Moneyweb recently reported that road construction by the South African National Road Agency (Sanral) has come to a virtual standstill countrywide due to violent demands by so-called business forums wanting to be given 30% of the project work.
According to Sanral this started in KwaZulu-Natal and has been spreading to Limpopo, North West and the Northern Cape.
It has also been happening on building sites in KwaZulu-Natal and, more recently, has been spreading to Gauteng, Moneyweb earlier reported.
Sanral engineering executive Louw Kannemeyer ascribed the conduct of the business forums, also referred to as the construction mafia, as the unintended consequence of procurement regulations introduced by National Treasury in the last year or two aimed at directing 30% of project value to small business subcontractors.
National Treasury has denied this.
Gerald Ndlovu, executive director of Black Suppliers (Pty) Ltd, contacted Moneyweb in response to the “construction mafia” articles.
He said it made his blood boil.
His business has for the past seven years been facilitating partnerships between established contractors and emerging contractors.
It has 829 emerging contractors on its database and has been matchmaking for the likes of Raubex, Calgro M3, Builders Warehouse and Vukile Property Fund.
As such, Ndlovu says he knows the dynamic on building sites and has been working with business forums on projects all over the country.