A newly appointed Member of the Mayoral Committee (MMC) for Group Corporate and Shared Services is at the center of an ongoing Hawks investigation into allegations of extortion dating back to 2018.
The official, Sithembiso Zungu, was appointed to his position on August 7th. The investigation concerns reports that he received payments from the contractor CityDev Construction while the company was building houses in Lehae, Johannesburg. The fees were allegedly facilitation or protection fees paid at a time when Zungu was the chairman of the Vlakfontein business forum.
Further allegations have surfaced regarding Zungu’s alleged involvement in the stoppage of a R135 million school refurbishment project. The MMC has publicly refuted all allegations of extortion. He stated that he was formally appointed as a social facilitator by the contractor in Lehae and that he stepped down as chair of the business forum when he was elected as an ANC councillor in 2019.
A decision on whether to prosecute following the Hawks investigation is still pending.
The case has sparked a broader discussion on the challenges plaguing South Africa’s construction industry. An expert, Professor Alex van der Heever, Chairperson of Social Security Systems Administration and Management Studies at Wits University, highlighted the persistent issue of project stoppages caused by groupings demanding subcontracting roles or protection fees.
Professor van der Heever described the phenomenon as having “official sanction,” suggesting it persists because it is not being rooted out. He expressed concern that the appointment of an individual under such investigation to an official council position implies an “almost official policy” by parts of government to allow inappropriate interference in investment projects.
The professor argued that these practices are not about community development but are a “veneer for theft,” channeling public resources into private pockets. This leads to inflated project costs, stalled developments, and ultimately harms economic growth and job creation. He emphasized that legitimate community involvement should be structured into the initial tender process, not facilitated through gatekeepers who can shake down contractors after a project has been awarded.
The transcript also referenced an affidavit from the CEO of CityDev Construction, who stated the constant demands for facilitation fees and the imposition of unqualified subcontractors left the company struggling with cash flow.
Professor van der Heever concluded that such interference is a primary reason for irregular procurement and the poor state of municipalities like Johannesburg, describing the so-called role of a “social facilitator” as fundamentally corrupt when it introduces discretion and gatekeeping into a process that should be transparent.
