IMPACT OF COPPER CABLE THEFT ON THE SOUTH

IMPACT OF COPPER CABLE THEFT ON THE SOUTH AFRICAN ECONOMY Presenter : Major General S Sibiya Email Address : Sibiya. Shadrack@saps. org. za Contact Details : (012) 846 -4002 Facsimile : (012) 846 -4408 Date : 28 February 2012

SCOPE OF THE PRESENTATION 1. 2. 3. 4. • INTRODUCTION • COPPER CABLE THEFT • DRIVERS OF COPPER CABLE THEFT • LEGISLATIVE FRAMEWORK

SCOPE OF THE PRESENTATION … 5. 6. 7. • NATIONAL CRIME PICTURE • ACHIEVEMENTS: 2010 - 2011 • POLICE STRATEGIES 3

INTRODUCTION Throughout the Industrialized world, stealing valuable metals has become a serious threat to the police, business, public utilities, rail road companies and the community at large. The export market is fast expanding and South Africa has become one of the largest exporters of copper to countries such as China and India. The consequence of copper theft negatively impacts on victims financially, production, planning , profit margins, telephone lines, electricity and trains. Collaborative efforts to combat metal theft have occurred for several decades and is ongoing. In 1993 the Non-Ferrous Theft Combating Committee (NFTCC) was established to address the phenomena. National and Provincial investigations driven by SAPS’ Division: Detective Service and Directorate for Priority Crime Investigation is ongoing.

COPPER CABLE THEFT Metal theft (including copper cable theft) is theft of items for the value of their constituent metals. It usually increases when worldwide prices for scrap metal rise, as happened dramatically due to rapid industrialization in India and China. The metals most commonly stolen are copper, aluminium, brass and bronze. The offence carries possible Imprisonment of ten (10) years and this will contribute to the prevention and prosecution of copper cable-related crime. The defining characteristic of metal theft, besides being limited to items containing or made entirely from metal, is the motivation for theft. Whereas other items are generally stolen for their intrinsic value, metal items are stolen for their more or less extrinsic value as raw material or commodities. Items are ultimately scrapped or recycled, to provide material for making new products. Ellefsen and e. How Contributor defined Copper Cable theft as theft of copper or non-ferrous metals from a communications provider that causes damage to the facility or interferes with the company's ability to provide service. 5

DRIVERS OF COPPER CABLE THEFT Law Enforcement Agencies have concluded that many metal thefts are by drug addicts stealing metal in order to fund their addictions. It is believed that most of these drug-related metal thefts are caused by Methamphetamine (Tik, Nyaope, etc. ) users. This varies by the location where the metal is being stolen. Regardless of the reason, developing nations such as China, India and South Korea are ever-fueling the demand for it. Socio-economic conditions caused by unemployment and poverty. 6

LEGISLATIVE FRAME WORK (Second-Hand Goods Act, 2009 and Act 1955) The SAPS Administers Second-Hand Goods Act, 2009 (Act No 6 of 2009) although the act is not yet fully put into operation, some sections were put into operation as from 13 December 2011 and 16 January 2012. Among these sections, is section 25(4) which regulate the possession, acquisition and disposal of cable consisting of controlled metal of which the covering has been burnt. Regulations to provide for accreditation of second-hand goods dealers’ associations as promulgated on 6 September 2011 under Section 16 to 20 of the Act. Section 22(1) : deals with false information and stolen goods and provides: ◦ A dealer must immediately report the matter to a police official on duty at the police station in whose area the dealer carries on business. ”

LEGISLATIVE FRAME WORK … (Second-Hand Goods Act, 2009 and Act 1955) Provides a foundation for co-operation and effective law enforcement. (SAPS Performance Plan 2011 – 2012 – prioritized the implementation the Second Hand Goods Act to ensure compliance). ◦ Other laws, VAT, ITAC, Road Traffic Act; Waste Management; Precious Metals; Consumer Protection; Municipal etc ◦ Compliance monitoring will be done by associations. Minister of Police may extend the powers under the Act, to officials from other departments and parastatals in terms of section 31.

LEGISLATIVE FRAME WORK … The Prevention of Organised Crime Act, 1998 (Act no. 121 of 1998) does not provide for classification of certain offences as organised crime. However, all incidents of a serious nature that fall within the definition of the various offences provided for in the Act, are investigated under the Act and submitted to the Prosecuting Authority for prosecution.

National Crime Picture Reported Incidents and Arrests : 1 Jan – 31 Dec 2011

National Crime Picture … Reported Incidents and Arrests: Comparison - Jan 2011 and Jan 2012

ACHIEVEMENTS: 2010 - 2011 Copper Cable related material to the amount of R 37, 522, 947. 95 have been seized the period 2010/2011. DPCI Non-Ferrous Metal Desk became operational 1 September 2011, to focus on Organised Crime and the following success were achieved Jointly with the role-players, DPCI conducted operations / inspections in 43 identified scrap metal dealers: • ◦ 6 Scrap Metal Dealers were closed. ◦ 15 Scrap Metal Dealers were fined for non-compliance. ◦ 22 Scrap Metals Dealers were found to have licences or submitted applications for renewal of licences. ◦ 8 Organised Crime Syndicates / Groupings were identified and addressed (29 arrests were made and cases are still in court). 12

POLICE STRATEGIES Pro-Active Approach - In 2009 the Firearm Liquor and Second Hand Goods (FLASH) was established to deal with the proactive policing of all scrap metal dealers. Based on the DPCI Threat and Risk analysis; pro-active deployment and operations are conducted at scrap metal dealers jointly with the Divisions: Visible Policing, Criminal Record and Forensic Science Services and Crime Intelligence in conjunction with the affected role players.

POLICE STRATEGIES … Directorate For Priority Crime Investigation selected Non Ferrous Metals as a national priority crime. DPCI appointed a Champion to effectively deal with organised crime syndicates. National and Provincial Desks have been established in September 2011, to focus on Non Ferrous Metals investigations to enhance coordination and investigations of organised crime syndicates. The SAPS is presently in discussions with Department of Justice to investigate the viability to make the minimum sentences under Act 105 of 1997 applicable to serious cases of copper theft.

POLICE STRATEGIES … Multi-Disciplinary and Collaborative Approach - The Non Ferrous Crime Combating Committee forum has been established at National, Provincial, Cluster and Station level and is constituted by the following role players: ◦ South African Police Service (SAPS); ◦ The Directorate for Priority Crime Investigation (DPCI); ◦ Division: Visible Policing; ◦ Business Against Crime South Africa (BACSA); ◦ National Prosecuting Authority (NPA); ◦ Other Industries: ESKOM, Telkom, Transnet and Gautrain. The purpose of the forum is to discuss the nature and extent of the threat and develop mitigating strategies to address the Copper related crimes. A Standard Operating Procedure has been developed to ensure information process flow, proper co-ordination and joint execution of mandates. Further to the establishment of the national forum, Provincial forum were also established.

POLICE STRATEGIES … Multi-Disciplinary and Collaborative Approach - Further engagement with the Department of Trade and Industry, Department of Economic Development and International Trade Administration Commission (ITAC) to regulate and control the import and export processes. Law enforcement agencies in collaboration with the international trade administration authorities should focus resources to check every container that leaves South Africa. This is a challenge and it is critical for us to address the matter with the DTI and to incorporate stringent legislation. As recommended by Department: Justice and Constitutional Development, the South African Police Service (DPCI) will engage to ensure that training is provided to SAPS members and public prosecutors in order to enhance prevention, investigation and prosecution of offenders relating to Non Ferrous Metal cases.

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