1. A Commercial View on Border Control

2. 2 Tsohle-Unicode.. Founded 1992 First PPP under new dispensation Contracts since 1995 Preferred private sector service provider – Bulk Vehicle Data Services* (BAC) SAPS contracted information sharing system First remote electronic vehicle identification system

3. 3 Tsohle-Unicode. First comprehensive Distributed Border Gate Management & Verification System with SAPS 1993-2007 Vehicle related information services from 1993 –Private sector –Local, provincial & national law enforcement

4. 4 Tsohle-Unicode.. Emmanuel Diakakis –Involved in industry since 1989 –Company founder –Specd IT & Border Gate Systems –NIDS involvement –Founder member of BMG –Member NVCF & CBRF –IAATI director

5. 5 Tsohle-Unicode. Emmanuel Diakakis –Multi departmental government & BAC involvement. –Pivotal role - new SARS Customs Modernisation System successful bid

6. 6 Global Challenges Challenge Description Increasing Trade Volume Increasing Threats Compliance Transformation Legislation Customer Service Inter Departmental Proliferation of Trade Agreements Port congestion Customs workload Smuggling Terrorism Health & Safety – Unsafe goods Transnational crime Lack of transparency Under-invoicing Poor trader understanding Train & career development Productivity Incentives & motivation Multilateral: WTO, WCO Regional and bilateral Trade facilitation Transaction costs Customs processing time Port competitiveness Connectivity & cooperation Needs & requirements Buy in

7. 7 Global Challenges Enforcement & maximization of revenue compliance & WCO National security, frontier integrity Cross border movement of people, goods & vehicles USA Homeland Security requirements Geo-political, socio / economic and global developments Future challenges Increasing pressures on Border Control HR, Technology, Traffic Volume, inter departmental Integration

8. 8 RSA Scenario Economy Crime Political Systems Biggest economy on continent Biggest transit hub Weak neighboring economies Multi billion R illicit emigration markets High unemployment Loss of revenue at POE Porous Ports of Entry Substantial trans border crime Organised crime & syndicates Corruption National security Lack of integrated intelligence (9/11) Illegal exportation of assets Some acts & legislation delay Block progress in some areas Absence of national strategy Lack political will & enforcement Difficult & costly repatriation of stolen assets from neighboring countries Need greater PPPs with government departments at POE Lack of transformation within departments involved and at POE Lack of interdepartmental business process integration at POE Lack of interdepartmental systems integration at POE Automated infrastructure requirements

9. 9 RSA Scenario This is a vehicle centred detail and perspective BUT a Vehicle is a Pivotal Crime for other crimes transporting – drugs, illegals, weapons, traded for other goods or services

10. 10 Effects on Economy –5 000,000 vehicles entering & exiting South Africa annually –70 000 used vehicles imported in transit through South Africa for the sub-continent –20 000 fall off the back of the truck –No effective Transit System in place

11. 11 Effects on Economy –Impact Illegal vehicles on our roads Loss of revenue: –To the state –Manufacturers & supporting industries [employ 700 000] workers –Finance Institutions –Insurers

12. 12 Effects on Economy –< 84 000* vehicles stolen in South Africa 2009 with a recovery rate of about 40% – During 2010 we estimate 30 000 of these were illegally exported – Higher than the average value vehicles – in the majority perpetrated by international syndicates There is a noticeable migration of Vehicle Theft Methodologies

13. 13 Effects on Economy –Illegally exported vehicles - insured losses amount to Billions of Rand –Major losses are also sustained by VAF Banks e.g. 2 Banks: 12 000 disappeared owners &vehicles at an average value of R120 000 = R 1, 440billion

14. 14 Government Initiatives –Increased Interdepartmental Cooperation –SARS CBCU formed and deployed –BMA Border Management Agency 2009 –New automated SARS Customs Management System under development

15. 15 Government Initiatives New DoHA Movement Control System preceding World Cup 2010 – financed by SARS New SAPS concentration on priority crimes Increased Private Public Sector cooperation & joint initiatives on the vehicle crime arena.

16. 16 Government Initiatives SANDF responsible once again for border line »Requiring specialist training – PPP? »Possible participation by the private sector SAPS return to law enforcement role at POE

17. 17 Required Initiatives Increased Private / Public Sector Cooperation Increased Political Will enforcement of discipline A review of some legislation Implement secure Automated technology solutions

18. 18 Required Initiatives Solutions must be environment proof & cost effective Integrated and coordinated end to end process across all the operating departments Deployment of a well managed, disciplined, independent Border Management Entity

19. 19 Required Initiatives Better Intelligence, (integrated) –advance traveller lists, –pre-clearance of consignments, –risk profiling, –single view of the traveller, –coordinated processes, –close integration between processing and enforcement and other intelligence

20. 20 Required Initiatives Implementation of the above should Arrest crime before it crosses our borders! Balance between Security and Trade & Travel Facilitation

21. 21 Required Initiatives Ensure adherence and satisfaction of all international criteria: WCO WTO US Homeland Security Preferred Trading Partner Agreements Enhance trading systems Be a recognized Secure Country

22. 22 Private Sector Initiatives Utilisation of current private / public sector initiatives to supplement Public Sector systems Unicode 1.Information Sharing 2.Business Intelligence Integration with Law enforcement 3.Consolidated Efforts of private sector initiatives

23. 23 Private Sector Initiatives Vehicle tracking companies BAC projects & Initiatives ANPR Industry involvement Consolidated Integrated automated solutions that can be easily extended to Border Management Applications, Systems & Business Processes

24. 24 Private Sector Initiatives Continued transformation and management of POE personnel – Private sector can participate Cooperation between SANDF and specialist agencies

25. 25 Finally… In the final analysis we need to transform SA into an attractive FDI destination** To achieve this we need to get our house in order and ensure that our attractive gateway is well managed and protected. If not …..

26. 26 Our Choice Address challenges Address risks

27. 27 End Thank You