While Buffalo City Metro fences off the metro’s heritage sites and watches its pavements being ripped up by voracious copper thieves stripping the infrastructure, it has emerged that more than half of all the known scrap metal businesses in the city are operating illegally.
Fifty scrap dealers came under the spotlight recently, with BCM finding that 32 were operating in contravention of the city’s land use or zoning laws.
With a further 14, the city could not even determine if the dealers were operating in compliance with the laws because of incorrect information provided.
The sector has come under national scrutiny as the economy reels under a deluge of cable theft.
The annual cost of copper and scrap metal theft to SA was about R47bn a year, according to a Daily Maverick report quoting trade, industry & competition minister Ebrahim Patel as he unpacked a temporary ban on the export of scrap metal in November.
The Dispatch reported last year that the city had spent R22m to repair damaged infrastructure in the 2021/2022 financial year due to cable theft.
This amount is expected to double in the upcoming year.
In a report to council tabled on Thursday, the metro said police databases listed 50 scrap dealers operating in the city.
The report on scrap dealers was brought to the council after questions by official opposition leader Sue Bentley.
The businesses are mainly in Amalinda, Southernwood, Mdantsane and Milner Estate.
The city has referred 13 of them to its legal department.
According to the report, BCM has tried by various means to clamp down on the businesses, including issuing notices to cease illegal operations and approaching the courts for orders against them.
“Those that are non-compliant are known, but because they pay someone rent, who in turn pays rates, it becomes a sort of favouritism.Most scrap metal traders don’t comply because they just want to make quick money,”
— Jabu Mangena
The report says scrap metal dealers, unlike other businesses like spaza shops, do not have to be licensed by the city.
The dealers require a permit issued by the SA Police Service to operate.
But, even with that permit, they can still break city laws by operating in areas not zoned for commercial use.
The business community has slammed BCM for its lack of leadership in failing to apply the law and close dealers who defy regulations.
Border-Kei Chamber of Business executive director Lizelle Maurice said: “We have a leadership crisis in our country. Our leaders don’t want to take decisions, even though the instruments are there.
"It is illegal to operate unlicensed or illegal scrap metal dealerships in the city, so why are people not being prosecuted?”
With SA losing billions to illegal scrapyard operations, the city needs to take urgent action, she said, adding the debate on illegal scrap metal businesses was not a new one.
With decisive leadership, officials responsible for failing to rid the city of illegal scrapyards would have been sacked long ago and replaced by those prepared to do the job properly, she said.
Jabu Mangena, from the Black Management Forum, said the city’s law enforcement was weak. Many businesses were non-compliant, especially when it came to health and safety regulations.
“Those that are non-compliant are known, but because they pay someone rent, who in turn pays rates, it becomes a sort of favouritism.
"Most scrap metal traders don’t comply because they just want to make quick money,” he said.
The Daily Dispatch has reported on a number of community protests against scrap metal dealerships, with allegations that they contributed to theft of cables and other metal objects, including gates, gate motors and window frames.
Several communities, such as those in Buffalo Flats, have blamed looting of public infrastructure at its bowling and cricket clubs on scrap metal dealers who buy stolen goods.
Last year the city was hit several times by copper cable thieves who left the Esplanade in darkness by brazenly ripping up the paving under streetlamps on public walkways.
At the time the city promised to patrol in the area to help curb the thefts.
Earlier in July, the Dispatch reported on how the city has resorted to barricading public amenities and tourist attractions to protect them from vandalism and theft.
Fenced-off public sites include the East London City Hall, Heroes’ Park on the Esplanade, a wall of remembrance commemorating the Eastern Cape's struggle icons, the German Settlers Memorial, mosaics that replaced bronze plaques, the bell stone, several public lavatories and the Multicultural Man statue.
In January, police were called to defuse a mob situation as furious Mdantsane residents rounded on scrap dealers they said were operating illegally.
This was after electrical wires connecting Cecilia Makiwane Hospital to the grid had been ripped out and plundered, leaving parts of the hospital in the dark.
At the time Eastern Cape health spokesperson Yonela Dekeda said: “The suspects were injured during the apprehension by community members, resulting in them being treated at the very same hospital they are suspected of stealing from.”
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