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An initiative that provides updates on criminal organisations in the Western Cape has found that Cape Town is no longer the only target of gang extortion and other criminal activities, as the trend seeps into other towns.The Global Initiative Against Transnational Organised Crime (GI-TOC) told Business Times that its Western Cape Gang Monitor shows that criminal governance has become deeply entrenched in a number of communities across the province. “In areas such as Hanover Park, Steenberg, Manenberg, Mitchells Plain, Delft, Khayelitsha, Philippi East and Gugulethu, gangs and criminal networks exercise significant control over residents and businesses. “Extortion is one of the primary income streams for these groups, and the extortion economy continues to expand as gangs diversify their criminal activities and entrench their influence. As such, businesses operating within these areas are particularly vulnerable to extortion demands.” Extortion by gangs and other criminal activities have become an increasing concern in the country, extending to government contracts, security at hospitality businesses and even construction sites.GI-TOC said delivery vehicles are hijacked, transport vehicles are ‘impounded’ by taxi marshals, informal business owners have been murdered for refusing to pay extortion demands, and mass shootings are used to reinforce criminal authority over communities. “The risk, however, extends beyond businesses being victims of extortion. The research shows that legitimate businesses can be exploited to launder criminal proceeds. Sectors such as construction, property and private security are identified as particularly vulnerable, exposing businesses not only to extortion but also to reputational, regulatory and commercial risks where organised crime infiltrates legitimate enterprises.”The organisation said the research shows that no business is too small or too large to be targeted and that in gang-controlled areas of the Cape Flats and surrounding townships extortion affects businesses across virtually every sector. “Shops, medical practices, construction companies, service providers, street vendors and even schools have all been targeted, reflecting the extent to which gangs seek to exert authority over local communities. “While foreign-owned businesses have faced widespread extortion since 2017, the research indicates that businesses across many sectors are now being targeted. The problem is not only confined to traditional gang strongholds.” GI-TOC said that in Cape Town’s CBD, extortion networks have relied on gangs from the Cape Flats to supply violence and intimidate businesses into paying protection fees. “Businesses operating in the nightlife economy, particularly clubs and bars, are frequent targets, while restaurants and cafés have also been subjected to extortion demands. Violence often follows when businesses refuse to pay, making the threat both financial and physical.”The latest research points to a growing gang presence beyond the Cape Town metro, with activity increasing in smaller towns across the Western Cape. In some cases, gangs have operated in these towns for decades. Previous GI-TOC research documented how the Terrible Josters gang established control over large sections of the Overberg coastline during the early 2000s through abalone poaching operations. What has changed is the scale and purpose of this expansion. “Gangs are increasingly moving into smaller towns to secure new and existing supply routes for contraband such as cocaine, guns and poached marine wildlife. In some cases, this expansion is also driven by a risk-reduction strategy, with gangs investing in smaller towns to capitalise on a reduced law enforcement presence and less surveillance. GI-TOC said this trend was particularly evident in places such as Saldanha Bay and Vredenburg, where gangs are attempting to capitalise on the expanding global cocaine trade.Western Cape premier Alan Winde has worked closely with Business Against Crime South Africa (Bacsa) in the Western Cape to respond to the impact of extortion activities on businesses in the province.In an engagement between the bodies, Winde stressed that the Western Cape cannot fight crime alone and that affected stakeholders had a better chance of fighting the scourge by collaborating and sharing resources.“This was about the whole of government and society coming together to co-ordinate ourselves better to confront this ‘cancer’ called extortion and to discuss how we are going to rid ourselves of this horrendous crime that impacts so many of our residents and businesses,” Winde said. “It strangles economic growth and job creation. Daily, it threatens residents’ safety and their livelihoods, robbing them of opportunities and their dignity, and the only way we will eradicate ‘extortion mafias’ is if we all work together.”Hubert Paulse, chair of Bacsa Western Cape, said a public-private partnership that exists for one clear purpose of making South Africa safer is critical, now more than ever. “We foster collaboration with all stakeholders to fight crime,” he said. “When we work together, we do not just reduce crime — we restore hope. And with hope comes confidence. Businesses become more willing to invest, and that investment leads to the creation of more jobs.” Business Times
