Police in Gauteng and in the North West are on high alert following threats to business people and contractors at the hands of “tender mafias”.
The year 2025 could be called a devastating year for entrepreneurs, project managers and contractors as mafia groups continue to violently hijack government projects.
Police have told The Star that they would be monitoring the situation in Gauteng and the North West “very closely”.
Tender mafia groups have become a pervasive problem in South Africa, undermining the integrity of the procurement process and perpetuating corruption. One such group that has been making headlines in recent years is the SA Gatvol lobby group, operating in the North West province.
The term "tender mafia" refers to a network of individuals and companies that collude to manipulate the tender process, often through bribery, intimidation, and other forms of corruption. These groups prey on the vulnerabilities of the procurement system, exploiting loopholes and weaknesses to secure lucrative contracts.
SA Gatvol lobby group has been accused of using strong-arm tactics to halt tenders given to individuals who are not from the province and who are not Tswana in tradition and language.
Entrepreneurs in the North West have reported to The Star that the mafia group members walk into government offices and threaten procurement officers, demanding that no tender be granted to businesses with directors from outside the province and that a 30% or 40% stake in the project be given to themselves.
Businessman Lesley Tloubatla has opened a criminal case against Gatvol, accusing the organisation of corruption. The organisation is said to descend on government offices and project sites demanding a share of the tender and/or the project.
“I won the tender procedurally, the same way I’ve won tenders in other provinces. My company has a CIDB Grade 8 and we have a team of some of the best structural and civil engineers in the country. These guys just came in and commanded me to hand over the tender or fire my workforce.
“I tried to emphasise the sort of skill needed for phases one to three of the project, but they told me to hire them or pack up my machinery and leave. I had invested millions in design, machinery, and materials. These guys were armed and violent. As entrepreneurs and contractors, we are simply not safe in this province. We need the minister (Senzo Mchunu) to act urgently,” Tloubatla said.
A video featuring the "SA Gatvol Lobby Group" has gone viral, showing the group's leader declaring his intention to stop food parcel distribution in the Ngaka Modiri district and making divisive comments about Xhosa people.
According to crime expert Lizette Lancaster, these groups exploit regulations aimed at empowering historically disadvantaged individuals and small businesses, demanding a 30% stake in projects and often claiming cash payments. The situation has turned violent, with the recent kidnapping and murder of five men allegedly linked to a group known as Boko Haram from Mamelodi. The group had demanded a 30% stake in a road construction project, threatening disruption if their demands weren't met. Lancaster explains that these regulations require winners of state tenders over R30 million to have sub-contractors, with at least 30% of the contract's value going to small local developers. However, criminal groups have misinterpreted these regulations to justify their demands. Gauteng police are investigating the murders but have yet to make any arrests.
The Star