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In response to a parliamentary question by the DA, it has been established that the combined losses incurred at Transnet and Eskom due to copper theft increased by 38.1% in 2008/09 and the replacement costs increased by 57.4%. Serious questions remain regarding the efficiency of protecting government infrastructure against theft.

A full copy of the parliamentary reply follows below.

The reply reveals that copper theft has increased significantly over the past year, and shows a particularly staggering increase in material losses at Transnet, where replacement costs now amount toR30,1-million, or more than three times their 2004/05 levels.

Eskom:
Table indicating the annual cost of cable theft from Eskom in each of the past five years:

Year    Material loss incurred     Replacement cost   Mitigation-Security Cost

04/05    R 16,9 million                 R28,2 million               R25,9 million

05/06    R 16,0 million                 R21,9 million               R18,4 million

06/07    R 11,0 million                 R27,3 million               R9,7 million

07/08    R 10,5 million                 R21,5 million               R14,5 million

08/09    R 14,8 million                 R38,7 million               R18,2 million

Transnet:
Table indicating annual cost of cable theft from Transnet in each of the past five years:

Year     Material loss incurred     Replacement cost      Mitigation-Security Cost

04/05     R 3,3 million                 R 8,4 million                 R 86,4 million

05/06     R 3,6 million                 R 9,0 million                 R 86,5 million

06/07    R 7,3 million                  R 18,4 million               R 76,0 million

07/08    R 8,9 million                  R 22,2 million               R 91,9 million

08/09    R 12,0 million                R30,1 million                R 116,0 million

It is clear that Eskom has been much more effective in keeping cable theft relatively stable over the last five years in comparison to Transnet. The question is why this is the case, and what measures Transnet is taking to turn the rising trend in losses from cable theft. Spending more money on security cannot solve the problem on its own; it needs to be matched by capable management and a feasible security policy. From the figures above, it is apparent that Transnet's current approach to cable theft is not working.

Transnet needs to take ownership of its responsibility to protect its own property; merely outsourcing the security detail will not work. Actual oversight of the services (if any) rendered by the security companies needs to take place, since it is ultimately taxpayer money footing the bill. It is also ridiculous that Transnet refuses to divulge the names of the security companies used; one can only assume that there are serious incongruities and possibly corrupt practices that Transnet is trying to hide. The excuse that identifying the security firms would expose them to criminal interference is a complete lie and the DA will be asking further questions on the matter.

The theft of copper cables and the resulting disrupted electricity and telephone services have obvious implications for businesses. Our economic gains are being undermined through the loss of productivity and loss of income brought about by the theft of metal. It is estimated that South Africa loses approximately R5 billion per annum due to metal theft.

The DA calls for nine specific action steps to be taken in order to address the problem:

1. Empower the Non-Ferrous Theft Combating Committee (NFTCC): The NFTCC was formed in 1993 in order to fight the theft of copper cables and other NFM theft. Major role-players such as the SAPS and Eskom are represented on the NFTCC. The NFTCC seeks to provide strategic guidance and direction for the prevention and eradication of NFM theft. (1) The NFTCC must be empowered by means of legislation to be able to give advice, enforce compliance and make recommendations at Parliament. The NFTCC should report to the Portfolio Committee of Safety and Security on a quarterly and annual basis regarding the theft of non-ferrous metals on a provincial and national scale. It must be granted its own budget in terms of legislation, and operate as an independent body within the Safety and Security Cluster.

2. Accurate Tracking of Crime Information: The SAPS must reinstate the SAPS code for copper theft. In the past, there was a separate code for the theft of copper, but this was done away with as a result of internal management restructuring. The code was used in the capturing of crime information and all incidents of copper theft would use the same code.

3. Specialised Training of Judicial Officers: There must be a comprehensive training module on metal theft, in particular copper theft, for judicial officers such as public prosecutors and judges.

4. Specialised Training of SAPS Members: There must be a comprehensive training module for SAPS members, in particular detectives. Detectives must be trained on how to analyse and detect evidence that is likely to be found at the scene of cable theft, which is different from evidence likely to be found at other crime scenes.

5. Increased Export Control: The DA calls for a review of export controls for non-ferrous metals which will strengthen these controls. At the moment, customs inspection for NFM has been outsourced to private businesses, which are not required, in terms of their contracts, to inspect each and every container containing copper.

6. Marking of Copper Cables: All newly manufactured copper cables should be marked in some way. Marking options that are available include micro-dotting and identifying groove markings.

7. Creating a Specialised SAPS Unit: The SAPS needs to reinstate the specialised units that used to deal with non-ferrous metal theft. Given the nature of copper cable theft, which requires the involvement of organised criminal activity, it is imperative that a specialised unit be set up to focus on these criminal activities as part of the drive to arrest and convict perpetrators.

8. Establishing a Reward Hotline: A national reward system that provides monetary rewards for information that leads to arrests. Businesses could donate money on an annual basis to make up the reward fund.

9. Eradicate the Backlog of Dealer Licences: Many dealers in non-ferrous metals have applied to the SAPS for licences in terms of the current Second-hand Goods Act; these have not been issues because of delays within the SAPS.