Soweto contractors accuse JSE-listed Raubex of sabotage and unfair business practices

Soweto contractors accuse JSE-listed Raubex of sabotage and unfair business practices. Picture: Social Media.

Soweto contractors accuse JSE-listed Raubex of sabotage and unfair business practices. Picture: Social Media.

Published Apr 15, 2024


RAUBEX Group, the infrastructure development and construction materials supply group, has been accused by contractors of unfair business practices in ward 25, Soweto.

This comes as contractors and Soweto-based SMMEs cry foul over the discriminatory practices of its business affairs.

Some members of the Bester Business Forum (BBF), made up of a group of contractors and SMMEs operating in Soweto, have accused the JSE-listed group of bias, discrimination and unfair business practices which they say have negatively impacted on their businesses.

The group is accused of halting tenders belonging to these entrepreneurs along with other litany of operational matters.

Entrepreneurs spoke to The Star and declined to be named.

According to one member from BBF said many contractors are dissatisfied by the handling of their contracts by the group.

“We are unhappy and disgruntled by the way in which Raubex Group has been conducting business in ward 25. There is lack of transparency and some of us have been left in the dark about crucial developments in our businesses. Sometimes a tender is issued without any form of communication and there is sometimes no tender process and adjudication review conducted,” one contractor said.

They say the group lacks transparency as they have been left in the dark regarding outcomes of the security tender process. They say despite a tender being issued, there has been no formal communication to unsuccessful bidders.

There are also allegations of sabotage with one business leader accusing the group’s employee of mishandling their documents, sabotaging their bid and deviating from standard procedures.

Another entrepreneur says they have been unfairly dismissed which occurred before they could start on their contracted value of the contract.

“I was unfairly dismissed despite having a contract valued at R450 000. To make matters worse, I was not even close to reaching R700 000 worth of work before being let go. It is sad really what is being done to us,” said the entrepreneur.

A Soweto-based entrepreneur, who runs a security business, said he was was sent from pillar to post after applying for a tender through Raubex Group and Urban Development, which works with Raubex.

“After going through my tender document and being promised feedback, I spent the better part of three months enquiring about the success or failure of my application but was told no one had been appointed until I received a tip-off months later that a contractor had already started working on the project. No one bothered to inform me of the outcome,” he said.

Another SMME owner said: “I have lost tools and equipment to the tune of R20 000. In essence, I suffered financially and morally as an SMME. I am hugely disappointed in Raubex as a JSE-listed company.”

Last month, the Raubex Group said it expected headline earnings for the year ended December 2023 to rise as much as 10% after tender activity picked up towards the latter part of the financial year.

The Centurion-based group operates throughout South Africa with divisions including materials handling and mining, construction materials, roads and earthworks, and infrastructure.

After multiple attempts to get comment from Norman and Shaun Raubex, Shaun Raubex told The Star that he and his team are not obliged to comment on private business matters.

“I am under no obligation to give you any comments because this is a private matter. We will not be giving you any comment on this matter,” said Raubex.

The Star

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