A recent report has exposed the ongoing and increasing extortion in South Africa, especially in Cape Town, evident in ‘the ongoing threat’ construction mafias pose to municipal projects.
The report, titled The Shadow Economy: Uncovering Cape Town’s Extortion Networks, was compiled by Jenni Irish-Qhobosheane, a Global Initiative Against Transnational Organised Crime researcher.
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Gangs in certain areas of Cape Town have profited from extortion and ‘make as much money from extortion as they do from selling drugs’, and the surge in the extortion economy was followed by the Covid-19 pandemic, as reported by News24.
Money, services and goods would be extorted from an increasingly wide range of businesses, which included spaza shops, nightclubs, construction and transport companies, as well as individuals, according to the report.
The increase in extortion came after the hard lockdown in 2020 during the COVID-19 pandemic, as extortionists became affected by curfews and the temporary closure of businesses. As these restrictions became less over time, extortion soared.
Victims of extortion would often avoid reporting the crime, as it implicates them that they they agreed to the perpetrator’s demands. In addition, fear and intimidation also plays a factor in the crime being unreported.
‘These factors contribute to its normalization, as extortion becomes seen as a cost of doing business, operating or living in a particular area, and can also lead to an increase in the frequency and size of the demands’, according to the report.
To combat extortion, the City of Cape Town implemented its own initiatives, which included an anti-extortion campaign and a 24-hour hotline. Security at a number of infrastructure sites armed escorts and protection for city officials who have been targeted were increased by the City.
Investigations were initiated by the City into some extortion economies, while also blacklisting people with links to criminal networks from doing business.
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