Seizing Criminal Assets to Fight Crime Willie Hofmeyr Asset Forfeiture Unit National Prosecuting Authority Report to Parliament May

Overall objectives NPA set up AFU in 1999 to ensure that POCA properly implemented Offices in every province: Jhb Pta Dbn Ctn PE –Smaller offices in EL Bfn Kim Polokwane Nels 2 major strategic objectives 1: Increase the volume of cases to build the capacity to do more cases to make a real impact in the fight against crime 2: Developing the law to do test cases and create legal precedents that allow the effective use of the law 2

1: Increasing the volume of cases 2006 / / 2008 IndicatorTarget:Actual:% of Target Target:Actual% of target Number of cases Seizures % % Cases completed % % Monetary targets Seizures R300mR1 297m 432% R300mR 345m 115% Cases completed R120mR101m 84% R120mR127m 106% Funds into CARA R25mR 19m 77% R25mR 46m 182% 3

Notes on new restraint cases 06/07: was exceptional year, well above target on most indicators 07/08: lost several skilled staff, had to replace –Also impacted by uncertainty around DSO New restraint orders No. cases: 06/07 was 10% above target –07/08: 13% below target, but 3% below if take account of staff losses Value of cases: 06 /07 330% above target –David King – largest case ever - R1bn frozen –Delport – customs fraud of R350m –07/08: had good year, 15% above target 4

Notes on completed cases Completed cases No. cases: 06/07 was 38% above target –07/08: on target 10% above if take account of staff losses Value of cases: 06 /07: 16% below target –07/08: had good year, 10% above target CARA deposits (Criminal Assets Recovery Account) –06/ % below target –07/08: best year ever, 82% above target –Some big deposits still pending 5

CARA first payments First CARA payouts made this year Was an important development Most of funds to fight crime But also to help organisations that assist victims –DSD – 8 rape crisis and battered woman centres –SAPS – one way glass for ID parades –TRC victims –SOCA – specialised equipment for sexual offences courts 6

2: Developing the law 2006 / 2007 IndicatorTargetActual% of target Target:Actual% of target Total Judgements % % Judgements: Con Court30 Supreme Court Appeal43 Success rate67%81% 14% 72.5%70% -2.5% Success rate: CC/SCA75%71% -4% 75%33% -42% Judgements to dateSuccess rate to date All judgements % Constitutional Court683% Supreme Court Appeal2259% 7

Note on judgements Success rate of more than 85% in all cases taken on –Losses include those where it is not fault of AFU, eg person accquited Also measure success rate in cases where judgments are obtained In 4 years to April 2003 –won only 48% of judgments (25 of 52) Big change in last 5 years in judgements –won 73% of judgements (133 of 182) 8

CC Judgements 06/07, 07/08 Constitutional Court Prophet drug house - appeal refused. Clarify instrumentality forfeitures Absa vs Fraser – legal expenses cannot be granted to accused at the expense of creditors or victims without hearing them Mohunram – illegal casino instrumentality –Lost narrowly 6 vs 5 –Majority appear to require organised crime link 9

SCA judgements 06/07, 07/08 Supreme Court of Appeal Shaik – held that AFU can take gross benefit – not only the profit. Clarify confiscation procedure –Still waiting for outcome of CC appeal Van Staden – drunk driving cars are instrumentalities Mngomezulu – drug dealer – curator can sell off property to pay expenses of the estate Van Rensburg – lost on technical point Singh - Vermaak – drunk driving cars are instrumentalities, but it is not proportional Geyser – brothel is instrumentality, no proportionality problem 10

Partners relations Relations with partners excellent SAPS (incl SCCU) –about 83% of cases, 38% value about 50% of value through SCCU –45 SAPS detectives in AFU offices full-time DSO – about 13 % of cases, 60% value SARS – Delport, King and other cases NPS – ensure that get more referrals –Working on new organised crime initiative Others: SARB, FIC, Marine & Coastal Managm 11

Challenges Major challenge to expand its capacity sufficiently to deal with all the cases that are currently in court and where asset forfeiture can be done Estimate is about R1 to R2 billion, –apart from other proceeds that can be targeted through civil forfeiture Prepared a business case to expand capacity sufficiently to deal with this over 5 years Requires expanding the budget almost eight -fold –Budget has increased significant additional funding 12