SAICB ‘WORKING TOGETHER’
MEDIA RELEASE
THE SOUTH AFRICAN INSURANCE CRIME BUREAU (SAICB)
3 NOVEMBER 2010
SAICB - BUSINESS AND SAPS WORKING SUCCESSFULLY TOGETHER
The South African Insurance Crime Bureau (SAICB), working closely with the South African Police Service (SAPS) and the National Prosecuting Authority (NPA) has made significant and positive strides in addressing fraud and crime in the short term insurance industry and is proof of what can be achieved when business and SAPS works together.
The SAICB was officially launched on 31 October 2008 and in just over two years has established itself not only as a valuable tool in the fight against insurance fraud and related crimes, but has also brought the various agencies working in the broader fight against commercial crime closer together to the benefit of all. This achievement and the SAICB successes to date were celebrated at the “Year in Review” Breakfast at the Johannesburg Country Club, Woodmead on 3 November 2010. Lt Gen. Mzwandile Petros (Gauteng Provincial Commissioner: SAPS), served as the Guest Speaker at the event, and explained the focus of the SAPS in Gauteng since his appointment and the challenges to be faced and addressed in the coming months.
The main focus of the SAICB is to address organised fraud and crime in the short term insurance industry, as well as to identify repeat offenders and fraudsters that target multiple insurance companies. For the SAICB to achieve its aim of reducing fraud and crime within the financial industry, it needs to work very closely with the policing and justice entities in South Africa, and to this end, has spent a huge amount of time and resources working with the SAPS, NPA and the Hawks and building the strong relationships that will help them with their mission and vision for the industry.
This close working relationship has resulted in several projects being identified and implemented to assist SAPS in achieving their renewed commitment to tackle crime in all its guises, while assisting the industry in addressing the crime and fraud committed against it.
The SAICB has 9 active cases under investigation currently and has taken 3 cases successfully through the courts and recovered R380 000 for the industry to date, with the assistance of the SAPS and NPA. The approximate value of cases under investigation is R120 million.
Other areas, not necessarily in the crime arena, were also identified where the SAICB could assist SAPS and one of the successful pilot projects launched has been the cleanup of the pound in Isipingo -KwaZulu Natal.
To date over R8 million has been recovered and over 350 vehicles uplifted by the industry. In addition to the industry vehicles identified, the SAICB and SAPS also assisted in identifying nearly 200 uninsured vehicles and contacted the owners of these vehicles to inform them where their vehicles were housed.
Hugo van Zyl, Chief Operating Officer of the SAICB noted, “The SAICB would also like to make special mention of Business Against Crime SA (BACSA) as they have assisted and facilitated the building of the strong relationships with SAPS and the NPA from our inception. Their commitment in getting business involved in assisting SAPS to address the crime situation in the country has led to many initiatives that have over the years helped in reducing crime as well as addressing the unacceptable number of road deaths in South Africa. The SAICB is committed to being a part of this mindset and proof that business and the SAPS working together can make a difference regarding crime in South Africa.”
The SAICB is a section 21, not for profit, company, and has 10 member companies, namely: Santam, Mutual & Federal, Hollard, FRSTIA (Outsurance and Momemtum), Lion of Africa, Standard Insurance, Absa Insurance, Regent, Telesure, and MiWay. The SAICB also manages the industry Fraudline which has proven to be a valuable tool in identifying fraud and as a direct link between the public and the insurance industry.
END
Released by the South African Insurance Crime Bureau, for more information please contact:
Hugo van Zyl
Chief Operating Officer
SAICB
Cell: 082 602 2721
Tel: (011) 021 1432/3/4/5
Email:
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Melanie Pillay
Company Secretary
SAICB
Cell: 082 7742744
Tel: (011) 021 1432/3/4/5
Email:
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FACT SHEET
SUCCESS TO DATE
- vd Westhuizen
- MODUS OPERANDI: MULTIPLE POLICIES AT VARIOUS INSURANCE COMPANIES’. HE USED DETAILS OF CLIENTS (SURNAME / ADDRESS DETAILS / BANK ACCOUNTS) TO INITIATE THE POLICIES. THE POLICIES SHARED THREE DIFFERENT BANK ACCOUNTS. NUMEROUS SMALL CLAIMS WERE SUBMITTED BY THE ACCUSED, WHILST HE PRETENDED TO BE THE INSURED. ALL PAYMENTS WENT INTO THE AFORE-MENTIONED BANK ACCOUNTS, OF WHICH HE WAS THE SOLE BENEFICIARY.
- Pleaded guilty on charges of Fraud and Money Laundering on 18/06/2010 in the Bellville Specialised Commercial Crimes Court - five counts of fraud and one of money laundering.
- He pleaded guilty and was sentenced to two years of correctional supervision, in addition to three years in prison suspended for five years.
- He was also instructed to pay back R353 332, of which a once-off payment of R150 000 was made and distributed amongst the involved member companies and the rest of the money to be paid to the individual companies.
- De Koker
- MODUS OPERANDI – MULTIPLE INSURANCE POLICIES AND CLAIMED FROM MORE THAN ONE COMPANY FOR THE SAME ITEMS AT THE SAME TIME
- De Koker was found guilty and sentenced to pay R20 000, 00 or two years imprisonment of which R10 000, 00 and/or one year was suspended for 5 years on condition that she is not found guilty of fraud or theft in the suspended period. De Koker paid the fine.
- De Koker was again arrested for fraud whilst the current case was pending – she is now awaiting sentencing.
- MODUS OPERANDI: CLAIMED FOR TRAUMA FROM HIJACKING WHEN NO HIJACKING TOOK PLACE.
SAICB INVOLVED CASES
- False Theft Claim
- MODUS OPERANDI: BIKES AND VEHICLE AND TRAILER WERE REPORTED AS STOLEN, BUT STORED IN A CONTAINER.
- Recovered with the assistance of SAICB. Accused appeared in court and pleaded guilty to 5 charges of fraud and one of defeating the ends of justice and will be sentenced in November.
- Hoola Hoop scam
- MODUS OPERANDI – INSURED HANDED VEHICLE TO THIRD PARTY FOR SALE ACROSS THE BORDER. REPORTED HIS VEHICLE STOLEN A FEW DAYS LATER, RECEIVED MONIES FROM THE SALE OF VEHICLE AS WELL AS FROM THE INSURER.
- Vehicle recovered and claim repudiated. Accused appeared in court and will be sentenced in November – Saving R496 000.
- MODUS OPERANDI – INSURED HANDED VEHICLE TO THIRD PARTY FOR SALE ACROSS THE BORDER. REPORTED HIS VEHICLE STOLEN A FEW DAYS LATER, RECEIVED MONIES FROM THE SALE OF VEHICLE AS WELL AS FROM THE INSURER.
- False Theft Claim
- Fraudulent vehicle claim where driver reported vehicle stolen and was found driving vehicle – charged with fraud, defeating the ends of justice and malicious damage of property – plea agreement with state and will be paying back member company – R720 000.
- Vehicle recovered from paid out fraudulent claim – Member company opened a civil case against accused. Value R250 000.
- Fraudulent vehicle claim where driver reported vehicle stolen and was found driving vehicle – charged with fraud, defeating the ends of justice and malicious damage of property – plea agreement with state and will be paying back member company – R720 000.
PROACTIVE SAVINGS FOR INDUSTRY
FROM JUNE 2009 TO OCTOBER 2010 THE SAICB HAS SAVED THE INDUSTRY APPROXIMATELY R16,54 MILLION THROUGH THE SHARING OF REAL TIME INFORMATION.
DRäGER LIST
SAPS 13
TRACKER
SARS / NPA ASSETS FORFEITURE UNIT
ORGANISED CRIME / SIU
SAPS
ENQUIRIES TO AND FROM INDUSTRY
POUNDS CLEAN UP PILOT PROJECT