to be reckoned with
8 January 2007
The Commercial Branch of the South African Police Service is responsible for
investigating fraud, forgery, uttering and theft (mostly theft of trust money
and or funds that are manipulated to the extent that the services of a
chartered accountant are required). The Commercial Branch is also responsible
for enforcing fifty-four (54) Acts of Parliament. To mention just but a few,
the Companies Act, 1973 (Act No 61 of 1973), the Close Corporation Act, 1984
(Act No 69 of 1984) and the Banks Act, 1990 (Act No 94 of 1990).
The effective prevention of Commercial Crime, as well as law enforcement and
deterrent action in respect of this kind of crime, is complicated by several
challenges such as: Commercial Crime is more dynamic than ever, that is, new
fraud patterns emerge swiftly and can quickly transform and migrate (as soon as
businesses take preventive security measures against one type of fraud,
criminals adopt a less risky approach soon afterwards).
The faceless nature of Commercial Crime today complicates the evidentiary
limitations of traditional law enforcement and investigations. Modern
communication technology offers benefits but also heightens the constraints of
the investigator, as evidence can disappear quickly.
Nevertheless, towards the end of December 2006, Commercial Branch Units
across the country managed to secure the arrests of several foreign nationals
as well as locals for various commercial crime-related offences. In the North
West Province, Klerksdorp, two foreign nationals, a Zambian, Joseph Banda (39)
and a Cameroonian, Meh Eric Ndomgong (38), were swiftly arrested in a police
sting operation for a �Black dollar� fraud scam. The potential loss is
estimated at R150 000. The suspects had been denied bail.
In the Free State, a businessman from Lesotho, Saros Abdul Mahadik Rahman,
(35), was arrested for fraud and theft. The suspect had used fraudulent means
to purchase stock from two dealers in Phuthaditjaba, near Qwaqwa, for R450 000.
Mr Rahman is in custody.
A Free State Attorney, aged 42, was charged with contravening the Value
Added Tax (VAT) Act of 1991. The suspect had failed to pay over to the South
African Revenue Services (SARS), an amount of over R150 000, for VAT levied by
his law firm. He was not asked to plead and the case has been postponed for
further investigations. Also in the Free State, a mother (49) and her son, in
his twenties, were arrested for fraud and theft. It is alleged that Ms Doreen
Nel, whilst in the employ of a firm of attorneys, administered an insolvent
estate during the period July 2003 and May 2006, during which time she
fraudulently issued cheques of the estate in favour of her son, Stephan. The
cheques were deposited into the savings account of her son and the proceeds
withdrawn. The estate suffered a loss of R1,7 million. The accused were
released on bail of R5 000 and R2 000, respectively. The case is still pending
in court.
Commercial Crime requires specialised investigating skills and therefore
each Commercial Branch has operational groups that are responsible for
investigating specific kinds of crime. Examples of such specialised groups are:
The Banking-related Crime Group (cheque, card and motor vehicle fraud), The
Intellectual Property Rights Group (Trade and Industry, Revenue and Black
Dollars scam), the Statutes and Fraud Group (419 Letters scam), the Serious
Cases, Financial Crime and Corruption Group (which deals with serious and high
profile cases, money laundering and corruption) and lastly, The Electronic
Crime Group that deals with e-crimes.
The South African Police Service is committed to ensuring that all crimes
reported to our Police Stations nationwide are thoroughly investigated and that
suspects are arrested and timeously brought before courts of law.
Contact Person:
Captain Percy Morokane
National Spokesperson
Media Relations: Communication and Liaison Services
South African Police Service, Pretoria
Tel: (012) 393 5541
Cell: 082 778 5602
Issued by: South African Police Service
8 January 2007
