This is a boy with problem behaviour. If he is 12 and is masturbating in public and has been reminded regularly by his parents and grandparents not to do it and still does it. He has a problem.
There is nothing in the OP to suggest any mental problems so I do not think we should suggest it, but it is worth knowing that this problem can be asociated with autism.
All those people who can see the dangers this behaviour can lead to at his current age should be listened to - and this is the key point. First a family member, preferably male, needs to sit with him and spell out the dangers of sexual exploitation and that the misinterpretation of his behaviour could lead him into, including criminal charges if it persists. He is old enough to have this spelt out to him quite clearly and without euphemism or evasion. As other have suggested, discussing alternative comfort behaviour, worry beads or a stress ball, should form part of the discussion.
If this family approach fails, then professional help is essential. His whole future could hinge on controlling this habit
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