Proceeds of crime to combat crime

20 October 2006

South Africa is to distribute R73.8-million in seized assets of crime to agencies and departments involved in the fight against crime in the country.

Last week, the Cabinet approved the distribution of funds deposited into the Criminal Assets Recovery Account, set up in 2000 to receive money from the sale of assets forfeited to the state.

This was made possible by South Africa's Prevention of Organised Crime Act of 1998, which seeks to make sure that crime doesn't pay by allowing the state to attach assets deemed to have been amassed through criminal activities.

According to Business Day, this law enables the country's Asset Forfeiture Unit, established in 1999, to seize assets that are either suspected to be the proceeds of crime or that were instrumental in the commission of a crime.

Since 2000, Business Day reports, about R700-million worth of assets have been frozen pending cases against alleged criminals, while R73.8-million has been deposited into the Criminal Assets Recovery Account.

Justice Ministry spokesperson Zolile Nqayi said on Wednesday that the SA Police Service would receive R33.7-million from the fund, while the National Prosecuting Authority would get R31.8-million, the SA Revenue Service R5-million and the Department of Social Development R3.3-million.

These agencies and departments would also receive a number of assets such as motor vehicles, property and other equipment, Nqayi said.

While this was the first such disbursement from the account, Nqayi said that over R200-million derived from the proceeds of crime had already been paid out directly to crime victims.

In cases where there was a direct victim of crime, the proceeds of any forfeited assets involved were usually paid not into the account but directly to the victim through a court order.

In terms of the law, the monies and properties in the account may be used to give financial help to law enforcement agencies or any other institution or organisation set up to assist victims of crime.

The distribution of such funds is made by Cabinet on the recommendation of the Criminal Assets Recovery Committee, which is chaired by the minister of justice.

SouthAfrica.info reporter and BuaNews

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