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

95 0

00Owner

Identified(40%)

reco

vere

d

Unidentifiable(60%)

Un

reco

vere

d

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