Mafia-style forum halts billion rand KZN development

Published Nov 22, 2016

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Durban - The business forum that has been using violence and intimidation to demand a slice of major construction projects in Durban has brought the Pebble Beach development near Sibaya to a halt.

Construction managers alleged that members of the uMlazi-based Delangokubona Business Forum - some of them armed - stormed the construction site on the KwaZulu-Natal North Coast last week, demanding a piece of the R1.5 billion project.

The forum which has used similar tactics on other construction and municipal projects in Durban, allegedly chased workers off site while they met management.

Although the police were called in and the forum members later left, they vowed to prevent work from continuing until their members were given sub-contracts in the development.

The Pebble Beach project is part of the Sibaya Coastal Precinct development that, according to the provincial government, was expected to inject an estimated R50bn into the local economy.

Construction at the development has been halted since Wednesday, with workers being advised not to go to site for their own safety.

“It is very scary,” a construction manager told the Daily News.

The manager, speaking on condition of anonymity, said the forum arrived on Wednesday in five vehicles and stormed the offices.

“They came with guns and said that if they were not given any work there was going to be trouble. We don’t know what is going to happen and when we will be able to get back to work,” he said on Monday.

The developer of the site, Tongaat Hulett, has applied for a court interdict to prevent the forum from coming on to their site and stopping the work.

Tongaat Hulett Developments managing director Michael Deighton said they were working with various parties to resolve the matter.

“Tongaat Hulett Developments in partnership with the eThekwini Municipality and independent developers within the Sibaya Coastal Precinct are following all necessary steps to ensure the safety and security of all employees, contractors and visitors on and around the site at this time.

“The criminal activities that have arisen on site, resulting in a halt to infrastructure and building work, are being dealt with as a priority. The site will remain closed until such time as the safety and security of all parties is guaranteed,” Deighton said.

“Work stoppage has affected three current contracts on site: namely bulk infrastructure, internal infrastructure and building works. A court interdict has been applied for in order to halt illegal site entry and work stoppage.

“The company continues to enable economic transformation through its engagement with all stakeholders including local communities, government at all levels and local businesses,” he said.

Several other construction companies in Durban have also taken court interdicts to prevent forum members from threatening them on site.

This comes after forum members launched a wave of mafia-style tactics on the private construction industry, demanding they be included in projects.

The forum had also stormed several municipal depots, using violence and intimidation to prevent municipal workers from rolling out services unless they were given city contracts.

The latest incident by the forum has been condemned by KZN Premier Willies Mchunu.

Mchunu, who is in Shanghai, China, on official government business, told the Daily News that lawlessness must not be allowed to flourish.

He said that earlier this year the eThekwini Municipality tried to put forum members through a skills development programme, which they rejected.

“We are disappointed that there are ongoing reports of disruption of businesses by the members of the forum. We want to caution those who want to hold the province at ransom that we will crush them.

“Our message as government is that a nation without righteousness cannot survive and freedom without the rule of law cannot be enjoyed by all,” Mchunu said.

“We have a duty as the people of KwaZulu-Natal to stand up and condemn any lawlessness that creates social instability. We must refuse to be outnumbered by unruly elements,” Mchunu said.

Nathi “Bhamuza” Mnyandu, chairman of the forum, denied that any violence or intimidation was used to halt the Pebble Beach development.

“Yes we did go there and we did stop them from working. All we are asking is for these construction companies to comply with black economic empowerment.

“This entire project is worth R50bn. That is a lot of money and they have not one township construction company there. We cannot allow that. They must comply, give us the work and construction will go on,” he said.

The Pebble Beach development is part of Tongaat Hulett’s grand plan to develop 1 000 hectares of prime beach, forest and river at the Sibaya Coast precinct into exclusive flats, shopping centres and living areas.

It was launched earlier this month to much fanfare by Tongaat Hulett and the provincial government, which hailed the development as a catalyst in unlocking regional development, infrastructure and job creation, creating a “Durban aerotropolis”.

Four developments known as Signature Sibaya, Ocean Dune, Coral Point and Pebble Beach were recently launched and have achieved to date a combined R2.3bn in sales.

Situated between the Ohlanga and eMdloti river estuaries and stretching from the N2 highway to the Indian Ocean, the development was anticipated to be a 15- to 20-year project that would create 30 000 permanent jobs upon completion and 270 000 temporary construction jobs during the building phase, developers said.

Daily News

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