Slide 1

A Commercial View onBorder Control

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

Tsohle-Unicode3Tsohle-Unicode.First comprehensive Distributed Border Gate Management & Verification System with SAPS 1993-2007 Vehicle related information services from 1993Private sectorLocal, provincial & national law enforcement

Tsohle-Unicode4Tsohle-Unicode..Emmanuel DiakakisInvolved in industry since 1989Company founderSpecd IT & Border Gate SystemsNIDS involvementFounder member of BMGMember NVCF & CBRFIAATI director

Tsohle-Unicode5Tsohle-Unicode.Emmanuel DiakakisMulti departmental government & BAC involvement.Pivotal role - new SARS Customs Modernisation System successful bidTsohle-Unicode6Global Challenges

Challenge DescriptionIncreasing Trade VolumeIncreasing ThreatsComplianceTransformationLegislationCustomer ServiceInter DepartmentalProliferation of Trade AgreementsPort congestionCustoms workloadSmugglingTerrorismHealth & Safety Unsafe goodsTransnational crimeLack of transparencyUnder-invoicingPoor trader understandingTrain & career developmentProductivityIncentives & motivationMultilateral: WTO, WCORegional and bilateralTrade facilitationTransaction costsCustoms processing timePort competitivenessConnectivity & cooperationNeeds & requirementsBuy in

7Global Challenges

Enforcement & maximization of revenue compliance & WCO National security, frontier integrity Cross border movement of people, goods & vehicles USA Homeland Security requirementsGeo-political, socio / economic and global developments Future challengesIncreasing pressures onBorder ControlHR, Technology, Traffic Volume, inter departmental Integration8

RSA Scenario

EconomyCrimePoliticalSystemsBiggest economy on continentBiggest transit hubWeak neighboring economiesMulti billion R illicit emigration marketsHigh unemploymentLoss of revenue at POE

Porous Ports of EntrySubstantial trans border crimeOrganised crime & syndicatesCorruptionNational securityLack of integrated intelligence (9/11)Illegal exportation of assets

Some acts & legislation delayBlock progress in some areasAbsence of national strategyLack political will & enforcementDifficult & costly repatriation of stolen assets from neighboring countriesNeed greater PPPs with government departments at POELack of transformation within departments involved and at POELack of interdepartmental business process integration at POELack of interdepartmental systems integration at POEAutomated infrastructure requirements

9RSA ScenarioThis 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

10Effects on Economy5000,000 vehicles entering & exiting South Africa annually70000 used vehicles imported in transit through South Africa for the sub-continent20000 fall off the back of the truckNo effective Transit System in place

11Effects on EconomyImpactIllegal vehicles on our roadsLoss of revenue:To the stateManufacturers & supporting industries [employ 700000] workersFinance InstitutionsInsurers

12Effects on Economy< 84000* vehicles stolen in South Africa 2009 with a recovery rate of about 40% During 2010 we estimate 30000 of these were illegally exported Higher than the average value vehicles in the majority perpetrated by international syndicatesThere is a noticeable migration of Vehicle Theft Methodologies

13Effects on EconomyIllegally exported vehicles - insured losses amount to Billions of RandMajor losses are also sustained by VAF Banks e.g. 2 Banks:12000 disappeared owners &vehicles at an average value of R120000 = R 1, 440billion

14 Government InitiativesIncreased Interdepartmental CooperationSARS CBCU formed and deployedBMA Border Management Agency 2009New automated SARS Customs Management System under development

15 Government InitiativesNew DoHA Movement Control System preceding World Cup 2010 financed by SARSNew SAPS concentration on priority crimesIncreased Private Public Sector cooperation & joint initiatives on the vehicle crime arena.

16 Government InitiativesSANDF responsible once again for border lineRequiring specialist training PPP?Possible participation by the private sectorSAPS return to law enforcement role at POE

17Required InitiativesIncreased Private / Public Sector CooperationIncreased Political Will enforcement of discipline A review of some legislationImplement secure Automated technology solutions

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

19Required InitiativesBetter 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

20Required InitiativesImplementation of the above should Arrest crime before it crosses our borders!

Balance between Security and Trade & Travel Facilitation

21Required InitiativesEnsure adherence and satisfaction of all international criteria:WCOWTOUS Homeland SecurityPreferred Trading Partner AgreementsEnhance trading systemsBe a recognized Secure Country

22 Private Sector InitiativesUtilisation of current private / public sector initiatives to supplement Public Sector systemsUnicodeInformation SharingBusiness Intelligence Integration with Law enforcementConsolidated Efforts of private sector initiatives

23 Private Sector InitiativesVehicle tracking companiesBAC projects & Initiatives ANPRIndustry involvementConsolidated Integrated automated solutions that can be easily extended to Border Management Applications, Systems & Business Processes

24 Private Sector InitiativesContinued transformation and management of POE personnel Private sector can participate Cooperation between SANDF and specialist agencies

25FinallyIn 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 ..26Our ChoiceAddress challengesAddress risks

27EndThank You