A Commercial View onBorder Control

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

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

Tsohle-Unicode..

• Emmanuel Diakakis– Involved in industry since 1989– Company founder– Spec’d IT & Border Gate Systems– NIDS involvement– Founder member of BMG– Member NVCF & CBRF– IAATI director

5

Tsohle-Unicode.

• Emmanuel Diakakis

– Multi departmental government & BAC

involvement.

– Pivotal role - new SARS Customs

Modernisation System successful bid

6

Global Challenges

Challenge Description

Increasing Trade Volume

Increasing Threats

Compliance

Transformation

Legislation

Customer Service

Inter Departmental

Proliferation of Trade AgreementsPort congestionCustoms workload

SmugglingTerrorismHealth & Safety – Unsafe goodsTransnational crime

Lack of transparencyUnder-invoicingPoor trader understanding

Train & career developmentProductivityIncentives & motivation

Multilateral: WTO, WCORegional and bilateral

Trade facilitationTransaction costsCustoms processing timePort competitiveness

Connectivity & cooperationNeeds & requirementsBuy in

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

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

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

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

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

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

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

Government Initiatives

– Increased Interdepartmental Cooperation

– SARS CBCU formed and deployed

– BMA Border Management Agency 2009

– New automated SARS Customs

Management System under development

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

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

Required Initiatives

• Increased Private / Public Sector

Cooperation

• Increased Political Will

enforcement of discipline

• A review of some legislation

• Implement secure “Automated”

technology solutions

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

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

Required Initiatives

• Implementation of the above should “Arrest”

crime before it crosses our borders!

• Balance between Security and Trade & Travel

Facilitation

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

Private Sector Initiatives

Utilisation of current private / public

sector initiatives to supplement Public

Sector systems

Unicode1. Information Sharing

2. Business Intelligence Integration with Law

enforcement

3. Consolidated Efforts of private sector initiatives

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

Private Sector Initiatives

Continued transformation and

management of POE personnel – Private

sector can participate

Cooperation between SANDF and

specialist agencies

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

Our Choice

• Address challenges• Address risks

27

End

Thank You