Call to increase security at ports to stop illegal export of scrap metal

Investigators probing the lucrative cable and metal theft cartels in South Africa believe the illegal industry can be brought to its knees by increasing security at all ports of entry.

The stolen metal snoops believe large amounts of scrap metal are being illegally exported without being offered to local foundries, as is required by a scrap metal policy gazetted in September 2013.

This policy requires scrap dealers to offer their booty to local foundries first, but at a price that is at least 20% less than that obtained exporting to international markets.

The minster of Economic Development Minister Ebrahim Patel last week called for the tightening of laws in a bid to root out cable theft, which he singled out as a massive threat to the country’s proposed trillion-rand infrastructure build programme.

Jan Wolmarans of Combined Private Investigations, a firm employed by several national parastatals, metropolesitans and private businesses, said the key to stopping the trade in stolen metals was to “plug the end of the funnel”.

Foster Mohale, spokesperson for the International Trade Administration Commission of South Africa (ITAC), which manages the export of scrap metal, said they have a “price preference rate” in place.

Steel, aluminium and other types of scrap metals including copper must be offered first to local foundries at 30%, 25% and 20% below the published international benchmark price respectively.