, there must be some consistencies in the strategy of execution. Some companies are backed into a corner and end up paying protection fees and this weakens the bargaining strength of all players. I think private sector must come together, perhaps through industry bodies, and form an industry wide strategy. This will assist in fostering unity of purpose to solve these challenges. The private sector needs to also be honest in dealing with the issue of gatekeeping where only select companies or players can participate in certain segments of the industry while others cannot. Programmes must be in place to deal with issues of skill and competency in order to promote industry wide growth. This is imperative for this industry to remain viable.
There are other solutions, perhaps based on more scientific data while my suggestions are based on my observations of the industry. At the end of the day, if we are all going to work on solutions together, we will find the best way forward. We must also be mindful of the fact that the construction mafia issue is not just an issue of criminality, but it is also closely linked to government’s failure to deliver on the promise of social justice and broad-based economic empowerment. Part and parcel of our solutions should seek to incorporate these factors into our strategy and implementation. Sibani Ntuli is a Professional Quantity Surveyor with over 8 years experience in the built environment in both the public and private sector. He has worked for various entities which has given him technical and management experience and sharpened him as a key member in any infrastructure unit. Sibani is currently a Senior Advisor at Eskom ‘s Group Capital Division working on the Battery Energy Storage Package.
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