Why extortion and 'protection' racketeering are surging in South Africa | DW News

Key Concepts:

• Extortion and protection racketeering
• Organized crime
• Construction industry targeting
• "Security money" demands
• Extortion Task Force
• Community involvement/fear
• Water Mafia
• CBD Nightlife Extortion
• Economic costs of extortion
• State's struggle to combat extortion
• Entrenchment and normalization of extortion
• Infiltration of law enforcement

Extortion Crisis in South Africa

• Global Ranking: South Africa ranks sixth worst globally for extortion and protection racketeering, according to the Global Organized Crime Index.
• Impact on Businesses: South African businesses face a growing threat from organized gangs demanding money, often disguised as "protection" fees.
• Construction Industry: The construction sector is particularly vulnerable, with gangs demanding up to 30% of project costs.
• Example: Drift Sands, Cape Town: A construction site in Drift Sands is guarded by armed security after gang threats of violence if they weren't given money and jobs.
• Contractor Testimony: Contractor Paul Malloy reports being stopped from hiring local employees due to safety concerns.

Government Response and Challenges

• Government Projects Affected: At least half a dozen government construction sites in Cape Town have been threatened.
• Increased Security Costs: One site alone requires €82,000 per month for security, impacting project budgets.
• Project Delays and Cancellations: Examples include a vacant site for 19 months and a school upgrade delayed due to extortion demands.
• Spike in Reported Cases: Reported extortion cases have more than doubled in the last 6 years.
• Extortion Task Force: South African police have established a dedicated task force to make arrests and target organizers.
• Community Reluctance: Local communities are often unwilling to cooperate with police due to fear and the gangs' provision of resources.

Janine Arasmus (Corruption Watch) Interview

• Widespread Crisis: Extortion is getting much worse across South Africa.
• Hotspots: The main hotspots for extortion are the Western Cape, Gauteng, KwaZulu-Natal, and the Eastern Cape provinces.
• Sector Expansion: Extortion has spread from the construction industry (originating in KwaZulu-Natal around 2016) to the taxi and water industries.
• Water Mafia: In Gauteng, a "water mafia" exploits water supply issues by selling water to communities, even when municipalities have already paid for it.
• CBD Nightlife Extortion: In Cape Town, gangs target bars and clubs in the city center, demanding protection money.
• Economic Costs: The economic costs are difficult to quantify but run into millions of rands, including intangible costs like delayed hospital construction.

Reasons for State's Struggle

• Entrenchment: The state allowed extortion to become entrenched and normalized, making it harder to eradicate.
• Infiltration: Law enforcement agencies have been infiltrated by criminals who seek impunity and hinder investigations.
• Community Normalization: Communities often choose to pay extortion money rather than risk harm.
• Corruption: Corruption within the system is a significant factor.

Notable Quotes:

• Contractor Paul Malloy: "We were stopped yesterday... It feels unsafe."
• Janine Arasmus: "The authorities have not acted quickly enough and now it's entrenched. It's systemic."

Synthesis/Conclusion:

Extortion is a deeply rooted and expanding problem in South Africa, significantly impacting businesses, communities, and the economy. The state's response has been hampered by entrenchment, corruption, and infiltration of law enforcement. Overcoming this crisis requires a multi-faceted approach, including stronger law enforcement, community engagement, and addressing the underlying factors that allow extortion to thrive.