1 week Ago By Bongani Mdakane
A disturbing trend is rearing its ugly head within government as tenderpreneurs and businesses heavily reliant on state contracts find themselves increasingly at the receiving end of extortion schemes by officials, politicians, and even political organisations.This underhanded practice, masquerading as “protection fees”, is crippling service delivery, derailing critical projects, and ultimately rob the nation of the fruits of its hard-wonfreedom. (adsbygoogle = window.
adsbygoogle || []).push({}); While the menacing shadow of construction mafias has been a well-documented phenomenon, the current situation signifies a broader, more pervasive problem.Government officials at national, provincial and local levels, alongside politicians across the political spectrum, are employing dubious mechanisms to extort funds fromcontractors.
The extortion is framed as essential financial support for political parties, placing companies in a precarious position: comply and pay a percentage of their earnings from tenders, or face the threat of blacklisting and ruin.This culture of extortion is wreaking havoc on the execution of projects designed to improve the lives of South Africans.Funds earmarked for vital infrastructure, essential services and economic development are diverted into the pockets of corrupt individuals, leaving communities underserved and the nation’s progress stunted.
The formation of a government of national unity, intended to foster stability and good governance, ironically seems to have exacerbated the situation, creating a sense of desperation among those accustomed to pilfering state resources.The tightening of access to the “cookie jar” appears to have triggered a more aggressive and brazen approach to illicit wealth accumulation.The recent case involving Free State businessman Robert Madie offers a stark illustration of this disturbing trend.
(adsbygoogle = window.adsbygoogle || []).push({});Madie claims he and his associate were instructed to pay R3 million to the ANC in the Fezile Dabi region or face a threat of termination of a R58 million water reticulation contract with the Mafube local municipality.
Madie admitted to paying R400 000 into the account of another businessman, Mdayedwa Mthombeni, allegedly at the behest of ANC regional leaders. The incident, however, is likely just the tip of the iceberg.Similar allegations surfaced last year when Patrick Phuthi of New Beginnings Construction accused Free State Premier Maqueen Letsoha-Mathae and her estranged husband, Lawrence Mathae, the speaker of the City of Mangaung, of similar kickbacks to keep his road maintenance contract intact.
These instances highlight the lengths to which individuals are willing to go to maintain their political influence and access to resources.The pressure to deliver funds to political parties, coupled with the fear of losing lucrative positions and associated benefits, creates a breeding ground for corruption and unethical behaviour.The rot extends beyond elected officials, permeating the very structures designed to safeguard public resources.
Individuals working in supply chain management and procurement are often complicit in these schemes, manipulating processes to favour benefactors in exchange for kickbacks.The consequences are dire. Many companies, unable to sustain the constant drain of “protection fees”, have been forced to close shop, leading to job losses and economic stagnation.
Contractors often find themselves with insufficient funds to complete projects, resulting in shoddy workmanship, delays, and, ultimately, abandoned work. The state organs are bled dry, and service delivery grinds to a halt.This problem is further compounded by the inherent conflicts of interest that plague the system.
The very individuals in government tasked with overseeing projects and ensuring accountability often collude with political leaders to influence tenders and facilitate illicit payments.This creates a closed loop of corruption, where those who should be policing the system are actively profiting from its flaws.The government must implement stringent measures to hold corrupt individuals accountable for their actions.
We cannot continue to lament the lack of service delivery while allowing corrupt individuals to enrich themselves at the nation’s expense. The current culture of impunity must end.• Mdakane is the founder of Mdakes Media GroupVisit SW’s YouTube Channel for our video content.
