The public understandably believes the procurement mafia operates within the traditional construction and built environment sector. However, its influence extends far beyond construction, creating highly negative effects.
Criminal elements exploit any industry where they can extort third parties. They demand protection payments or force businesses to use their goods and services.
The procurement mafia in mining
The mining sector also suffers from this problem, with criminal activities earning the term “procurement mafia”. These criminals damage infrastructure, sabotage shipments, and take employees hostage to demand jobs.
Mafia tactics in mining have evolved since emerging in KwaZulu-Natal in the mid-2010s. As the construction mafia spread, economic damage increased, demonstrating how widespread the problem has become.
By 2022, criminals had delayed or cancelled mining projects worth up to ZAR 63 billion through their disruptive activities.
Despite increased arrests and stronger industry responses, South Africa ranked seventh worst out of 193 countries in the 2023 Global Initiative’s organised crime index. The Minerals Council of South Africa reported “massive financial losses” caused by mafia activities.
EPCMs and the construction mafia in a different form
Although “construction mafia” originates in South Africa, clients in mining report similar tactics across Africa. Criminal elements exploit businesses and leverage Engineering Procurement Construction Management (EPCM) services to gain control.
EPCMs handle design, procurement, budgeting, project execution, and contract management. They also oversee contractors hired directly by clients, making them crucial in project success.
Using an EPCM allows clients to adjust project scope mid-execution while accessing skilled professionals who improve productivity and lower costs. In Africa, EPCMs provide essential expertise where skills are scarce and help mines integrate local suppliers into their operations.
For EPCMs to function effectively, they require significant authority. However, our investigations into a North African mining operation reveal serious issues when EPCMs engage with unethical parties.
A pattern has emerged where mining operators authorize EPCMs to manage procurement. Over time, EPCMs gain control, sidelining mine owners and effectively becoming the mine’s de facto managers. They create corrupt systems, demanding kickbacks for awarding contracts.
Beyond construction mafia activity
EPCM abuse mirrors crimes committed by the construction mafia, leading to instability in mining operations. In South Africa, mine owners must also monitor organised labour movements, as union disputes have led to hostage-taking incidents that disrupt operations.
The best defence against mining mafia activity involves thorough due diligence, vetting, and research. Proper investigations help mine operators understand potential partners, assess risks, and identify hidden relationships that could threaten business integrity.
Criminals exploit weaknesses in systems, but rigorous vetting uncovers these vulnerabilities. Companies must also conduct professional forensic investigations when irregularities arise to swiftly counteract mining mafia influences.
Proactively addressing threats sets a strong internal and external tone for all stakeholders. The cost of preventive and reactive measures represents an investment that protects operations from long-term damage.
Hiring skilled professionals ensures compliance with relevant legal frameworks, such as the Prevention and Combatting of Corrupt Activities Act and the Prevention of Organised Crime Act.
In conclusion
Companies must continuously assess proactive and reactive strategies, not just at a project’s start. Regular monitoring helps detect changes in risk factors and strengthens responses.
The 2025 Mining Indaba theme, “Futureproofing African Mining, Today” urges the industry to enhance resilience against these threats. Sustainable and transparent practices must remain a priority.
With strong governance and collaboration, mining companies can secure their operations and drive long-term prosperity across Africa and beyond.
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| Lionel Van Tonder | Director | mail me | | Aaqilah Nagdee | Senior Associate | mail me | |
| | Webber Wentzel | | |
