seizing criminal assets to fight crime

Seizing Criminal Assets to Fight Crime

Asset Forfeiture Unit

National Prosecuting Authority

Report to National Council of Provinces, Parliament

May 2007

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

1: Increasing the volume of cases

2005 / 2006 2006 / 2007

Indicator Target: Actual: % oftarget

Target: Actual % oftarget

Number of cases              

Seizures     210 252 120% 230 252 110%

Cases completed 160 220 138% 180 244 134%

Monetary targets  

Seizures R 250m R 344m 138% R300m R 775m 258%

Cases completed R 100m R 107m 107% R120m R101m 84%

Funds into CARA R 50m R 20m 40%   R25m R 19m 77%

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

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

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

2: Developing the law2005 / 2006 2006 / 2007

Indicator Target Actual % oftarget

Target: Actual % oftarget

Total Judgements 45 38 84% 36 32 89%

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 Success rate to date

All judgements 204 67%

Constitutional Court 6 83%

Supreme Court Appeal 19 63%

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 (26 of 36)

• Since Nov 2004, have won 12 of 15 cases in SCA/CC = 80%

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

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 pointHigh Court notable cases• Boekhoud/Yield – hearsay admissible when undercover

agents still in syndicate• Marinus – compelled to disclose assets to get legal

expenses

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

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