PORTFOLIO COMMITTEE

ADV LF McCARTHYDIRECTORATE OF SPECIAL

OPERATIONS20 FEBRUARY 2008

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DSO STRUCTURENDPPNDPP

HEAD OF

DSO(52)HEAD OF

OPERATIONS

(68)

HEAD OF HEAD OF STRATEGIC & INVESTIGATIVE

SUPPORT

POCA

REGIONAL PROJECT TEAMS

Gauteng (140)

REGIONAL PROJECT TEAMS

Eastern Cape (82)

REGIONAL PROJECT TEAMS

Western Cape (121)

REGIONAL PROJECT TEAMSKwa Zulu Natal (102)

CRIME ANALYSIS(98)

CRIME INFO- COLLECTION(27)

FORENSIC SERVICES(19)

TRAINING & DEVELOPMENT(23)

OPERATIONAL SUPPORT(83)

ADMINISTRATION(109)

REGIONAL PROJECT TEAMS Free State (35)

CEO

Financial

Crime

Organised

Crime

PublicCorruptio

n

POCA

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MANDATE & STRATEGY

The DSO targets criminals who organise crime and profit from it.

Using a multi-disciplinary and success-driven approach, to deal with cases more effectively, under central command.

To be more pro-active, pre-emptive, and intelligent in investigating and prosecuting organised crime.

Targeting the top-end, main perpetrators and proceeds of priority crimes, through calculated court-work.

DSO strategy is to mark down the impact of and to drive up the disruptive effect on organised crime.

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COMPARATIVE PERFORMANCE ANALYSIS

TARGETS

2004/2005

2005/2006

2006/2007

INVESTIGATIONS FINALISED

250 325 318 267

PROSECUTIONS FINALISED

250 234 243 214

CONVICTION RATE

80% 88% 82% 86%

CONTRABAND

INTERDICTED R 500m R 2,46bn R 445m R 1bn

ASSETS UNDER RESTRAINT

R 250m R 210m R 175.8m

R 550m

ARRESTS - 471 447 317

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KEY ACTIVITIES AND IMPACT

Initiated 368 new investigative assignments.

Finalised 267 major investigation legs.

Prosecuted 214 cases to conclusion.

Conviction rate above 85%.

317 Suspects arrested and 316 sites searched.

Value of assets restrained in DSO cases: R1,05bn.

Handled 41 cases in which R64m is destined for CARA.

Seized contraband and drugs close to R1bn.

Directed R50m to the victims of organised crime.

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CASES AND OPERATIONSKEBBLE (R300M)

LEISURE NET

SHAIK &

YENGENI

SAAMBOU BANK

FIDENTIA

PROJECT PC

TRAVEL FRAUD

S

VSD. KING

GUANXI&

AGLIOTTICOOL FROG

RAUTENBACH

MASTERMIND REDCROSS

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RED CROSS

July 2006 – Surveillance led to a raid on a

warehouse in Milnerton, Cape Town.

Two Britons and a South African were

arrested in flagrante delicto: + 4 tonnes (3894

“bricks”) of compressed cannabis.

+ R364 Million – Wholesale market price, UK

“street value”.

3 Accused convicted and sentenced:

Combined 23 years and R1,6 million.

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RED CROSS

Russia

Brazil

USA

1

1

South Africa

1

1 Emails distributed indiscriminately to South African email users

2 Email links to controller site in Canada

3 Controller site links to multiple posting sites

4 Credentials tested on Internet banking but no fraud committed

5 White plastic created for valid credentials

6 Funds withdrawn at ATMs in Russia

DEALING WITH CRIMES OF THE FUTURE:

PHISHING E-MAIL ATTACK

India

Israel

1

Canada

2 Taiwan

Australia

3

4

5

6

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BAD GUYSMarch 2006 – one of the top 10 organised crime projects in the DSO.

27 April 2006 – R 250m Hashish connected to an International Drug syndicate.

5 convictions, 3 suspects awaiting trial & other targets.

Ongoing international seizures linked to Europe, USA, Pakistan and Canada.

Key accused charged with and convicted of drug-dealing.

Currently – extradition of John Stratton.

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DSO dealt with approximately 20 mutual legal assistance requests in relation to transnational syndicate activities, offshore investments,

transfer pricing, corrupt nominal shareholding and extradition.

FBI

EFCCNigeria

Police of Mozambique

DEA / SOCAAustralian Police Swedish Police

OLAF

Hong Kong Police

DSO

Scotland Yard Serious Fraud OfficeInternational Criminal

Court

INTERNATIONAL ASSISTANCE

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BUDGET ALLOCATIONThe ENE for Special Operations was R 364m. Of this amount, a contribution of R55m was made to Corporate Services, R43m for AFU, and R55m for shared services such as buildings, vehicles, IT, & equipment.The balance of R210m dedicated to core budget expenditure.

BUDGET ITEM BUDGET SPENDING AT YEAR END

POSITION AS A PERCENTAGE OF

BUDGET

VARIANCE %

R MILLION R MILLION % %

COMPENSATION OF EMPLOYEES

154.4 147 95 % 5 % (saving)

GOODS AND SERVICES

52.8 73.5 139 % 39 % (overspent)

TRANSFERS AND SUBSIDIES

0.403 0.592 147 % 47 % (overspent)

PAYMENT FOR CAPITAL ASSETS

2.6 0.230 9 % 91 % (saving)

TOTAL 210.3 221.4 105 % 105 % (overspent)

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HUMAN RESOURCES

Actual Personnel Expenditure as at 31 March 2007:

R 147 m

AFRICAN: 272 (53%)

WHITE: 140 (28%)

INDIAN: 40 (8%)

COLOURED: 57 (11%)

MALE: 326 (64%)

FEMALE: 183 (36%)

Total Establishment:831

Filled: 509Vacant: 322

78 new positionsapproved on 13 June 2007:Total Establishment: 913

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KEY LESSONS LEARNTNeed for greater application / accuracy, to lessen mistakes.

Investigate and prosecute the hard cases to the end.

Greater investment required to unravel corporate crime.

POCA, Plea-bargaining & Indemnities to be used judiciously.

Sharpening capacity to deal with civil litigation & international legal assistance.

Prosecutors must focus on agent evidence, syndicate signatures and financial trails.

Single, uncomplicated lines of command & dedicated team work.

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KEY ASPECTS OF STRATEGIC PLAN: 2007-2008

Seeking the right mix between delivery, governance and resourcing.

Effective case/trial Management and enhancing prosecution led-investigations.

Stronger Compliance, Risk Management and Systems Platform.

Striving to develop settled jurisprudence in relation to POCA, Corruption, Letters of Request and Foreign Restraint Orders.

Sustainable and meaningful commitment to the Transformation of the DSO.

Matching job demand with expertise, growth and retention strategy.

Striking balance between qualitative and quantitative targets.

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CHALLENGES

Increasing operational effectiveness in investigating and prosecuting organised crime.

Standardised best-practice, dedicated court time and internal counsel capacity.

To develop empirical, research-based impact-measurement indicators.

Settling the functioning & streamlining co-ordination in relation to the DSO.

Strengthening professional resilience, ethics and confidence.

Enhancing the workspace: equitable, competitive and rewarding.

Finding new work, trophies, victories and success.

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““Victories often occur after you see no Victories often occur after you see no way to succeed but refuse to give up way to succeed but refuse to give up

anyway.”anyway.”

Dave WeinbaumDave Weinbaum