Joburg business driven to the edge by extortion gang

‘My shop was robbed after I stopped paying their fee'

Businesses in the Joburg city centre have fallen victim to a protection money scammers. Four men from a group of eight have been arrested for harassing a construction company in Johannesburg.
Businesses in the Joburg city centre have fallen victim to a protection money scammers. Four men from a group of eight have been arrested for harassing a construction company in Johannesburg.
Image: ANTONIO MUCHAVE

We own these streets. It is our territory [and] and we guard all the shops in this street.

These chilling words ring in a Joburg businessmans ears as he recalls how he was approached by two men claiming they were guards and offering security services to businesses along Jeppe and Loveday streets in the CBD.

For months, the businessman obliged as he had been told the CBD was dangerous. But two months ago he stopped paying the men after realising that they were extorting him. And just last week, his business was robbed.

Joburg MMC for public safety Mgcini Tshwaku said in the past two months alone, the Joburg metros tactical response team had received about 35 complaints from businesses about extortionists.

The calls that we received... two were from construction sites, some supermarkets, spaza shops and butcheries. Others who collect money ,especially at spaza shops, drive there using [Toyota] Quantums full of people and then demand money. Hawkers also pay about R100 [protection fee], he said.

On Tuesday, the businessman who was robbed said he had been operating his business since May. He spoke to Sowetan just a day after police arrested four men at a construction site for demanding payments from the company.

Normally, we open at midday and close around 10pm but now we are forced to close the business at 7pm. I am also scared because I dont know what they will do. I feel like I am on the verge of closing down the store. It is very tough because it feels like the police will only start acting once these men shoot me, he said.

The businessman said his staff and customers were held at gunpoint and robbed of their cellphones and cash.

 Others who collect money, especially at spaza shops, drive there using [Toyota] Quantums full of people and then demand money. Hawkers also pay about R100 [protection fee]
Joburg MMC for public safety Mgcini Tshwaku

The man said the robbers stormed into his shop around 2pm and told his staff and customers that they were being robbed because the owner of the shop owes them.

The man said 10 minutes before the incident happened, one of his workers called to tell him that extortionists had peeped through the door.

He said a day before the robbery, he received a WhatsApp text warning him of what would happen if he refused to pay. I am a first-time shop owner, I have never experienced such before, said the 32-year-old businessman. 

I am constantly looking over my shoulders. It is difficult to go to the shop because I dont know what will happen to me.

They (extortionists) would come and ask who the owner of the shop is, and I would say he is not here, until I agreed to speak to them. They said they wanted to offer security for my business.

But I said the shop is small, I am not making much money at the moment because we are a start-up, and we dont need security.

The man said he was given a month to think about the offer. They told me that they were guarding all these shops [on the street where he operates his business]. I asked them to show me documentation, a PSiRA (private security industry regulatory authority) certificate...” he said.

The man said the extortionists continued to visit him until he gave in. They told me that it is very dangerous operating in the CBD and people might break into my shop. Out of fear, I told them I would give them R1,500. I have paid them more than four times,

He said in July, one of the men came to the business armed and ordered his staff to leave. He told my staff that they must tell me that if I dont comply, then I would be putting them in danger.

He said he reported the matter to the Joburg metro cops and was advised to open a case.  

The police asked me if he pointed a gun at people, I said no, and they asked me what the case should be. I then explained that it was a case of intimidation and extortion of money, and they said they cant open a case of intimidation until he does something to me. I left it at that.

Businesses in the Joburg city centre have fallen victim to a protection money scammers. Four men from a group of eight have been arrested for harassing a construction company in Johannesburg.
Businesses in the Joburg city centre have fallen victim to a protection money scammers. Four men from a group of eight have been arrested for harassing a construction company in Johannesburg.
Image: ANTONIO MUCHAVE

Provincial police spokesperson Lt-Col Mavela Masondo, speaking about the arrest at the construction site, said   four other suspects had fled the scene.

Site manager Simon Shabangu said the men first arrived on site last week Tuesday, a day after they started working.

They spoke to security and it seemed like they were gathering information. Yesterday [Monday], they came back and blocked the two entrances. They were driving two Mercedes-Benz cars, one yellow and the other white. They told security that we can’t work if we don’t pay them R1,000 per day.”

An eyewitness said the incident happened at 7am, lasting for about three hours before police arrived and arrested  four men. They had documents which they presented to the security and later I heard noise (the exchange between security and the men who had blocked the entrances to the site).

Another eyewitness said the men first arrived at the site in March and demanded jobs. They threatened to shut down the site if three or four of their members were not given jobs, said the eyewitness.

Masondo said the men were expected to appear in the Johannesburg magistrates court on Wednesday.

Along Jeppe and Loveday streets, another business owner confirmed falling victim to the extortion but could not talk about it due to trauma.

Tshwaku said he had advised some of the business owners to install panic buttons and CCTV cameras in their shops.

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