Draft regulations address construction mafia

Regulations to the Public Procurement Act that will address extortion and other criminal acts committed by the so-called construction mafia are being drafted.

- Roy Cokayne

The National Treasury has confirmed that it is responsible for drafting the regulations. It says planning for the provision of input began in August through a broad consultative process, with the drafting process envisaged to be completed this year.

It said the Act does not provide for the construction mafia "per se" but for the criminalisation of any conspiracy to commit extortion as one of the offences provided for in Section 60 of the Act, which was signed into law on 18 July 2024.

"In terms of Section 69, the Act will take effect on a date to be determined by the President by proclamation in the Government Gazette [but] different dates may be determined for different procuring institutions," it said.

The National Treasury's confirmation regarding the drafting of the regulations follows the parliamentary portfolio committee on trade, industry and competition late last year welcoming "the move to criminalise the demands of the construction mafia for a 30% share of the contract value of government projects by people without contributing any form of work".