I am indeed pleased to be here today, in this very important meeting that deals with one of the major challenges facing not only our region but the entire world. For so long, punitive action as consequences of the attainment of justice has over the centuries focused on merely denying culprits the freedom of movement through imprisonment. However, experience has taught us that not only are such remedial measures inadequate in addressing the real scourge of criminal activities, but that these measures only scorch the snake without killing it.
Therefore criminals must know that not only would they suffer incarceration but that ill-gotten wealth would be forfeited in favour of ensuring that justice indeed prevails. I am therefore pleased to witness these measures at combating crime being implemented because asset forfeiture will guarantee investors and all other role players in our regional economy of the legitimacy of our development agenda. Crime and corruption cast doubt as to the viability of our economy and the route of asset forfeiture is fitting response to these threats on our economic and social welfare as a region.
In today’s increasingly globally connected world, the crimes of corruption, money laundering and drug trafficking routinely cross national borders. Supported by the United Nations Office on Drugs and Crime (UNODC), ARINSA encourages collaboration through its network of contact points by putting prosecutors and investigators in touch with counterparts in member countries and with colleagues in the 35 countries that are part of the European Union (EU)-based Camden Asset Recovery Inter-Agency Network, with which ARINSA is associated.
It is a great honour and pleasure for me to join you in marking the first annual general meeting of Asset Recovery Inter-Agency Network of Southern Africa (ARINSA).
I wish to welcome representatives from the ARINSA member countries:
- Botswana, Lesotho, Mauritius, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.
A special word of welcome to representatives to our international guests who have all played in a role in making ARINSA possible:
- The World Bank
- The International Centre for Asset Recovery
- The CARIN
- The Guernsey Crown Advocates Department.
A year ago I was invited to celebrate the 10th anniversary of the Asset Forfeiture Unit (AFU) in South Africa which provides the secretariat support to ARINSA and that has made this annual general meeting (AGM) possible.
Last month in Paris at the UNODC/World Bank Stolen Assets Recovery Initiative (StAR) Global Forum on Stolen Asset Recovery, I noted the efforts of ARINSA within the Southern African region and supported the need to increase the capacity of prosecutors and investigators to pursue the corrupt and the proceeds of corruption. The delegates there were indeed pleased, and impressed, to hear about the initiative we have taken in Southern Africa.
One of the most important challenges for governments in this region is to ensure that scarce public resources are applied for public benefit and not diverted by corrupt elements into private hands and that corruption in the public or private sphere does not undermine economic growth.
In the last 20 years, more and more countries have realised that they will never deal effectively with crime unless it becomes true that “crime does not pay.” This has lead to a much greater focus on the benefits that criminals derive from crime and the money they generate. Thus, while asset forfeiture is still a relatively new concept and creates exciting opportunities to deal more effectively with crime, it also comes with many challenges that arise from new legislation, and the use of sophisticated civil litigation concepts to fight crime.
Many criminals see jail as an occupational hazard, but expect to be well-off when they come out. Prosecutors elsewhere tell that there have been several cases where the crime boss smiled when he received a 20 year sentence - but literally burst out in tears when his favourite Rolls Royce went, when his family lost their home and the children lost their expensive private education.
Even where the leaders of syndicates have been convicted, forfeiture has proved valuable in ensuring that the businesses and other assets used by the organisation do not remain behind for the use of a new leadership. The heads of syndicates are seldom directly involved in crime, and it is notoriously difficult to convict them of any offence. Usually their foot soldiers are convicted, but they seldom own any of the assets. With civil forfeiture the state can take the assets and at least hurt the syndicate heads financially, even if they cannot be convicted of an offence.
Civil forfeiture only requires proof on the balance of probabilities. Thus it can be used even when the evidence is strong enough to prove the owner guilty beyond a reasonable doubt. It has been particularly successful against attempts by organised crime to hide the real ownership of assets, using increasingly sophisticated methods including front companies or trust, or nominee owners.
Asset forfeiture has also enabled the state to close down the infrastructure used for criminal activities including, drug houses, cars, bars and clubs.
The mission of asset forfeiture is to ensure that we begin to take the profit out of crime. To roll back crime, the state has to ensure that it becomes true “that crime does not pay.” And the advantage of forfeiture is that the property seized from criminals can be used to fight crime.
Here in South Africa this work is being done by the AFU, the Financial Intelligence Centre, National Prosecuting Authority, South African Revenue Service, South African Police Service and the Hawks.
The speed and efficiency with which banking and other property services operate in today's world means that it is possible for stolen assets to be moved to a neighbouring country, an offshore banking centre, or any country perceived to be a safe haven, within days or sometimes within minutes of being stolen. Where the proceeds of crime are processed in this way our investigators and prosecutors cannot fulfil their mandate without the help of our neighbours.
When I talk of our neighbours I mean not just our close neighbours, the countries within this region with whom we have close cultural, economic and historical links, but all the countries to which, in this globalised world, we are linked through trade, banking or transport ties.
This movement of assets, particularly across international boundaries, is an accepted part of money laundering theory (where it is described as "layering") and has been observed to occur on so many occasions by our investigators and prosecutors that it might now be said that international movement of assets in financial crime cases is almost becoming the rule rather than the exception.
This is why it is so gratifying to see the development in this region, amongst our close neighbours, of the ARINSA network - the first such network to have been established after the European based CARIN Network, upon which ARINSA is modelled and with which it is affiliated.
I want to thank the UNODC for both the vision and the financial support which it has applied to the development of ARINSA, and the more practical support it has given by placing international asset forfeiture experts in Southern African to assist us at a very practical level. We look forward to its continuing (and hopefully increasing) support in the years to come.
The nine member countries of ARINSA cover a very significant part of Africa. It will be pleasing to see the membership increase to 10 as Malawi's application to join the network is to be considered at this meeting. I understand that Nigeria has also expressed interest in joining ARINSA as an observer.
Both these expansions of ARINSA's membership are welcome as they will greatly enhance its operational capacity. The AFU annually hosts prosecutors from the SADC region in its offices, providing an introduction to the South African asset forfeiture regime and an opportunity to work on live asset forfeiture matters in each office. This Prosecutor Placement Programme is organised jointly with the UNODC.
I am confident, that once ARINSA has developed its lines of communication and operating procedures, it will greatly facilitate the work of investigators and prosecutors in tracing, freezing, confiscating and repatriating the proceeds of corruption and other financial crimes that have been shifted across national borders.
The key to the success of any network is the maintenance of efficient channels of communication. The responsibility for this falls upon all of you who are the network's contact points. This work is not easy - time is required both to follow up incoming and outgoing requests and to promote the network in each ARINSA jurisdiction. And time, like so many other resources, is both scarce and non-renewable.
However, I strongly believe that time invested on the development of the network and the processing of requests will be repaid in the dividends you receive in the form of confiscated property.
Program director, as the member of Cabinet responsible for the administration of justice, I am here to say to all of you that we encourage prosecutors and investigators in all ARINSA member countries to use the channels of communication that you are opening up.
We are pleased to support the ongoing development of the network and look forward to seeing the fruits of your labours in the form of stolen public assets and other proceeds of crime being channelled into the public purse which is where they belong.
We acknowledge however that there are still huge challenges. The job we have accepted to do is indeed a demanding one and we are not under the illusion that we can do it all alone. The fight against crime must devolve down to the other tiers of government and we must continue to double our efforts in addressing crime.
I therefore use this opportunity to assure you that this government’s war against crime has not slowed down.
In conclusion, I wish to pledge our government’s support to you and indicate that we are willing to listen to you and to find ways of enhancing your work. We will endeavour to create a climate conducive to the realisation of your full potential, consistent with your mandates in your countries.
Indeed together we can do more to make Southern Africa a very unattractive place for criminals to set up their infrastructure to commit crime and to enjoy the proceeds of such criminal activities. More than spending time behind bars, criminals must know that there is an added disincentive of losing their assets. This no doubt gives full expression to our commitment that we will relentlessly pursue those who organise crime and hope to benefit from it.
I thank you!
