Cape Town’s Beerhouse shuts down after intimidation from gang extortion

Beerhouse, a popular fixture on Cape Town’s Long Street, will close its doors this weekend after eleven years of operation. The management has cited the rampant extortion plaguing the city as a significant factor behind this decision, highlighting South Africa’s escalating extortion crisis, which has garnered international attention.

Beerhouse announced its closure on social media, urging patrons to make the final weekend memorable. “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,” the statement read.

Founded in 2013, Beerhouse quickly became renowned for offering one of the continent’s most extensive beer selections under one roof. Its distinctive yellow facade was a familiar sight on Long Street, a bustling nightlife hub. However, the pandemic’s economic toll had already forced the closure of two other Beerhouse branches in South Africa.

Shortly after opening, Beerhouse owner Randolf Jorberg was approached by an individual offering “protection” services. After refusing, the same individual returned two years later with a group that fatally attacked the doorman, Joe-Louis Kanyona, leaving a knife in his neck. This tragic incident led Jorberg to start paying extortion fees.

By 2017, Nafiz Modack, a new and more aggressive player in Cape Town’s extortion scene, had emerged, challenging the existing Lifman group. Modack’s hostile takeover of security “contracts” in the city centre brought increased violence and intimidation. Jorberg faced attempted abductions of family members and had to seek alternative security measures, eventually employing a company run by Timothy Lotter. Lotter was later murdered in 2020, further complicating Jorberg’s situation.

During the Covid-19 lockdown in September 2020, then-Police Minister Bheki Cele visited Beerhouse, assuring staff of their safety. However, Modack visited the venue the following day with a similar message. Shortly thereafter, top detective Charl Kinnear, who was investigating Modack, was murdered. Jorberg, whose phone had also been targeted for tracking, stayed out of the country for nearly three years for his safety.

Despite returning and considering rebuilding, Jorberg found that extortionists quickly resumed their activities. He decided to speak out, believing that most businesses, unwilling to confront the issue, simply pay extortion fees. Jorberg estimates that 300 to 400 businesses in Cape Town’s city centre are now paying these fees, which start at R2,000 and increase based on the business’s success.

While the closure of Beerhouse is a significant blow to Cape Town’s nightlife, Jorberg remains committed to raising awareness and combating extortion from abroad. He warns that unchecked extortion could lead to more severe crimes, such as kidnappings for ransom.

Beerhouse’s closure is a poignant reminder of the growing threat of extortion in South Africa. Business owner Belal Hussain, who operates near Beerhouse, expressed his disappointment, noting the economic benefits the establishment brought to the area. Long-time customer Lesley Maconal lamented the loss of a beloved local institution and criticized the government for not doing more to support businesses like Beerhouse.

Mayoral committee member for safety and security, JP Smith, acknowledged the challenges faced by businesses and called for stronger action against 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,” he said. Smith added that the City had deployed an additional 100 law enforcement officers in the CBD and was working closely with other agencies to address the issue.

The closure of Beerhouse signifies the end of an era for Cape Town’s nightlife, but it also underscores the urgent need for a concerted effort to tackle the pervasive problem of extortion.

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