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THE SPECIALISED THE SPECIALISED COMMERCIAL CRIME UNITCOMMERCIAL CRIME UNIT

AN OVERVIEWAN OVERVIEWMAY 2008 MAY 2008

ADV CHRIS JORDAAN, SCADV CHRIS JORDAAN, SC

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INDEXINDEX

BackgroundBackground Who are we?Who are we? Where do we fit into the structures?Where do we fit into the structures? What cases do we do?What cases do we do?

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INDEX (CONT)INDEX (CONT)

How do we do our work?How do we do our work? Our achievements 2002/3 to dateOur achievements 2002/3 to date Recent achievementsRecent achievements Trends/ challengesTrends/ challenges Annexures:Annexures:

A- Monitoring toolsA- Monitoring tools

B- Improvement PlansB- Improvement Plans

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BACKGROUNDBACKGROUND

Established on 1 August 1999 as a Established on 1 August 1999 as a pilot project to combat the pilot project to combat the deteriorating situation pertaining to deteriorating situation pertaining to commercial crime. commercial crime.

Starting operations in Pretoria, it Starting operations in Pretoria, it soon proved to be so effective that soon proved to be so effective that it was decided to roll the Unit out it was decided to roll the Unit out countrywide. countrywide.

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BACKGROUND (CONT)BACKGROUND (CONT)

Some of the objectives of the Some of the objectives of the initiative were:initiative were:

SpecialisationSpecialisation Co-location of prosecutors and Co-location of prosecutors and

investigatorsinvestigators Dedicated courtsDedicated courts Substantially increase number of cases Substantially increase number of cases

processedprocessed Reduce cycle timesReduce cycle times

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WHO ARE WE?WHO ARE WE?

Our mandate:Our mandate:

• We are specialist prosecutors within We are specialist prosecutors within the National Prosecuting Authoritythe National Prosecuting Authority

• We are dedicated to the prosecution We are dedicated to the prosecution of complex commercial crime casesof complex commercial crime cases

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WHO ARE WE? (CONT)WHO ARE WE? (CONT)

Establishment : 169 posts & 7 contract Establishment : 169 posts & 7 contract postsposts

Regional Offices at Pretoria, Johannesburg, Regional Offices at Pretoria, Johannesburg, Cape Town, Port Elizabeth, Bloemfontein, Cape Town, Port Elizabeth, Bloemfontein, Durban and attached office of PE in East Durban and attached office of PE in East LondonLondon

Pretoria also serves Polokwane and Pretoria also serves Polokwane and MpumalangaMpumalanga

Majority of prosecutors are Senior State Majority of prosecutors are Senior State AdvocatesAdvocates

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WHO ARE WE? (CONT)WHO ARE WE? (CONT)

We also provide services to some We also provide services to some regions, either by a prosecutor on regions, either by a prosecutor on site or prosecutor going on circuitsite or prosecutor going on circuit

Our contract prosecutors deal with Our contract prosecutors deal with RAF matters and counterfeit mattersRAF matters and counterfeit matters

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WHO ARE WE? (CONT)WHO ARE WE? (CONT)

We mostly prosecute in the Regional We mostly prosecute in the Regional CourtsCourts

Prosecutions in the High Court and Prosecutions in the High Court and District Court not excludedDistrict Court not excluded

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Where do we fit into the structures? Where do we fit into the structures?

NPA StructureNPA StructureNDPP i

CEO AFU DSO NPANSSD

CS

Communication

IMU

Strategy & Risk

PCLU

SOCA i

WPU

SCCUAdv C Jordaan

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CCU Unit.

Syndicate Fraud

Unit

Fraud Unit

Fraud Unit Fraud Unit Fraud Unit

Where do we fit into the Where do we fit into the structures? structures?

PartnersPartners

Steering Committee

Commercial Branch Provincial Head

MANAGEMENT COMMITTEE

Process Scheduling & Management,

Admin & Finance

Prosecutors Courts

Regional Court

President

NDPP

SCCU

COMMERCIAL BRANCH

SPECIAL DIRECTOR OF PUBLIC

PROSECUTION

NSSD

DEPUTY NDPP

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Where do we fit into the Where do we fit into the structures? Partners structures? Partners

MANAGEMENT COMMITTEE

PROSECUTION INVESTIGATION

OPERATIONS

PROFESSIONAL

PERSONNEL

ADMINISTRATION

OPERATIONS

PROFESSIONAL

PERSONNEL

ADMINISTRATION

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WHAT CASES DO WE DO?WHAT CASES DO WE DO?(SAPS MANDATE)(SAPS MANDATE)

We prosecute We prosecute complex commercial complex commercial crime casescrime cases investigated by the investigated by the CCommercial Branch of the South African ommercial Branch of the South African Police ServicesPolice Services in dedicated courts in dedicated courts

We obtain our cases thus We obtain our cases thus mostly mostly through SAPS Commercial Branch’s through SAPS Commercial Branch’s mandatemandate

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WHAT CASES DO WE DO?WHAT CASES DO WE DO?(SAPS MANDATE)(SAPS MANDATE)

However the SCCU will attend to any However the SCCU will attend to any complex commercial crime matter brought complex commercial crime matter brought to its attention in the area where it is to its attention in the area where it is operationaloperational

General rule – only serious General rule – only serious commercial crime (Regional Court commercial crime (Regional Court matters)matters)

Directive of DPP as to forum of cases Directive of DPP as to forum of cases (DC or RC) serves as a guideline(DC or RC) serves as a guideline

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The Mandate of SAPS Commercial The Mandate of SAPS Commercial BranchBranch

The mandate of SAPS Commercial Branch :The mandate of SAPS Commercial Branch :

Statutory offencesStatutory offences relating to legislation under diverse relating to legislation under diverse areas, from Banking and Currency to E-Crimeareas, from Banking and Currency to E-Crime

Common-law offencesCommon-law offences All common-law offences pertaining to the statutes dealt All common-law offences pertaining to the statutes dealt

with by the branch , including fraud and theft with by the branch , including fraud and theft

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The Mandate of SAPS Commercial The Mandate of SAPS Commercial BranchBranch

Other fraud-related crimes:Other fraud-related crimes: counterfeit banknotes, and the counterfeit banknotes, and the

counterfeiting of legal tendercounterfeiting of legal tender

Theft:Theft: Trust moniesTrust monies

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The Mandate of SAPS Commercial The Mandate of SAPS Commercial BranchBranch

Fraud:Fraud: Relating to company or close Relating to company or close

corporation, double discounting of corporation, double discounting of instalment sale agreements, instalment sale agreements, “factoring”, stock exchange, “factoring”, stock exchange, Computer related, Internet related, Computer related, Internet related, stolen cards, State Institutions, stolen cards, State Institutions, fiduciary capacityfiduciary capacity

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The Mandate of SAPS Commercial The Mandate of SAPS Commercial BranchBranch

White-plastic, clone cheques, White-plastic, clone cheques, counterfeiting and uttering of credit, counterfeiting and uttering of credit, debit and petrol cards. debit and petrol cards.

Kite-flying, which is the unlawful Kite-flying, which is the unlawful generating of funds in bank accounts generating of funds in bank accounts by means of depositing stolen or by means of depositing stolen or worthless bills of exchange worthless bills of exchange

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WHAT CASES DO WE DO?WHAT CASES DO WE DO?OTHEROTHER

In discretion of Head of the In discretion of Head of the Unit/delegates to accept matters Unit/delegates to accept matters outside of SAPS Commercial Branch outside of SAPS Commercial Branch mandate, e.g. upon request of mandate, e.g. upon request of another unitanother unit

NDPP exercises discretion and may NDPP exercises discretion and may allocate certain matters, e.g. allocate certain matters, e.g. prosecution of NPA-members in other prosecution of NPA-members in other unitsunits

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HOW DO WE DO OUR WORK?HOW DO WE DO OUR WORK?

Joint planning & problem solvingJoint planning & problem solving Specified focus areasSpecified focus areas LocationLocation Team work Team work Case planningCase planning Prosecutor guided investigationProsecutor guided investigation Monitoring & evaluationMonitoring & evaluation

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HOW DO WE DO THIS?HOW DO WE DO THIS?JOINT PLANNING & PROBLEM JOINT PLANNING & PROBLEM

SOLVINGSOLVING

We work jointly with the police and We work jointly with the police and other stakeholders, e. g. Banking other stakeholders, e. g. Banking Industry, Business Against Crime, Industry, Business Against Crime, Road Accident Fund, etcRoad Accident Fund, etc

We have procedural guidelines, We have procedural guidelines, accepted by allaccepted by all

We have scheduled strategic & We have scheduled strategic & operational meetings, attended by alloperational meetings, attended by all

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HOW DO WE DO OUR WORK? HOW DO WE DO OUR WORK? OUR FOCUS AREASOUR FOCUS AREAS

FOCUS AREAS

SPECIALISATION(Investigation & Prosecution of

CC)

COMMITMENT(Dedicated Focus)

EXPERIENCED PEOPLE

(Capacity Building)

EFFECTIVE PROCESSES(Optimal operational efficiency &

effectiveness)

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HOW DO WE DO THIS?HOW DO WE DO THIS?LOCATIONLOCATION

We mostly share premises with the We mostly share premises with the SAPS Commercial Branch SAPS Commercial Branch

We prosecute our cases in dedicated We prosecute our cases in dedicated Regional Courts, usually located Regional Courts, usually located at/near our premisesat/near our premises

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HOW DO WE DO THIS?HOW DO WE DO THIS?TEAM WORKTEAM WORK

A prosecutor and investigator are A prosecutor and investigator are allocated right at beginning of a caseallocated right at beginning of a case

They work together as a team They work together as a team throughout the casethroughout the case

Co- location contributes to efficacy of Co- location contributes to efficacy of relationshiprelationship

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HOW DO WE DO THIS?HOW DO WE DO THIS?TEAM WORKTEAM WORK

The Prosecutor guides the The Prosecutor guides the investigation investigation

The Prosecutor and Investigator The Prosecutor and Investigator however operate independently and however operate independently and are functionaries in their own rightare functionaries in their own right

Involvement of prosecutors in the Involvement of prosecutors in the investigation not allowedinvestigation not allowed

The Prosecutor does not lead the The Prosecutor does not lead the investigationinvestigation

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HOW DO WE DO OUR WORK?HOW DO WE DO OUR WORK?TEAMWORKTEAMWORK

Dr J A van S d’ Oliveira SCDr J A van S d’ Oliveira SC

“A prosecutor must be TASK TEAM ORIENTATED. There must be a joint prosecutor – police collaboration from the outset. This is the recipe for success.”

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HOW DO WE DO OUR WORK?HOW DO WE DO OUR WORK?TEAM WORKTEAM WORK

Case planCase plan

The prosecutor and investigator jointly draft a The prosecutor and investigator jointly draft a case plan, setting out what needs to be done, by case plan, setting out what needs to be done, by whom and whenwhom and when

They monitor progress by regular follow up They monitor progress by regular follow up meetingsmeetings

The guidelines aligns target dates to tasksThe guidelines aligns target dates to tasks

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CASE PLANNINGCASE PLANNING

PLANNING

MEETING

Plan activityAgree

resp.& target dates

Investigation Phase

Witness Statements

from.. Resp IO

Date by dd.mm.

Bank Statements

from.. Resp IO

Date by dd.mm.

Prepare for Trial

Arrest SuspectResp. IO

Date by dd. mm

Consult key witnesses

Resp. Pros.Date by dd. mm

Subpoena Witnesses

Resp. IO/Pros.Date by dd. mm

Prepare charge sheet

Resp. Pros.Date by dd. mm

The TRIAL

Court Proceedings

Resp. Pros Trial date

dd. mm

ConsultationsHeads of

Agreement, etc.

Post Trial Review

Finalise Docket

Resp. IODate by: 7

days

Update recordsResp. IO

Date by: 7 days

TEAM FOCUSINVESTIGATOR

PROSECUTOR

EXTERNAL SPECIALIST

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CASE PLANNINGCASE PLANNINGSCOPE OF THE PROCESSSCOPE OF THE PROCESS

Cases Reviewed

by Unit Mgt.

SCCU CasesInvestigator + Prosecutor + External Spec Team Appt.

PLAN

Investigation & Delegate

Tasks

TEAM

Investigates case and

Prepares for Trial

THETRIAL

The Post Trial REVIEW

NEW CASES

CASES CLOSED

NON-SCCU CASES

CASES NOLLE

PROSECUI

MISSION ACCOMPLISHED

Unit Commander

allocates case to Investigator

INITIALinvestigation to enable Unit

Cmdrto assess whether

“there is a case”

EXTERNAL SOURCES

Eg. NDPP other Provinces,, etc.INVESTIGATOR PROSECUTOR

AFUFORMAL

WORKING RELATION-

SHIP

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HOW DO WE DO OUR WORK?HOW DO WE DO OUR WORK?MONITOR & EVALUATEMONITOR & EVALUATE

The process is monitored by The process is monitored by supervisors on an electronic case supervisors on an electronic case registerregister

Regular operational and strategic Regular operational and strategic meetings with all stakeholders are meetings with all stakeholders are heldheld

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OUR ACHIEVEMENTS 2002/3 TO OUR ACHIEVEMENTS 2002/3 TO 2006/7 2006/7

Number of courts increased by Number of courts increased by 241.7%241.7%

Number of convictions increased Number of convictions increased by 435.3%by 435.3%

Conviction rate averaging 95%Conviction rate averaging 95%

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OUR ACHIEVEMENTS 2002/3 TO OUR ACHIEVEMENTS 2002/3 TO 2006/7 2006/7

Cases enrolled for trial increased Cases enrolled for trial increased by 251.9%by 251.9%

Cases finalised increased by 158, Cases finalised increased by 158, 2%2%

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OUR ACHIEVEMENTS 2002/3 TO OUR ACHIEVEMENTS 2002/3 TO 2006/7 2006/7

Major cases resulting in convictions Major cases resulting in convictions and long prison sentencesand long prison sentences

E.g. In 2006/7 direct imprisonment in E.g. In 2006/7 direct imprisonment in 134 cases 134 cases

Good court hours: in 2006/7 averaging Good court hours: in 2006/7 averaging 4h344h34

Model environment for development Model environment for development of similar prosecutor guided initiativesof similar prosecutor guided initiatives

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RECENT ACHIEVEMENTSRECENT ACHIEVEMENTS

The SCCU devised compliance The SCCU devised compliance monitoring tools for 13 selected monitoring tools for 13 selected policies and monitored compliance policies and monitored compliance over a year to obtain baselinesover a year to obtain baselines

The SCCU selected 7 priority The SCCU selected 7 priority governance areas, implemented governance areas, implemented improvement plans and increased the improvement plans and increased the combined governance index score by combined governance index score by 28,75%28,75%

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RECENT ACHIEVEMENTSRECENT ACHIEVEMENTS

The SCCU actively managed risk by The SCCU actively managed risk by allocating a risk manager and allocating a risk manager and implementing risk mitigation plansimplementing risk mitigation plans

The SCCU concentrated on properly The SCCU concentrated on properly managing the relationships with managing the relationships with stakeholders, employees, other unitsstakeholders, employees, other units

A stakeholder survey was heldA stakeholder survey was held An employee satisfaction survey was An employee satisfaction survey was

heldheld

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RECENT ACHIEVEMENTSRECENT ACHIEVEMENTS

Baselines were obtained and plans to Baselines were obtained and plans to increase satisfaction levels draftedincrease satisfaction levels drafted

The SCCU made a concerted effort to The SCCU made a concerted effort to engage with the community; all engage with the community; all offices had several projectsoffices had several projects

Joint targets were set with the AFU Joint targets were set with the AFU and exceededand exceeded

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2007/2008 PTA JHB PE DBN BLOEM CAPE T APR 08 06/07 05/06 04/05

COURT HOURS 04:04 04:17 04:42 04:40 03:52 03:54 04:14 04:34 4.94 4.69

ENROLLED 303 444 256 452 136 260 1851 1184 1431 935

OUTSTANDING 235 312 129 323 107 109 1215 1163 1056 843

CONVICTIONS 329 198 188 310 88 119 1232 1515 857 653

SENTENCES 319 210 174 305 84 119 1211 1485 916 635

ACQUITTALS 18 24 10 2 4 19 77 53 47 36

CONVICTION RATE 94.81% 89.19% 94.95% 99.36% 95.65% 86.23% 94.12% 96.62% 94.63% 94.78%

WITHDRAWALS 226 205 15 138 8 63 655 343 268 213

> 6MONTHS 55% 40% 65% 61% 51% 52% 53.95% 55.80% NA NA

105 A 29 31 4 14 8 67 153 537 171 90

CASE LOAD PP 49 61 45.1 80 43 92 74.02 73.22 59.5 63.41

Turnaround court (days) 263 454.31 285 206 222 129 238.39 233.83 302.08 NA

Turnaround all (days) 349 433.73 287 265 233 80 274.62 253.31 244.72 177

Cases received 588 987 480 805 293 1206 4359 3423 2823.00 3077

Cases finalised 747 768 355 631 158 372 3031 3574 2271.00 1772

Nolle prosequi 184 329 156 186 62 171 1088 1693 1035.00  

In Custody >6M 28 12 6 3 5 7 61 92    

In Custody >2Y 4 12 1 0 0 0 17 10    

PP for inv 32 19 10 47 5 1 114 0    

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TRENDSTRENDS

Decrease in Court hours :- Permanent Magistrates not given by DoJ as

promised- Rotating of magistrates, which influences

continuity of cases and requires fragmentation of staff in different courts

-The type of cases enrolled are more complex -A tendency for less pleas and more trials

have developed.

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TRENDSTRENDS

Consistently high conviction rate

High withdrawal rate: - This can be attributed to a clean

out session relating to the RAF project held during the year

- Reasons for withdrawals are supplied on an ongoing basis and monitored

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TRENDSTRENDS

Decrease in Section 105A pleas - Accused are electing to take their chances in court Steady increase in Case loads of prosecutors- Continually monitored and addressed Steady Turnaround times of matters on the role Turnaround times of all cases (on role and not on role) are

slightly higher than before, but not a matter of concern Increase in number of cases received - Roll out of the Bloemfontein and Cape Town offices- Stakeholder programs which have created trust in the

abilities of the Unit Less cases were finalised in total. There were many

vacancies in this period. Less cases were finalised by way of nolle prosequi,

and more enrolled

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CHALLENGESCHALLENGES

To increase access to our servicesTo increase access to our services To create a pool of prosecutors who are To create a pool of prosecutors who are

specialists in the prosecution of specialists in the prosecution of commercial crimecommercial crime

To investigate how we can deliver a To investigate how we can deliver a service from district court level upservice from district court level up

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THE SPECIALISED THE SPECIALISED COMMERCIAL CRIME UNITCOMMERCIAL CRIME UNIT

THE ENDTHE END

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ANNEXURE AANNEXURE AMONITORING TOOLSMONITORING TOOLS

Asset ManagementAsset Management Conditions of ServiceConditions of Service Employee WellnessEmployee Wellness Performance ManagementPerformance Management Petty CashPetty Cash Prevention and Combatting of Corrupt ActivitiesPrevention and Combatting of Corrupt Activities Sexual Harassment Sexual Harassment SmokingSmoking Supply Chain ManagementSupply Chain Management Telephone and CellularTelephone and Cellular Termination of Service Termination of Service Theft and Losses Theft and Losses Vehicle ManagementVehicle Management

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ANNEXURE BANNEXURE BIMPROVEMENT PLANSIMPROVEMENT PLANS

Priority Governance Areas:Priority Governance Areas: Risk ManagementRisk Management Performance Management Performance Management Stakeholder Management Stakeholder Management Policy ManagementPolicy Management Financial ManagementFinancial Management Strategic ManagementStrategic Management Information ManagementInformation Management