A housing development in Valhalla Park is at a standstill after local gangsters started demanding “protection money” for the site.
The R42million development was launched more than a year ago by the City of Cape Town and is aimed at providing 777 subsidised houses for the community.
However, according to a source, the 28s are holding the City and contractor to ransom with threats.
Aware
“They want an amount of R300 000 per month in protection money from the City otherwise the site won’t be secure from vandals and thieves,” the source says.
“Now the whole development is on hold.”
When Daily Voice visited the site along Valhalla Drive yesterday, nobody could be seen working or securing the site.
Graham Lindhorst, chairperson of the Bishop Lavis Community Police Forum, confirms extortion is taking place but would not comment any further.
“Yes, we are fully aware of the situation at the construction site but I cannot comment any further,” he says.
Mayoral Committee Member for Transport and Urban Development, Brett Herron, confirms that the project is delayed due to gang-related activities.
He says: “Yes, the project is being delayed due to gang-related threats and intimidation of the contractor to the extent that they want to cancel the contract.”
However, he says, the City has not been approached by anyone for protection money and they have not been informed of any such request to the contractor.
Herron also says the impact of the delay on the budget for this project can only be quantified when the contractor returns to the site.
In 2015, allegations surfaced that a City-contracted construction company had paid gangsters in Manenberg for security at a housing site.
At the time, residents said gang violence in the area were rooted in the employment of rival gang members for security by construction companies which were upgrading council flats.