Extortion Crisis in South Africa: A Threat to Business Stability

18 Sep 2024

Extortion, often disguised as "protection money," has become a significant issue in South Africa, disrupting the economy and costing lives. The practice, which started in remote areas, has now entrenched itself in urban settings, creating a complex and dangerous landscape that is proving challenging to dismantle.

The Rise of the 'Construction Mafia’

At the forefront of this extortion crisis is what many have come to know as the "construction mafia." These are well-organised criminal groups that demand payment from businesses, particularly in the construction sector, under the guise of providing protection. Failure to pay can result in severe consequences, including violence, looting, and even murder.

According to Martin Ewi of the Institute for Security Studies, these groups have created a "monster" that permeates society deeply, making the problem incredibly difficult to address. The issue has escalated to such a degree that South Africa now ranks alarmingly high on the Africa Organised Crime Index, scoring 8.0 out of 10 for extortion and protection racketeering.

State-Embedded Actors and Organised Crime

A troubling aspect of this crisis is the involvement of state-embedded actors—individuals within government structures who facilitate these criminal groups. 

Ewi points out that no criminal syndicate in South Africa operates without some level of state involvement, often reaching high-ranking officials, including provincial heads and ministers. This blend of legal and illegal power makes these syndicates particularly formidable and difficult to combat.

These organised crime networks do not operate in isolation. They are often intertwined with international criminal groups, making them even more dangerous as they can easily cross borders and evade local law enforcement efforts. The collaboration between local and foreign actors only adds to the complexity of dismantling these extortion networks.

Fear and a Lack of Enforcement Fuel the Problem

The grip of fear and intimidation these groups hold over communities is a major factor in their persistence. Businesses and citizens alike are often too afraid to report extortion demands, and with law enforcement agencies sometimes complicit in the crime, the cycle of violence and exploitation continues unabated.

A severe lack of effective law enforcement further exacerbates the issue. Ewi highlights that some state entities, including the police, are involved in extortion and organised crime, making it nearly impossible for ordinary citizens to seek protection from the very authorities meant to uphold the law.

The police are aware of the problem, with National Police Commissioner Gen. Fannie Masemola confirming they are currently investigating 38 cases of extortion. Despite law enforcement efforts and task teams being established to focus on dismantling these extortion networks, the challenge remains widespread, and business owners must take steps to protect themselves.

A Crisis Years in the Making

Extortion in South Africa is not a new phenomenon. It has been growing for years, but it is only now, as it reaches unacceptable levels, that the scale of the problem is becoming fully apparent. The extent to which these criminal groups have embedded themselves into the fabric of society suggests that resolving the issue will require coordinated efforts across all levels of government and civil society.

The Path Forward

Addressing this deeply rooted crisis will not be easy. It will require not only dismantling the criminal networks but also rooting out corruption within the state structures that enable these syndicates to thrive. Until there is a concerted effort to tackle both the criminals and the complicit state actors, extortion will continue to be a pervasive and damaging force in South Africa's social and economic landscape.

The full scope of the problem calls for more than just law enforcement action; it requires a fundamental shift in how South Africa deals with corruption, crime, and governance. Only by addressing the root causes can the country hope to turn the tide against this growing menace.

Whilst the authorities struggle to bring this challenge under control, it falls to business owners to mitigate their risks. The following steps can help businesses navigate the complex and dangerous environment posed by extortion in South Africa.

1.Strengthen Security Measures

•Conduct Security Audits: Regularly review your security protocols, including access control, surveillance systems, and alarm responses, to ensure they are up-to-date and robust.

•Engage Reputable Security Services: Hire credible, compliant security firms that are experienced in dealing with extortion threats and have strong ties with local law enforcement. Visit www.sasecurity.co.za to learn more about security industry compliance. 

2.Develop Crisis Management Plans

•Create Response Protocols: Have a clear plan in place for responding to threats, including how to handle extortion demands, who to contact, and how to protect staff.

•Designate a Crisis Team: Form a crisis management team responsible for dealing with extortion threats, including legal advisors, security consultants, and senior management.

3.Report Incidents Promptly

•Engage with Law Enforcement: Even when there is fear of collusion, it’s crucial to report extortion attempts. This documentation can help build broader cases against extortion networks.

•Leverage Anonymous Reporting Channels: Use crime reporting hotlines or platforms that allow for anonymous reporting if you fear retaliation.

4.Build Community Relations

•Engage with Local Communities: Establish positive relationships with local community leaders, who can provide insights into local extortion dynamics and potentially offer protection through community-based support.

•Support Local Initiatives: Show visible support for local anti-crime initiatives, which can build goodwill and act as a deterrent against targeting.

5.Seek Legal Advice and Representation

•Consult Legal Experts: Work with legal advisors familiar with extortion and organized crime to understand your rights and how to legally navigate extortion threats.

•Explore Protective Orders: In severe cases, legal representation can help secure protective orders against known extortion groups.

6.Collaborate with Industry Groups

•Join Business Associations: Collaborate with industry groups and chambers of commerce, which can provide collective support and amplify your voice when dealing with extortion.

•Participate in Awareness Campaigns: Contribute to and engage in awareness campaigns that aim to educate businesses about extortion and available resources.

7.Document Everything

•Keep Detailed Records: Document all threats, demands, and incidents meticulously. This evidence can be crucial for law enforcement and legal actions.

•Use Secure Channels for Reporting: Share documentation securely to prevent leaks that could put your business at further risk.

Staying vigilant, prepared, and well-connected with legal and security advisors is essential for maintaining business operations in these challenging conditions.

Sources: Sowetan Live, Transnational organised crime in Africa, Businesstech, Corruption Watch. MoneyWeb.co.za