‘Tender mafia’ strikes again on the North Coast

A notorious business forum, using mafia-style tactics to demand jobs in multimillion-rand construction projects, recently sent North Coast contractors packing.

Armed with guns, three men allegedly from the Delangokubona Business Forum, last week threatened to shoot contractors working on the extension of a residential estate if they did not leave the site.

The forum that is affiliated with the Federation for Economic Transformation is known for demanding work at big developments, halting projects until they get their way.

Recently, the ‘tender mafia’ brought construction to a standstill at a R2.4 billion project in Umhlanga, developed by millionaire Vivian Reddy.

He, like many other developers, was forced to get an interdict in order to continue with work.

Through the years, the forum has also been at the forefront of demanding tender projects from KwaDukuza municipality, Ethekwini Metro and SANRAL.

Two years ago, Delangokubona Business Forum and 10 other forums landed themselves in court after Tongaat Hulett Developments, Vumani Civils CC, WK Construction SA and Water Bles Investments were granted interim interdicts to stop them from threatening, intimidating or harassing their construction workers around the new Sibaya Precinct development at Umdloti.

The contractor, who asked not to be named, said he was speaking with members of the forum and declined to share more information until the problem was completely resolved. He said his contractors have since returned to work.

Royal Palms Property Holdings SOO Olivia Roels-Sak said the situation was under control and members of the forum had not returned after a meeting with the contractor.

“It seems that everyone is happy and we have been told that we are not the only developers who have been targeted.”

However Delangokubona Business Forum chairperson Thabane Mzulwini denied they were behind the incident, blaming other forums “who are tarnishing our name”.

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“I do not know what they are talking about and I have heard nothing about Palm Lakes Estate. There are other business forums and people who are using our name to bully developers. They must just stop.”

Ilembe Chamber of Commerce, Industry and Tourism CEO Cobus Oelofse said several developers in the Ilembe district have been targeted by business forums whose members were determined to extort jobs and money where they see an opportunity. He said there were three local forums in Ilembe, none of which were involved in the recent incident.

“This issue is not unique to Palm Lakes, it is not unique to the district or to privately owned businesses. From a chamber perspective, we are currently setting up structures to give communities a platform to formally engage with businesses. So far this has been done in Mandeni.

“We also encourage our members to lay charges because there is no place for this kind of extortion.”

Oelofse said the matter was discussed at the recent African Renaissance Conference attended by President Cyril Ramaphosa, KZN Premier Willies Mchunu, as well as the ANC interim structure led by Sihle Zikalala and Mike Mabuyakhulu.

“The issue of how community behaviour impacts on business confidence as well as business disruptions was discussed in order to find solutions to this problem from the highest level.”

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