The Banking Council
The role of the banks
- It is a strategic industry on which all South Africans are dependent.
- Banks are not responsible for the maintenance of law and order.
- But as responsible corporate citizens they are committed to assisting SAPS in resolving the problem.
The current state of play
Bank & CIT Robberies
Bank and CIT Robberies are contained but remain at an unacceptably high level.
- 356 incidents
- R68 million loss
- R1 billion security costs
CIT and bank robbery strategies in place and working.
- Now need to be made to work -
- especially in relation to branch robberies and CIT companies other than SBV.
- E.g. Because of "fast-track courts" in future Chauke would be in court in 6 months, not 12.
ATM crime is getting more violent and continues at an unacceptably high level.
- 1,100 incidents per week.
- Cost of ATM crime R55 million.
ATM Crime initiatives
ATM crime strategies have been developed but not implemented.
- Minister has given the issue the necessary priority and instructions.
- Concern about the sustainability of the strategies.
- Danger that effective counter measures result in escalation in violence.
White Collar Crime
- White collar crime against the banks is unquantified, but is at an unacceptably high level.
- Police stats (excluding IDSEO) are 60,000 fraud dockets p.a. totalling R4.6 billion potential loss. They estimate 40% of that is bank fraud - i.e. R2 billion.
- At the absolute minimum it costs the banks in excess of R 1 billion per annum.
White Collar Crime initiatives
- Special Commercial Courts pilot project implemented;
- AFSA Trust initiative to deal with high profile complex fraud cases (including training of state prosecutors) implemented.
- All strategies are based on the "client oriented" approach of SAPS.
- The banks only experience and observe the symptoms.
- Safety and Security already gets more than 6,6% of the total Government budget.
- Unlikely that this can be increased.
- Therefore only viable strategy is to make sure that the resources that are available are used to maximum effect.
The current status
Clear that progress has been made -
- spending on staff is down from 83% to 78%.
- Budget and Resource Management Principles have been introduced.
- Program / Project Management has been introduced.
- SAPS is working closely with the Private Sector and the Community.
- Serious Crimes are being prioritised.
Equally clear that there are still major problems and opportunities for improvement (as there are for all businesses) -
- Financial management is not integrated with resource and project management.
- Financial management is separated from line management (where the capacity for savings and efficiency exists). It cannot and must not be separated in that way.
- One swallow doesn’t make a summer.
Significant specific concerns
- Specific anti-crime initiatives are not sustainable (e.g. ATM & commercial crime initiatives).
- Many SAPS staff are demoralised and there is skills dilution.
- The integrity of the data on which SAPS is relying is sometimes suspect.
- Large numbers of arrests are made, but few prosecutions, and virtually no convictions.
Banking industry needs
Safe And Secure Environment To Conduct Business.
- Effective implementation of the agreed strategies.
- Effective Criminal Prosecution and secure incarceration.
The Portfolio Committee should give every support to
- ensure sound financial and integrated management of SAPS, and
- to all steps taken by SAPS to bring that about.
As socially responsible corporate citizens, we remain totally committed to working with SAPS, for whom we have the highest regard.