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Concern over business crime syndicates

Cape Town - The Consumer Goods Council of South Africa (CGCSA) on Tuesday expressed concern about the increase in crime at both individual and business level.

In reaction to the national crime statistics released on Tuesday, the CGCSA said it is clear there are syndicates operating across the retail supply chain. In most of the incidents, criminals targeted cash and high value commodities such as jewellery, cellular, apparel and fast moving consumer goods retailers.
 
"These incidents have typically been carried out with military-like precision by well-armed gangs. An additional matter of concern relates to the ongoing and increasing incidences of hijacking and theft of consignments of products, such as cigarette products destined for retailers," the council said.

According to the statistics unveiled on Tuesday,  burglaries at non-residential premises increased by 1.2% to 74 358 cases, shoplifting also increased by 1.2% to 71 327 cases and truck hijacking increased by 29.1% to 1 279 cases.

Since 2002, the CGCSA has facilitated the Consumer Goods Crime Risk Initiative, which focuses on working with all stakeholders to reduce crime and mitigate risk within and against the industry.

It is through this initiative that the CGCSA recently formed a structured partnership with the South African Police Service (Saps) and all other relevant business associations, including the South African Council of Shopping Centres (SACSC), to address incidences of crime targeting retailers within shopping centres across the country. The objective is to ensure a safe and crime-free environment for retailers and shoppers.

The South African Insurance Crime Bureau (SAICB), referencing its own data said it shows a decrease in vehicle theft of 13.8% from last year, resulting in pay-outs in excess of R900m. The SAICB's data represents approximately 15% of claims within the SA insurance industry -

"However, next to an increase of 29% in vehicle hijackings, the decrease in vehicle theft cannot be viewed as a win for the country. The decrease in vehicle theft directly affects the increase in hijackings as it is becoming more difficult to steal a vehicle, which leads to criminals resorting to more violent methods,” said SAICB CEO Garth de Klerk.

According to the official crime stats hijackings in(de)creased by xxx to XXXX compared to last year.

Theft out of motor vehicles also seems to be costing the industry, with reported claims in the region of R80m.  

READ: How to become a crime fighter

Trends supported by statistics indicate that house robberies similarly have decreased by 12%, while business robberies have risen by 24%, resulting in a combined claim value of R1.6m.

“As crime adapts to changes in society, so must we to reduce the scourge. This can only effectively be achieved if organisations work together with the Saps and other crime-fighting bodies to devise and implement strategies to thwart criminal activities,” said De Klerk.
 
"Although these figures may not be fully representative of the challenge in South Africa, they paint a picture of how crime shifts as a result of changing behaviours and improved technologies, as well as the cost implications that this has had particularly on the insurance industry."

“The alarming increase in the reported incidence of domestic and business break-ins and the frequency of hijackings remains a big concern,” said Helen du Toit, head: audit and forensic services at Santam about the latest national crime statistics.    

According to Du Toit, underinsurance is still common and “in the face of these troubling statistics and the detrimental impact on the people and economy of South Africa we recommend that consumers make sure that they are adequately insured against the growing risk of criminal acts".

"Aside from psychological trauma associated with burglaries and hijackings there is also the risk of an unforeseen financial setback," Du Toit cautioned.

ALSO READ: R10.8bn flows out of SA illegally

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