Durban Business Woman and CEO of the Zikhulise Group Shauwn “MaMkhize” Mkhize has admitted to working with the “construction mafia,” who are known for using violence and intimidation to extort money from business in the public work sector. Mkhize’s confession comes weeks after her name trended in relation to an assassination attempt on a SARS advocate assigned to a R 37 million investigation into her companies. The Durban Business woman was previously charged with alleged criminal activity, including fraud, forgery, bribery, and tax evasion.
Speaking to SABC at a Women in Construction event in Durban this week, MaMkhize, who owns the Zikhulise Group, which deals in the construction, cleaning, maintenance, and transport sectors, admitted to “collaborating” with the criminals. She said: “As much as there are construction mafias, it is very important to collaborate. I’ve been in the industry for more than 20 years, with the construction mafia involved. “But what I do is I sit down [with them]. It’s a cry for help. You need to understand what they need, and you collaborate. I’ve done it. I’ve built quite a lot of people that are coming from construction mafias, which I call business forums”. She continued: “They’ve never given me problems. We must look at them as enemies. We must listen, hear them out, and meet each other halfway. That’s how I’ve done it”. According to KZN Human Settlements, MEC Siboniso Duma claimed the government is “engaging” with the “construction mafia,” who disguise themselves “business forums.”
So, it has become part and parcel to cooperate and do business with organized criminal gangs in the construction sector. If this is the disdainful norm, what would the police say. Who has the legal authority to investigate and prosecute these crimes in business? Mkhize will certainly be taken to court over the charges that were placed against her. The question is how many other people in business are involved in the same collaboration as “MaMkhize” with the “construction Mafia”? In terms of having some form of transparency and accountability in the private sector this is a very deep rabbit hole. The matter needs to be investigated by the local and if possible, the provincial as well as the national prosecuting authorities. This is about ensuring safety and transparency in the construction business. It shows that the police, the courts and the prosecutors have a long way to go to tackle these issues.
Sitting down and talking to members of organized crime in the construction business doesn’t justify doing business with them. Especially if it goes against legal and safety standards.
However, he added: “We are clear on extortion because we define that as criminal activity…Those that come with rifles, police must take their roles.” Meanwhile, Minister of Public Works and Infrastructure Dean MacPherson labelled the “construction mafia as “thugs” in and interview with BizNews. On social media, South Africans were shocked at MaMkhize’s brazen admission. @Kat4Kubs: “Collaborating with a mafia makes you part of the mafia.” @SALEM_WORD: “Negotiate with criminals? TF!” @King704Mph: “MaMkhize needs a spokesperson ne Spin Doctor ASAP BRUSH WITH THE LAW According to The Citizen, MaMkhize was slapped with a R37 million tax bill relating to her business empire. As a result, SARS filed a court application to seize 13 high-end vehicles owned by Shandi Trust and Royal AM football club, of which the reality TV star holds a majority stake. The publication added that MaMkhize was also ordered to pay R12 million in her personal capacity to SARS.
When we discuss organized crime, we refer to gangs involved in extortion, blackmail, illegal trade on the black market, such as drugs, weapons, stolen goods etc. The involvement of these gangs/mafia in business such as construction destroys integrity. “MaMkhize” should have kept this in mine and gone to the police rather than cooperate with the criminals in question. Public opinion is certainly sour on the subject. The wider society is united in its disgust at the casual acceptance of illicit criminals in business by entrepreneurs such as Mkhize. Tax evasion, fraud and bribery etc are also signs of bad conduct and are deeply unethical. These should be discussed in Business School. Ethics and legalities one on one. When this businesswoman goes bankrupt paying her fine then she is certain to face a heavy jail sentence. Being involved with organized crime in the construction business carries heavy risks of its own. The risk of damage to buildings is immense.
Meanwhile the Assets Forfeiture Unit (AFU) of the National Prosecuting Authority (NPA) in KwaZulu-Natal has secured a court order to preserve a Durban warehouse valued at R29.7 million that was allegedly being used as a drug lab.
NPA regional spokesperson, Natasha Ramkisson-Kara, said the AFU had obtained a Preservation of Property Order from the Durban High Court for a warehouse (immovable property) situated in Riverhorse Valley in Durban. “The property, which is valued at over R29.7 million, was seized on the basis that it was instrumental in the commission of the offence of manufacturing and dealing drugs,” she said. Ramkisson-Kara said on March 6, 2024, officials from the Directorate for Priority Crime Investigation (DPCI) entered the property after receiving information regarding drug dealing. She said various drug manufacturing paraphernalia as well as large amounts of chemicals and waste materials or sludge were found on the property. “The property was used to facilitate or make possible the manufacture of drugs,” she said. She said reports from the police’s Forensic Science Laboratory (FSL) confirmed that the types of exhibits found on the property were similar to those found at the scene of a clandestine drug lab.
The drug bust that occurred at the Durban Warehouse is good news. It shows that the police still care about tackling the intricacies of crime. The warehouse in Riverhorse Valley was most likely a hive for criminal activity. The police will likely hold the warehouse and its contents as evidence. R29.7 million, for the property as a whole which would include the drugs being manufactured shows just how big addiction can become. The ware house was a major nerve centre for the trade in drugs and its capture will put the illicit and dark trade backward. Drug addiction is notorious for causing neurological and organ damage as well as spreading disease if using needles. The types used depends on how extreme the substance is.
So now it is clear that this ware house was a major hub of drug manufacturing for the province. What this ware house reveals, is both harsh and unsettling. The property will now remain in the custody of AFU Curator pending a forfeiture application.
Article written by:
Yacoob Cassim
Journalist at Radio Al Ansaar
