Businesses run by the wife of alleged 28s gang boss, Ralph Stanfield, have been dealt a blow as the City of Cape Town decided to blacklist contractors associated with his wife Nicole Johnson.
The City says following the murder of one of their employees earlier this year, it launched an investigation into the extortion mafia and companies which had applied for tenders, and found that Johnson owned seven out of 12 companies on their radar. In addition, they found that both Ralph and Nicole were affiliated with the remaining five.
City Manager Lungelo Mbandanzayo, revealed the outcome of an investigation into several companies following the murder of City staffer, Wendy Kloppers.
The 48-year-old, who worked for the City’s environmental affairs department was visiting the Delft Symphony Way housing project site to conduct an inspection when she was gunned down on 16 February.
The City offered a R1 million reward for information that would lead to the arrest of her killer.
Infrastructure MEC Tertuis Simmers told the Western Cape Legislature in August that his department spent more than R160 million on security to mitigate extortion, with 125 housing opportunities being lost, in 2022/2023.
Mbandanzayo says the City has started cracking down on underworld figures who are extorting contractors and delaying building projects across the Cape Flats.
Mbandanzayo says at the time of Kloppers’ murder, the site had already been targeted by skollies who had coerce the contractor.
He believes Kloppers was killed after the City had refused to yield to the demands, saying: “The extortionists demanded a percentage of the work on the project whilst refusing to follow the competitive process.”
He says they then launched an investigation into all the companies which had applied for contracts with the City at that time and “shocking” discoveries were made.
Mbandanzayo adds: “I decided to suspend all tenders and instead have a closer look at all of them. I cannot divulge how we uncovered the list of companies but I can confirm that we found that in fact all of them were being run by Nicole Johnson.”
Using an amendment to the Supply Chain Management Policy, Mbandanzayo, wrote to each of the companies and highlighted their involvement with Johnson and questioned why the City should continue doing business with them.
He explains that provisions in the policy allow for the City to blacklist companies which could cause reputational harm and as Johnson is already on trial for a range of firearm-related charges, “she posed a risk”.
Johnson’s business dealings were thrust into the spotlight in 2019 after her company, Glomix House Brokers, was awarded a tender to build houses in Valhalla Park, a known stronghold of the 28s gang.
Mbandanzayo believes the “formation of construction companies by gangsters” in order to obtain government tenders was just a ploy to steal from communities and ratepayers.
He says while skollies are portraying themselves as Robin Hoods, the communities suffer as extortion impacts social housing as well as ratepayers.
He says the City’s investigation found that contractors had even included “extortion fees” in their operational budgets.
The official explains: “Where does the City get the money? We do not get it from the National Treasury, it comes from the rates and taxes which now need to increase to meet the extra demands.”
The Delft Housing Project has been suspended and Mbandanzayo says beneficiaries from Blikkiesdorp, Malawi Camp and Freedom Farm will have to wait even longer for homes.
He also revealed that as a result of ongoing extortion, the City was forced to suspend various other projects including in Bishop Lavis, Beacon Valley and Lentegeur.
Meanwhile, Johnson has lodged a High Court appeal after the City refused to award a tender to one of her companies.
But Mbandanzayo says: “That application has not yet been heard but she is still in custody.”
Ralph and Nicole will be spending Christmas in the mang following a failed bail application at the Cape Town Magistrate’s Court where they and three others face various charges in connection with the attempted murder of a former employee of Ralph who had allegedly stolen over R1 million from the couple.
They are set to return to court on 5 February.