Seizing Criminal Assets to Fight Crime

Willie Hofmeyr

Asset Forfeiture Unit

National Prosecuting Authority

Report to Parliament

May 2008

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Overall objectives• NPA set up AFU in 1999 to ensure that POCA

properly implemented • Offices in every province: Jhb Pta Dbn Ctn PE

– Smaller offices in EL Bfn Kim Polokwane Nels• 2 major strategic objectives

1: Increase the volume of cases

• to build the capacity to do more cases to make a real impact in the fight against crime

2: Developing the law

• to do test cases and create legal precedents that allow the effective use of the law

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1: Increasing the volume of cases

2006 / 2007 2007 / 2008

Indicator Target: Actual: % ofTarget

Target: Actual % oftarget

Number of cases              

Seizures     230 253 110% 250 218 87%

Cases completed 180 246 138% 220 221 100%

Monetary targets    Seizures R300m R1 297m 432% R300m R 345m 115%

Cases completed R120m R101m 84% R120m R127m 106%

Funds into CARA   R25m R 19m 77%   R25m R 46m 182%3

Notes on new restraint cases

• 06/07: was exceptional year, well above target on most indicators

• 07/08: lost several skilled staff, had to replace– Also impacted by uncertainty around DSO

• New restraint orders• No. cases: 06/07 was 10% above target

– 07/08: 13% below target, • but 3% below if take account of staff losses

• Value of cases: 06 /07 330% above target– David King – largest case ever - R1bn frozen– Delport – customs fraud of R350m – 07/08: had good year, 15% above target

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Notes on completed cases

• Completed cases • No. cases: 06/07 was 38% above target

– 07/08: on target • 10% above if take account of staff losses

• Value of cases: 06 /07: 16% below target– 07/08: had good year, 10% above target

• CARA deposits (Criminal Assets Recovery Account)– 06/07 - 23% below target– 07/08: best year ever, 82% above target– Some big deposits still pending

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CARA first payments• First CARA payouts made this year • Was an important development • Most of funds to fight crime • But also to help organisations that assist victims

– DSD – 8 rape crisis and battered woman centres

– SAPS – one way glass for ID parades – TRC victims – SOCA – specialised equipment for sexual

offences courts6

2: Developing the law2006 / 2007 2006 / 2007

Indicator Target Actual % oftarget

Target: Actual % oftarget

Total Judgements 36 33 92% 36 30 83%

Judgements: Con Court  3 0

Supreme Court Appeal 4 3

Success rate 67% 81% 14% 72.5% 70% -2.5%

Success rate: CC/SCA 75% 71% -4% 75% 33% -42%

Judgements to date Success rate to date

All judgements 235 67.4%

Constitutional Court 6 83%

Supreme Court Appeal 22 59%7

Note on judgements• Success rate of more than 85% in all cases taken on

– Losses include those where it is not fault of AFU, eg person accquited

• Also measure success rate in cases where judgments are obtained

• In 4 years to April 2003 – won only 48% of judgments (25 of 52)

• Big change in last 5 years in judgements– won 73% of judgements (133 of 182)

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CC Judgements 06/07, 07/08

Constitutional Court• Prophet drug house - appeal refused. Clarify

instrumentality forfeitures • Absa vs Fraser – legal expenses cannot be

granted to accused at the expense of creditors or victims without hearing them

• Mohunram – illegal casino instrumentality – Lost narrowly 6 vs 5 – Majority appear to require organised crime link

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SCA judgements 06/07, 07/08

Supreme Court of Appeal• Shaik – held that AFU can take gross benefit – not only

the profit. Clarify confiscation procedure – Still waiting for outcome of CC appeal

• Van Staden – drunk driving cars are instrumentalities • Mngomezulu – drug dealer – curator can sell off property

to pay expenses of the estate• Van Rensburg – lost on technical point• Singh - • Vermaak – drunk driving cars are instrumentalities, but it

is not proportional • Geyser – brothel is instrumentality, no proportionality

problem 10

Partners relations• Relations with partners excellent• SAPS (incl SCCU)

– about 83% of cases, 38% value • about 50% of value through SCCU

– 45 SAPS detectives in AFU offices full-time• DSO – about 13 % of cases, 60% value • SARS – Delport, King and other cases• NPS – ensure that get more referrals

– Working on new organised crime initiative• Others: SARB, FIC, Marine & Coastal Managm 11

Challenges• Major challenge to expand its capacity sufficiently to deal

with all the cases that are currently in court and where asset forfeiture can be done

• Estimate is about R1 to R2 billion, – apart from other proceeds that can be targeted

through civil forfeiture• Prepared a business case to expand capacity sufficiently

to deal with this over 5 years• Requires expanding the budget almost eight -fold

– Budget has increased significant additional funding

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