VIJAY NAIDOO: Good Business Basics – Crime is becoming increasingly sophisticated

I have been following reports lately (many in the international press) about how we are becoming a key locality for international crime syndicates to ply the trade. What with our porous borders, highly corruptible (or incapacitated) security agencies, and malleable politicians at all levels of government, this should be no surprise.

The point that has been keeping me engaged though, is how the levels of sophistication in the enterprise of corruption have increased. For the seasoned operators, the old envelope or briefcase stuffed with cash is a thing of the past. Indeed, in most case, cash does not even touch down in beneficiaries’ accounts, rather moving seamlessly to overseas bank accounts, or into attorney trust accounts for onward payments for houses in gated estates or other fixed assets.

The plundering of funds at the National Lotteries Commission (NLC) has revealed how established non-governmental organisations (NGOs) were hijacked to channel illicit funds through. It is unlikely that we will ever know the billions that were diverted from this agency, which was tasked to uplift the poorest of the poor in impoverished communities nationwide. That the perpetrators thought nothing of this illustrates the height of their moral bankruptcy.

Then we have government officials, in concert with their private sector buddies, who have taken the art of ‘flipping’ property to another level. In one instance a property was transferred instantaneously from a seller to one buyer and on to a government department for a R25m odd profit. Not bad for a day’s work if you can get it.
Of course, the goings on at Transnet and Eskom, where mulit-billion rand bond swaps and structured loans netted the likes of Salim Essa’s Trillian and Regiments Capital millions in ‘commission’ for being in the right place at the right time.

Finally, my favourite has to be the ‘ghost’ worker. While somewhat lower down the sophistication scale, its simplicity is its brilliance. Many state entities like Transnet have grappled with this scourge for 20 years or more, with little success. I am sure there is an island somewhere where ‘ghost’ retirees escape to bask in sunshine and cocktails. There is no doubt that the capacity of law enforcement is no match for the high level sophistication of criminal enterprise.

Vijay Naidoo is the CEO of the Port Shepstone Business Forum. He writes in his personal capacity. The views expressed are the author’s own and do not necessarily reflect those of this publication.

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