How South Africa's construction mafia hijacked projects worth R63bn
This is according to the latest figures released by National Treasury, which highlight how members of the group operate under the guise of community forums and use intimidation, extortion, and violence to gain a foothold in government tenders and construction contracts.
Public Works and Infrastructure Minister, Dean Macpherson warns that such corruption is deeply entrenched in procurement systems and local government supply chains, but nevertheless reassures the public that law enforcement has stepped up to combat the scourge.
Since November 2024, 240 arrests have been made, and this is only the beginning. "We are turning the tide," he says.
Global anti-bribery benchmark
To this end, experts at WWISE (Worldwide Industrial and Systems Engineers) are calling for the widespread adoption of ISO 37001, a tool they believe could play a critical role in fortifying the sector from within.
“This may be South Africa’s last line of defence if we want to build infrastructure without bribery or intimidation,” says Muhammad Ali, managing director at WWISE.
“ISO 37001 helps organisations embed ethical conduct into every stage of a project, from procurement to execution, making it harder for criminal networks to manipulate the system.”
ISO 37001 is not just a policy; it’s a globally recognised best-practice framework developed by international experts to help organisations detect and prevent bribery.
As a standard, ISO 37001 establishes a uniform, auditable benchmark for anti-bribery management across industries, enabling companies and governments to foster transparency, demonstrate accountability, and safeguard their reputations.
“The standard requires top-level leadership commitment, risk assessments, strict financial controls, and confidential reporting systems,” explains Ali. “It doesn't just help companies avoid corruption, it actively reshapes their culture.”
Extortion inflates costs
Ali reiterates that corruption in the construction industry not only inflates costs but also endangers lives.
“Criminal infiltration has led to shutdowns, missed milestones, and Service Level Agreement (SLA) penalties,” he says. “We’ve seen cases where construction-mafia threats delayed entire projects, with local authorities often turning a blind eye, or worse, getting a cut.”
Van Zyl Krause, technical specialist at WWISE, warns that companies often feel forced to hire unqualified labour to avoid conflict: “These so-called ‘community contractors’ are often unregistered, uninsured, and unsafe.
“That puts the principal contractor and everyone on site at risk, while forcing them to spend even more on private security.”
Ali adds that ISO 37001 offers practical safeguards. ”It ensures that tender documents are traceable and auditable. It enforces ethical vetting of suppliers and enshrines whistleblower protection through encrypted systems,” he says.“You can’t bribe your way into a tender process governed by ISO 37001.”
ISO adoption lags
Yet adoption of the standard remains frustratingly limited. “Most construction companies in South Africa haven’t implemented it,” Krause says. “The only time we see ISO 37001 considered is when international investors require it.”
Public-sector resistance is particularly troubling, adds Ali. “The fear is that ISO 37001 will expose misconduct. But that’s the point. The excuses, ‘too complex’, ‘too bureaucratic’, don’t hold water. This standard can be adapted to any organisation.”
He points to a compelling case in Iraq, where a security company under attack from corrupt government officials used ISO 37001 to clear its name. “The audits exposed the wrongdoing, and the officials were jailed. That’s the power of a strong, standardised anti-bribery framework.”
For smaller contractors, who are often the most vulnerable to extortion, ISO 37001 can provide an essential shield if supported by law enforcement. “The problem may not be with the company,” Ali warns, “but when it needs support, the authorities often fall short.”
Standards drive reform
WWISE urges companies to begin their journey with a Gap Assessment to identify risk areas, followed by a structured implementation process that includes internal training, documentation development, internal audits, and certification. “This isn’t a checkbox exercise,” says Ali. “It’s a roadmap to ethical business.”
With billions at stake and a growing list of sabotaged projects, it’s clear that arrests alone won’t be enough.
As Minister Macpherson rallies law enforcement, experts say South Africa must also rebuild its infrastructure sector from the inside out, with internationally recognised standards, such as ISO 37001, leading the way.
“If we don’t change how we build,” says Ali, “we’ll keep rebuilding what criminals destroy.”