Second-hand Goods Bill 04 March 2008

Business Against Crime South Africa  Founded in 1996 at the request of the then- President Mandela “The business sector could make a valuable contribution in supporting Government in combating crime and the causes of crime by the transfer of knowledge and the development of skills and capacity through a public private partnership.” - President Mandela  Section 21, not-for-profit, organization;  Mandate: To support government in the fight against crime by:  developing the public / private partnership;  supporting a mutually agreed vision;  influencing strategy, policy and priorities;  transferring business skills to Government without creating a dependency;  driving working solutions that deliver results; and  showing that business is committed to the fight against crime.  Funded primarily through donations from the private sector;  Brand essence:  Exemplary public/private partnership;  Trusted partner to both government and business in the fight against crime;  Providers of exceptional value addition;  Non commercial in nature, but output and goal orientated. Cost of crime to the economy estimated to be 18,9% of GDP (includes cost of loss of life, criminal justice expenditure and private security, as well as the effect on productivity, domestic and foreign investment, employment and consumption) – World Bank report, 2005

History  Business Against Crime South Africa involvement since 1997  Monitor Report recommended re-incorporation of vehicles, parts and accessories  Vehicles re-incorporated on 13 August 1999  1955 Act - inadequate

Goods Stolen  The following goods are known to be stolen or robbed  Cell phones, Vehicles, Jewellery, Electronic Equipment  There is a known second-hand demand for these items

The Market  The most effective way of reducing crime lies in the removal of the market for stolen items  Intention of robbers are:  To take what they deem to be valuable to either use directly themselves or exchange it for cash  To rob items because they have been ordered by buyers/receivers for whom the robbers work as runners

50% re-registered 30% exported 20% chopped Owner Identified (40%) recovered Unidentifiable (60%) Unrecovered Compacted Used by State Vehicle Crime Strategic Foundation

Non Ferrous Metals  The market for stolen non-ferrous metals remains, primarily, the local recycling industry.  Approximately 75% of all scrap metal generated in South Africa is handled by the formal sector and the remainder by the large number of informal businesses.  It is estimated that the total turnover of the recycling industry is in excess of R15 billion per annum.

Second-hand Market  Essential in any country  Legislation exist in various other countries  Australia  Namibia  Second-hand Goods Legislation is essential  Must allow the industry to regulate itself

Business Against Crime  Stakeholders and role players  Eskom/Telkom/Transnet  Metro police and councils  The Metal Recyclers Association  The Retail Motor Industry  The Independent Dealers Association

Requirement for Accreditation  SAPS and industry relationship is to be strengthened  Legal dealers do not need to be bogged down with administration  Keep the expertise with those within industry

Crime Situation in South Africa  Property crime -25% of all reported crime  Aggravated robbery-6% of all reported crime - Hijackings – 40 per day -House robberies – 37 per day -Business robberies – 27 per day Primary targets are cash, cell phones, jewellery, vehicles, electronic equipment * Source – SAPS Crime Statistics April to Sept 2007

Theft and Robbery  Despite its relatively small contribution to the total crime scenario, robberies are responsible for the greatest degree of trauma, and in some cases death, to victims, thus impacting perceptions of the country negatively both locally and internationally.  Theft and robbery are typically fuelled and enabled by the same market forces and criminal processes and networks.

Crime Situation in South Africa  During April to September 2007 house robberies increased by 7% and business robberies by 29%  During January to September 2008 theft of non ferrous metals increased by 50%

Conditions to successful implementation  The Regulations for the individual Associations must be finalised  Promulgation postponed for completion of the Regulations?  A National Instruction for the SAPS is to be drafted, circulated and implemented at all police stations  Application and certification information must be kept electronically by the SAPS and country wide access should be provided  SAPS dedicated staff and training

Conclusion  Business Against Crime South Africa support the Second- hand Goods Bill and do not propose any changes to the current format.

The End