traffic enforcement as a business - business plan
TRANSCRIPT
Business Plan 2015
CONFIDENTIAL Page 1
TRAFFIC ENFORCEMENT AS A BUSINESS
TECHNICAL SOLUTIONS
TO AN OLD PROBLEM
BUSINESS
PLAN
Prepared by: B T FRYER DUDLEY
Monday, 30 March 2015
Business Plan 2015
CONFIDENTIAL Page i
Table of Contents
Page
Confidentiality Agreement ii
1) Executive Summary 1
2) Company Description 2
Promoters, shareholders and Board 2
Advisors 2
Products and services 2
Long Term Aim of Business 2
Objectives 2
S.W.O.T. Analysis 2
3) Market Analysis 3
Target market 3
Total market valuation 3
Targeted share 3
Market trends 3
Profile of competitors 3
Competitive advantage 4
Benefits to clients 4
4) Marketing/Sales Strategy 5
Income sources 5
Marketing strategy 5
Pricing 5
Advertising and Promotion 5
Sales Strategy 6
5) Research & Development 7
Patents, copyrights and brands 7
Product/Service Development 7
R&D 7
6) Staffing and Operations 8
Management Organisation Charts 8
Staffing 8
Training Plans 8
Operations 8
7) Financial Projections 9
Key Assumptions 10
Profit and Loss Accounts 11
Balance Sheets 12
Cashflow Projections 13
8) Sales Pipeline 14
9) Funding Requirements 15
10) Appendices 16
Business Plan 2015
CONFIDENTIAL Page ii
Confidentiality Agreement
The undersigned reader acknowledges that the information provided in this business
plan is confidential; therefore, the reader agrees not to disclose it without the express
written permission of Barry T. Fryer Dudley
It is acknowledged by the reader that information to be furnished in this business plan
is in all respects confidential in nature, other than information that is in the public
domain through other means, and that any disclosure or use of this confidential
information by the reader may cause serious harm or damage to Barry T. Fryer Dudley
Upon request, this document is to be immediately returned to B T FRYER DUDLEY.
___________________________
Signature
___________________________
Name (printed)
___________________________
Date
This is a business plan. It does not imply offering of securities.
Business Plan 2015
CONFIDENTIAL Page 1
1. Executive Summary
As in all walks of life, the rapid advance of technology is
taking an ever-more central role in the provision of effective
traffic solutions. An old way to capture and issue violations
has now been supported by technology and processes.
Traditional traffic departments focus on speed, with payment
rates of 0.5 to 15%.
Approval for the moving violation process is about to be
obtained from the DPP. 63 potential clients have been
approached; with a number of contracts with Municipal
clients signed. A traffic department has been created and
staff including Traffic Officers has been appointed. Road
Blocks have been held and Violations have been captured
by camera, Fines have been issued. Fine have been paid, at
over 65% payment rate within 14 days
Funding preferably linked to shareholding and influence on
the award of the contract / BEE for sales and marketing to
secure the tenders is required. The proposal is to set up a
team to franchise the solutions proposed.
The purpose of this plan is to provide enough information to
allow an outside management company to identify if a
franchise model is the appropriate way forward? The ability
to enter into as many contracts in as short a time as possible
will ensure maximum payment rates. In that way a camera
in location 1 can capture the violation, a road block in
location 2 delivers the summons and the warrant of arrest is
executed in location 3 (more than likely in the drivers own
local municipality), ensuring a high payment rate.
Finding the local management team, local BEE partner
(possibly the same people) and the head office / franchise
management team is the purpose of this plan. With R180
Billion currently outstanding and the ability to capture and
issue thousands of fines a day per camera, sustainable
payments rates over a long period need to be proved in
multiple locations and communities. Drivers will change
behavior and the rate of change needs to be understood
before flooding the market with solutions.
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2. Company Description Technology and Shareholders
Technology
1. Barry T. Fryer Dudley
2. Depending on the site, a wide range of solutions may be needed
Management structure and areas of responsibility
1. Required for the proposed Head Office, central processing
2. Required per site
Shareholders, no. of shares, % shareholding and cash investment to date
1. The share holding for the head office and per site would be structured
to ensure the award of the contract, the management of the
opportunity and investment required.
2. The technology and processes have been developed from
experience in KwaSani, Port St John’s,
Estcourt, Kokstad, Impendle,
Pietermaritzburg, Durban, Residential
Estates including: Centurion, Woodhill
and Ebotse Golf Estates
Advisors
Financial - Required
Legal
Jooste and Jooste
DPP
Technical
Camera
LPR
ASD
Products and services
Traditional traffic departments focus on speed and
have very poor payment rates. By focusing on
moving violations with road block based summons
delivery and aggressive debt collection a high
number of fines can be captured (1.1 per vehicle)
with a good rate of issue and a high rate of fine
payment can be achieved. The actual numbers
and the sustainability of the income stream over a
long duration needs to be confirmed.
Background to its development
1. Started in the US in 1998, by an Imaging Company (i-Cube)
2. Head Hunted by SA Technology Company, Intervid who spent part of
USD 50 million to develop the LPR and Facial technology further.
3. The technology needs to continue to be developed to keep ahead of
the driver, traffic officer and staff innovations.
Benefits and Features
1. High violation capture rate
2. High fine delivery rate
3. High payment rate
4. Large numbers of low educated staff can be employed
5. Technology enhances the ability for staff employment
6. Reduces crime by more than 90%
Unique selling points
1. Reduce the death toll and save lives where no other action by
anybody has proved to reduce the high death toll in South Africa
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2. Employs lots of local people, in parking, enforcement stations, reviews
3. Modular, rolled out in phases, ensuring sustainable income stream
4. Can be self funding from exiting unpaid traffic fines
Advantages to customers
1. Generates income
2. No Cost
3. Technology supports the staff
4. Stops bribes of traffic officers
5. Employs local staff
Disadvantages or weak points
1. Needs a tender / Section 32 of SCM / Award
2. Must have support of the Council / MM / Traffic Chief / CFO
3. BEE required is not an option
Future developments >>
1. Weight,
2. By laws,
3. Pound
4. Other Municipal Debt
Long Term Aim of the Business
Enforce all 2 000 traffic and 1 500 municipal by laws, generating income, saving lives
and employing local staff on a sustainable basis.
Objectives
Have 1 reference town in each province within 3 years (the usual duration of a
tender) to get 51% of towns on board within 6 years.
SWOT Analysis
Strengths
New Application
New Technology
International opportunities
Weaknesses
Requires support of multiple
parties to get the award
Management
Opportunities
Existing Fines
New Fines
Moving Violations
By Laws
Reducing crime
Threats
Existing Traffic Companies
Staff accepting performance
remuneration
Politics
Technology could be copied
The cameras can be used for
both traffic and security solutions
Business Plan 2015
CONFIDENTIAL Page 4
3. Market Analysis
The opportunity
The GAP in the market is moving
violations, by laws and delivery of
violations
This GAP has been created due to
the focus on speed, corrupt traffic
officers and poor management.
Target Market
Any authority that can legally issue a
violation
Local Government
Provincial Government
National Government
International opportunities
Estates
Large Businesses
Mines
Total Market Valuation
SA - R180 billion
International USD 3 TRILLION Target Company revenue
While the ratio of vehicles to captured violations is known (1.1), the unknown factors
of delivery rate, payment rate, change of driver behaviour and long term costs are
unknown, making target company revenue a complete guess. The 1st few sites will
provide key data to calculate the possible company revenue.
Market Trends
Internationally a range
of technology is being
used to support traffic
officers. In South Africa
limited use of
technology is currently
in the field. The ability
to get traffic officers to
react to inputs rather
than allowing them to
react on their own is
KEY to stopping bribes,
tracking traffic officers
and ensuring traffic
officers work.
Recent
changes in
South Africa is
the use of
Business Plan 2015
CONFIDENTIAL Page 5
Average Speed Determination which has allowed many more (over 100 000
additional) violations a month per site without any increase in the payment
rate. Getting drivers to pay is KEY
Future predictions are extremely difficult as political appointments have
greater influence, so a huge opportunity to companies that can influence this.
Drivers such as demographic changes, economic and legislative factors have
the ability to influence payment rates, positively if appropriately managed.
Implications of changes in national or local by laws can have dramatic
improvements in payment rates; hence this must be exploited to the full.
A flexible approach by the management team to future demands and
changes in the market will ensure success.
Profile of Competitors
The main competitors are Syntell, TMT, TCS, Magna FS and a number of other small
local players. Until the DPP approval is obtained there appears to no focus on
moving violations or enforcement stations.
Many municipalities either do not have or run their own traffic departments.
These are key customers we need to target.
AS the key players focus on mobile speed enforcement without moving
violations or enforcement stations, staff employment focus they are not
currently competitors. A study of their company size, turnover, profitability
etc) and their market share would not prove useful.
The KEY Advantages of the competitors’ offerings is existing clients where they
could introduce this technology. A JV with TCS was entered into without
success. Discussions with TMT did not result in anything. The KEY disadvantages of the competitors’ offerings is the amount of money
they charge the client, without the focus on local staff cooperatives /
employment, security, the amount the competitors can charge is much lower.
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CONFIDENTIAL Page 6
Competitive Advantage
Focus on a wide range of solutions not just saving lives on the road,
employment, security, free internet, and training with substantial income
generation.
Benefits to Clients
Increase Employment
Increase income
Increase efficiencies
Save money
Save time
Maximise resources
Reduce errors
Reduce downtime
By entering into a contract to
change the status quo
substantial benefits will be
secured. The current focus on
speed can be replaced with a
greater range of enforcement,
including those that actually
cause accidents. The
combination of different technology to focus on a wide range of violations linked to
local employment to issue fines on the side of the road in the form of a summons,
ensuring a high payment rate, can bring a paradigm shift not seen before.
4. Marketing/Sales Strategy A reference site showing the complete solution is required. 2 applications to the DPP
have been submitted. Once these sites have a single camera operational and the
fines have been issued and paid, is should be easy to approach the whole of SA and
the world.
Marketing Strategy
The current strategy of focusing on no cost, revenue generation, employment of local
staff, security, cameras and training has not worked. A new focus on political
connections to fit into the new South Africa is required.
Segments of the market to be targeted first are those where political influence
will ensure the project is awarded and goes ahead
How this could be developed to reach the full target market is why senior
advisors are being sought.
How to differentiate the range of product and services per site?
What key benefits will be highlighted locally, provincially and internationally?
The customers already targeted include KZN, EC and OFS municipal clients
The test sites in operation provide valuable feedback on the size of the
opportunity which is why DPP approval is being obtained to use camera.
Local success will generate market awareness and sales, as bush telegraph
between local municipal client’s works incredibly well.
Revenue Sources
Traffic Fines
By Laws
Sales Strategy
Directly
BEE Agent
Sales rep
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Website
Revenue Sharing Partners
It is proposed to approach BEE partners is each town to develop a local partner who
can secure the contract, with the head office supplying the processes and
technology.
Pricing
The clients are provided with a range of solutions which will not cost the client
anything. The service provider covers all costs and makes money from the
opportunity. By focusing on Moving Violations which have a far higher value
(average of R1 500.00) than speed (average of R300.00) more income would be
expected. Offering value added services such as employment, free internet, no
costs, by laws etc. allows a higher income to be achieved compared to competitors.
Competitors’ prices vary from R25 to R40 per violation issued to R9.75 to
R175.00 per violation paid.
Level of competition in the market is moderate, with 6 to 8 competitors
expected per tender in the top 6 towns, and often no competitors in the
smaller towns. It is the smaller towns with access to National roads where one
should focus in the short term.
Perception of price by customers is not something these clients see as
important so the increase security, employment and BEE partner influence has
a higher level of influence in the decision making process.
Production costs and overheads are substantially lower than competitors
Chain of distribution can be very simple and profitable with added-value at
each stage.
The extent to which the buyer can control the price is limited when very few
companies wish to work in the small towns.
Each product or service which leads to an income source could be linked to a tariff
table in the municipality (assuming a by law was pasted), which could be controlled
by the BEE influence, giving us control and the ability to generate substantial income.
An example of this is what is currently happening in the Western Cape with the far
higher fines for cell phone violations. Parking a by law, could have fines from R150 to
R500 and more.
Marketing and Communications Strategy
To promote this product / service in the marketplace it is proposed to find local
partners in each town, or province and on a national basis both within SA and
internationally. Without the political influence in South Africa many sites have failed.
Advertising – To identify the right partners who have the right influence is KEY
Public relations while important is not crucial once the contracts and by laws
have been passed and appear in the Government gazette.
Direct marketing to the BEE Partners is suggested as in each location / town
there would be a few possible partners one could approach
Website and internet marketing needs to be considered, especially with the
ability to view your video, images, audio and pay your fine online
Exhibitions and conferences to identify those partners who need to be
approached could be a way forward?
Word of mouth may be the best way to break into the market?
Internationally the market is ready for this solution, and in London the cost for
using a cell phone while driving is over R40 000.00.
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CONFIDENTIAL Page 8
5. Research and Development Technology Roadmap
The are a range of existing solutions which could be
applied which could improve payments rates in South
Africa to what is enjoyed in the rest of the world (over
98% in 2 weeks).
One of these is the ability to with hold a drivers licence
or registration disk until all fines are paid.
Underlying Principles:
- Visible policing and manual enforcement (where an offender is immediately
stopped and issued with a fine / infringement notice) should take preference.
- Manual enforcement may be conducted at any site without any prior
authorisation.
- Highways, where the speed limit
is 120 km/h, will be granted automatic
authorisation for the entire route upon
application.
- As by far the most accidents
take place at intersections the focus
should therefor rather be on fixed
speed and/or red light cameras at intersections. Furthermore, fixed cameras operate
24/7 and in adverse weather conditions, as opposed to manned mobile cameras
which use are typically limited to daytime office hours and fair weather.
- The use of mobile speed cameras, where an offender
is not immediately stopped and issued with a fine /
infringement notice, should therefore be the last available
option.
Platforms used
Milestones to be achieved
System Overview Diagram>>
Research and Development
Traditionally, two types of operational policing methods have
been used to reduce speeding, but only one of them has
proved to be effective in influencing behaviour and crashes.
The first type is the stationary method generally involves an
observation unit, typically more or less hidden at the roadside,
and an apprehension officer clearly visible which stop
speeding drivers and issue fines. This is found to be the most
effective in changing driver behaviour and attitude.
The second type is camera speed enforcement at specific locations is defined as
enforcement of traffic behaviour, and apprehension of individual offenders at a
specific location on the road where the offender is not stopped. Studies that have
evaluated experiments with above enforcement only, indicate that mobile methods
neither have any lasting, measurable effect on speed behaviour, nor on speed-
related crashes.
Seat belt use
Every year in South Africa 15 000 people die and another 200 000 people are injured
in road traffic accidents. The human loss is traumatic but the economic cost is huge.
The bills for police and emergency services, damage to vehicles and property, and
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lost output cost the country an estimated R15 billion per annum.The use of seat belts
has been one of the most effective road safety measures ever implemented, saving
more lives than any other intervention. The effectiveness of seat belts depends upon
the type and severity of the crash and the seating position of the passenger.
Use of seat belts can reduce the risk of death in a road crash by up to 50% for front
seat, and 25% for rear seat passengers. Seat belts prevent being catapulted into the
vehicle structure or ejected from the vehicle. Vehicle occupants being ejected dies
in 75% of the cases.
It is therefore crucial in introducing effective
measurements in order to force motorist to
buckle up. Although wearing a seatbelt will not
prevent crashes, it is scientifically proven to
reduce and \ or prevent serious injury in the
event of a crash.
Many studies show that enforcement increases
seat belt use when combined with other
activities such as information campaigns. The
best way of achieving increases currently is
through intensive, highly visible and well
publicised enforcement.
Cell phones
Cell phone offences causes 25% of all
accidents, exceeding drinking and driving as
the lead cause of accidents.
Priority or “right of way” offences
Failure to observe red lights or pedestrian crossing lights is a
major safety issue in urban areas. The same applies to offences
which involve failure to observe the priority or right of way of
other road users, which comprise about half of the road
collisions in urban areas.
However, little enforcement effort is devoted to these types of
offences. The same observation applies to offences such as use
of restricted lanes, making U-turns or turning left or right where
prohibited or overtaking in chevron indicated areas. All these
types of behaviour emerge as disproportionately risky in crash
analysis but are rarely the targets of systematic
enforcement.
Traffic regulation enforcement has mostly concentrated to
date on the important problems of speeding, alcohol
impairment and failure to use seat belts. At the same time,
there are other important offences in road safety terms
which have yet to be included as priority areas in police
work. For example, errors in overtaking or overtaking
offences result in very serious crashes.
Failure to observe red lights or pedestrian lights is a major
safety issue in urban areas. Maintaining short distances
(tailgating) substantially increases the risk of rear-end
collision.
All these types of behaviour appear disproportionately risky
but are rarely the target of systematic enforcement. Aggressive driving is a major
source of irritation amongst road users.
The next page shows the number of violations that is possible to ID, R100 000 per hour.
.
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CONFIDENTIAL Page 10
DATE TIME LICENCE PLATECharge CodeVIOLATION REGULATION COLOUR TYPE FINE ISSUE NO.Charge 1
2015/03/23 08:14:00 AM NP163374 81593 REG. 213(5) Act 93/1996 WHITE NISSAN NONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:14:00 AM NDE21751 17691 REG. 58(1) Act 93/1996 WHITE TOYOTA NONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:15:00 AM NMR6934 81593 REG. 213(5) Act 93/1996 WHITE TAZZ NONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:15:00 AM NMR6934 81593 REG. 213(5) Act 93/1996 WHITE BAKKIE NONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:15:00 AM 81593 REG. 213(5) Act 93/1996 WHITE GOLF NONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:15:00 AM NMR81 17691 REG. 58(1) Act 93/1996 WHITE TOYOTA NONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:16:00 AM NMR81 81593 REG. 213(5) Act 93/1996 GREY MITSUB BAKKIENONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:16:00 AM NMR2311 17691 REG. 58(1) Act 93/1996 WHITE TOYOTA HIACENONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:17:00 AM CS89HTGP 17691 REG. 58(1) Act 93/1996 GREY NISSAN NONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:17:00 AM NMR2407 17691 REG. 58(1) Act 93/1996 WHITE TOYOTA HIACENONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:17:00 AM NMR1154 17691 REG. 58(1) Act 93/1996 GREY OPEL BAKKIEDid not come to a complete STOP at a Stop Street
2015/03/23 08:17:00 AM NR21826 17691 REG. 58(1) Act 93/1996 BLUE UNKNOWNNONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:18:00 AM ND625357 17691 REG. 58(1) Act 93/1996 WHITE TATA TruckDid not come to a complete STOP at a Stop Street
2015/03/23 08:18:00 AM NMR9097 17691 REG. 58(1) Act 93/1996 WHITE MERC TAXINONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:19:00 AM CL49698 17691 REG. 58(1) Act 93/1996 GREY NISSAN NONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:19:00 AM ND267870 81593 REG. 213(5) Act 93/1996 GREY MITSUB BAKKIEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:19:00 AM FLS967FS 17691 REG. 58(1) Act 93/1996 WHITE SCANIA TruckNONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:19:00 AM NMR**** 81593 REG. 213(5) Act 93/1996 WHITE NISSAN BAKKIENONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:19:00 AM NR27386 81593 REG. 213(5) Act 93/1996 WHITE TATA TRUCKNONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:21:00 AM ND546411 17691 REG. 58(1) Act 93/1996 WHITE LANDROVER DISCO 4NONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:22:00 AM NMR9584 81593 REG. 213(5) Act 93/1996 WHITE TOYOTA HIACENONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:22:00 AM ND546411 17691 REG. 58(1) Act 93/1996 BLUE NISSAN NONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:22:00 AM NUZ4555 17691 REG. 58(1) Act 93/1996 BROWNTOYOTA NONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:23:00 AM NPS16079 17691 REG. 58(1) Act 93/1996 GREY UNKNOWN BAKKIEDid not come to a complete STOP at a Stop Street
2015/03/23 08:23:00 AM NMR9584 81593 REG. 213(5) Act 93/1996 WHITE TOYOTA HIACENONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:23:00 AM NV93 17691 REG. 58(1) Act 93/1996 WHITE LANDROVER DISCO 4NONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:23:00 AM ND546411 83464 REG. 300 Act 93/1996 WHITE FORTUNER TOYOTANONEFailed to give a signal to move left or right
2015/03/23 08:24:00 AM ***76GP 81593 REG. 213(5) Act 93/1996 WHITE TOYOTA HIACENONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:25:00 AM PGZ612GP 81593 REG. 213(5) Act 93/1996 GREY NISSAN BAKKIENONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:25:00 AM NR18441 17691 REG. 58(1) Act 93/1996 WHITE FORD BAKKIENONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:26:00 AM FPL802FS 83464 REG. 300 Act 93/1996 WHITE TRUCK NONEFailed to give a signal to move left or right
2015/03/23 08:26:00 AM NMR1685 81593 REG. 213(5) Act 93/1996 WHITE TRUCK NONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:26:00 AM FPL802FS 83464 REG. 300 Act 93/1996 WHITE NISSAN BAKKIENONEFailed to give a signal to move left or right
2015/03/23 08:27:00 AM ND504976 17691 REG. 58(1) Act 93/1996 WHITE AUDI NONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:27:00 AM NMR1528 17691 REG. 58(1) Act 93/1996 WHITE BAKKIE NONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:27:00 AM NP57311 83464 REG. 300 Act 93/1996 WHITE NISSAN BAKKIENONEFailed to give a signal to move left or right
2015/03/23 08:28:00 AM HHR629EC 17691 REG. 58(1) Act 93/1996 WHITE NISSAN BAKKIEDid not come to a complete STOP at a Stop Street
2015/03/23 08:28:00 AM FYS443MP 17691 REG. 58(1) Act 93/1996 WHITE ABNORMAL TRUCKNONEDid not come to a complete STOP at a Stop Street
2015/03/23 08:29:00 AM NR15176 81593 REG. 213(5) Act 93/1996 GREY CHEV NONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:30:00 AM NMR6062 81593 REG. 213(5) Act 93/1996 WHITE DATSUN NONEAdult person on row of seats did not use an available seatbelt
2015/03/23 08:31:00 AM No plate found84135 REG. 308A(1)(a) Act 93/1996BLUE VW GOLFNONEHeld cell phone in hand or hands or with other part of body
2015/03/23 08:31:00 AM NMR1436 17691 REG. 58(1) Act 93/1996 WHITE NISSAN BAKKIEDid not come to a complete STOP at a Stop Street
2015/03/23 08:33:00 AM NP21236 17691 REG. 58(1) Act 93/1996 WHITE FORD BAKKIEDid not come to a complete STOP at a Stop Street
Business Plan 2015
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Technical Partners
Cameras – high speed and high resolution, night operation
Wireless – communication
Storage – over 100GB per hour per camera possible
Mobile operations – Process and Print on the road
Debt Collectors – Postage, call, SMS, email, Fax, communicate
and collect
IP, Patents, Copyrights, Brands
The requirement to have a traffic officer adjudicate the
violation prevents anyone from using the idea to issue fines.
DPP approval is needed for the cameras, which is a major
barrier to enter within the traffic enforcement community
Hand held technology to issue the violation on the side of
the road compared to the traditional writing fines by a traffic officer keeps the traffic
officer honest and allows the issue of more violations that are correct.
With suitable funding it should be possible to take out a number of patents to offer
additional protection.
It is proposed to have different operating companies in each site, based on the BEE /
influence factor to get the contract.
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6. Staffing and Operations Due to the previous experiences in numerous sites, it is proposed to have a single
traffic officer with a camera operating a mobile operation. Over time, and once a
high number of violations have been captured, local staff would be trained to
operate a road block and deliver the recently captured moving violations and past
fines. This would then be expanded to the enforcement of the new by laws, including
taxi cameras.
Management (including Board) Organisation Chart
Required
Staffing
Proposed
Training Plans
Select a number of local
staff based on the
number of staff needed
to issue 5% of the
violations.
Train as peace officers (1
week)
After a period train the
best 10% of those as
traffic wardens (3
months), while ensuring
the staff are kept honest
and do not steal
After a period train the
best 10% of those as traffic officers
And keep going
Operations
Premises – 1 desk in the
Traffic Department or a
small office
Equipment – 1 camera
Demo facilities – head
office required
Infrastructure – Fibre link or
40 MB uncapped ADSL link
Communications facilities –
3G and wireless
Costs involved
Suppliers >>
CONFIDENTIAL Page 13
7. Financial Projections I Key Assumptions
II Profit and Loss Accounts
III Balance Sheets
IV Cash flow
I Key Assumptions Traffic fines will be paid, due to ease of payment, summons and warrants of arrest
Traffic officers will not take bribes due to technology
DPP will grant permission
Contracts will be secured
Income sources
Traffic fines
By Laws (phase 2)
Debt Collection (phase 3)
Parking (phase 3)
Number of employees projected for each year and their intended salaries
1. Each site should start with a single staff member until the DPP approval is obtained.
2. Once obtained, start with 10 local staff and 1 traffic officer, as per the attached.
Projected investment in equipment and materials
1. Please see attached excel document for detail
Projected R&D costs
1. Depends on a wide range of factors per site
Depreciation allowed for
1. Please see attached excel document for detail
Expected rent and rates charges
1. Please see attached excel document for detail
Creditor days expected and debtor days allowed
1. Please see attached excel document for detail
Expense calculations
1. Please see attached excel document for detail
II Profit & Loss Accounts 1. Please see attached excel document for detail
II Balance Sheets 1. Please see attached excel document for detail
IV Cashflow 1. Please see attached excel document for detail
8. Sales Pipeline Once the approval from the DPP is obtained, real world data will be obtained from which
every town needs to be approached. The way the approach is made via a local partner
with political connections is what is required.
9. Funding Requirements 1. Please see attached excel document for detail
It is proposed to start with a single camera and road block until real data is obtained.
Assuming there is already a traffic department the current outstanding fines may contribute
to the required funds.
Sources:
BEE, with influence over the tender process.
Bank lending
Grants or loans from agencies are possible again with the right BEE partners
Investment for staff employment is possible as local employment can be well funded?
Investors with influence in local government are currently being actively sought
Required for:
Marketing; Securing Tenders; Equipment; Staffing
CONFIDENTIAL Page 14
9. Appendices
LEGAL PRINCIPLES IN CAMERA ENFORCEMENT Probative material refers to anything a court may take into consideration in making a finding.
Real evidence can be photographs, video and audio recordings. The Criminal Procedures Act, 51 of
1977 expressly allows for production of photographs as evidence. Video recordings, including digital
recordings, are to be considered as merely a series of photographs and are therefore allowed as
evidence in terms of the same section of this act. In S v MPUMLO supra Mullins J stated at 490 h-i that
a video film like a tape recording, “is real evidence as distinct from documentary evidence, and,
provided it is relevant, it may be produced as admissible evidence, subject of course to any dispute
that may arise either as to its authenticity or the interpretation thereof.”
In S v M 2002 (2) SACR 411 (SCA) the following was stated at 432c-d:
“Real evidence which is procured by illegal or improper means is generally more readily admitted
than evidence so obtained which depends upon the say-so of a witness (see, for example, R v Jacoy
(1988) 38 CRR 290 at 298) the reason being that it usually possesses an objective reliability.
It does not ‘conscript the accused against himself’ in the manner of a confessional statement (R v
Holford [2001] 1 NZLR 385 (CA) at 390). The letter in this case can be classified as real evidence of a
documentary nature (notwithstanding the doubts which the Court a quo expressed).
Real evidence is an object which, upon proper identification, becomes, of itself, evidence (such as a
knife, photograph, voice recording, letter or even the appearance of a witness in the witness-box).
Schmidt Bewysreg 4th ed at 326, Hoffman & Zeffertt The South African Law of Evidence 4th ed at 404,
Cross & Tapper on Evidence 8th ed at 48.”
ELECTRONICALLY EMANATED EVIDENCE MAY BE ADMITTED IN EVIDENCE IN A CRIMINAL COURT UNDER
THE:
• Common Law
• Criminal Procedure Act No 51 of 1977
• Section 3(1) of the Law of Evidence Amendment Act No 45 of 1988 (Hearsay)
• Electronic Communications and Transactions Act No 25 of 2002 (ECT Act)
Definition of document under the Common Law
• Any written thing capable of being evidence. See R v Daye 1908 KB 330 at 340;
• “Everything that contains the written or pictorial proof of something. It does not matter much
of what material it is made”. See Seccombe v Attorney-General 1919 TPD 270, 272, 277‑278. This
definition includes a photograph. See Mpumlo 1986 (3) SA 485 (E) which was agreed to by Baleka
1986 (4) 192 (T) 196H.
• If it in fact contains written proof of facts, (in writing or ciphers), it is a document. See
Seccombe v Attorney-General, supra p.277-278;
• The ordinary meaning of the word ‘document’ is wide enough to include computer printouts.
See Harper 1981 (1) SA 88 (D) 96C-F; De Villiers 1993 (1) SACR 574 (Nm) and Ndiki 2008 (2) SACR 252
(Ck).
• It includes a “coin” according to Protea Assurance v Waverley Agencies 1994 (3) SA 247 (A)
249H-I.
PRINCIPLES RELATIVE TO PROVIDING REAL EVIDENCE OF A DOCUMENTARY NATURE UNDER THE
COMMON LAW:
Real evidence
• Identify\”Authentic
• Reliability of the equipment
• No need for the original: Mdlongwa 210 92) SACR 419 (SCA) 427b-g; De Villiers 1993(1) SACR
574 (NM); HNP v Sekreatris van Binnelandse Sake 1979(4) SA 274(T)
Real evidence of a documentary nature:
We prove the truth of the contents via proving the reliability and correct functioning of the computer
and its software.
Reliability of the computer system
The reliability and accuracy of the computer and its operating systems are quite obviously relevant
factors to be considered in the exercise of the court’s discretion. Ndiki 2008 (2) SACR 252 (Ck) 261d-h
(par 54).
REAL EVIDENCE
Functional Reliability
CONFIDENTIAL Page 15
Could be supplied by circumstantial evidence of the usual habit or routine regarding the use of the
computer.
This is sometimes referred to as the presumption of regularity which is a commensense inference,
which may be drawn where appropriate.
• When the information was recorded by mechanical means without the personal involvement
of a human being.
• A person only activate the electronic system.
• The system then generates information based on its software.
• The system mainly records and stores.
• The above is real evidence.
Videos, audios, recordings from surveillance equipment and the like, can be admitted under the
electronic communications Act 25 of 2002.
The courts already identified real evidence of a documentary nature in 1976, without referring to it as
such. This is the case where the printout came about by the computation, sorting, collating and
synthesising of data by the computer and not by a person.
Narlis v South African Bank of Athens 1976(2) SA 573 (A): Holmes Ja, Jansen JA, Rabie JA, Kotze AJA
and Viljoen AJA
- Sections 33 to 38 of the Civil Proceedings Evidence Act 25 of 1965
- Section 222 of the Criminal Procedures Act 51 of 1977, sub-section (4) of section 34.
Harper 1981(1) SA 88(D): Milne J
De Villiers 1993(1) SACR 574(Nm): O’Linn J, Teek J
Ndiki 2008(2) SACR 252(Ck): Van Zyl J
- Section 221 of the Criminal Procedures Act 51 of 1977.
HARPER 1981(1) SA 88 (D), S v Ningise and others, Case No CC4/2002 (Nm)
“‘document’ includes any device by means of which information is recorded or stored” see
definition in section 221 of the Criminal Procedure Act.
Harper: Applied the ordinary meaning of the word ‘document’ which is wide enough to include
computer printouts, to admit computer processed information;
Ningise: Applied the extended definition of ‘document’ to admit a printout where the device which
printed the cell phone records, only records and stores the information, where interconnectivity is in
issue.
RELIABILITY CASE LAW
S v De Vries (67/2005) [2008] ZAWCHC 36 (10 June 2008) (Western Cape High Court) See from par 92
of the report. www.saflii.co.za
Mdlongwa 2010 (2) SACR 419 (SCA) 424g – 4215b
Dos Santos 2010 (2) SACR 382 (SCA)
S v Van der Vyver (SS 190/06) [2007] ZAWCHC 69 (29 November 2007)
THE EFFECT OF EX PARTE ROSCH ON THE LAW OF EVIDENCE
Extends the law relative to the admissibility of videos and audios (FUHRI 1994 (2) SACR 829 (A) to
computer printouts from mechanically operated equipment:
- Real evidence
- Proof of the truth of the contents
- Not hearsay evidence
- Original not in question
- Proof of functional reliability by:
o Judicial notice
o Expert evidence
o Laymen’s evidence
THE EFFECT OF NDIKI (EXHIBITS D5-D9) ON THE LAW OF EVIDENCE
Extends the law relative to the admissibility of videos and audios (FUHRI 1994 (2) SACR 829 (A) to
computer printouts from mechanically operated equipment (Ex Parte Rosch) to computer printouts
where the computer processes the information:
- Real evidence of a documentary nature
- Proof of the truth of the contents
- Not hearsay evidence
- Original not in question
- Proof of the functional reliability of computer software and operating systems by:
o Judicial notice
CONFIDENTIAL Page 16
o Expert evidence
o Laymen’s evidence
Having said that, the court in Ndiki admitted the printout as real evidence of a documentary nature
under section 221 of the Criminal Procedures Act.
CONCLUSION
The lack of physical evidence, it is the officer’s word against the driver’s word, leads to unnecessary
arguments and confrontations between drivers and law enforcers. A photo of the offense being
committed will be the physical evidence required to collaborate the officer.
CRIMINAL PROCEDURE ACT 51 OF 1977
[ASSENTED TO 21 APRIL 1977] [DATE OF COMMENCEMENT: 22 JULY 1977]
WRITTEN NOTICE TO APPEAR IN COURT (S 56)
56 Written notice as method of securing attendance of accused in magistrate's court
(1) If an accused is alleged to have committed an offence and a peace officer on reasonable
grounds The offence was committed in the presence of the Peace officer/Traffic Officer he physically
saw the offence being committed and has captured the offence on video/camera, believes that a
magistrate's court, on convicting such accused of that offence, will not impose a fine exceeding the
amount of * determined by the Minister from time to time by notice in the Gazette, this amount
changes but is normally the maximum amount for a single offence that can be issued, otherwise a no
admission of guilt fine is written on the 56 notice whereby the offender has no pay amount but has to
appear in court, such peace officer may, whether or not the accused is in custody, this section
implies that even if an offender has been arrested, irrespective of the period he has been in custody,
therefore no time limit, hand to the accused a written notice which shall -
(a) specify the name, the residential address and the occupation or status of the accused;
(b) call upon the accused to appear at a place and on a date and at a time specified in the
written notice to answer a charge of having committed the offence in question;
(c) contain an endorsement in terms of section 57 that the accused may admit his guilt in
respect of the offence in question and that he may pay a stipulated fine in respect thereof without
appearing in court; and
(d) contain a certificate under the hand of the peace officer that he has handed the original of
such written notice to the accused and that he has explained to the accused the import thereof.
(2) If the accused is in custody, the effect of a written notice handed to him under subsection (1)
shall be that he be released forthwith from custody.
(3) The peace officer shall forthwith forward a duplicate original of the written notice to the clerk
of the court which has jurisdiction.
(4) The mere production to the court of the duplicate original referred to in subsection (3) shall
be prima facie proof of the issue of the original thereof to the accused and that such original was
handed to the accused.
(5) The provisions of section 55 shall mutatis mutandis apply with reference to a written notice
handed to an accused under subsection (1)
The relevance of Section 56 (1) is the following:
1. Peace Officer/Traffic Officer one, man the camera.
2. He observes the offence and has recorded it on camera.
3. He communicates the offence, vehicle type and colour and registration number to a second
Peace Officer/Traffic Officer a distance away.
4. The second Peace Officer/Traffic Officer directs the vehicle to stop alongside the road and is
then given a 56 written notice for the specific offence.
5. The traffic officer also inspects the vehicle for any other violation under the NRTA and issue
additional 56 written notices for such fines if any.
In the event of an offending motorist somehow not stopped at the roadside checkpoint, record is still
kept of the offence and stored on the database. At a later stage (days weeks, months after) when
the vehicle with which the offence was committed in, is stopped at a roadside checkpoint, the driver
of the vehicle is then issued with a 56 written notice for that offence. The date on the 56 written
notice must be the date of the offence and not the date the notice was issued.
The question is now what if the driver that committed the above offence and another driver of the
same vehicle are stopped at a roadside checkpoint? Can this driver that did not in fact commit the
offence be issued with a 56 written notice?
Here we revered to the NRTA and the AARTO Act:
CONFIDENTIAL Page 17
In any prosecution charging a violation of any law or regulation governing the stopping, standing,
parking or driving of a vehicle described in the complaint, was in violation of any such law or
regulation, together with the proof that the defendant named in the complaint was at the time of
the violation the registered owner of such a vehicle, shall constitute in evidence a prima facie
presumption that the registered owner of such vehicle was the person who parked, placed or drove
such vehicle at the time during which such violation occurred.
Administrative of Road Traffic Offences Act, No. 46 of 1998, (AARTO),
4.3 Identification of Driver :
Provide information, to the satisfaction of the Agency that he or she was not the driver of the motor
vehicle at the time of the alleged infringement, together with the full name, acceptable
identification; as well as residential and postal addresses and telephone numbers of the alleged
driver or person in control of the vehicle at the time of the infringement. In such cases the Agency will
cancel the original Infringement Notice and serve a second Infringement Notice per registered mail
to the person so identified. Should such identified Infringer fail to respond in the prescribed manner
within 32 days, the original Infringement Notice will be reinstated and the first Infringer will become
liable to pay both the penalty and the prescribed fee of the Courtesy Letter to be issued in such a
case.
The above legislation therefore allows a Peace Officer\Traffic Officer to issue a section 56 written
notice to the driver of a vehicle for an offence. If the driver that receives the 56 written notice was
not the driver that committed the offence at the time of the offence, he\she can inform the traffic
department in writing that he\she was not the driver at the time of the offence, but must supply the
traffic department with the name and address of the person that was in fact the driver of the vehicle
at the time of the offence. Failure to do so will result in the driver summoned to pay the fine.
Automated Traffic Violation Monitoring Systems
SECTION 31-41.2-6
31-41.2-6 Driver/registered owner liability.
(a) The registered owner of the motor vehicle shall be primarily responsible in all prosecutions
brought pursuant to the provisions of this chapter except as otherwise provided in this section.
(b) In all prosecutions of civil traffic violations based on evidence obtained from an automated
traffic violation detection system, the registered owner of a vehicle which has been operated in
violation of a civil traffic violation, may be liable for such violation. The registered owner of the vehicle
may assume liability for the violation by paying the fine; or by defending the violation pursuant to the
procedures in § 31-41.2-4.
(c) The lessee of a leased vehicle shall be considered the owner of a motor vehicle for purposes
of this section.
CHAPTER 8 ADMISSION OF GUILT FINE (ss 57-57A)
57 Admission of guilt and payment of fine without appearance in court
(1) Where-
(a) a summons is issued against an accused under section 54 (in this section referred to as the
summons) and the public prosecutor or the clerk of the court concerned on reasonable grounds
believes that a magistrate's court, on convicting the accused of the offence in question, will not
impose a fine exceeding the amount * determined by the Minister from time to time by notice in the
Gazette, and such public prosecutor or clerk of the court endorses the summons to the effect that
the accused may admit his guilt in respect of the offence in question and that he may pay a fine
stipulated on the summons in respect of such offence without appearing in court; or
(b) a written notice under section 56 (in this section referred to as the written notice) is handed to
the accused and the endorsement in terms of paragraph (c) of subsection (1) of that section
purports to have been made by a peace officer, the accused may, without appearing in court,
admit his guilt in respect of the offence in question by paying the fine stipulated (in this section
referred to as the admission of guilt fine) either to the clerk of the magistrate's court which has
jurisdiction or at any police station within the area of jurisdiction of that court or, if the summons or
written notice in question is endorsed to the effect that the fine may be paid at a specified local
authority, at such local authority.
(2) (a) The summons or the written notice may stipulate that the admission of guilt fine shall be
paid before a date specified in the summons or written notice, as the case may be.
(b) An admission of guilt fine may be accepted by the clerk of the court concerned
notwithstanding that the date referred to in paragraph (a) or the date on which the accused should
have appeared in court has expired.
CONFIDENTIAL Page 18
(3) (a) (i) Subject to the provisions of subparagraphs (ii) and (iii), an accused who intends to pay
an admission of guilt fine in terms of subsection (1), shall surrender the summons or the written notice,
as the case may be, at the time of the payment of the fine.
(ii) If the summons or written notice, as the case may be, is lost or is not available and the copy
thereof known as the control document-
(aa) is not available at the place of payment referred to in subsection (1), the accused shall
surrender a copy of the summons or written notice, as the case may be, at the time of the payment
of the fine; or
(bb) is available at the place of payment referred to in subsection (1), the admission of guilt fine
may be accepted without the surrender of a copy of the summons or written notice, as the case
may be.
(iii) If an accused in respect of whom a warrant has been endorsed in terms of section 55 (2A)
intends to pay the relevant admission of guilt fine, the clerk of the court may, after he has satisfied
himself that the warrant is so endorsed, accept the admission of guilt fine without the surrender of the
summons, written notice or copy thereof, as the case may be.
(b) A copy referred to in paragraph (a) (ii) may be obtained by the accused at the magistrate's
court, police station or local authority where the copy of the summons or written notice in question
known as the control document is filed.
(c) Notwithstanding the provisions of subsection (1), an accused referred to in paragraph (a) (iii)
may pay the admission of guilt fine in question to the clerk of the court where he appears in
consequence of such warrant, and if the said clerk of the court is not the clerk of the magistrate's
court referred to in subsection (1), he shall transfer such admission of guilt fine to the latter clerk of the
magistrate's court.
(4) No provision of this section shall be construed as preventing a public prosecutor attached to
the court concerned from reducing an admission of guilt fine on good cause shown.
(5) (a) An admission of guilt fine stipulated in respect of a summons or a written notice shall be in
accordance with a determination which the magistrate of the district or area in question may from
time to time make in respect of any offence or, if the magistrate has not made such a determination,
in accordance with an amount determined in respect of any particular summons or any particular
written notice by either a public prosecutor attached to the court of such magistrate or a police
official of or above the rank of non-commissioned officer attached to a police station within the
magisterial district or area in question or, in the absence of such a police official at any such police
station, by the senior police official then in charge at such police station.
(b) An admission of guilt fine determined under paragraph (a) shall not exceed the maximum of
the fine prescribed in respect of the offence in question or the amount* determined by the Minister
from time to time by notice in the Gazette, whichever is the lesser.
(6) An admission of guilt fine paid at a police station or a local authority in terms of subsection (1)
and the summons or, as the case may be, the written notice surrendered under subsection (3), shall,
as soon as is expedient, be forwarded to the clerk of the magistrate's court which has jurisdiction, and
such clerk of the court shall thereafter, as soon as is expedient, enter the essential particulars of such
summons or, as the case may be, such written notice and of any summons or written notice
surrendered to the clerk of the court under subsection (3), in the criminal record book for admissions
of guilt, whereupon the accused concerned shall, subject to the provisions of subsection (7), be
deemed to have been convicted and sentenced by the court in respect of the offence in question.
(7) The judicial officer presiding at the court in question shall examine the documents and if it
appears to him that a conviction or sentence under subsection (6) is not in accordance with justice
or that any such sentence, except as provided in subsection (4), is not in accordance with a
determination made by the magistrate under subsection (5) or, where the determination under that
subsection has not been made by the magistrate, that the sentence is not adequate, such judicial
officer may set aside the conviction and sentence and direct that the accused be prosecuted in the
ordinary course, whereupon the accused may be summoned to answer such charge as the public
prosecutor may deem fit to prefer: Provided that where the admission of guilt fine which has been
paid exceeds the amount determined by the magistrate under subsection (5), the said judicial officer
may, in lieu of setting aside the conviction and sentence in question, direct that the amount by
which the said admission of guilt fine exceeds the said determination be refunded to the accused
concerned.
National road traffic Act
CONFIDENTIAL Page 19
87 Service of notices
(1) Whenever in terms of this Act any notice is authorised or required to be served upon or issued to
any person, such notice shall either be served personally upon the person to whom it is addressed or
be sent to him or her by registered post to his or her last known address: Provided that the address
furnished by the holder of a driving licence at the time of his or her application for such licence or
recorded against his or her name in a register of driving licences, or the address recorded against the
registration of a vehicle in a register of motor vehicles as the address of the owner of such vehicle,
shall serve as his or her domicile of summons and execution for all purposes arising from or for the
purposes of this Act, for the service of notices, post or process on that person.
(2) Service by registered post in terms of subsection (1) shall be deemed to have been effected on
the tenth day after the date stamped upon the receipt for registration issued by the post office which
accepted the notice.
(3) A certificate by the officer who issued the notice referred to in subsection (1), or by a person
subordinate to such officer, stating the time, place and manner of issuing such notice, shall be prima
facie proof that such notice was duly issued.
3F Powers and duties of inspector of licences
In addition to the powers and duties conferred upon him or her or under this Act, an inspector of
licences may, subject to the provisions of this Act or any other law-
(a) by notice in writing as prescribed, direct the owner, operator, driver or person in charge of any
vehicle, wherever found, which in his or her opinion does not comply with the requirements for
roadworthiness certification provided for in this Act or in any other law, to produce such
vehicle for inspection, examination or testing to an appropriately graded
testing station for such class of vehicle at a time and place specified in such notice;
(b) in respect of any motor vehicle, demand from the title holder, owner, operator or driver thereof
the production of any document which such person is required to have in respect of that motor
vehicle in terms of this Act or any other law, or any like document issued by a competent authority
outside the Republic;
(c) require from any instructor-
(i) where such instructor is engaged in teaching or instructing another person in the driving of a motor
vehicle, forthwith; or
(ii) where such instructor is not so engaged, within seven days, to produce evidence of his or her
registration;
(d) examine any motor vehicle in order to satisfy himself or herself that it is the motor vehicle in
respect of which a document referred to in paragraph
(b) was issued;
(e) impound any document referred to in paragraph (b) which appears to be or which the officer
suspects to be invalid or which has been or appears to have been unlawfully altered or defaced or
which is being put to unlawful use, and where any document is so impounded, the inspector shall
issue a receipt in respect thereof to the person concerned;
(f) require the owner, operator or driver or person in charge of any vehicle forthwith to furnish his or
her name and address, and give any other particulars required as to his or her identification, and
where applicable, immediately to produce a professional driving permit;
(g) demand from any person immediately to produce a licence or any other prescribed
authorisation authorising him or her to drive a motor vehicle, and to produce any other document
which he or she is required to have in respect of any motor vehicle in terms of this Act or any other
law;
(h) impound any licence or document produced to him or her in terms of paragraph (g) which in his
or her opinion may afford evidence of a contravention or evasion of any provision of this Act or any
other law, and where any licence or document is so impounded, the inspector shall issue
a receipt in respect thereof to the person concerned;
(i) require any person, whether or not this person is in a vehicle, to furnish his or her name and address
and to give other particulars required as to his or her identification, as well as such information as is
within his or her power to furnish and which may lead to the identification of the owner, operator
or driver of the vehicle concerned;
(j) require any person to furnish him or her with any information as is within the power of such person
to furnish and which may lead to the identification of the driver, owner, operator or person in charge
of a vehicle at any time or during any period; or
CONFIDENTIAL Page 20
(k) at any reasonable time, having regard to the circumstances of the case, without prior notice, and
in the exercise of any power or the performance of any duty which he or she is in terms of this Act or
any other law authorised or required to exercise or perform, enter any premises on which he or she
has reason to believe that any vehicle is kept.
3I Powers and duties of traffic officer
In addition to the powers and duties conferred upon him or her or under this Act, a traffic officer may,
subject to the provisions of this Act or any other law-
(a) exercise or perform any of the powers or duties conferred upon an inspector of licences under
section 3F;
(b) when in uniform, require the driver of any vehicle to stop such vehicle;
(c) inspect and test or cause to be inspected and tested by a person whom he or she considers
competent to do so, any part and the functioning of any vehicle, and the equipment thereof, with a
view to ascertaining whether the vehicle concerned or the functioning thereof and the equipment
comply with the provisions of this Act: Provided that no officer or person instructed by the officer to
inspect or test such vehicle shall, in the exercise of the power hereby conferred upon him or her,
dismantle the mechanism or any working parts of any motor vehicle unless he or she is also a
qualified motor mechanic or has passed an examination for examiners of vehicles as prescribed, and
if he or she has so dismantled the vehicle, he or she shall reassemble the dismantled mechanism or
parts to the same condition in which it was before it was dismantled unless he or she is requested by
the person in charge of the vehicle not to do so;
(d) ascertain the dimensions of, the load on, or the mass, axle mass load or axle unit mass load of,
any vehicle, or the mass of any combination of vehicles, loaded or unloaded, and if necessary for
the purpose of ascertaining such mass, require any vehicle or combination of vehicles to proceed to
a mass-meter or mass-measuring device, and if the mass of any vehicle or combination of vehicles
exceeds the mass allowed in terms of this Act, prohibit the operation of the vehicle or combination of
vehicles on a public road until the mass has been reduced or adjusted to comply with this Act:
Provided that where the load on a vehicle includes any hazardous substance as contemplated in
the Hazardous Substances Act, 1973 (Act 15 of 1973), the reduction and handling of the mass shall
be undertaken in terms of that Act;
(e) drive any vehicle where necessary in the performance of his or her duties if, in the case of a motor
vehicle, he or she is licensed to drive a motor vehicle of the class concerned;
(f) if a person, being the dr iver or the person apparently in charge of a motor vehicle, appears, by
reason of his or her physical or mental condition, howsoever arising, to be incapable for the time
being of driving or being in charge of that vehicle, temporarily forbid the person to continue to drive
or be in charge of that vehicle and make the arrangements for the safe
disposal or placing of the vehicle as in his or her opinion may be necessary or desirable in the
circumstances;
(g) regulate and control traffic upon any public road, and give such directions as may, in his or her
opinion, be necessary for the safe and efficient regulation of the traffic, which may include the
closing of any public road, and, where he or she is of the opinion that the driver of a motor vehicle is
hampering or impeding the normal flow of traffic on a public road, direct the driver to remove the
vehicle from such road and to follow another route with the vehicle;
(h) require any person to furnish his or her name and address and other particulars which are
required for his or her identification or for any process if the officer reasonably suspects this person of
having committed an offence in terms of this Act or any other law or, if in the opinion of the officer,
he or she is able to give evidence in regard to the commission of any such offence;
(i) in respect of any motor vehicle, demand from the owner, operator or driver thereof to produce
any document prescribed in terms of this Act;
(j) impound any document referred to in paragraph (i) produced to him or her and which in his or her
opinion may afford evidence of a contravention of or failure to comply with any provision of this Act
or any other law related to road traffic matters and where any document is so impounded, the traffic
officer shall issue a receipt in respect thereof to the person concerned;
(k) require any professional driver or the operator or owner of any motor vehicle to produce for
inspection and to have a copy made of-
(i) any record or document which that person is required in terms of this Act to carry or have in his or
her possession or which is required to be affixed to any such motor vehicle; or
(ii) any record which that person is required in terms of this Act to preserve;
(l) at any time enter any motor vehicle of an operator and inspect such vehicle;
CONFIDENTIAL Page 21
(m) at any time enter upon any premises on which he or she has reason to believe that a motor
vehicle of an operator is kept or any record or other document required to be kept in terms of this
Act is to be found, and inspect such vehicle and copy any such record or document, which he or
she finds there;
(n) if he or she has reason to believe that an offence in terms of this Act has been committed in
respect of any record or document, inspected by him or her, impound that record or document, and
where any document is so impounded, the traffic officer shall issue a receipt in respect thereof to the
person concerned;
(o) inspect any motor vehicle or part thereof and impound any document
issued in connection with the registration and licensing of such motor vehicle which relates to the
motor vehicle, where it is found that the engine or chassis number of the motor vehicle differs from
the engine or chassis number as specified on the document, and direct that the motor vehicle be
taken, forthwith, to any police station specified by the traffic officer for police clearance, and may
after such clearance has been obtained, return the impounded document to any person who is
entitled thereto, or notify the owner of the motor vehicle concerned that the vehicle must be re-
registered, as the case may be; and
(p) require from the owner, operator or driver of a motor vehicle registered or deemed to be
registered in any prescribed territory, police clearance in respect of the motor vehicle before
allowing the motor vehicle to be taken across the borders of the Republic: Provided that the chief
executive officer may exempt any owner, operator or driver in the prescribed manner from having to
provide such police clearance.
CRIMINAL PROCEDURES ACT
39 Manner and effect of arrest
(1) An arrest shall be effected with or without a warrant and, unless the person to be arrested submits
to custody, by actually touching his body or, if the circumstances so require, by forcibly confining his
body.
(2) The person effecting an arrest shall, at the time of effecting the arrest or immediately after
effecting the arrest, inform the arrested person of the cause of the arrest or, in the case of an arrest
effected by virtue of a warrant, upon demand of the person arrested hand him a copy of the
warrant.
(3) The effect of an arrest shall be that the person arrested shall be in lawful custody and that he shall
be detained in custody until he is lawfully discharged or released from custody.
40 Arrest by peace officer without warrant
(1) A peace officer may without warrant arrest any person-
(a) who commits or attempts to commit any offence in his presence;
(b) whom he reasonably suspects of having committed an offence referred
to in Schedule 1, other than the offence of escaping from lawful custody;
(c) who has escaped or who attempts to escape from lawful custody;
(d) who has in his possession any implement of housebreaking or carbreaking as contemplated in
section 82 of the General Law Third Amendment Act, 1993, and who is unable to account for such
possession to the satisfaction of the peace officer;
[Para. (d) substituted by s. 41 of Act 129 of 1993.]
(e) who is found in possession of anything which the peace officer reasonably suspects to be stolen
property or property dishonestly obtained, and whom the peace officer reasonably suspects of
having committed an offence with respect to such thing;
(f) who is found at any place by night in circumstances which afford reasonable grounds for
believing that such person has committed or is about to commit an offence;
(g) who is reasonably suspected of being or having been in unlawful possession of stock or produce
as defined in any law relating to the theft of stock or produce;
(h) who is reasonably suspected of committing or of having committed an offence under any law
governing the making, supply, possession or conveyance of intoxicating liquor or of dependence-
producing drugs or the possession or disposal of arms or ammunition;
(i) who is found in any gambling house or at any gambling table in contravention of any law relating
to the prevention or suppression of gambling or games of chance;
(j) who wilfully obstructs him in the execution of his duty;
(k) who has been concerned in or against whom a reasonable complaint has been made or
credible information has been received or a reasonable suspicion exists that he has been concerned
CONFIDENTIAL Page 22
in any act committed outside the Republic which, if committed in the Republic, would have been
punishable as an offence, and for which he is, under any law relating to extradition or fugitive
offenders, liable to be arrested or detained in custody in the Republic;
(l) who is reasonably suspected of being a prohibited immigrant in the Republic in contravention of
any law regulating entry into or residence in the Republic;
(m) who is reasonably suspected of being a deserter from the South African National Defence Force;
[Para. (m) amended by s. 4 of Act 18 of 1996.]
(n) who is reasonably suspected of having failed to observe any condition imposed in postponing the
passing of sentence or in suspending the operation of any sentence under this Act;
(o) who is reasonably suspected of having failed to pay any fine or part thereof on the date fixed by
order of court under this Act;
(p) who fails to surrender himself in order that he may undergo periodical imprisonment when and
where he is required to do so under an order of court or any law relating to prisons
(q) who is reasonably suspected of having committed an act of domestic violence as contemplated
in section 12* of the Domestic Violence Act, 1998, which constitutes an offence in respect of which
violence is an element.
41 Name and address of certain persons and power of arrest by peace officer without warrant
(1) A peace officer may call upon any person-
(a) whom he has power to arrest;
(b) who is reasonably suspected of having committed or of having attempted to commit an offence;
(c) who, in the opinion of the peace officer, may be able to give evidence in regard to the
commission or suspected commission of any offence, to furnish such peace officer with his full name
and address, and if such person fails to furnish his full name and address, the peace officer may
forthwith and without warrant arrest him, or, if such person furnishes to the peace officer a name or
address which the peace officer reasonably suspects to be false, the peace officer may arrest him
without warrant and detain him for a period not exceeding twelve hours until such name or address
has been verified.
(2) Any person who, when called upon under the provisions of subsection (1) to furnish his name and
address, fails to do so or furnishes a false or incorrect name and address, shall be guilty of an offence
and liable on conviction to a fine not exceeding R300 or to imprisonment for a period not exceeding
three months.
54 Summons as method of securing attendance of accused in magistrate's court
(1) Where the prosecution intends prosecuting an accused in respect of any offence and the
accused is not in custody in respect of that offence and no warrant has been or is to be issued for
the arrest of the accused for that offence, the prosecutor may secure the attendance of the
accused for a summary trial in a lower court having jurisdiction by drawing up the relevant charge
and handing such charge, together with information relating to the name and, where known and
where applicable, the residential address and occupation or status of the accused, to the\ clerk of
the court who shall-
(a) issue a summons containing the charge and the information handed to him by the prosecutor,
and specifying the place, date and time for the appearance of the accused in court on such
charge; and
(b) deliver such summons, together with so many copies thereof as there are accused to be
summoned, to a person empowered to serve a summons in criminal proceedings.
(2) (a) Except where otherwise expressly provided by any law, the summons shall be served by a
person referred to in subsection (1) (b) by delivering it to the person named therein or, if he cannot
be found, by delivering it at his residence or place of employment or business to a person apparently
over the age of sixteen years and apparently residing or employed there.
(b) A return by the person who served the summons that the service thereof has been effected in
terms of paragraph (a), may, upon the failure of the person concerned to attend the relevant
proceedings, be handed in at such proceedings and shall be prima facie proof of such service.
(3) A summons under this section shall be served on an accused so that he is in possession thereof at
least fourteen days (Sundays and public holidays excluded) before the date appointed for the trial.
PENDLEX: Criminal Procedure Act 51 of 1977 after amendment by the Judicial Matters Amendment
Act 66 of 2008 Section 56 (1)
If an accused is alleged to have committed an offence referred to in section 57 (2)
(a), a peace officer may, whether or not the accused is in custody, hand to the accused a written
notice which shall
CONFIDENTIAL Page 23
(a) specify the name, residential address and the occupation or status of the accused;
(b) call upon the accused to appear at a place and on a date at a time specified in the written
notice to answer a charge of having committed the offence in question;
(c) contain an endorsement in terms of section 57 that the accused may admit his or her guilt in
respect of the offence in question and that he or she may pay the stipulated fine as determined by
the Minister in terms of section 57 (2) (b) in respect thereof without appearing in court; and
(d) contain a certificate under the hand of the peace officer that he or she has handed the original
of that written notice to the accused and that he or she has explained to the accused the import
thereof. Section 56 (2)
If the accused is in custody, the effect of a written notice handed to him or her under subsection (1)
shall be that he or she be released forthwith from custody.
Section 57 - Admission of guilt and payment of fine without appearance in court
(1) An admission of guilt fine referred to in this section may only be imposed and paid in respect of an
offence which the Minister determines, as provided for in subsection (2).
(2) For purposes of this section, the Minister may, from time to time, by notice in the Gazette, and
after consultation with the Chief Justice, the National Director of Public Prosecutions and the Minister
for Safety and Security, determine-
(a) the offences in respect of which an admission of guilt fine may be
imposed and paid; and
(b) the amount of an admission of guilt fine which can be stipulated in a summons under section 54
(in this section referred to as the summons) or a written notice under section 56 (in this section
referred to as the written notice), in respect of each offence.
(3) Where-
(a) a summons is issued against an accused under section 54 and the public prosecutor of the court
concerned, in accordance with the directives issued by the National Director of Public Prosecutions
provided for in subsection (11), endorses the summons to the effect
that the accused may admit his or her guilt in respect of the offence in
question and that he or she may pay a fine stipulated on the summons
in respect of that offence without appearing in court; or
(b) a written notice under section 56 is handed to the accused and the endorsement in terms of
subsection (1) (c) of that section purports to have been made by a peace officer, the accused may,
without appearing in court, admit his or her guilt in respect of the offence in question by paying the
fine stipulated (in this section referred to as the admission of guilt fine) either to the clerk of the
magistrate's court which has jurisdiction or at any police station within the area of jurisdiction of that
court or, if the summons or written notice in question is endorsed to the effect that the fine may
be paid at a specified local authority, at that local authority.
(4) (a) The summons or the written notice may stipulate that the admission of guilt fine shall be paid
before a date specified in the summons or written notice, as the case may be.
(b) An admission of guilt fine may be accepted by the clerk of the court concerned notwithstanding
that the date referred to in paragraph (a) or the date on which the accused should have appeared
in court has expired.
(5) (a) (i) Subject to the provisions of subparagraphs (ii) and (iii), an accused who intends to pay an
admission of guilt fine in terms of subsection (1), shall surrender the summons or the written notice, as
the case may be, at the time of the payment of the fine.
(ii) If the summons or written notice, as the case may be, is lost or is not available and the copy
thereof known as the control document- (aa) is not available at the place of payment referred to in
subsection (3), the accused shall surrender a copy of the summons or written notice, as the case may
be, at the time of the payment of the fine; or (bb) is available at the place of payment referred to in
subsection (3), the admission of guilt fine may be accepted without the surrender of a copy of the
summons or written notice, as the case may be.
(iii) If an accused in respect of whom a warrant has been endorsed in terms of section 55 (2A) intends
to pay the relevant admission of guilt fine, the clerk of the court may, after he or she has satisfied
himself or herself that the warrant is so endorsed, accept the admission of guilt fine without the
surrender of the summons, written notice or copy thereof, as the case may be.
(b) A copy referred to in paragraph (a) (ii) may be obtained by the accused at the magistrate's
court, police station or local authority where the copy of the summons or written notice in question
known as the control document is filed.
CONFIDENTIAL Page 24
(c) Notwithstanding the provisions of subsection (3), an accused referred to in paragraph (a) (iii) may
pay the admission of guilt fine in question to the clerk of the court where he or she appears in
consequence of that warrant, and if that clerk of the court is not the clerk of the magistrate's court
referred to in subsection (3), he or she shall transfer that admission of guilt fine to the latter clerk of the
magistrate's court.
(6) No provision of this section shall be construed as preventing a public prosecutor attached to the
court concerned from reducing an admission of guilt fine on good cause shown in writing.
(7) An admission of guilt fine stipulated in respect of a summons or a written notice shall be in
accordance with the determination made by the Minister from time to time in respect of the offence
in question, as provided for in subsection (2).
(8) An admission of guilt fine paid at a police station or a local authority in terms of subsection (3) and
the summons or, as the case may be, the written notice surrendered under subsection (5), shall, as
soon as is expedient, be forwarded to the clerk of the magistrate's court which has jurisdiction, and
that clerk of the court shall thereafter, as soon as is expedient, enter the essential particulars of that
summons or, as the case may be, that written notice and of any summons or written notice
surrendered to the clerk of the court under subsection (5), in the criminal record book for admissions
of guilt, whereupon the accused concerned shall, subject to the provisions of subsection (9), be
deemed to have been convicted and sentenced by the court in respect of the offence in question.
(9) The judicial officer presiding at the court in question shall examine the documents and if it
appears to him or her that a conviction or sentence under subsection (8) is not in accordance with
justice or, except as provided in subsection
(6), is not in accordance with a determination made by the Minister under subsection
(2) or does not comply with a directive issued by the National Director of Public
Prosecutions as provided for in subsection (11) that judicial officer may set aside the conviction and
sentence and direct that the accused be prosecuted in the ordinary course, whereupon the
accused may be summoned to answer that charge as the public prosecutor may deem fit to prefer:
Provided that where the admission of guilt fine which has been paid exceeds the amount
determined by the Minister under subsection (2), the judicial officer may, in lieu of setting aside the
conviction and sentence in question, direct that the amount by which the admission of guilt fine
exceeds the said determination be refunded to the accused concerned.
(10) Any determination made by the Minister under this section must be tabled in Parliament for
approval.
(11) (a) The National Director of Public Prosecutions must issue directives regarding the cases and
circumstances in which a prosecutor may issue a summons referred to in subsection (3) (a) or a
written notice referred to in section 57A (1) in which an admission of guilt fine may be imposed in
respect of the offences which the Minister determines under subsection (2) and any directive so
issued must be observed in the application of this section.
(b) The directives referred to in paragraph (a) must ensure that adequate disciplinary steps will be
taken against a prosecutor who fails to comply with any directive.
(c) The Minister must submit any directives issued under this subsection to
Parliament before those directives take effect, and the first directives so issued, must be submitted to
Parliament within four months of the commencement of this section.
(d) Any directive issued under this subsection may be amended or withdrawn in like manner.
341 Compounding of certain minor offences
(1) If a person receives from any peace officer a notification in writing alleging that such person has
committed, at a place and upon a date and at a time or during a period specified in the
notification, any offence likewise specified, of any class mentioned in Schedule 3, and setting forth
the amount of the fine which a court trying such person for such offence would probably impose
upon him, such person may within thirty days after the receipt of the notification deliver or transmit
the notification, together with a sum of money equal to the said amount, to the magistrate of the
district or area wherein the offence is alleged to have been committed, and thereupon such person
shall not be prosecuted for having committed such offence.
(2) (a) Where a notification referred to in subsection (1) is issued by a peace officer in the service of a
local authority in respect of an offence committed within the area of jurisdiction of such local
authority, any person receiving the notification may deliver or transmit it together with a sum of
money equal to the amount specified therein to such local authority.
[Para. (a) substituted by s. 9 of Act 64 of 1982.]
CONFIDENTIAL Page 25
(b) Any sum of money paid to a local authority as provided in paragraph (a) shall be deemed to be
a fine imposed in respect of the offence in question. [Para. (b) substituted by s. 9 of Act 64 of 1982.]
(c) Not later than seven days after receipt of any sum of money as provided in paragraph (a), the
local authority concerned shall forward to the magistrate of the district or area wherein the offence is
alleged to have been committed a copy of the notification relating to the payment in question.
(d) If the magistrate finds that the amount specified in the notification exceeds the amount
determined in terms of subsection (5) in respect of the offence in question, he shall notify the local
authority of the amount whereby the amount specified in the notification exceeds the amount so
determined and the local authority concerned shall immediately refund the amount of such excess
to the person concerned.
(e) For the purpose of this subsection 'local authority' means any institution or body contemplated in
section 84 (1) (f) of the Provincial Government Act, 1961 (Act 32 of 1961), and includes-
(i) a regional services council established under section 3 of the Regional
Services Councils Act, 1985 (Act 109 of 1985);
(ii) any institution or body established under the Rural Areas Act, (House of Representatives), 1987
(Act 9 of 1987); [Sub-para. (ii) amended by s. 4 of Act 18 of 1996.]
(iii) a local authority as defined in section 1 of the Black Local Authorities Act, 1982 (Act 102 of 1982);
(iv) a local government body contemplated in section 30 (2) (a) of the
Black Administration Act, 1927 (Act 38 of 1927); and
(v) any committee referred to in section 17 (1) of the Promotion of Local Government Affairs Act,
1983 (Act 91 of 1983). [Para. (e) substituted by s. 25 of Act 33 of 1986 and by s. 16 of Act 26 of 1987.]
(3) Any money paid to a magistrate in terms of subsection (1) shall be dealt with as if it had been
paid as a fine for the offence in question.
(4) The Minister may from time to time by notice in the Gazette add any offence to the offences
mentioned in Schedule 3, or remove there from any offence mentioned therein.
(5) The amount to be specified in any notification issued under this section as the amount of the fine
which a court would probably impose in respect of any offence, shall be determined from time to
time for any particular area by the magistrate of the district or area in which such area is situated,
and may differ from the admission of guilt fine determined under section 57 (5) (a) for the offence in
question. [NB: Sub-s. (5) has been substituted by s. 17 of the Judicial Matters Amendment Act
66 of 2008, a provision which will be put into operation by proclamation.
334 Minister may declare certain persons peace officers for specific purposes
(1) (a)31* The Minister may by notice in the Gazette declare that any person who, by virtue of his
office, falls within any category defined in the notice, shall, within an area specified in the notice, be
a peace officer for the purpose of exercising, with reference to any provision of this Act or any
offence or any class of offences likewise specified, the powers defined in the notice.
(b) The powers referred to in paragraph (a) may include any power which is not
conferred upon a peace officer by this Act.
(2) (a)32* No person who is a peace officer by virtue of a notice issued under subsection (1) shall
exercise any power conferred upon him under that subsection unless he is at the time of exercising
such power in possession of a certificate of appointment issued by his employer, which certificate
shall be produced on demand.
(b) A power exercised contrary to the provisions of paragraph (a) shall have no legal force or effect.
(3)33* The Minister may by notice in the Gazette prescribe-
(a) the conditions which shall be complied with before a certificate of appointment may validly be
issued under subsection (2) (a);
(b) any matter which shall appear in or on such certificate of appointment in addition to any matter
which the employer may include in such certificate.
(4) Where the employer of any person who becomes a peace officer under the provisions of this
section would be liable for damages arising out of any act or omission by such person in the
discharge of any power conferred upon him under this section, the State shall not be liable for such
damages unless the State is the employer of that person, in which event the department of State,
including a provincial administration, in whose service such person is, shall be so liable.
DECLARATION OF PEACE OFFICERS IN TERMS OF SECTION 334 (2008) (GN 275 in GG 30856
of 7 March 2008)