Seizing Criminal Assets to Fight Crime

1
Seizing Criminal Assets to Fight Crime

• Asset Forfeiture Unit
• National Prosecuting Authority
• Report to Parliament
• May 2007

2
Overall 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

3
1 Increasing the volume of cases
2005 / 2006 2005 / 2006 2005 / 2006 2006 / 2007 2006 / 2007 2006 / 2007
Indicator Target Actual of target   Target Actual of target
Number of cases              
Seizures 210 252 120   230 246 107
Cases completed 160 220 138   180 243 135
Monetary targets  
Seizures R 250m R 344m 138   R300m R 760m 253
Cases completed R 100m R 107m 107   R120m R101m 84
Funds into CARA R 50m R 20m 40   R25m R 19m 77
4
Notes on volume of cases

• New seizures
• No. of cases well above target
• Value of cases More than double annual target
• Due to King case (est R500m frozen possibly
  R1bn)
• Completed cases
• No. of cases well above target
• Value of cases About 15 below target
• CARA
• Slightly below target
• Shaik deposit of about R42m only next year

5
Important cases

• David King obtained freezing orders through MLA
• in Guernsey, England and Wales
• for as much as about R1 billion one of largest
  cases ever
• He has vowed to drag the case on for next 10
  years
• Delport customs fraud of R350m
• largest ever number of assets seized in SA
  about R80m
• Shaik finalised will pay about R40m

6
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

7
2 Developing the law
2005 / 2006 2005 / 2006 2005 / 2006 2006 / 2007 2006 / 2007 2006 / 2007
Indicator Target Actual of target   Target Actual of target
Total Judgements 45 38 84   36 31 77
Judgements Con Court 1 2
Supreme Court Appeal 4 4
Success rate 67 72 5 67 81 14
Success rate CC/SCA 75 80 5   75 67 -8
Judgements to date Judgements to date Judgements to date Success rate to date Success rate to date Success rate to date
All judgements 203 203 203 67 67 67
Constitutional Court 6 6 6 83 83 83
Supreme Court Appeal 19 19 19 63 63 63
8
Note on judgements

• Success rate of more than 85 in all cases
• 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 3 years in judgements
• 03/04 won 77 of judgements (27 of 35)
• 04/05 won 65 of judgements (30 of 46)
• 05/06 won 72 of judgements (27.5 of 38)
• 06/07 won 81 of judgements (25 of 31)
• Since Nov 2004, have won 12 of 15 cases in SCA/CC
  80

9
Important judgements

• 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
• Shaik will argue leave to appeal on 24 May

10
Important judgements

• Supreme Court of Appeal
• Shaik held that AFU can take gross benefit
  not only the profit. Clarify confiscation
  procedure
• 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
• High Court notable cases
• Boekhoud/Yield hearsay admissible when
  undercover agents still in syndicate
• Marinus compelled to disclose assets to get
  legal expenses

11
Partners relations

• Generally relations are excellent
• SAPS (incl SCCU)
• about 90 of cases, 30 value
• Have SAPS task teams in most AFU offices
• DSO about 8 of cases, 67 value
• SARS Delport case
• NPS ensure that get more referrals
• Working on new organised crime initiative
• Others SARB, FIC, MCM

12
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