The BEE Chamber welcomes the decisive action taken by the Department of Public Works and Infrastructure (DPWI) and the South African Police Service (SAPs), which has led to 240 arrests and the reporting of 745 extortion cases since November 2024, as announced by Minister Dean Macpherson at the Built Environment Indaba on April 10.
“This significant progress in combating the so-called construction mafia, which has long exploited loopholes in procurement policies, demonstrates a robust commitment to restoring integrity to South Africa’s construction sector and Broad-based Black Economic Empowerment (B-BBEE) Legislation. The BEE Chamber stands firmly behind these efforts, recognising that such actions are crucial to ensuring that B-BBEE continues to serve its intended purpose of uplifting Black people and communities,” says Yuneal Padayachy, Chief Support Officer, The BEE Chamber.
“The BEE Chamber has been a steadfast advocate for B-BBEE since its inception, working to facilitate meaningful economic inclusion for Black South Africans through compliance, skills development and enterprise growth. While the recent revelations about the misuse of the 30% local procurement rule, intended to empower designated groups such as black-owned businesses, youth, women, and people with disabilities, are concerning, they do not diminish the core value of B-BBEE.”
“Instead, they highlight the need for stronger oversight and regulation to protect legitimate businesses from criminal exploitation. The BEE Chamber commends the DPWI, Saps, National Treasury and the Construction Industry Development Board for their collaborative approach in addressing these challenges, as well as the Black Business Council for the Built Environment (BBCBE) for advocating for reforms to ensure genuine inclusion.”
He said B-BBEE remains a cornerstone of South Africa’s transformation agenda, having enabled countless Black-Owned enterprises to thrive and contribute to the economy. The policy has created opportunities for skills development, job creation, and sustainable growth in communities previously excluded from economic participation.
“This exploitation not only undermines the goals of B-BBEE but also harms the very businesses it aims to support, as Minister Macpherson noted, with legitimate Black-Owned enterprises being forcibly displaced from construction sites.”
The BEE Chamber supports the DPWI’s proposed national facilitation framework to standardise social facilitation and community engagement in construction projects. By institutionalising a transparent and uniform approach, this framework can help ensure that B-BBEE initiatives benefit those they are intended to serve while preventing criminal interference.
“The reported 80% decline in lost construction hours by companies like WBHO is a testament to the effectiveness of these interventions, reinforcing the viability of B-BBEE when implemented with integrity.”
