JSE-listed company flees KZN due to threats by construction mafia wielding AK47s

Published Oct 18, 2022

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Durban - A property developer is pulling out of KZN following their staff being threatened by the construction mafia.

News 24 reported that JSE-listed residential property developer Calgro M3 is pulling out of two projects.

Calgro CEO Wikus Lategan told News 24 that the lives of its employees are constantly being threatened with AK47s, demands and threats.

Lategan said its not the kind of environment one can work in and they were not willing to risk the lives of their staff.

In September last year, KZN was described as the birthplace of the construction mafia.

According to a report by Jenni Irish-Qhobosheane, a senior analyst at the Global Initiative Against Transnational Organised Crime, the construction mafia emerged in KZN in late 2015 and early 2016.

Groups of people invaded construction sites demanding not only a percentage of the construction contract, but also that construction companies employ certain people linked to them.

Their activities soon spread to other parts of the country.

Speaking about their KZN projects Calgro M3 said it had two projects in KZN.

A 365-unit development at Bridge City in KwaMashu and a 720 housing units in uMhlanga Hills.

Lategan told News 24 they would complete the Bridge City project and sell uMhlanga Hills.

He said it was impossible to do business in the province.

In March this year President Cyril Ramaphosa announced in Parliament that a special unit would be created in the SAPS to deal with the issue that is disrupting businesses.

IOL