R63 Billion Lost to ‘Pirate Tax’: DA Unveils Bold New Plan to Tackle Extortion

by Thabiso Rakgaka

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The Democratic Alliance (DA) has unveiled a comprehensive plan to combat the growing crisis of extortion rackets, which it says is undermining South Africa’s economy. The party’s police spokesperson, Ian Cameron, described the trend as “economic sabotage” that is crippling businesses across the country. Cameron highlighted alarming statistics, revealing that between 2019 and 2024, over 6,000 extortion cases were reported, with only 7% resulting in convictions.

Cameron also pointed to the significant impact on the construction sector, where extortionists have stalled over 180 projects worth R63 billion over the past five years. These criminal activities not only rob businesses but also hinder economic growth, reduce investment, and deprive the country of much-needed tax revenue. The DA is calling for urgent action from law enforcement to dismantle these syndicates and restore stability to affected industries.

The DA’s strategy proposes empowering communities, enhancing police coordination, and improving the effectiveness of existing anti-extortion measures. While acknowledging current efforts like anti-extortion hotlines, Cameron stressed the need for a more comprehensive response from the South African Police Service (SAPS) to tackle the issue with greater urgency. The party aims to protect businesses and foster an environment where economic opportunities can thrive without fear of extortion.

National Police Commissioner Fannie Masemola also addressed the problem, pointing to underreporting and vulnerabilities in the construction industry as key factors. With extortion particularly rampant in Gauteng, the Western Cape, and KwaZulu-Natal, Masemola noted that the police have set up toll-free reporting lines to encourage victims to come forward, though he emphasized that much more needs to be done to curb this growing criminal threat.

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