AFU Report to Portfolio Committee 9 March

AFU Report to Portfolio Committee – 9 March 2006 Presented by: Willie Hofmeyr afu 1

Overall objectives 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 afu 2

1: Increasing the volume of cases 2004 / 2005 / 2006 (10 mnths) Indicator Target Actual % of target Number of cases Target: Full year & 10 mnths Actual YTD % of target YTD Seizures 180 165 92% 210 175 207 118% 150 151 101% 160 133 171 128% Cases completed afu 3

Continued 2004 / 2005 Indicator Target Actual 2005 / 2006 (10 mnths) % of target Target: Full year & 10 mnths Actual % of YTD target YTD Value of cases Seizures R 250 m R 222 m 89% R 250 m R 208 m R 275 m 132% Cases completed R 100 m R 173 m 173% R 100 m R 83 m R 93 m 112% Funds into CARA R 60 m R 25 m 42% R 50 m R 42 m R 18 m 42% Funds to victims R 20 m R 66 m 332% afu 4

Notes on targets New seizures Number of cases: well above target Value of cases: already achieved R 267. 5 m against target of R 250 m Completed cases Number of cases: well above target Value of cases: above target afu 5

Provisional targets 06/07 Indicator Number of cases: Monetary targets: New seizures 230 R 300 m Cases completed 180 R 120 m Funds into CARA R 40 m Funds to victims R 30 m afu 6

2: Developing the law 2004 / 2005 Indicator Target Actual % of Target: Actual % of target year & for YTD target 10 mnths YTD Judgements overall (In CC or SCA) 30 Successful 67% (In CC or SCA) 2005 / 2006 (10 mnths) 47 157% 45 38 (0 + 6) 64% 34 91% (1 + 3) -3% (50%) 67% 71% +4% (75%) afu 7

Continued Judgements to date Success rate to date All cases 165 63% CC/SCA cases 3 +14 100% & 57% afu 8

Success rate in Judgments Have maintained 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 44% of judgments (21 of 48) Big change in past 3 years in attitude of courts 03/04 won 75% of judgements (23 of 30) 04/05 won 64% of judgements (30 of 47) 05/06 won 71% of judgements (22 of 31) Since Nov 2004, have won 5 of 6 cases in SCA afu 9

SCA / CC cases SCA cases Seevnarayan judgement on instrumentalities made it almost impossible to act against dirty hotels Recent SCA decisions in Prophet and Prophet adopted a more balanced approach for fixed property SCA cases - other Nel and Du Toit lost – issue of legal expenses CC cases Phillips application for leave to appeal refused afu 10

Partners Have excellent relations with SAPS – about 90% of cases, 30% value DSO – about 8 % of cases, 67% value Others: NPS, SARB, FIC Have SAPS task teams in most AFU offices afu 11

Employment equity All Staff Management Designated groups 82% 76% Black 61% 66% African 37% 29% Women 45% 41% afu 12

Major 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 R 1 to R 2 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 ten-fold - Securing funding a massive challenge afu 13

Legislation A number of areas have been identified where the law should be clarified or strengthened Amendments have been prepared and submitted to DOJ We have identified a shorter list of urgent amendments Helpful if they can be processed in in the second half of the year Minister is about to publish regulations to specify the maximum legal expenses that may be paid from assets preserved ito chapter 6 afu 14

Conclusion Asset forfeiture is an important part of the war against crime ‑ it hits the crime bosses where it hurts most ‑ in the pocket In this way it helps to deter criminals But most importantly, forfeiture is a vital weapon to take the profit out of crime If we are to deal effectively with crime, it must become true “that crime does not pay” afu 15