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 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 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.

• 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 dilemma

• 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.

Proposal

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.

Commitment

As socially responsible corporate citizens, we remain totally committed to working with SAPS, for whom we have the highest regard.