It is understandably popular public opinion that the construction mafia is associated with the traditional sector of construction and the built environment. However, its influence is a highly negative phenomenon stretching far beyond the construction industry. Construction mafias can be found in any industry where a criminal element can extort a third party to either prevent acts of violence or for their goods and services to be used instead of others.

The mining sector is, unfortunately, no exception, with activities in this industry far-reaching, also dubbed as the procurement mafia. Tactics such as damaging mining infrastructure, sabotaging shipments en route to ports, and taking employees hostage to demand jobs are among the methods employed. It is noted that the behaviour and tactics of mafias in the mining sector have evolved since they emerged in KwaZulu-Natal in the mid-2010s. As the construction mafia has spread, so has the damage done to the economy, with the mining industry indicative of how widespread the problem is.

Up to 2022, it has been estimated that up to ZAR 63 billion in mining projects were delayed or cancelled due to the tactics posted by these mafioso activities.

While the mining industry has become increasingly organised to stop mafia activity and arrests have increased, in 2023, South Africa was ranked seventh worst out of 193 countries in Global Initiative’s organised crime index.

It continues to be such a problem that the Minerals Council of South Africa has stated that “massive financial losses” have been incurred because of mafia activity.

EPCMs and the construction mafia in a different guise

While the term “construction mafia” has its origins in South Africa, queries and feedback from our clients in the mining industry indicate that the tactics used by the construction mafia are found across the continent.

Beyond direct transactional relationships between businesses and local construction mafia groups, South African mining companies have faced challenges when leveraging the services of Engineering Procurement Construction Management (EPCM) providers.

EPCMs are typically responsible for designing, establishing and managing key procurement contract relationships, and construction management, including budgeting, project execution, and contract management. Organisationally, EPCMs have dotted-line management relationships with contractors employed directly by the client.

The primary advantage of using an EPCM is that a client can change the scope of a project already underway, in addition to leveraging highly skilled professionals who can increase productivity and lower costs. For mining companies operating in Africa, EPCMs can provide valuable skills in markets where none can be found, and local knowledge and context, are invaluable for a mine operator needing to leverage local suppliers and supply chains to support their operations.

For EPCMs to be effective, they need to be empowered with significant and specific authority. However, as observed in an investigation Webber Wentzel is conducting in relation to a mining operation in North Africa, severe problems can emerge at the EPCM level if the responsible parties do not understand who they are getting into business with.

A pattern of conduct has been noted whereby the operator of a mine enters a working arrangement with the EPCM provider, with the provider given significant authority to conduct business on the mine owner’s behalf. Over time, the EPCM gains such control of the mine’s procurement processes that the mine owner is alienated from key decisions, in effect becoming the defacto manager of the mine. EPCM’s have the potential to create a self-reinforcing web of corrupt activity, demanding kickbacks for appointing specific local contractors.

The abuse perpetrated by the EPCM echoes the crimes committed by the construction mafia and the instability that can grip a mining operation without significant oversight. In South Africa, beyond construction mafia activity, mine owners must be aware of developments within the organised labour movement, with recent hostage-taking incidents highlighting a contestation between rival unions that has a negative impact on operations.

The best defence for a mine owner’s business against the mining mafia and other forms of illegal activity conducted by third parties is due diligence, vetting, and research. Quality findings that arise from such processes give mining operators the full context of who they may be choosing to work with, the risks that exist, and crucially, what relationships a particular supplier may have with those they choose or recommend for contracting. Criminality has a habit of finding weaknesses in systems and processes that vetting can uncover.

Equally important is the defence of having professional forensic investigations undertaken when irregularities are reported upon. This will enable companies to swiftly react and assist in mitigating the effects that the mining mafia may have on any operations. This will also enable the organisation to set an adequate tone for both internal and external role-players.

The amount a mining company spends on proactive and reactive measures represents an upfront investment. It is highly recommended that parties wishing to conduct these measures appoint skilled professionals to do so. Furthermore, experienced professionals will ensure the necessary steps and compliance are done relating to consequential legal processes, such as the Prevention and Combatting of Corrupt Activities Act or the Prevention of Organised Crime Act, for example.

Proactive and reactive measures should be assessed on an ongoing basis outside of a project’s beginning so that changes in the status quo are detected and accounted for.

The 2025 Mining Indaba theme, Futureproofing African Mining, Today, serves as a call to action for the industry to strengthen its resilience against these threats while prioritising sustainable and transparent practices. Through robust governance and collaboration, mining companies can safeguard their operations and drive the long-term prosperity of the sector across Africa and beyond.

by Lionel van Tonder, Director & Aaqilah Nagdee, Senior Associate at Webber Wentzel