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TURNING OFF THE TAPS

Cape Town’s Beerhouse to close doors after fending off extortion underworld for 11 years

The popular Long Street tasting room and eatery Beerhouse will be closing its doors after this weekend, with management citing extortion as a major factor behind the decision.  South Africa’s rising extortion rate has been flagged in international reports. 
Cape Town’s Beerhouse to close doors after fending off extortion underworld  for 11 years The Beerhouse on Long Street will be closing its doors. (Photo: Lisakanya Venna)

“Bring your friends, share your favourite dishes, sips, stories, and make this the best last weekend ever. Let’s raise our glasses as we celebrate the legacy of Beerhouse together.”

That was the message shared on social media by the Long Street tasting room and eatery, Beerhouse, as it prepares to close its doors. Management cited extortion as a major factor behind the decision, marking the end of an era for a venue that has become a staple of Cape Town’s nightlife.

Beerhouse first opened its doors in 2013, supplying one the continent’s biggest selections of beer varieties under one roof. Its bright yellow facade became an iconic feature on Long Street, one of Cape Town’s nightlife hubs. The closure of its final branch follows the shuttering of two other locations in the country, which failed to recover from the economic impact of the Covid-19 pandemic.

Speaking to Daily Maverick on Friday from Germany, owner Randolf Jorberg recounted his disturbing encounters with Cape Town’s criminal underworld that led to the decision to close. Just days after opening 11 years ago, Jorberg was approached by a man offering “protection” services.

“I did not need the services, so I declined,” he said. But two years later, the same man returned with a group, causing a commotion that ended in tragedy. That night Beerhouse doorman Joe-Louis Kanyona was stabbed to death by the group, who left the knife in his neck before fleeing.

Read more:GroundUp: Murder on Long Street – Congolese bouncers and the private security industry

CCTV footage captured the chilling moment when four men entered Beerhouse at 10.38pm. One asked the doorman if there was a cover charge, while the others attacked Kanyona. The 33-year-old Congolese man was pronounced dead at the scene. Three men were arrested for the murder, but the mastermind behind the attack remains at large.

This harrowing incident forced Jorberg to begin paying extortion fees. “My management was very clear; after the murder, they said if we do not pay, they will walk out. They obviously saw the risk, so I had to give in,” Jorberg said..

They paid the extortionist until 2017 when ambitious and aggressive new actor Nafiz Modack entered the scene. The Modack group’s entry was a direct challenge to the so-called Lifman group, named after Mark Lifman, a controversial businessman and leading Cape Town underworld figure who is currently out on bail on a charge of murder.  

Modack vied for the control of nightlife security in central Cape Town through a “hostile” takeover of many of the security “contracts” previously linked to the Lifman group. They used new, much rougher and unconventional practices in doing so.

Read more: Nafiz Modack, Mark Lifman and the spread of protection gangs from Cape Town’s CBD to Khayelitsha

Jorberg said there was an attempted abduction of a family member and he had to look for alternative security solutions to protect his business and family. 

“I spoke to the cops again and provided evidence of the intimidation happening. I met a security company that was operating differently. I signed up with him and he took care of my security for two years.” 

The security company was owned by Timothy Lotter, who was shot dead on 20 January 2020 in a bakkie in Goodwood. Lotter’s company, Extreme Measures Security, operated in areas including Cape Town’s CBD.

Jorberg left the country that year and, while overseas, started a campaign against extortion. 

In September 2020, in the midst of the Covid lockdown, then-police minister Bheki Cele visited Beerhouse, assuring the pub that he had nothing to fear. Cele spoke to the staff in front of the media while Jorberg was still abroad. The following evening, Modack also visited, delivering a similar message, according to Jorberg.

While not related, just 24 hours later, top detective Charl Kinnear was murdered as he was leaving his home in Bishop Lavis, a crime for which Modack is currently facing charges. One of the accused in the case, Zane Kilian admitted “pinging” Kinnear’s cellphone to trace his location and claims he was acting on behalf of Modack. Initially, Kilian was the sole accused when he was arrested shortly after the murder, but Modack was added to the charge sheet. The pair have also been charged with attempting to murder lawyer William Booth on 9 April 2020.

Read more: Charl Kinnear murder: Hawks closing the net on mysterious Mr X

“I was on the same list of the phones being pinged and for my safety I stayed out of the country for nearly three years,” Jorberg told Daily Maverick on Friday.  

Speaking to

style="font-weight: 400;"> Carte Blanche, Jorberg said the pandemic gave him a reprieve but as things began to normalise, the extortionists came back. “I returned and I was considering rebuilding and be quiet about this forever, but I realised I cannot be quiet. Most businesses do not want to deal with what I am going through, they just pay.” 

While Jorberg is closing the Beerhouse, he will continue to raise awareness and fight extortion from abroad. He said if extortion continues unabated, it will reach a point where kidnappings for ransom become common. 

According to Jorberg, the problem now is that an estimated 300 to 400 businesses in the city centre are paying extortion fees. “The entry price is R2,000,” he said. “Then you get upgraded depending on how you trade. Then they come with additional offers like ‘why don’t you take our doorman’, they suddenly own your door and now you have a house dealer selling crappy drugs.” 

While the closure of Beerhouse marks the end of a chapter in Cape Town’s nightlife, Jorberg remains committed to fighting extortion and supporting the family of his slain doorman.

“It will be my job to explain to her [Joe’s daughter] that it is my fault that led to the death of her father.” 

Business owner Belal Hussain, who sells refreshments near Beerhouse, expressed his disappointment at the closure. “People come from far to enjoy here. Most people come in here to buy food and drinks because the club does not sell those, so we benefited from that,” he said.

Lesley Maconal, a long-time customer and Cape Town resident, lamented the loss of a beloved local institution. “The Beerhouse has been around for many years, and they have great beers. To hear that they are closing down is terrible. The government could and should have done more to keep them open.”

Mayoral committee member for safety and security JP Smith acknowledged the challenges faced by businesses like Beerhouse and emphasised the need for a stronger response to the growing threat of extortion. 

“We urgently need to do more to combat this ever-growing threat. We call on SAPS to ensure greater integration and use of City resources and technology through the extortion and kidnapping task team to clamp down on the syndicates and gangs behind extortion,”  Smith said.

He added that the City’s enforcement agencies conduct enforcement patrols in the CBD, where the City has deployed an additional 100 law enforcement officers, and work closely with other agencies in this regard. 

The bigger picture of extortion in SA

In April, the Global Initiative Against Transnational Organised Crime (GI-Toc) reported that extortion was growing rapidly and spreading throughout South Africa. It cuts across various business sectors from the hospitality and retail industry to transport and construction, but it also occurs in households, where people are forced to pay extortionists so they avoid becoming victims of crime. DM

Read more: Extortion gangs in Mother City leave a trail of the dead in their wake

Read more: ‘We know no peace’ — Eastern Cape extortionists target deaf and blind people

Additional reporting by Siyabonga Goni and Lisakhanya Vena. 

Comments

Steve Broekmann Aug 3, 2024, 06:26 AM

What we need is effective policing and effective prosecution. And like love and marriage, you can't have one without the other. Where is the honourable Mchunu?

Rodshep Aug 3, 2024, 08:30 AM

We need a properly run and well organized police department. Properly run intelligence gathering, properly run courts and jails. This is why we pay taxes. Not overweight men in blue, dysfunctional intelligence, holiday camps for prisons and bail handed out like sweeties.

josephidowu Aug 4, 2024, 10:45 AM

Dream on, Bro. Hell will freeze over before you get this.

Les Thorpe Aug 3, 2024, 08:34 AM

The whole criminal justice/legal/correctional services system in S.A. is not fit for purpose. It is probably suited to a first world country with low crime rates and effective policing, but totally unsuited to S.A., a third world country where criminals are protected under S.A.'s much vaunted constitution (yet another "anomaly").

Middle aged Mike Aug 3, 2024, 12:00 PM

Unfair. It's a prefect fit to the purpose that it has been shaped to by the party of the guy with the dollar couch. It enables them and their funders to openly engage in criminal activity without fear of any consequences. I think they've done a rather good job of it actually.

Rae Earl Aug 3, 2024, 08:48 AM

The legacy of Ramaphosa and his absolute refusal to kick the chronically inept and self important Bheki Cele out of the police ministry for years is what Cape Town sits with now. The DA has the ability to ending this type of governance but ANC pig-headedness will probably prevail. Unfortunately.

MaverickMe Aug 3, 2024, 09:21 AM

The staff and their dependants are probably the biggest losers in this. The knock on effect is brutal.

Old Man Aug 3, 2024, 10:52 AM

I can remember when Jackie Selebi and Glen Agliotti were partners in ........ No change going forward with Police having upper hand.

Aug 3, 2024, 11:20 AM

@superjase - to support your contention you should share objective verifiable evidence showing murder rates per 100 000 people in countries and states (eg US and India) with and without the death penalty. Anti-capital punishment campaigners never do this - they just trot out the case - why is this?

Johan Buys Aug 4, 2024, 10:47 AM

Stats often hide causation. France (no death penalty) has similar murder rate as Saudi (death penalty) but Jamaica (has death penalty) is 50 times higher than both. imho murder rates have far more to do with police and courts - whether people are scared of The Law.

johnbpatson Aug 3, 2024, 02:49 PM

And the police generals (they should be commissioners but general is oh, so macho) award each other more and more medals. Will only be time before one thinks the presidential chain will go well with his or her uniform...

Johan Buys Aug 3, 2024, 06:37 PM

There are major entertainment areas in Cape CBD and Waterfront that seem to operate “normally”. Perhaps go and ask for example the waterfront company how they deal with scourge of protection mafia? Then spread that system.

Middle aged Mike Aug 4, 2024, 02:06 PM

The cynic in me says that they probably just pay bigger amounts to more powerful gangsters. There is a higher incentive to control the 'security' of night spots as they then control the drug distribution. I suspect that the further upmarket you go the less punters engage with 'street' dealers.

User Aug 4, 2024, 11:10 AM

It is certainly a big issue, but SA is not alone in this. In the south of Italy, especially in mid-sized towns, protection insurance is quite common. Online businesses too are often held at ransom (hacking, website attacks, data breaches etc).

jcdvil Aug 4, 2024, 06:01 PM

100 % correct