Combating racketeering and extortion: a critical analysis of the South African construction industry

Abstract

South Africa faces pervasive organised crime and criminality across multiple industries, with the construction industry recently emerging in the spotlight due to widespread extortion and racketeering activities. This issue has drawn national attention, including that of the President, Cyril Ramaphosa. The primary objective of this study was to critically analyse extortion and racketeering in the South African construction industry, focussing on the phenomenon commonly referred to as the construction mafia. To achieve this, the research undertook two approaches: A comparative analysis of South Africa's Prevention of Organised Crime Act (POCA) and the United States' Racketeering Influenced and Corrupt Organizations Act (RICO). This was done to assess the strengths and limitations of the South African legislative framework and explore possible areas for improvement. An examination of international best practices in addressing extortion and racketeering, identifying potential reforms and transferable strategies for implemented in South Africa. Findings show that adapting several international best practices could strengthen South Africa's response to organised crime in construction, while refinements to POCA could enhance its applicability and enforcement in the evolving criminal landscape. While this research provides a foundation for reforms, further studies are recommended to evaluate the practical implementation of possible reforms. Additionally, the effectiveness of existing and newly implemented safeguards against the construction mafia should be further researched.