CARA Select Committee on Security and Constitutional Development

1. CARASelect Committee on Security and Constitutional Development Criminal Assets Recovery Account 16 February 2011

2. Criminal Assets Recovery Account (CARA). CARA Introduction The Prevention of Organised Crime Act, Act 121 of 1998, provides inter alia for the depositing of all confiscated and forfeited monies and properties into a Criminal Asset Recovery Account (CARA) as well as regulations on the utilisation of the funds and property so deposited. CARU The Account is managed by the CARU (Criminal Asset Recovery Unit) Location to Justice from NPA (January 2010) The Unit has relocated from the NPA where it has operated from since inception and is now a directorate in the office of the CFO at DoJ&CD National Office. 2009 CARA project The CARA 2009 Project was initiated to address the persistent challenges within the CARA environment and infuse financial expertise and know how into the AFU/CARA environment to enable: The preparation of Financial Statements that comply with all the needs of stakeholders. Management of confiscated/ forfeited assets in a transparent cost effective and easily verifiable manner. The contract of the task team involved in the project ended on 31 July 2010. 2 History of CARA 1998-2005, 2006 AFS, 2007, 2008 (disclaimer) , 2009, 2010. Cara Project legal, accounting, policies and procedures, process mapping, AFU, enforcement, Master’ s office, Curators, curator manual etcHistory of CARA 1998-2005, 2006 AFS, 2007, 2008 (disclaimer) , 2009, 2010. Cara Project legal, accounting, policies and procedures, process mapping, AFU, enforcement, Master’ s office, Curators, curator manual etc

3. Criminal Assets Recovery Account (CARA). SCOPA Status on Previous Resolutions Previous Resolutions were made on the need to implement an Electronic system to manage the CARA and the need to implement Policies and Procedures for the UNIT. Progress on previous SCOPA resolutions The Electronic Case Management System (ECMS) is being utiilised by the Asset Forfeiture Unit in the NPA. The ECMS is being further enhanced to incorporate the needs of CARA. Access and use of the ECMS by CARU personnel will be finalised by 28 February 2011. Draft policies and procedures have been developed. The Ministerial Criminal Assets Recovery Committee made recommendations on the draft policies and procedures at the meeting held on 17 February 2009, a follow up meeting is currently being organised to induct new ministers and attend to the finalisation of the approval of the policies and procedures. The final approval by the new Ministerial Criminal Assets Recovery Committee of the policies and procedures will be finalised in the 20010/11 financial year. 3 Delays due to change in Ministers 2008, 2009 and 2010. New Ministers, new NDPP, New DG, New Cabinet 2010 etc -Delays due to change in Ministers 2008, 2009 and 2010. New Ministers, new NDPP, New DG, New Cabinet 2010 etc -

4. Criminal Assets Recovery Account (CARA). Current issues Accrual Accounting Transition from Modified Cash basis to Accrual Accounting 2010/11 The Dispensation from National Treasury for the CARA to prepare Financial Statements on the Modified Cash Basis expired with the 2009/10 Financial Year. 2010/11 Financial Year requires that CARA financial statements be prepared on the Accrual Basis. Impact on the Current Finance capacity : The system requirements for an Accrual Basis scenario will call for a custom made accounting system or off-the-shelf package like Pastel or Great Plains. The proposals from the software suppliers are being evaluated at present with other units (Guardians Fund and Third Part y Funds) in the department. The final decision to acquire the software will be made before the 31 March 2011. Entities that interface with CARU e.g. the AFU and its enforcement officers and the Master’s office will be required to collect and avail more detailed case information to enable the preparation of the requisite disclosure notes for CARA financials. 4 Discussions with other units in DOJ Guardian’s fund, TPF etc. Awaiting pilot presentation in early February 2010 by software suppliers. Training of staff for roll out etcDiscussions with other units in DOJ Guardian’s fund, TPF etc. Awaiting pilot presentation in early February 2010 by software suppliers. Training of staff for roll out etc

5. Current CARA developments -2010/2011 Discussions were held with the current chairperson (Minister of Justice and Constitutional Development ) of the Criminal Assets Recovery Committee in September 2010 . The chairperson provided guidance and recommended that DEVCOM (JCPS cluster ) be engaged with regarding the priority projects that may be funded by CARA subject to final ratification and approval by the Cabinet. Presentations were made to the DEVCOM and the DG forum in October 2010. The list of priorities that require funding were submitted to CARU on 30 November 2010.The final detailed submissions will be presented to DEVCOM in February 2011. The DEVCOM recommendations will then be presented to the Criminal Assets Recovery Committee for deliberation and final recommendations to the Cabinet (March 2011). An amount of R240 million is in CARA at 31 December 2010 and available for allocation to law enforcement agencies and organisations rendering assistance to victims of crime in terms of section 69A of the POC act. 5 KEY VEP PRIORITIES FOR THE CLUSTER The VE cluster has identified a number of key priorities in order to improve services for victims of crime and violence. Suggested cluster priorities consulted with other cluster departments and in line with cluster priorities and delivery agreement are as follows:   The key priorities for DSD are: The design and maintain of a database for victims of crime and violence; The establishment of seven fully-fledged one stop centres; Facilitate the establishment of shelters for abused women and children in rural and farm areas including human trafficking; The funding of +- 200 civil society organisations within VEP sector; Conducting annual victim surveys; Increasing the use of research and implementing M&E practices   Further priorities were taken from the resolutions of the Victim Empowerment Conference held in Polokwane during September 2010:   Strengthening the formalisation of partnerships between government, CSOs and academic institutions, with a renewed call to all government departments, to focus on capacity, resource allocation, dedicated VEP staff and standardised VEP funding criteria Giving urgent attention to quality service provision in VEP in collaboration with civil society and the private sector   The key priorities for South African Police Services: The establishment of facilities for victims (Victim friendly rooms)     The key priorities for Department of Health: Forensic training for Health practitioners Reducing the drunken driving and toxicology backlogs in the NDOH Forensic Chemistry Laboratories in order to address court backlogs   The key priorities for National prosecuting Authority Establishment of Thuthuzela Care Centres country wide   The key priorities for the Department of Justice Strengthening the Victim Empowerment Court Support Programme Domestic violence – Inter-sectoral coordination, training, communication and awareness – raising Intermediaries – appointment of additional intermediaries and provision of physical infrastructure The key priority for the Department of Correctional Services Parole hearings and transportation of victims to the venue KEY VEP PRIORITIES FOR THE CLUSTER The VE cluster has identified a number of key priorities in order to improve services for victims of crime and violence. Suggested cluster priorities consulted with other cluster departments and in line with cluster priorities and delivery agreement are as follows:   The key priorities for DSD are: The design and maintain of a database for victims of crime and violence; The establishment of seven fully-fledged one stop centres; Facilitate the establishment of shelters for abused women and children in rural and farm areas including human trafficking; The funding of +- 200 civil society organisations within VEP sector; Conducting annual victim surveys; Increasing the use of research and implementing M&E practices   Further priorities were taken from the resolutions of the Victim Empowerment Conference held in Polokwane during September 2010:   Strengthening the formalisation of partnerships between government, CSOs and academic institutions, with a renewed call to all government departments, to focus on capacity, resource allocation, dedicated VEP staff and standardised VEP funding criteria Giving urgent attention to quality service provision in VEP in collaboration with civil society and the private sector   The key priorities for South African Police Services: The establishment of facilities for victims (Victim friendly rooms)     The key priorities for Department of Health: Forensic training for Health practitioners Reducing the drunken driving and toxicology backlogs in the NDOH Forensic Chemistry Laboratories in order to address court backlogs   The key priorities for National prosecuting Authority Establishment of Thuthuzela Care Centres country wide   The key priorities for the Department of Justice Strengthening the Victim Empowerment Court Support Programme Domestic violence – Inter-sectoral coordination, training, communication and awareness – raising Intermediaries – appointment of additional intermediaries and provision of physical infrastructure The key priority for the Department of Correctional Services Parole hearings and transportation of victims to the venue

6. Criminal Assets Recovery Account (CARA). Annual Financial Statements 2009/2010 The 2009/10 Annual Financial Statements were submitted and audited by the Auditor General. An unqualified audit opinion was obtained from the Auditor General . Please refer to the Annual Report of the CARA for detailed information. The following tables highlights the key figures in CARA. The statement of Financial Performance at 31 March 2010 is shown below: