Holding the Country to Ransom: The Rise and Impact of Extortion in South Africa

Never let a good crisis go to waste, isn’t that what they say?

Since 1994, democratic South Africa has been trying to systematically address the countless social and economic consequences of Apartheid. In many communities, success in these areas is evident – there is a growing black middle class, increased employment, and vastly improved provision of services and housing to millions of people.

Unfortunately, there are many more communities where this has not been the case, and people are growing ever more impatient and dissatisfied with the lack of transformation.

This has inadvertently created a fertile breeding ground for opportunistic criminals to capitalise on the conditions, using them as justification for their illegal activities.

I feel it’s important at this stage to differentiate between the genuine concerns of local communities and their legitimate efforts to bring about much needed economic transformation, and what can only be described as a type of criminal terrorism.

CEO of the South African Forum of Civil Engineering Contractors, Webster Mfebe, described the situation perfectly when he said, “While a lot of things happened under the mantra of radical economic transformation, extortionist behaviour has affected both black- and white-owned businesses, which tells you it’s all about the money. We’re teaching our children that they don’t have to work; they just have to carry the biggest gun.”

Extortion racketeering hasn’t only appeared in South Africa since 1994. As far back as the 1940s, Johannesburg-based gangs such as Ama-Rashea and the notorious Msomi were involved in extorting local residents.

In 1959, 66 members of the Msomi gang – most in their 20s and 30s, but one as young as 15 - appeared in the Johannesburg Magistrate’s court, charged with murder, attempted murder, assault, robbery and arson. Numerous witnesses testified to having to pay protection fees or face maiming or murder.

The gang eventually petered out, thanks largely to these arrests and a growing hatred for their activities from their terrorised victims. Unfortunately, they were quickly replaced by other gangs.

Today, Alexandra is still known locally as Gomora, a nickname that originated during the dark days of Msomi rule, and which comes from the Old Testament city of the same name, which was eventually destroyed because of it levels of criminal wickedness.

Extortion here is thriving, to the detriment of the community. News24 tells of numerous development projects aimed at benefitting local residents – including housing, school infrastructure and water supply – being abandoned and left unfinished because of the extortionate fees demanded by township gangs. One City of Johannesburg project, for example, which was aimed at electrifying some of the 25% of Alexandra’s households that still don’t have mains power, was halted after the contractor was given an ultimatum by criminals – pay us R45 000 a month or else…

“What is happening in Alexandra is a symptom of a broader pathology, with extortion economies rapidly taking hold across South Africa, strangling businesses and investment projects, and steadily crippling towns and cities,” write Jenni Irish-Qhobosheane and Julian Rademeyer in an article for News24.

The construction industry (which I wrote about recently) is being particularly hard hit. The gunning down of Alexandra Chamber of Commerce and Industry president, Mpho Motsumi, outside his parents’ home in February this year, was allegedly linked to the construction mafia. The same gangs have also been linked to the water tanker mafia, which sabotages water supply pipes to ensure communities’ continued dependence on them.

To a large degree, these activities have evolved from what was once referred to as a "plough back approach" – where companies invest money in various facets of community development (either voluntarily or in compliance with government directives) - to the current situation. To me, one of the most worrying aspects of this heinous activity is that no one seems “off-limits.” Extortionists target everyone from big business to spaza shops, salons, butcheries, cell phone repair shops, informal traders, churches and even schools.

South Africa’s Basic Education Minister Siviwe Gwarube’s recent campaign to highlight challenges in our schools revealed worrying statistics on how organised crime elements are expanding their operations into our educational institutions, threatening teachers and learners.

The Eastern Cape, which has over 5 000 schools, is particularly affected. One of the most disturbing recent incidents happened in Gqeberha, where extortionists charged into the Efata School for the Blind and demanded R50 000 from a school nurse.

When the nurse bravely refused, the thugs seized his cell phone, laptop, and a television. Incredibly, they later sent a message to the school principal, reiterating their demand for the money.

This is sadly not an isolated incident, but the sheer brazenness of this particular attack highlights the worrying seriousness of the problem.

Ian Cameron, chairperson of the Portfolio Committee on Police, says, “Extortionists thrive in an environment of lawlessness and lack of consequences for their actions.” Unfortunately, schools are easy targets because they are generally poorly equipped to deal with these kinds of threats as they simply don’t have the budget to hire security or pay the “protection fees.”

“It’s absolutely a crisis for us,” Minister Gwarube said. “We cannot have a situation where our educators and learners feel unsafe in our communities.”

The problem is exacerbated by many factors, but two of the most significant are corruption within law enforcement and the fact that incidents often go unreported as victims are afraid of further attacks on their safety. Last year alone, over 10 patrollers were shot dead while trying to protect their communities.

“When police officers themselves are corrupt and take bribes, further erosion of trust will occur, empowering protection fee syndicates,” Cameron explained.

In addition, by its very definition, extortion is a crime that involves obtaining the victim’s consent, albeit illegally. Criminals use the threat of violence, or damage to property, to get what they want. This is why victims often avoid reporting the crime – they don’t want anyone to know they agreed to the demands, even though it was through fear.

The result? Extortion is becoming normalised, another cost of doing business or living in a particular area. Coupled with a general lack of accountability within the police force, these factors all serve to encourage criminals, who continue to operate seemingly at will, and think nothing of regularly increasing both the size and frequency of their demands.

The obvious reaction by communities, when faced with apparent inaction by authorities, is to take the law into their own hands. However, as Mandla Mandela writes for News24, “this has the potential to unleash a greater cycle of violence, revenge killings and civil disturbance. We don’t want to escape the evil of extortion only to replace it with the violence of unchecked vigilantism.”

Ian Cameron agrees. He says there is an urgent need for better crime intelligence and that “the police’s ability to operate in the shadows, through crime intelligence services, is an important pushback mechanism for breaking extortion rackets.”

His suggestions for achieving this include creating a well-resourced detective service to enable effective investigations and enhanced reporting. He’s also quick to point out, however, that the arrests of extortionists alone will not deter extortion. There is also a dire need for swift and effective prosecution.

“The detective service must be capacitated with properly trained personnel and enhanced collaboration with the National Prosecuting Authority,” he says.

There is no doubt that extortionists thrive in societies gripped by fear. When people are too afraid to act or speak out, and the authorities have neither the will nor resources to respond, this kind of criminal terrorism will continue to flourish.

As Ian Cameron writes, “Breaking these rackets is grounded on the SAPS regaining its credibility in the eyes of the public and the relationships it must build with our communities. As people seek new opportunities to better their lives, the State must ensure they have the safety to engage with their communities and reverse the scourge of extortion.

“We cannot and dare not fail.”