International Rural Crime Conference 27 September 2017 Agriculture: Cross Border Crime.

1. International Rural Crime Conference 27 September 2017 Agriculture: Cross Border Crime. Bertus Van Heerden Managing Director – AGRI INSPEC MONITORING SERVICES Ons bevorder regverdige handel We promote fair trade

2. Background • Agri Inspec is a private forensic investigations company • Our workforce consist of former commercial crime detectives, economists and trade experts • We have a network of co-workers across the country and direct liaison with relevant government institutions • We have a specific expertise regarding fraudulent cross border trade Ons bevorder regverdige handel We promote fair trade

3. Introduction: Cross border crime for profit • The presentation will focus on factors that influence cross border crime from a South African perspective • What are the main cross border criminal activities • Take a closer look at fraudulent import transactions • Suggest possible intervention strategies Ons bevorder regverdige handel We promote fair trade

4. Factors influencing cross border crime Ons bevorder regverdige handel We promote fair trade Porous borderline – 41 road access border posts and poor border fencing or absent Almost free movement of people and animals in certain areas Total northern border distance = 3830km (the same distance as from Dublin to Moscow) Rapid migration south/RSA land of opportunity Corruption High number of illegal immigrant (Estimate 6 million) Structural import and excise duty differences between countries

5. South Africa • AIRPORTS • Upington Int. Airport • Cape Town Int. Airport • Port Elizabeth Int. Airport • King Shaka Int. Airport • Bram Fisher Int. Airport • OR Thambo Int. Airport • Lanseria Int. Airport • Pilansberg Int. Airport • Kruger Mpumalanga Int. Airport • P. Polokwane Int. Airport • South Africa / Namibia • Rietfontein • Nakop • Onseepkans • Vioolsdrift • Sendelingsdrift • Alexander Bay • South Africa / Botswana • Twee Rivieren • Gemsbok • Middelputs • McCarthy’s Rest • Makopong • Bray • Makgobistad • Ramatlabama • Skilpadshek • S. Swartkopfontein Gate • K. Kopfontein Gate • D. Derdepoort • G. Grobler’s Bridge • Z. Zanzibar • P. Platjan • P. Pontdrift • South Africa / Zimbabwe • 1. Beit Bridge • Namibia / Zambia • Ngoma • Winela • Namibia / Botswana • Buitepos • HARBOURS • Saldanha Harbour • Cape Town Harbour • Mosselbay Harbour • Port Elizabeth Harbour • East London Harbour • Durban Harbour • Richards Bay Harbour • South Africa/Mozambique • Pafuri • Giriyondo • Lebombo • South Africa / Lesotho • Caledonspoort • Ficksburg Bridge • Peka Bridge • Maseru Bridge • Van Rooyenshek • Sepapushek • Makhaleng • Telle Bridge • Ongeluksnek • Qacha’s Neck • Ramatseliso • Bushmansneck • Sani Pass • Monantsha Pass • Namibia / Angola • Oshikango • Katwitwi • South Africa / Swaziland • Mananga • Jeppe’s Reef • Josefsdal • Oshoek • Waverley • Nerston • Emahlathini • Bothashoop • Maham • Onverwacht • Golela 1 2 1 2 ANGOLA P 1 1 P 1 Z G P 2 9 S D 3 S 5 6 1 3 8 9 7 7 5 4 4 2 1 6 8 6 7 P 1 3 2 8 O 9 2 5 6 1 1 M 3 4 2 3 S 5 7 4 5 B 6 7 4 R Q 8 6 9 1 5 3 2 4 2 3

6. Cross Border Criminal Picture Ons bevorder regverdige handel We promote fair trade Smuggling right from cars, wild animals to explosives Crime intelligence indicate 3 to 6 stolen vehicles daily cross the Limpopo river The stolen car market is all the way up to Tanzania Commercial explosives find it’s way into violent crime and illegal mining Cigarette smuggling (excise duty in SACU R7.15/10 cigarettes)

7. Cross Border Criminal Picture Ons bevorder regverdige handel We promote fair trade Corruption Poaching Human trafficking Counterfeit goods: textiles and pharmaceutical Fraudulent trade transactions Live cattle, sheep, goats, animals and sugar

8. Typical fraudulent behavior that we analyze Ons bevorder regverdige handel We promote fair trade • Under declaration of the value of the product • Under declaration of the volume of the product • False declaration regarding the type of product • False declaration regarding the end destination of the product • False declaration regarding the origin of the product

9. Monitoring the red meat complex Ons bevorder regverdige handel We promote fair trade • Average value of transactions: R280M/month • Average number of transactions per month: 682 • Volume per month: 10200 ton • Live weaners imports per month

10. Behavior mapping of tariff headings Ons bevorder regverdige handel We promote fair trade • Tariff heading time series • Mapping according to port and/or purpose code. • Mapping country of origin import volumes to production potential • Economic sensibility/logic • Legally imported product becomes an illegal product

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12. Ons bevorder regverdige handel We promote fair trade

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15. Basic interventions needed Ons bevorder regverdige handel We promote fair trade Understand it is a regional issue Co-operation of shareholders Multi agency and government departments collaboration Public and private sector partnerships Then cross border co-operation Intelligence capacity needs to be enhanced Corruption remain the main obstacle towards effective and efficient border management