Seizing Criminal Assets to Fight Crime

1. Seizing Criminal Assets to Fight Crime Willie Hofmeyr Asset Forfeiture Unit National Prosecuting Authority Report to Parliament May 2008

2. 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

3. 1: Increasing the volume of cases

4. 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

5. 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

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 for sexual offences courts

7. 2: Developing the law

8. 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)

9. 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

10. 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

11. 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

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