Security Focus Africa September 2021 Vol 39 No 9 by Contact Publications

www.securityfocusafrica.com | Vol 39 No 9 SEPTEMBER 2021 The official industry journal for professional risk practitioners: security, safety, health, environment and quality assurance

Mining industry’s security challenges Illegal mining fact sheet

Mining security

Long-term impact of July’s unrest

9/11’s enduring legacy in Africa Update from SASA | The last word: POST INSURRECTION

SINE

N FO R

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Security Focus Africa: Serving the South African security industry for 41 years

CONTENTS www.securityfocusafrica.com The official industry journal for

VOL 39 NO 9 SEPTEMBER 2021

| Vol 39 No 9 SEPTEMBER 2021

professional risk practitioners:

Mining industry’s security challenges Illegal mining fact sheet

nt and quality assurance

security, safety, health, environme

Mining security

Long-term impact of July’s unrest

9/11’s enduring legacy in Africa Update from SASA | The last word

: POST INSU RRECTION

12 COVER STORY MINING SECURITY 12 SA’s R400 billion mining industry and its mega security challenges.

ILLEGAL MINING 16 Fact sheet. PERSONALITY PROFILE 22 In conversation with… Roger Baxter, CEO of the Minerals Council South Africa.

SECURITY FOCUS AFRICA SEPTEMBER 2021

securityfocusafrica.com

Official Journal of the Security Association of South Africa

Published by Contact Publications (Pty) Ltd (Reg No. 1981/011920/07)

Vol 39 No 9

TEL: (031) 764 6977 FAX: 086 762 1867

36 REGULARS EDITOR’S COMMENT 4 Mirroring the world, mining and local government pipedreams.

ASSOCIATION NEWS 6 Update from SASA. 7 ISIO, CAPSI and SASA –

representing more than 9.15 million security practitioners – form alliance.

NEWS IN BRIEF 8 News snippets from around the world.

NEWS 11 Media statement by the Ministry of Police.

CORRUPTION 20 New corruption report exposes continued rot in public and private sectors.

SPECIAL REPORT 21 Industry Thermometer results reveal long-term impact of unrest in July.

INSTITUTE FOR SECURITY STUDIES 24 The 20-year war: 9/11’s enduring legacy in Africa.

CYBER SECURITY 26 QakBot banking malware

is on the rise: Number of attacked users grew 65% in 2021. 27 GhostEmperor: Chinesespeaking APT targets highprofile victims using unknown rootkit. 28 Inherent flaws in SMS OTPs exposing SA consumers to fraud.

FRAUD 30 Will a fraudulent document keep you from greener pastures? 31 Scammers targeting communities in Limpopo (Giyani).

ON THE MARKET 32 Securing digital consent in a cookieless world. 33 New game-changing flameproof cable glands.

INDUSTRY OPINION 34 What is driving digital

transformation in South Africa?

MANAGING DIRECTOR: Malcolm King malcolm@contactpub.co.za

EDITOR: Ingrid Olivier ingrid@securityfocusafrica.com

SENIOR GRAPHIC DESIGNER: Vincent Goode vincent@contactpub.co.za

DISTRIBUTION MANAGER: Jackie Goosen jackie@contactpub.co.za

POSTAL ADDRESS: PO Box 414, Kloof 3640, South Africa

PUBLICATION DETAILS: Security Focus Africa has 12 issues a year and is published monthly, with the annual Buyers’ Guide in December. Due to the Covid-19 crisis, we will only be publishing digitally, until further notice.

EDITORIAL CONTRIBUTIONS: Editorial contributions are welcome. For details please email editorial@securityfocusafrica.co.za.

ADVERTISING ENQUIRIES: Malcolm King Email: malcolm@contactpub.co.za

Security Focus Africa is a member of

35 CONTRIBUTORS AND ADVERTISERS INDEX THE LAST WORD 36 Post insurrection. 38 DIRECTORY securityfocusafrica.com

www.securityfocusafrica.com 3

EDITOR’S COMMENT

Mirroring the world, mining and local government pipedreams Driving along the N1 in Gauteng the other day, and for once in the passenger seat, I didn’t have to pay attention to the road. Instead, I could look at the office blocks, factories and other buildings, and the pavements, seeing things I hadn’t noticed before.

t a point, we passed a dump site just metres away from the never-ending lines of traffic, cars and trucks that push the speed limits, emitting noxious fumes and a 24/7 thrum of noise. To the side were some shacks, homes for a few of the millions of people who live below the poverty line, in a country which, according to Aljazeera.com, now has the world’s highest unemployment rate. “South Africa’s unemployment rate surged to the highest on a global list of 82 countries monitored by Bloomberg,” it reported, with the unemployment rate, which includes people who have stopped looking for work, rising to 44.4% in the second quarter of 2021. Beautiful South Africa, with all its possibilities, its rich history, its many fascinating cultures, its abundant mountains and rivers and mineral wealth, is also riddled with ugliness: crime, corruption, joblessness, hunger, hatred

and fear. It’s a constant challenge to stay upbeat, with the pandemic adding angst. Difficult for those of us with jobs and money to buy food and pay for security, how much worse is it for the woman sorting through the dirty and the discarded for items to sell, the recyclers who push heavy burdens up and down hills with impatient motorists hooting at them to get out of their way, the beggars (yes, some are drug addicts and alcoholics), the homeless, the unemployed, and the persecuted (including our children and whistleblowers). Now, more than ever before, we as individuals need to show kindness, compassion and courage — and I couldn’t put it better than this passage (shortened) by Mohandas Gandhi in 1913, which I found on QuoteInvestigator.com: “We but mirror the world... If we could change ourselves, the tendencies in the world would also change. As a man changes his own

SECURITY FOCUS AFRICA SEPTEMBER 2021

nature, so does the attitude of the world change towards him… A wonderful thing it is and the source of our happiness. We need not wait to see what others do.” There are good people among us: those who leave big tips on small restaurant bills, those who volunteer their time in soup kitchens, the ones who pick up stray animals and take them home or to places of safety, the carers at orphanages and retirement centres, and the man behind me in Checkers the other day. While the security guards gathered at the entrance, waiting to catch a shoplifter whose pilfering had been caught on camera, I was paying for my groceries. I wanted to get out of there before the arrest, so I told the cashier not to worry about my Checkers card. The man behind me then handed his card to her, for my benefit. It saved me R30. He got nothing out of it — it was a genuine act of kindness. I promised him I would pay it forward, and I did.

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EDITOR’S COMMENT

CAPE TOWN, SOUTH AFRICA: Party officials wait at information booths during municipal elections, in Cape Town, South Africa on 18 May 2011

Mining With our main feature in this issue being mining security (page 12), I was researching the subject when I came across an address by Neal Froneman, CEO of the SibanyeStillwater mine. He delivered it at the second Marikana Memorial Lecture, which took place on 17 August 2021 to honour those killed in the 2012 Marikana tragedy, to promote thought leadership and ‘to create a new horizon for all of us’. “Earlier this year, His Grace, the Anglican Archbishop of Cape Town, Bishop Thabo Makgoba, spoke of the challenges that South Africa faces as a people and as a country,” Froneman said. “He called on all role players to find common ground, established on a mutual recognition of truth and justice, to overcome our differences and to work with common purpose for a common good for all of us. He asked parties to reach across those chasms that separate us, to begin to build bridges and a South Africa for everyone.” His words were supported by action. Earlier this year, Sibanye-Stillwater announced a R4 billion investment in the Marikana-based K4 mine shaft to bring it into production, with the hope that the initiative will create 4,400 new jobs. This, he said, would help provide sustained local employment, which will help address “the crisis of unemployment, especially amongst the youth, and also create the potential to build local supply chains that

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will support entrepreneurial growth in the local communities”. The mining giant has also launched a programme that will help twenty local entrepreneurs build their businesses and participate in its supply chains. Big and small, acts of kindness and caring matter. We need to protect our whistleblowers Writing in the recently released 2021 Analysis of Corruption Trends (ACT) report by Corruption Watch, Melusi Ncala, researcher at Corruption Watch, stressed the urgency around protecting vulnerable whistleblowers. “As key role-players in dismantling patterns of abuse and impunity by the corrupt, whistleblowers deserve commitment and support from the highest echelons of power to ensure their safety, and to create an environment that encourages reporting corruption. It will take all sectors of society coming together to make serious inroads in tackling the corruption that occurs at every layer of public and private authority in the country. This is the least that is owed to the people represented in this report, who have demonstrated courage in stepping up, driven by their belief in a corruption-free South Africa,” she said. She is right, and brave, and so are those people who stand up for what’s right, even when doing so puts their lives at risk.

scheduled to take place on 1 November, President Cyril Ramaphosa wrote in his weekly ‘From the desk of the president’ of the importance of local government being ‘accessible, visible and above all, reachable’, with electricity being a critical aspect of their service delivery. Wouldn’t it be wonderful if the election promises turned into reality this time? As President Ramaphosa said, public confidence in local government is eroded when people are deprived of basic services, and the result in South Africa as often as not leads to protest action and even violence. The latest data from the Public Violence and Protest Monitor, produced by the Institute for Security Studies (ISS), shows that of the 585 water and sanitation service delivery protests recorded between January 2013 and April 2021 in South Africa, 65% turned violent. Be careful, be safe, and be kind.

Ingrid Olivier, Editor ingridolivier@idotwrite.co.za

Local government Ahead of South Africa’s local elections,

SECURITY FOCUS AFRICA SEPTEMBER 2021

ASSOCIATION NEWS

SASA UPDATE

For more information about what SASA does and how it can help you and your company, or to report any wrongdoings or concerns, please contact Tony Botes, SASA National Administrator, at: Tel: 0861 100 680 / 083 650 4981 Cell: 083 272 1373 Email: info@sasecurity.co.za / tony@sasecurity.co.za Website: www.sasecurity.co.za

Update from SASA As always, we’ve been busy! Here are some of the highlights of the last few weeks. From the desk of Tony Botes, SASA National Administrator.

SSPS (Private Security Sector Provident Fund) At last, the PSSPF has managed to obtain interim relief, which was initiated during the exemption process that started in February 2021. In terms of this, the following happened: • PSSPF contributions reduced from 7.5% by employers and members alike to 5% each, as from September 2021 until August 2022; and • The partial exemption in respect of the Security Officer Premium Allowance, from R175 to R270 per month as an interim measure, which should have become effective in March 2021, will shortly (probably as from the October 2021 paymonth) be rescinded and become effective. We expected the PSSPF relief to take a long time (if it was actually granted at all). That was the basis of our exemption application, but to further assist employers in the private security sector, we reached an agreement with the trade unions at the NBCPSS (National Bargaining Council for the Private Security Sector) to, in the meantime, hold back on the above increase in the premium allowance until the PSSPF could amend their rules and have them approved by the Financial Services Control Authority (FSCA). PSIRA (Private Security Industry Regulatory Authority) It has come to our attention that PSIRA has promulgated their prohibition on any security company uniform colours that resemble the uniform colours of the SAPS (South African Police Service) the SANDF (South African National Defence Force),

Correctional Services and/or any other law enforcement agencies in any way. The same prohibition applies to vehicle branding. SASA believes that our own extensive submissions, as well as those made by our members and other organisations (dating back to mid-2019) were probably never adequately considered by PSIRA or the Minister of Police, considering the massive costs of rebranding entire companies’ vehicles and uniforms, the delay in doing so and the impact that Covid-19 has had on our industry and the national economy. Furthermore, if one considers the colours being used by these state organisations, this directive does not leave security companies with many colour options to differentiate themselves from other companies. It is important to note that an ‘Erratum Notice’ was published by PSIRA on 2 October 2020, with the subject still reading ‘Draft Amendments’. We all believed this was an ongoing process, but, as we’ve been advised by the authorities, it turned out to be the implementation date of the amended regulations. Although the relevant clauses in the Government Gazette (number 43759) provided for a 180-day window for companies to change their uniforms (an impossibly short time), that window is now closed, and the amended regulations may now be enforced. To this end, all police stations received a directive from SAPS head office on 7 September 2021 instructing them to enforce these amended regulations. We believe that certain parts of the Gazette are seriously flawed, along with

SECURITY FOCUS AFRICA SEPTEMBER 2021

the fact that it is still referred to as a ‘draft’ and have accordingly commenced with legal consultation in this regard. We will keep members informed of the options available to us. MoU (Memorandum of Understanding) between SASA, CAPSI (Central Association of Private Security Industry) AND ISIO (International Security Industry Organization of India) We have formed an alliance with CAPSI and ISIO representing more than 9.15 million security practitioners in South Africa and India, in the interests of curbing the collateral damage of active mutating biological and tailing threats. The full statement is opposite this article. Membership benefits We are working on expanding membership benefits, which will be communicated to all members once finalised. Currently, these include: • A strictly applied Code of Ethics. • Representation at national and local government level. • Industry exposure in the media as well as at major shows and exhibitions. • Contacts and networking opportunities. • Discounted training courses, events and seminars. • Access to a security library managed by the University of South Africa (UNISA). • Updates on new legislation and other industry-relevant information. • Access to security-related and affiliated associations in South Africa and overseas. • The SASA national website. • A central administration office. • Free digital subscription to Security Focus Africa magazine, official journal of SASA. • A mentorship programme which is designed to guide and assist start-up security companies with attaining the compliance standards required to qualify for Gold Membership.

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ASSOCIATION NEWS

ISIO, CAPSI and SASA – representing more than 9.15 million security practitioners – form alliance CAPSI (Central Association of Private Security Industry), ISIO (International Security Industry Organization) of India and SASA (Security Association of South Africa) have joined forces to curb the collateral damage of active mutating biological and tailing threats. By Tony Botes, SASA National Administrator.

his follows on the receipt of health community protocols around infection testing (chemically and electronically), the social movement of people and hygiene, says Franz Verhufen, Chairman of SASA, adding that it is the private security industry that implements the protocols on the ground by investing in equipment, manages the flow and behaviour of social movement and ensures that people sanitise before entering sites. Aside from this, he points out, the private security industry has to handle crime related to both the Covid-19 pandemic and the resultant economic meltdown. Private security industry personnel are frontliners, regularly having to deal with aggressive and violent incidents that lead to life-impacting and deadly outcomes, he says. And, while the medical fraternity plays a key role in terms of nursing infected people, using the appropriate protocols, security practitioners on the ground have no idea who is infectious, which presents a massive risk to them and the public at large.

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The alliance is working on a goaldirected plan of action designed to drive pandemic health methodology world-wide by capacity building among specific stakeholders, says Verhufen, in the understanding that the entire world needs to be inoculated simultaneously and with the same potency of vaccine. This, accordingly, also dictates that the global security force – numbering in the millions – must work together and at the same time, whilst utilising the same security protocols in order to counter biological threats. Says CAPSI Chairman Kunwar Vikram Singh: “This collaboration between CAPSI, ISIO and SASA to protect humanity from deadly viruses will prove a serious lifesaving initiative which governments and corporates must endorse and apply immediately. CAPSI has already discussed the dangers with the Indian Ministry of Home Affairs and also signed a MoU (Memorandum of Understanding) with Rashtriya Raksha University (National Security University) to begin biosecurity education.”

Mr Verhufen believes it is critical that the private security industry leads from the front, thereby protecting the national economy and the entire populations of their respective countries. “SASA and its members, who collectively employ more than 100,000 registered security officers, believes that the use of effective technology and biological threat security protocols will translate to a significant contribution in the battle against the pandemic.” Juan Kirsten, ISIO Director General, says firmly that: “The private security industry, which is larger than any navy, military unit, or policing agency, is collectively using the same protocols, and therefore must be utilised to its full potential by being goal-directed and working in concert because it is already doing the job on the ground.’’ The philosophy and methodology is outlined in the tools that may be found on https://www.human-investigationmanagement.com/cbts-certified-forbiological-threat-security which is endorsed by CAPSI, ISIO and SASA.

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ASSOCIATION NEWS

News snippets from around the world digital security, health security, infrastructure, personal security, as well as environmental security, a new category for this year. https://edition.cnn.com

NUMSA announces October strike

The Department of Justice hack — all backups gone and R33 million ransom demanded The hackers who attacked the Department of Justice and Constitutional Development’s (DOJandCD) systems earlier this month also managed to encrypt all of its backups and have demanded a 50 bitcoin (R33,234,450) ransom. MyBroadband received information from an IT company that consulted with the department, which the DOJandCD brought in to attempt to recover control of the compromised systems. According to the source, the attack resulted in the encryption of ‘everything, including the backups’, which they could not recover. The consulting IT company advised the Department of Justice to pay the ransom and budget for a cloud backup system. Based on their initial investigation, the company believes that the attackers may have entered the system as early as April this year. https://mybroadband.co.za

We saved more than 58‚000 jobs despite budget cuts and increased demand‚ CCMA says The Commission for Conciliation‚

Mediation and Arbitration (CCMA) says it was able to save 58‚165 of 138‚816 jobs that were likely to be lost to retrenchment in the 2020/2021 financial year‚ despite fiscal challenges brought about by Covid-19. The Commission has been kept busy as record numbers of workers approached it over labour disputes amid a jobs bloodbath‚ it said in its annual report released last Tuesday. Chairperson Enos Ngutshane said it was a challenging year‚ more so because they could not implement their five-year strategy as a result of Covid-19 and accompanying regulations. www.sowetanlive.co.za

The ‘world’s safest city’ for 2021 revealed Copenhagen has been named the world’s safest city for the first time, scoring 82.4 points out of 100 in the annual Economist Intelligence Unit’s Safe Cities Index (SCI) report. Denmark’s capital jumped from joint eighth place in 2019 to the top of the list, largely thanks to the introduction of an environmental security section, in which the city scored particularly well, along with personal security. This may help to explain the shakeup at the top of the report, which ranks 60 international destinations on

SECURITY FOCUS AFRICA SEPTEMBER 2021

From 5 October, the National Union of Metalworkers of South Africa (NUMSA) will go on a national strike throughout the engineering sector. The announcement made last week was precipitated by a collapse in wage talks between the union and employers. NUMSA is demanding an 8% salary hike in the first year, followed by a 2% increase for two years thereafter. Employers, through the Steel and Engineering Industries Federation of South Africa, are offering 4.4% for 2021, 0.5% for 2022 and 1% in 2023. firstthing@dailymaverick.co.za

High court sets aside key aspects of Mining Charter in setback for Mineral Resources Department The Pretoria High Court has ruled that once a mining company is empowered, it is always empowered. It also found that the Minister of Mineral Resources and Energy is not empowered to make law. This is a judicial smackdown against the Department of Mineral Resources and Energy, with an adverse cost finding to boot. www.dailymaverick.co.za

South Africans are boosting their home security amid a growing crime wave SA citizens are taking security into their own hands, according to recent data from South African insurers. This likely comes on the back of the South African Police Service’s (SAPS) latest crime statistics, which show that residential robberies have increased significantly, up by 7.6% from 4,916 to 5,288 cases from January to March 2021 compared to the previous year. Quarterly crime statistics reflected double-digit increases in crimes between April and the end of June in South Africa.

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NEWS IN BRIEF

The statistics reflect the following increases in the different crime categories: • 60.6% increase in contact crimes such as murder, attempted murder, sexual offences, and all categories of assault when compared to the same period last year; • There were 5,760 murders during the first quarter of the year — an increase of 66.2%; • 1,385 murders occurred at the home of the victim or of the perpetrator; • There were 1,340 (33.4%) more residential robberies from April to June 2020 than the corresponding period in the previous financial year; • 92% increase in trio crimes like house robberies, business robberies and hijackings; • Burglary at residential premises increased 6.3%. https://businesstech.co.za

Ten women and girls killed every day in Mexico, Amnesty report says At least ten women and girls are murdered every day in Mexico, according to a new report that says victims’ families are often left to carry out their own homicide investigations. The scathing report, released on Monday by Amnesty International, documents both the scale of the violence and the disturbing lack of interest on the part of Mexicans. “Mexico is continuing to fail to fulfil its duty to investigate and, therefore, its duty to guarantee the rights to life and personal integrity of the victims as well as to prevent violence against women,” says the report, Justice on Trial. www.theguardian.com

Gauteng police bust more than 900 suspects in one weekend Under Operation O Kae Molao, close to 1,000 suspects were arrested across the Gauteng province for various crimes last weekend, and traffic infringement fines to the value of R94,400 were also issued, police have reported. Some suspects were nabbed for driving while under the influence of alcohol, selling liquor without a licence, malicious damage to property, assault, dealing with and possessing drugs, possession of stolen property and theft. Operation O Kae Molao took place in Ga-Rankuwa and Akasia, Tshwane, which saw 242 people arrested. www.citizen.co.za

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Donald Trump sues niece, New York Times for $100m over Pulitzer-winning tax story Former US president Donald Trump has filed a $100 million lawsuit against his estranged niece Mary Trump and The New York Times, alleging they engaged in ‘an insidious plot’ to obtain his tax returns for the paper’s Pulitzer Prize-winning investigation of his finances. The lawsuit, filed in Dutchess County, New York state, says that The New York Times reporters Susanne Craig, David Barstow and Russ Buettner conducted ‘an extensive crusade to obtain Donald J Trump’s confidential tax records.’ www.iol.co.za

SAA ready for take-off as Takatso focuses on share purchase deal The South African Airways (SAA) said that it was ready for take-off last week. The national carrier will resume operations almost a year after it was grounded because of the pandemic and the business rescue process put in place soon after. SAA’s Simon Newton-Smith said they would begin with three daily flights to Cape Town: “The focus right now is bringing back what’s familiar. Really making the customer the focus – and we haven’t always been known for that – certainly on the lead-up to business rescue, but the team is coming back with a very refreshed mindset.” https://ewn.co.za

statement issued by the SAPS, a family was attacked by three men on the R80 highway in Akasia last Friday evening at approximately 21:00. The victims apparently stopped to change their car’s tyre after hitting what they suspect were spikes placed on the road. Update: The driver was reportedly an off-duty police sergeant stationed at the Lanseria Airport ORS unit. When the criminals opened fire, the officer drew his service pistol and returned fire. www.citizen.co.za

Dread at 30,000 feet: Inside the increasingly violent world of US flight attendants The US Federal Aviation Administration (FAA) says it has issued more than $1 million in fines to unruly airline passengers so far in 2021. US flight attendants tell CNN Travel that the stress of the situation is taking its toll. Susannah Carr, who works for a major US airline, says unruly incidents used to be ‘the exception, not the rule’. Now they’re ‘frequent’. “I come in, expecting to get push back. I come in, expecting to have a passenger that could potentially get violent,” she says. And Allie Malis, a flight attendant for American Airlines, says air crew are ‘exhausted — physically and emotionally.’ “We’ve gone through worrying about our health and safety, worrying about our jobs —now [we are] worrying about our safety in a different way.” https://edition.cnn.com

Road spike robber killed while attacking Pretoria family

‘The law is clear on IEC’s discretionary powers’: Thuli Madonsela weighs in on ConCourt ruling

Police have issued a reminder to motorists to remain vigilant, following yet another incident of motorists being attacked after their tyres were punctured by spikes placed in the road. According to a

South Africa’s former public protector Thuli Madonsela was not surprised by the Constitutional Court’s judgment on reopening the candidate nomination process for local elections. Last Monday,

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NEWS IN BRIEF

the top court dismissed the DA’s application to declare the Independent Electoral Commission (IEC’s) reopening of the candidate nomination process as unconstitutional, unlawful and invalid. Madonsela said that while the law is open for interpretation, it is clear on the power of the commission in managing the elections. “While we go to court because there’s always several possible interpretations of the law, I personally thought the law is clear on the IEC’s discretionary powers regarding managing the elections. I am, accordingly, not surprised by the Constitutional Court judgment,” Madonsela tweeted. www.sowetanlive.co.za

NERSA gives Karpowerships the green light Karpowership SA proposed to locate the three powership projects at the Ports of Richards Bay, Ngqura and Saldanha – to generate electricity from natural gas – to be evacuated through transmission lines to substations linking to the national grid. The Organisation Undoing Tax Abuse (OUTA) last week said NERSA (National Energy Regulator of South Africa) approved generation licences for seven preferred bidders in the Risk Mitigation IPP power programme, including three Karpowership licences, despite public opposition and without any explanation. www.iol.co.za

‘Sustained downward trend’ for Covid infections in SA Last week, Tuesday, saw South Africa record 2,197 new Covid-19 cases — a ‘sustained downward trend‘ in new infections, according to the National

Institute for Communicable Diseases (NICD). The new infections came at a positivity rate of 6.1%, which is also significantly down from the peaks of the third wave. The NICD said that there were 160 new Covid-19 related deaths on that day, with 2,886,331 confirmed cases and 86,376 fatalities, to date, across the country. www.sowetanlive.co.za

South African police use drones to track and rearrest escaped prisoners Three prisoners who escaped from a police van while being transported from Mossel Bay to George last week have been rearrested. The incident occurred on the N2 near Glentana. One of the men was rearrested shortly thereafter, while drones were used to track down the other two. https://ewn.co.za

Biden signs executive order authorising new Ethiopia sanctions amid reports of atrocities US President Joe Biden has signed a new executive order authorising broad sanctions against those involved in perpetrating the ongoing conflict in Ethiopia as reports of atrocities continue to emerge from the Tigray region. The administration did not immediately impose sanctions under the new order, but ‘is prepared to take aggressive action’ unless the parties – including the Ethiopian government, the Eritrean government, the Tigray People’s Liberation Front, and the Amhara Regional Government – “take meaningful steps to

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enter into talks for a negotiated ceasefire and allow for unhindered humanitarian access,” a senior administration official told reporters. Secretary of State Antony Blinken said Friday that, “absent clear and concrete progress toward a negotiated ceasefire and an end to abuses – as well as unhindered humanitarian access to those Ethiopians who are suffering – the United States will designate imminently specific leaders, organisations, and entities under this new sanctions regime.” https://edition.cnn.com

Call for Kraaifontein residents to join hands against crime after two more bodies found Cape Town: Kraaifontein community leaders say that they are worried that residents are unknowingly creating a bigger problem by resorting to mob justice as a means to rid their areas of suspected criminals. This, after two men were allegedly killed by a group of unknown suspects on Sunday morning in Phase 7, Wallacedene, in what police suspect to have been a vigilante justice attack. Kraaifontein Community Policing Forum chairperson Robert Bissette said that while the community’s high murder rate could not be completely attributed to vigilante justice attacks, crime as a whole was rapidly getting out of hand. “Crime in Kraaifontein is getting out of hand, and the vigilante groups who are taking matters into their own hands are making things worse. However, that’s not the only problem. We are also battling with extortionists who are operating in various areas and parts of our community.” www.iol.co.za/capeargus

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NEWS

Media statement by the Ministry of Police

President Ramaphosa comforts bereaved families during SAPS Commemoration Day. From https://www.saps.gov.za/newsroom/msspeechdetail.php?nid=35015

he South African Police Service (SAPS) held its Annual National Commemoration Day to honour and pay tribute to police officers and reservists who lost their lives in the line of duty from 1 April to 31 March 2021. Annually, on the first Sunday of September, the SAPS dedicates this day in its calendar, to remember its men and women in blue who paid the ultimate price to serve and protect all people living in South Africa. Today’s proceedings were officiated by the President of the Republic of South Africa (RSA), His Excellency, Mr Cyril Ramaphosa. This year, thirty-four police officers’ names were added and engraved on the National Memorial Wall at the Union Buildings, to signify the gratitude of the nation for their bravery and loyalty. These were members who knew the risks and dangers associated with this vocation, yet they remained committed

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to the cause of serving and protecting all people within South African borders. In line with Covid-19 level 3 lockdown regulations, some families of the deceased members were present at the Union Buildings. The rest of the families joined the proceedings virtually from other provinces, hosted by Provincial Commissioners and Members of the Provincial Executive Councils. On behalf of government and the people of our country, President Ramaphosa called for visible and tangible working relations between the police and communities. “Criminals live with us and among us in our communities. We must therefore work towards strengthening community and police relations and bring strategic stakeholders on board to bolster the efforts of old police to bring down levels of serious and violent crime,” said President Ramaphosa. President Ramaphosa also urged

the public to report wrongdoing and criminality within communities. “I believe that the arrest of one hardened criminal, or even the recovery of one illegal firearm could spare the life of one police officer. Let us civilians therefore get into the habit of reporting crime and making our voices heard. The perpetrators of these attacks on police must be brought to book”. As part of the Commemoration Day activities, the President, together with the Minister of Police, General Bheki Cele, National Commissioner of the South African Police Service, General Khehla Sitole and the next of kin of the fallen heroes and heroines, laid wreaths in honour of the deceased members. The Minister of Police, General Bheki Cele, also paid tribute to the 34 men and women in blue. In the same breath, the Minister also remembered those members who have succumbed to the Covid-19 pandemic. “The deaths of these 34 members should not be in vain. Their loss should remind us all – as a nation – of the importance of community policing partnerships.” “Citizens must no longer be bystanders. Allow me to also extend this remembrance to the families and colleagues of the 852 members who have succumbed to Covid-19-related complications since the outbreak of the pandemic last year,” said Minister Cele. Also in attendance was the Deputy Minister of Police, Mr Cassel Mathale, the Chairperson of the South African Police Education Trust Fund (SAPSET), Father Simangaliso Mkhatshwa, and management of the Ministry of Police. Through the SAPS Employee Health and Wellness Component (EHW), the organisation continues to render psychological and spiritual support to the families, friends and colleagues of the deceased members. The proceedings of the day culminated with the President engaging with the bereaved families, where he shared words of comfort and support with each family member.

SECURITY FOCUS AFRICA SEPTEMBER 2021

MINING SECURITY

SA’s R400 billion mining industry and its mega security challenges Spread over and under vast tracts of land throughout South Africa, mines, which according to the Minerals Council of South Africa, contributed around R400 billion to the GDP (Gross Domestic Product) in 2020 and employ an estimated 450,000 people, are extremely difficult premises to safeguard. Aside from the age-old challenges of theft, illegal mining and staff management, mines now have to factor the Covid-19 pandemic into their business plans too.

ining industry worldwide: statistics and facts As with most industries, the Covid-19 pandemic has impacted heavily on the global mining sector, according to market and consumer data provider, Statista. “The dependency of various high-techindustries on rare earths is a recent issue — coal, on the other hand, is still one of the leading global energy resources. Consequently, the mining sector is pivotal

to the world’s economy. Mining companies and mine employees endured temporary mine closures in line with some countries’ lockdown regulations, outbreaks of the virus at work sites, and other issues during 2020, in relation to the pandemic.” Major challenges “The mining industry’s performance has been disrupted by criminal activities, community unrest, activities of procurement mafia and poor service delivery at municipal level,” says Roger Baxter, CEO of the Minerals Council South

SECURITY FOCUS AFRICA SEPTEMBER 2021

Africa. “Illegal mining is a multi-billionrand industry, and it is a considerable problem for the mining sector. Not only does it represent significant challenges and threats to national security and socioeconomic development, but it also increases the risk of the establishment of alternative and illicit economies.” “Illicitly produced commodities are fed into the illegal market where the government loses out on royalties, income tax and value added tax. It also increases vulnerability to transitional organised crimes, and other serious cross-border

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MINING SECURITY

crimes. It therefore presents a serious risk to the sustainability of the mining industry and its ability to contribute to a meaningful future for all South Africans. Illegal mining and organised crime are usually inter-related as illegal mining is very often spearheaded by globally connected criminal syndicates.” “The growth in illegal mining could be attributed to a combination of a difficult socio-economic climate, limited resources at the disposal of law enforcement agencies such as police, immigration, border controls and prosecuting authorities, thriving syndicates, gaps in legislation to charge illegal miners and the absence of a formal regulatory framework to manage the challenges presented by artisanal mining. There is, unfortunately, no distinction between illegal mining and artisanal mining activities, and the absence of clarity on government’s policy position around artisanal mining creates ambiguity on what law enforcement agencies are required to do to manage the issues,” he says. “We can’t put a value on security disruptions to our members or the mining industry,” adds Allan Seccombe, Head of Communications at the Mineral Council South Africa. “The Minerals Council estimates that, so far this year, coal exports are 20% down, translating to a loss R10bn, while iron ore exports are seven million tonnes below target, equating to a loss of R15bn in the year to date. One of the biggest factors hampering exports is the theft and vandalism of Transnet rail infrastructure.” Power Another troubling area is that of power supply, he continues. “Ongoing uncertainties around electricity supply, and electricity tariffs that are rising faster than CPI (Consumer Price Index), are contributing to high mining input costs, which have been rising at about an average of eight per cent per annum for some time now.” Seccombe says an additional problem related to community unrest is the growing exploitation of grievances by individuals or groups demanding that mines grant them preferential supply or employment contracts, using community protests as a way to intimidate or coerce mining companies into these deals or face disruptions to operations. “With many municipalities failing to deliver basic services, communities are easy targets for those wishing to stir up anger against

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mines. The Minerals Council is working closely with the police to proactively address the problem.” Zama zamas A report by Africa News says there are tens of thousands of “zama zamas” (which in isiZulu means ‘those who try and try again’) in South Africa, where the unemployment rate is over 30%. It goes on to cite the National Association of Independent Miners (NAAM), which puts the number of abandoned mines in South Africa at around 6,000. “Illegal miners’ disregard for the law will not be tolerated”, avers Major General Joey Kers, Acting Provincial Commissioner of SAPS (South African Police Service)

in the Northern Cape. Quoted in a media statement on 8 July 2021, his comments followed a multi-disciplinary, crime intelligence-driven operation in the Namakwa district that led to the arrest of 37 illegal mining suspects. The impact of the Covid-19 pandemic on the mining industry “The Covid-19 pandemic has affected the commodity markets in a variety of ways,” says Andrew Swart, Global Sector Leader – Mining & Metals at Deloitte, in his article “Understanding Covid-19’s impact on the mining and metals sector”. “Company operations have been affected through isolated outbreaks

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MINING SECURITY

and government mandated shutdowns and the demand for many commodities remains low, with a lower near-term demand on the horizon.” Adds Seccombe: “South Africa was no different, as a national lockdown was ordered by the government in March 2020. The mining industry was one of the first industrial sectors to return to full operations sooner than others because of the close cooperation and collaboration between the Minerals Council and the Department of Mineral Resources and Energy to return employees safely back to work.” He continues: “The South African mining industry’s response to Covid-19 has been comprehensive, collaborative and effective. Covid-19 will be with us for the foreseeable future, and we will continue to develop and implement leading practices to save lives and livelihoods. We will be guided by Standard Operating Procedures and in compliance with the DMRE (Department of Mineral Resources and Energy) Guidelines for a Mandatory Code of Practice on the

Mitigation and Management of the Covid-19 Outbreak. We will continue to monitor and support vulnerable employees.” “At work, we will continue to implement precautionary non-medical measures to prevent the spread of Covid-19, such as screening and testing, social distancing, the wearing of masks and sanitising. More than that, companies will continue to provide education and communication to employees and community members around Covid-19, and how to prevent it. Our efforts to address the impact, and limit the spread of Covid-19, extend beyond the mine gate and are aimed at alleviating, where possible, the burden on public resources and providing support to communities.” On 23 September 2021, the Minerals Council South Africa issued a media statement announcing that it had reached a Covid-19 vaccination milestone within the mining workplace, with more than 200,000 employees and contractors either fully or partially vaccinated.

SECURITY FOCUS AFRICA SEPTEMBER 2021

Solutions to infrastructural constraints Says Roger Baxter: “While there has been welcome progress on infrastructure reform, such as allowing the construction of embedded 100MW energy projects and moving towards private sector participation in the country’s ports, more urgency is needed to unlock the economy. Greater collaboration and a focus on joint problem solving will lead to better solutions and practical implementation. The five most critical structural and institutional reforms are the urgent stabilisation of South Africa’s fiscus; opening Transnet and Eskom to private investment and competition; the complete reform of the civil service; improved law enforcement to halve crime in three years; and creating policy and regulatory certainty to create global investment competitiveness. Mining and related sectors may materially grow investment, production, exports and value creation for the country, through continued collaboration on critical reforms that will unlock this investment.”

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MINING SECURITY

Screen capture of Minerals Council South Africa’s main webpage at https://www.mineralscouncil.org.za/minerals-council-position-on-covid-19

To this end, Seccombe says Transnet and the Minerals Council are exploring areas of cooperation to boost productivity on the export channels and to address security concerns that have restricted SA’s bulk-mineral exports at a time of high prices. “South Africa has not realised the full benefit in taxes from offshore sales of thermal coal, iron ore, chrome ore and manganese because of constraints on the railways and at the ports.” Paradigm shifts Roussos Dimitrakopoulos of McGill University in Montréal, Canada, is an advisory board member of SAIMM (Southern African Institute of Mining and Metallurgy). In his article on sustainable development and digitalisation, published by SAIMM, he speaks of new paradigm shifts in the mining industry. “Most technical aspects of a mining complex/ mineral value chain are substantially affected by uncertainties (stochasticity) stemming from multiple sources,” he says. “These range from the materials available in the ground to the operational performance of a mining complex, including the ability to adapt to endogenous and exogenous changes. The effects of uncertainty are compounded by multi-level decisionmaking.” “With new technological developments,

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it is possible to quantify and account for these uncertainties, as well as to assimilate new information collected as a mining complex operates, including data from various sensors.” “To date, new geostatistical simulation frameworks and smart(er) simultaneous stochastic optimisation approaches allow us to perform the strategic planning of industrial mining complexes under uncertainty at a new scale of intricacy, not imagined a decade ago. As always, new challenges and opportunities emerge, thus it is hoped that the development of new paradigms will extend to stochastic ’self-learning’ mining complexes. Selflearning will capitalise from developments in artificial intelligence (AI), enabling engineering production systems to learn from operations and respond to new, real-time incoming production information collected by a wide range of online sensors, already available in industrial mining complexes. New digital technologies and related R&D (research and development) will continue to create technological step-changes and paradigm shifts to advance the performance of mineral value chains and support the sustainable and responsible development of mineral resources — all new, advanced and exciting developments for both the mining industry and academia.” he concludes.

Contributors Statista Website: www.statista.com Email: support@statista.com Phone: +44 (0)20 8189 7000

Minerals Council SA Website: www.mineralscouncil.org.za Email: aseccombe@mineralscouncil.org.za Phone: +27 (0)11 498 7100

SAIMM (Southern African Institute of Mining and Metallurgy) Website: https://www.saimm.co.za Email: communications@saimm.co.za Phone: +27 (0)11 834 1273

SECURITY FOCUS AFRICA SEPTEMBER 2021

ILLEGAL MINING Fact sheet

“Illegal mining is often organised and carried out by crime syndicates.”

AngloGold Ashanti

QUICK FACTS Illegal mining is on the rise in South Africa and presents multi-dimensional challenges that need to be addressed from a range of perspectives with a collective multi-disciplinary approach.

70%

Illegal mining activities take place on the surface and underground, and manifest at closed off mines, abandoned mines and in many cases even at operating mines. Illegal miners frequently risk their own health and safety, as well as that of others, by entering mostly abandoned shafts and sometimes operating shafts, travelling as far as 4km underground, where they live for several days at a time.

of all arrested illegal miners are undocumented foreign nationals and predominantly from Lesotho

Illegal artisanal mining is often organised and conducted by crime syndicates. Illegal miners, known in South Africa as “zama zamas”, are often heavily armed and, when trespassing on operating mines, set ambushes and booby traps for employees, security and rival groups of illegal artisanal miners.

SURGE IN ILLEGAL MINING South Africa’s socio-economic environment is troubled, and there is an increase in unemployment, poverty and the entry of large numbers of illegal immigrants into the country. Initially based on the surge in the gold price during the bull market of the first decade of this century, illegal mining remains profitable despite the fall in the US$ gold price since 2011 and the rand gold price has held sufficiently steady.

R7 BILLION

annual estimated commercial value of illegal mining, and illicit dealings in precious metals and diamonds

Law enforcement agencies have limited resources to stem illegal mining, such as police, immigration, border controls and prosecuting authorities.

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Following the severe drought in 2016, the excessive use of water by zama zamas to process the gold-bearing material became apparent with direct impacts on local communities. Illegal miners openly flout personal health and safety to open cement-plugged shafts with explosives on abandoned mines or live underground for extended periods of time, without necessary protective gear, once they have gained access to operating mines. The zama zamas then pose severe risks to legitimate mine employees, safety protocols, shaft infrastructure and stability, equipment, and ultimately the business. Primarily as a result of their illegal mining activities feeding into the illicit trade of precious metals and diamonds, coupled with the lucrative high financial returns, compared to routine lawful employment, these zama zamas continue risking their lives, and the lives of others, even though the real economic value of their efforts is not realised. This has created a lucrative secondary informal syndicate market supplying other commodities, which include food, liquor, prostitutes and mail, among others. Because they serve organised crime bosses, the miners taking these risks do not often realise the real value of their efforts as the crime bosses take the bulk of the profits. The illegal mining market is a well-managed, five-tier syndicate system. The Minerals Council South Africa (Minerals Council) has recognised that the only way to deal with the problem is to focus on the supply and demand side of illegal mining – all five levels of the syndicates need to be addressed. While local police and mine security deal with the first two tiers, the Minerals Council, assisted by the Standing Committee on Security (SCOS), the South African Police Service (SAPS), the National Co-ordinating Strategic Management Team (NCSMT) and the Department of Mineral Resources, is working to identify and deal with the next three levels that constitute the buyer market nationally and internationally. This work is undertaken hand-in-hand with international agencies such as the United Nations Interregional Crime and Justice Research Institute (UNICRI), European police, Interpol and international embassies. The Minerals Council’s long-established SCOS deals with all issues relating to security at mines and product theft from mines on behalf of the members. The SCOS led to the establishment of the multi-stakeholder National Precious Metals Forum (NPMF) over a decade ago. The NPMF consisted of representatives of mining companies, the Minerals Council, SAPS (various branches and its forensic science laboratory), the South African Precious Metals and Diamonds Regulator, Rand Refinery and the National Prosecuting Authority. In 2014, the NPMF was replaced by the NCSMT, which is chaired by the National Intelligence Co-ordinating Committee.

The illegal artisanal mining market is a well-managed five-tier system.

1st Tier The underground workers, mostly illegal immigrants, do the physical mining. Many have worked in the mines previously. They use chemical substances to primitively refine the product.

2nd Tier The buyers on the surface around the mines also organise the first-tier illegal miners, and support them with food, protection and equipment.

3rd Tier The regional bulk buyers, in most cases, have permits issued in terms of the Precious Metals Act 37 of 2005 to trade in precious metals.

4th Tier The national and sometimes international distributors use front companies or legitimate exporters.

5th Tier The top international receivers and distributors usually work through international refineries and intermediary companies.

AngloGold Ashanti

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MINERALS COUNCIL SOUTH AFRICA ILLEGAL MINING

ILLEGAL ARTISANAL MINING HAS A RANGE OF NEGATIVE SOCIAL AND FINANCIAL IMPACTS:

Many illegal miners have lost their lives in accidents (often buried alive)

Illegal mining tends to use extremely environmentally unfriendly and unhealthy refining methods

Where illegal miners trespass on operating mines to do their work, it results in loss of revenue, taxes, employment opportunities, capital expenditure, exports, foreign exchange earnings and procurement generated by legal mining

Mining communities suffer as they become riddled with related crime, such as bribery, violence against workers and management, and child labour

STANDING COMMITTEE ON SECURITY/NATIONAL PRECIOUS METALS FORUM INITIATIVES INCLUDE: • Establishing a precious metals fingerprinting database at SAPS forensic laboratories • Formal agreement between the Minerals Council, mining companies and the SAPS • In terms of Precious Metals Act, samples must be submitted every six months or when requested

“Illegal miners frequently risk their own health and safety as well as that of others.”

• Determine origin of gold/platinum • Highlights problem areas/trends

• Creation of a special investigative task force • Includes mining companies and SAPS • Investigates syndicate activity at national and international level • Works with international agencies (such as UNICRI, European police and Interpol) and international refineries • Joint operations are still conducted on an ad hoc basis and when necessary between mine security and the SAPS National Task Team

AngloGold Ashanti

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OTHER NATIONAL AND INTERNATIONAL INITIATIVES When illegal mining was identified as a national threat in South Africa, the NCSMT was convened to co-ordinate government’s efforts against illegal mining in South Africa and beyond. South Africa and the Russian Federation have since engaged in talks with UNICRI and the United Nations Office on Drugs and Crime (UNODC) to develop a global strategy to assist in dealing with the phenomenon. This initiative will bring together all the different national, regional and international public and private actors, and design a common strategy to disrupt the value chain of these syndicates on all tiers.

“The illegal mining market is a wellmanaged five-tier syndicate system.”

In April 2013, South Africa tabled a resolution to combat transnational organised crime and possible links to the illegal mining of precious metals. In July 2013, at the 22nd session of the UNODC Commission on Crime Prevention and Criminal Justice in Vienna – co-sponsored by Russia, Zimbabwe, Namibia, Ghana, Belarus and Colombia – the resolution was adopted by the United Nations Economic and Social Council (ECOSOC). The growing involvement of organised criminal groups, as well as the substantial increase in the volume/rate of transnational occurrences and range of offences related to the illegal mining of precious metals in some parts of the world is ECOSOC’s concern. The resolution further stressed the need to develop comprehensive, multifaceted and coherent strategies and measures, including reactive and proactive measures, to counter illegal mining.

AngloGold Ashanti

CONTACT DETAILS LOOKING AHEAD

MINERALS COUNCIL SOUTH AFRICA

Notwithstanding the challenges experienced in addressing the complexity of illegal mining and the transnational trafficking of precious metals and diamonds, no single stakeholder can address the challenge of illegal mining on its own – collaboration is key. The past year has seen a new trend in illegal mining encroaching on the diamond fields of Kimberley as well as chrome mining in Limpopo. Evidence of illegal mining in the coal industry has also become apparent. The mining industry, individually and through the Minerals Council, remains committed to working with other stakeholders to address this serious challenge.

T +27 11 498 7100 E info@mineralscouncil.org.za MEDIA

T +27 11 880 3924 E mineralscouncil@rasc.co.za @Mine_RSA www.facebook.com/Mine 5 Hollard Street, Johannesburg 2001 PO Box 61809, Marshalltown 2107 www.mineralscouncil.org.za

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MINERALS COUNCIL SOUTH AFRICA ILLEGAL MINING

BUSINESS COMPLIANCY CORRUPTION NEWS

New corruption report exposes continued rot in public and private sectors The 2021 Analysis of Corruption Trends (ACT) report and podcast, released last week by Corruption Watch, reveals the extent to which corruption has continued unabated during the first half of this year, with 1,964 whistle-blowers reporting acts of corruption in both the public and private sectors. Taken from: https://www.corruptionwatch.org.za/new-corruption-report-exposescontinued-rot-in-public-and-private-sectors/

hose brave enough to expose corruption continue to face threats to their lives from people acting with impunity, and the environment is even more hostile to whistle-blowers, following the violent death of Babita Deokaran in Johannesburg last month. Reports received by the organisation ranged from extortion and abuse of authority by the police, school principals extorting sexual favours from temporary teachers to safeguard their jobs, and Covid-19 related graft, highlighting the collusion between the public and private sectors. These represent some of the key hotspots over this period. Police corruption continued to dominate, topping the reports at 12%. Since 2018, Corruption Watch reports have highlighted what appears to be an unabated corruption problem in the policing sector, exacerbated by the powers invested in the police while lockdown regulations are in force. Also prevalent was corruption related to procurement and maladministration in response to the novel coronavirus pandemic, including mismanagement of funds such as the temporary employment relief scheme intended to provide support (8%), followed by corruption in public

schools (6%) and public housing (4%). It is alarming that corruption with respect to the distribution of food parcels still features during this time. “When reading the individual accounts of corruption in this report, it is quite evident that the more things change, the more they stay the same,” says Melusi Ncala, researcher at Corruption Watch and author of the report. “Communities are vulnerable because police officers care more about securing dodgy deals with criminal networks. Learners in schools and patients in health facilities are at the mercy of self-serving and abusive officials.” The organisation has noticed similar trends over the years, where the most common types of corruption experienced include maladministration (16%), procurement corruption (16%), and abuse of authority (15%), suggesting that efforts by the public and private sectors to seriously address the corruption problem in South Africa are woefully inadequate. The impact on the majority of people in the country of this failure to act cannot be underestimated, as they continue to be denied access to basic rights and services, and deprived of much-needed protection. It stands to reason that the majority of

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complaints – 42% of the total reports – came from the largest province, Gauteng, where Corruption Watch is located, followed by KwaZulu-Natal (10%), the Western Cape (9%), and the Eastern Cape (7%). Turning to corruption in schools, a number of whistle-blowers in Gauteng, the Eastern Cape and Limpopo pointed to abuse of authority, frequently by principals and the chairpersons of school governing bodies, as a major concern. Also common were reports of embezzlement or theft of school funds, and irregularities in employment processes. Gauteng and the Western Cape emerged as hotspots of public housing corruption, where most whistle-blowers exposed irregularities in the allocation of RDP houses, fraud in relation to the housing waiting lists, and abuse of authority. Similarly, the majority of corruption reports dealing with government’s response to Covid-19 occurred in Gauteng (34%), KwaZulu-Natal (18%), and Western Cape (14%), with a significant number emanating from Mpumalanga (10%). “This continues to be the story of corruption in SA according to almost 2,000 brave whistle-blowers,” concludes Ncala. “So when will the tide turn?” The vulnerability of whistle-blowers in South Africa needs to be addressed as a matter of urgency if there is to be any meaningful shift in the efforts to eradicate corruption. As key role-players in dismantling patterns of abuse and impunity by the corrupt, whistle-blowers deserve commitment and support from the highest echelons of power to ensure their safety, and to create an environment that encourages reporting corruption. It will take all sectors of society coming together to make serious inroads in tackling the corruption that occurs at every layer of public and private authority in the country. This is the least that is owed to the people represented in this report, who have demonstrated courage in stepping up, driven by their belief in a corruptionfree South Africa. 2021 Analysis of Corruption Trends (ACT) main article | Set of infographics – compressed (5 MB zip) | Set of infographics – high-res (19 MB zip) | Infographics as PDF | Podcast on Spotify | Podcast on Anchor | Podcast on Apple | Podcast on Google Corruption Watch has developed Veza, a specific tool to not only report police corruption, but also to access important information about your local station.

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SPECIAL REPORT

Zane van Rooyen, Product Marketing Manager at Skynamo.

Industry Thermometer results reveal long-term impact of unrest in July Recent data released by Skynamo’s Industry Thermometer has revealed that the unrest which took place in South Africa in July 2021 is having a long-term impact on local businesses. This follows on previously recorded signs of strong sales growth which were heading towards pre-pandemic figures.

he Skynamo Industry Thermometer is a free-to-access resource that benchmarks industry sales activity and sector health on a monthly basis. It reports average order values and volumes from over 500 South African manufacturers, wholesalers and distributors in 26 industries using the Skynamo field sales app. Zane van Rooyen, Product Marketing Manager at Skynamo says that – unfortunately – the company’s Industry Thermometer data for August 2021 has shown the first slowdown of the growth pattern this year. “Optimistically, only eight out of the 26 industry groups monitored have shown negative growth when compared with the previous month. This negative, or stalling, is small compared to the big drop experienced in 2020 as a result of the pandemic.” “Apparel, such as clothing and shoes, as well as packaging, were amongst the industries that struggled in August,” he adds. “However, looking at the combined total of all the industries monitored together, the graph still shows an ever-soslight outcome in the right direction. Order volumes were lower than the previous months this year, but August managed to still hold its own, if only just.” These results mirror the sentiment of Finance Minister Enoch Godongwana, who recently said that the economic impact of the recent unrest would not

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be quickly resolved and would persist beyond 2021. He said that while early estimates of the economic impact were about R50 billion, the impact would be felt for some time. “However, the 1.2% economic growth recorded in the second quarter this year, as mentioned by the National Treasurer, has been encouraging to witness in our data,” says van Rooyen. Only time will tell what the tight rope of the next few months will look like, he adds. “I am cautiously optimistic that the South African resilience will shoulder this wave and that local business will emerge wiser and stronger at the other end.” About Skynamo Established in Stellenbosch, South Africa, in 2012, Skynamo is a leading field sales technology provider with close to 10,000 users at nearly 1,000 companies across a wide range of industries in Southern Africa, Australasia, the UK, Europe and the US. Skynamo’s field sales mobile app and cloud-based management platforms are used by manufacturers, wholesalers and distributors, with sales teams in the field selling products to an existing base of customers. Skynamo was named Sage ISV Partner of the Year for 2019 (Africa and the Middle East) and an Acumatica Certified Application and Customer Verified Application. Skynamo received $30 million in funding from US-based

software investment firm Five Elms Capital in 2020 and forms part of the Stellenbosch-based Alphawave group of software and electronics companies, with more than 100 employees in South Africa, the UK and the US. The following sectors are tracked: • Accessories (fashion) • Advertising, marketing and media • Agriculture • Apparel (clothing and shoes) • Automotive • Beauty and cosmetics • Beer, wine and spirits • Building material and hardware • Chemicals and paints • Cleaning products and waste management • Electronics and computers • Food and beverage • Freight and logistics • Health and safety • Homeware • Machinery • Minerals and mining • Office supplies • Oil and gas (energy) • Oil and lubricants (industrial) • Packaging • Pet food and supplies • Pharmaceuticals • Services • Sporting goods • Technology and education

SECURITY FOCUS AFRICA SEPTEMBER 2021

PERSONALITY PROFILE COMPLIANCY

In conversation with… Roger Baxter, CEO of the Minerals Council South Africa Rainmaker and pot-stirrer – an accolade bestowed on him more than 10 years ago in MiningMx’s annual 100 Most Influential People in Africa’s Mining Sector publication – Roger Baxter has been making his presence felt as the CEO of the Minerals Council of South Africa since 2015.

t’s a description that he’s proud of, along with being voted ‘Mining Thought Leader of the Year’ in 2020 by Mining Review Africa. Fiercely committed to the success of the country’s mining industry, he pulls no punches when it comes to addressing important matters at the highest levels, which include saving lives and livelihoods while urging the best possible mining laws to grow one of South Africa’s biggest employers. Leading from the front Roger has always led from the front. In 1992, he was involved in mineral policy discussions with the ANC, and he has become a powerful voice in the mining, economic, investment, transformation, and tax policy arenas. Aside from being a board member of the BUSA Econpol and its Growth Task Team, he is on the Board of the TEBA Trust, which provides recruitment and other services to mineworkers.

He is also vice chairman of both the Mining Industry Association of South Africa and the International Associations Working Group (part of the International Council on Mining) and active in the International Council on Mining and Metals. If that’s not enough, Roger has thrown his considerable clout behind the rebranding of the Chamber of Mines into the Minerals Council South Africa. He has an unrelenting focus on good governance and strategy, and an unwavering commitment to investment and transformation to address mining’s legacy in the country and reposition it as a modern, ethical organisation, steadfastly promoting and protecting the interests of its members which generate 90% of SA’s annual mineral production by value. “There’s been a huge improvement in the government/mining industry relationship over the last couple of years,” he says, adding that it’s been somewhat surprisingly

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strengthened by Covid-19 exigencies. “The Council’s coordination of the mining industry response to the pandemic is a reminder to the powers-that-be that it’s a force for good.”

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PERSONALITY PROFILE

The early years Roger attended Peterhouse Boys’ School in Zimbabwe, matriculating with top marks in 1984 and leaving behind a sporting legacy that included playing 1st XV rugby, setting two inter-school relay high jump records, and captaining the school shooting team. Next stop was the University of Natal, where he finished with a post-graduate economics degree in 1990. His earlier appointments included Chief Economist at the then-Chamber of Mines followed by almost a year as the head of the Industry Analysis team at Rio Tinto Alcan in Montreal in Canada. On his return to South Africa, he took up the position of Senior Executive, Strategy, Economics and Legal at the Chamber of Mines. In May 2015, he was offered the job of CEO of the organisation and oversaw its transformation into the Minerals Council of South Africa. A typical day From providing inspired leadership to the team along with promoting innovative support, implementing sound strategic and risk management planning processes, executing Board-approved strategic plans, ensuring the optimal structuring and funding of the Council to driving key debates with government and other key stakeholders, it’s all in a day’s work for Roger. Add to this the maintenance of effective working

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relationships with office bearers, the Board, and members, and constantly modernising the brand, its technology and facilities, and one wonders where he gets time out. “Right now, my focus is on promoting and protecting members’ collective interests and helping to achieve the vision of the Minerals Council’s “#MakeMiningMatter” for South Africa,” he says. Roger’s overview of the mining sector “In December last year, we were sitting with an energy availability factor (EAF) of just above 50 per cent — the target in the integrated resource plan (IRP) talks about a 75 per cent energy availability factor. At a global level, the general focus on energy availability factors sits at about 85 per cent, which, believe it or not, was where Eskom was prior to the 2007/2008 load shedding crisis. That initiated the process of decline. Whatever the reasons, I think it’s important to put in context the impact of that lack of supply. If you just look at last year, for mining specifically, we estimate that three per cent of production was lost because of load shedding in the mining sector alone. The impact on the economy is obviously much more significant.” He continues: “Now, if we look at the next ten years, I think it is important to note the fact that another 10 to 11 GW of older generation coal-fired power plant will be taken off the network. By 2030, the IRP

talks about 5GW of additional storage capability, 8,3 GW of additional PV (solar photovoltaic) facilities, and another 18 GW of wind. But the deadlines have all been pushed out into 2023, 2024 and beyond. Eskom’s low energy availability factor is a major short-term crisis for South Africa. We’ve been engaging extensively with Eskom, and in particular with its CEO Andre de Ruyter and his senior executive team, and we’re working closely on how we may help improve the situation. But it is a process with a lot of challenges.” “Our view,” he adds, “is that in the short and medium term, we’re going to see a significant phase-out of older generation power stations, so we need to bring on a lot more capacity pretty quickly and without pushing pricing up. Many of our large scale, energy-intensive businesses have been hit with electricity price increases of up to 523% in the last decade. This excludes recent court orders in favour of Eskom in respect of the regulatory clearing account, which will probably push up the electricity price by another 10 per cent.” Roger says that the Council is working closely with Eskom, government, and other stakeholders. “We’re trying to unblock these things as we go forward, because, ultimately, having this extra capacity coming on is going to be critical to enabling mining and the economy in general to recover from the Covid-19 pandemic. We want to be part of the solution, and we think we certainly are able to be.”

SECURITY FOCUS AFRICA SEPTEMBER 2021

PERSONALITY COMPLIANCY ISS PROFILE

The 20-year war: 9/11’s enduring legacy in Africa To prevent continued attacks, the next generation of counter-terrorism must be people-centred, not focused on military might. By Martin Ewi, Regional Organised Crime Observatory Coordinator for Southern Africa, ENACT organised crime programme, ISS Pretoria. Published 13 September 2021. From https://issafrica.org/iss-today/the-20-year-war-911senduring-legacy-in-africa?utm_source=BenchmarkEmailandutm_campaign=ISS_Todayandutm_medium=email

he fall of Afghanistan last month and the Taliban’s resurgence epitomises the failure of counterterrorism over the past 20 years. Since 9/11, an estimated 254,000 people have died1 in terror attacks worldwide. The fight against terrorism has become a global priority to eliminate the threat posed by extremists and their financiers. It has been dominated by the military through a state-centric security approach. As the international community joins Americans in commemorating the 20th anniversary of the September 2001 attacks, it is important to bear in mind what drives terrorism. In many cases, especially in Africa, it results from deep-rooted human security problems experienced by people

often ignored or marginalised by their governments. This cannot be addressed by military means alone. Taliban-led Afghanistan played an essential part in terrorism both before and after 9/11. The group is believed to have provided a safe haven2 for Osama bin Laden and his al-Qaeda cohorts who carried out the 9/11 attacks. It also shielded them from the international search to bring them to justice. The US-led invasion of Afghanistan in October 2001 that overthrew the Taliban government cost more than 64,000 Afghan lives and inspired Islamist groups worldwide — unleashing a new wave of terror attacks. In Africa, Islamists carried out numerous

SECURITY FOCUS AFRICA SEPTEMBER 2021

high-profile strikes3 in 2002 and 2003 in countries including Tunisia, Kenya, Egypt, Algeria and Morocco. In Nigeria, a new group calling itself the ‘Nigerian Taliban’ was founded in 2002, in the north-eastern state of Borno. That group later became Boko Haram. The influence of Afghanistan on criminality in Africa is vast. It inspires radical groups and is a principal source of opium4 and heroin trafficking, which has become the fastest-growing illicit drug market on the continent. The Taliban and al-Qaeda haven’t been the only groups driving violent extremism in Africa. In the post-9/11 era, the Islamic State’s emergence and the declaration of an Islamic caliphate in 2014 revolutionised

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PERSONALITY ISS PROFILE

recruitment and participation in terrorism on the continent. Like al-Qaeda, Islamic State exploits local grievances and empowers local groups or affiliates. Satellite structures called wilayat or provinces have enabled Islamic State to expand its reach into all five geopolitical regions of Africa. The five terrorist hotspots include the Lake Chad Basin, the Sahel, the Maghreb, the Horn of Africa and the Mozambique-Democratic Republic of the Congo-Tanzania region. Attacks are mainly carried out by local affiliates supported by al-Qaeda or Islamic State. As a result of improved organisation and mapping of territorial spaces among extremist groups, the past two decades have witnessed a rise in attacks across Africa. In the 20 years preceding 9/11, 6,1425 incidents caused the deaths of over 10,000 people. The two decades after 9/11 account for 7,1086 attacks with more than 55,000 fatalities. With 41% of all Islamic State-related attacks globally, Africa has replaced7 the Middle East as the centre of gravity for incidents linked to the group. How and why did this occur at a time of increased focus on counter-terrorism after 9/11? The first reason is the politicisation of measures against terrorism and Africa’s ambivalent response to it. Even as they

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condemned the September 2001 attacks, many African leaders perceived counterterrorism as an American or Western agenda rather than an issue for the continent. This was partly influenced by Africa’s mixed experience with violent extremism. On the one hand, the continent was targeted by global terrorist organisations. On the other, it was seen as manufacturing terrorism, particularly during its anti-colonial struggle. Several African leaders such as Robert Mugabe, Muammar Gaddafi and Omar al-Bashir were previously labelled terrorists or sponsors of terrorism. There was also a feeling that the international community had acted indifferently to Africa’s ‘own 9/11’ when Bin Laden’s mujahideen bombed US embassies in Kenya and Tanzania in 1998. Africa’s involvement in the global war on terror was, as the 2001 anti-terrorism summit8 in Dakar directed, to prevent a new wave of attacks from harming the continent’s development. This was more of a political statement to encourage international partners to continue supporting Africa. Initially it worked, as the US and European governments repackaged their aid to countries supporting the anti-terror campaign. US foreign assistance to Africa was used as an incentive to reward its allies. This aid has been mainly used to increase military spending at the expense of development programmes. Such programmes could help dissuade populations from turning to violent extremism, particularly in poor rural communities where poverty and religion are instrumentalised for terrorist recruitment. The unintended consequence of these incentivised counter-terrorism efforts in Africa is that they helped fund authoritarian regimes. The United States and European countries have turned a blind eye to human rights abuses that seriously undermine democracy and good governance. The second reason for the growing violent extremism in Africa is the lack of counter-terrorism coordination by the African Union and most regional organisations. The use of poorly equipped peacekeeping operations with limited mandates in places like Somalia, Mali, Lake Chad Basin and Mozambique has been highly costly and delivered little dividend.

Third, the criminal justice system offers a more rigorous approach to countering terrorism than military operations. But despite this, it has been undermined by corruption, political renditions and the lack of judicial independence and jurisprudence. The courts can also address some deep-rooted human security issues and drivers of terrorism, and help rebuild the social contract and trust in the government. And yet, they have not been used enough to combat violent extremism. Fourth, many African states have overlooked dialogue with extremist groups. They too, have not sought guidance on viable solutions from civil society and community actors including the youth, private sector, women and religious leaders. Some aspects of dialogue such as amnesty for terrorists are gaining traction among African governments. But the process needs to be effectively managed to prevent a backlash from communities and former fighters rejoining extremist or criminal groups. Recent developments in Afghanistan have brought the world to a tipping point – whether Taliban rule represents a new phase of terrorism or the end of an era of counter-terrorism led by the US. Either way, Africa’s trajectory will depend on how much we have learnt from the failure of the past two decades. A military or state-centric approach has proved ineffective. Instead, broad strategies that encompass military, political, economic and social interventions are needed. They should put people at their centre and be owned and driven at the community and state levels. 1. https://visionofhumanity.org/wp-content/ uploads/2020/11/GTI-2020-web-1.pdf 2. https://www.bbc.com/news/world-47391821 3. https://www.fondapol.org/app/ uploads/2020/05/ENQUETE-TERRORISME2019-11-08_w-4.pdf 4. https://enactafrica.org/research/researchpapers/the-heroin-coast-a-political-economyalong-the-eastern-african-seaboard 5. https://www.start.umd.edu/gtd/search/Results. aspx?chart=regionsandcasualties_ type=andcasualties_max= 6. https://www.e-ir.info/2021/04/09/terrorism-inafrica-explaining-the-rise-of-extremistviolence-against-civilians/ 7. https://www.bbc.com/news/worldafrica-55147863 8. https://www.voanews.com/archive/africanleaders-hold-anti-terrorism-summitdakar-2001-10-17

SECURITY FOCUS AFRICA SEPTEMBER 2021

CYBER SECURITY

Banking trojans, when they have successfully infected a targeted computer, allow cybercriminals to steal money from victims’ online banking accounts and e-wallets

Number of Kaspersky users encountering QakBot: seven months of 2020 vs seven months of 2021 (Source: Kaspersky Security Network).

QakBot banking malware is on the rise: Number of attacked users grew 65% in 2021 The number of users attacked with QakBot – a powerful banking Trojan, in the first seven months of 2021 grew by 65% in comparison to the same period in 2020 and reached 17,316 users worldwide, demonstrating that this threat is increasingly affecting Internet users.

his rise has drawn the attention of Kaspersky researchers to the subject, leading them to review updates to the latest version of this trojan. Banking trojans, when they have successfully infected a targeted computer, allow cybercriminals to steal money from victims’ online banking accounts and e-wallets — which is why they are considered one of the most dangerous types of malware. QakBot was identified as early as 2007 as one of the many banking trojans. However, in recent years, QakBot’s developer has invested a lot into its development, turning this trojan into one of the most powerful and dangerous among existing examples of this malware type. In addition to functions that are quite standard for banking trojans, such as keylogging, cookie-stealing, passwords, and login grabbing, recent versions of QakBot have included functionalities and techniques allowing it to detect if it

is running in a virtual environment. The latter is often used by security solutions and anti-malware specialists to identify malware via its behaviour. Now, if the malware detects that it is running in a virtual environment, it is able to stop suspicious activity or stop functioning completely. In addition, QakBot tries to protect itself from being analysed and debugged by experts and automated tools. The other new and unusual function spotted by Kaspersky researchers in recent versions of QakBot is its ability to steal emails from the attacked machine. These emails are later used in various social engineering campaigns against users in the victim’s email contact list. “QakBot is unlikely to stop its activity anytime soon. This malware continuously receives updates and the threat actors behind it keep adding new capabilities and updating its modules in order to maximise the revenue impact, along

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with stealing details and information. Previously, we’ve seen QakBot being actively spread via the Emotet botnet. This botnet was taken down at the beginning of the year, but judging by the infection attempt statistics, which have grown in comparison to the last year, the actors behind QakBot have found a new way of propagating this malicious software,” say Haim Zigel, malware analyst at Kaspersky. Kaspersky security solutions successfully detect and block all known versions of the QakBot banking trojan. Learn more about QakBot on Securelist. To stay safe from financial threats like QakBot, Kaspersky experts recommend that you: • Do not follow links in spam messages nor open documents attached to them. • Use online banking with multifactor authentication solutions. • Ensure that all of your software is updated — including your operating system and all software applications (attackers exploit loopholes in widely used programs to gain entry). • Use a trusted security solution that is able to help you check the security of the URL (Uniform Resource Locator/web address) you’re visiting and open any site in a protected container to prevent theft of sensitive data (like financial information). About Kaspersky Kaspersky is a global cybersecurity and digital privacy company founded in 1997. Kaspersky’s deep threat intelligence and security expertise is constantly transforming into innovative security solutions and services to protect businesses, critical infrastructure, governments and consumers around the globe. The company’s comprehensive security portfolio includes leading endpoint protection and a number of specialised security solutions and services to fight sophisticated and evolving digital threats. Over 400 million users are protected by Kaspersky technologies and we help 240,000 corporate clients protect what matters most to them. Learn more at www.kaspersky.co.za.

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CYBER SECURITY

GhostEmperor: Chinese-speaking APT targets high-profile victims using unknown rootkit Advanced persistent threat (APT) actors are constantly seeking new, more sophisticated ways to perform their attacks. That is why Kaspersky researchers monitor how APT groups refresh and update their toolsets. From https://www.kaspersky.com/about/press-releases/2021_ghostemperor-chinesespeaking-apt-targets-high-profile-victims-using-unknown-rootkit

ccording to Kaspersky’s quarterly report, the threat landscape saw an increase in attacks against Microsoft Exchange servers in Q2 2021. In the latest APT 2021 Report, Kaspersky reveals the details of a unique longstanding operation, ‘GhostEmperor’, which uses Microsoft Exchange vulnerabilities to target high-profile victims with an advanced toolset and no affinity to any known threat actor. GhostEmperor is a Chinese-speaking threat actor that has been discovered by Kaspersky researchers. It mostly focuses on targets in Southeast Asia, including several governmental entities and telecoms companies. This actor stands out because it uses a formerly unknown Windows kernel-mode rootkit. Rootkits provide remote control access over the servers they target. Acting covertly, rootkits are notorious for hiding from investigators and security solutions. To bypass the Windows Driver Signature Enforcement mechanism, GhostEmperor uses a loading scheme involving the component of an open-source project named “Cheat Engine”. This advanced toolset is unique and Kaspersky researchers

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see no affinity to already known threat actors. Kaspersky experts have surmised that this toolset has been in use since at least July 2020. “As detection and protection techniques evolve, so do APT actors. They typically refresh and update their toolsets. GhostEmperor is a clear example of how cybercriminals look for new techniques to use and new vulnerabilities to exploit. Using a previously unknown, sophisticated rootkit, they brought new problems to the already well-established trend of attacks against Microsoft Exchange servers,” comments David Emm, security expert at Kaspersky. Besides the growth of attacks against Microsoft Exchange servers, Kaspersky experts also highlight the following trends on the APT landscape in Q2: • There has been a rise in APT threat actors leveraging exploits to gain an initial foothold in attacked networks – including the zero-days developed by the exploit developer ‘Moses’ and those used in the PuzzleMaker, Pulse Secure attacks, and the Microsoft Exchange server vulnerabilities • APT threat actors continue to invest in

refreshing their toolsets: this includes not only the inclusion of new platforms but also the use of additional languages, as seen by WildPressure’s macOS-supported Python malware • While some of the supply-chain attacks were major and have attracted worldwide attention, Kaspersky experts also observed equally successful low-tech attacks, such as BountyGlad, CoughingDown, and the attack targeting Codecov, which signaled that low-key campaigns still represent a significant threat to security To learn more about GhostEmperor and other significant discoveries of the quarter, read the APT trends report Q2 2021 on Securelist. The report summarises the findings of Kaspersky’s subscriberonly threat intelligence reports, which also include Indicators of Compromise (IoC) data and YARA rules to assist in forensics and malware hunting. For more information, please contact: intelreports@ kaspersky.com. In order to avoid falling victim to a targeted attack by a known or unknown threat actor, Kaspersky researchers recommend implementing the following measures: • Provide your SOC team with access to the latest threat intelligence (TI). The Kaspersky Threat Intelligence Portal is a single point of access for the company’s TI, providing cyberattack data and insights gathered by Kaspersky spanning over 20 years. Free access to its curated features that allow users to check files, URLs, and IP addresses, are available here. • Upskill your cybersecurity team to tackle the latest targeted threats with Kaspersky online training developed by GReAT experts. • For endpoint level detection, investigation, and timely remediation of incidents, implement EDR solutions such as Kaspersky Endpoint Detection and Response. • In addition to adopting essential endpoint protection, implement a corporate-grade security solution that detects advanced threats on the network level at an early stage, such as Kaspersky Anti Targeted Attack Platform. • As many targeted attacks start with phishing or other social engineering techniques, introduce security awareness training and teach practical skills to your team – for example, through the Kaspersky Automated Security Awareness Platform.

SECURITY FOCUS AFRICA SEPTEMBER 2021

CYBER SECURITY

Inherent flaws in SMS OTPs exposing SA consumers to fraud Online fraud in SA financial services rose 187% from the last four months in 2020 to the first four months of 2021 — with identity theft and account takeovers dominating. But SIM swap sits at the heart of this problem. By Lincoln Naicker, product owner at Entersekt.

n July, a syndicate victimised Vodacom, MTN, and Telkom subscribers again by adding a number to their profiles without their knowledge or permission to take control of their accounts and bypass bill limits — stealing thousands in airtime and data. While many different businesses still rely on SMS OTPs (one time password/ pin) for online security, technology developments over the past 25 years have rendered these one-off strings of digits obsolete, both in terms of security and convenience. Instead, businesses should be looking at GSM (Global System for Mobile Communications) authentication for an app-less, truly out-of-band, secondary factor solution. App-less authentication offers big business, security benefits As more industries move to secure their data and protect customers, deploying

outdated technology which cannot withstand modern security threats is simply bad business practice. For the many companies looking to replace legacy solutions like SMS OTP with stronger authentication mechanisms, or supplement OTP-based solutions with more robust alternatives, GSM authentication offers a compelling solution — both for the business and their customers. “SMS OTPs were a good go-to solution, but they are long past their sell-by date. Companies must look for better step-up authentication methods if they hope to fulfil their duties of protecting customers and their data,” says Lincoln Naicker, product owner at Entersekt. “GSM authentication offers an app-less, truly out-of-band, secondary factor that is both low friction and simple to implement. For companies looking to protect all customers against fraud, GSM authentication is a great solution.”

SECURITY FOCUS AFRICA SEPTEMBER 2021

For decades, SMS OTPs were the favoured second-factor authentication mechanism. This was largely for reasons of convenience. Almost everyone has a mobile phone, which is always with them, and everyone is familiar with SMS. However, it’s been years since we reached the tipping point where security risks posed by (SMS) OTP technology outweigh user familiarity. “The SMS channel is not considered the most secure for many reasons. Our phones are susceptible to any number of trojans, which leverage open access to SMS on mobile phones specifically to intercept OTPs. What’s more, mobile SIM swaps or SIM clones can also significantly devalue this mechanism as an authentication option,” Naicker explains.

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CYBER SECURITY

GSM Authentication is familiar, but far safer “Reducing SIM-swap fraud is at the heart of the GSM authentication solution. We transform the device itself into a unique identifier, communicating directly with that device through a real-time push notification over the mobile network. This true out-of-band communication means that it is a much more secure solution,” Naicker says. Using a separate authentication channel makes it more difficult for an attacker to intercept and subvert the authentication process – such as in the case of a manin-the-middle attack – because it would require the attacker to compromise two communications channels. In addition to the security aspect, Naicker explains that this slicker user experience remains very familiar, which makes it easy for companies – whose customers are used to OTP – to deploy GSM authentication with minimal fuss or reeducation required. Customers don’t need to register, enrol or sign up –— an authentication message is automatically pushed to their mobile phone when they attempt an interaction with their institution that has to be authenticated. Benefits extend to the organisations deploying GSM authentication Naicker says that Entersekt has further developed its offering to include patented technologies as well as direct integration

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with local mobile network operators (MNOs). “While the customer simply sees a decline or accept message when they are about to log in or make a sensitive transaction, in the background we are applying complex algorithms which check the device identity, but are also able to see if a SIM has been swapped recently. This information will be flagged to the institution, alerting them to a potentially risky transaction. This fits into the security end-game for today’s businesses that need to do whatever it takes to prevent fraud and protect their customers,” he says. Businesses that don’t want to force their users to download yet another app, or would like to have a secure fallback authentication method – should their app go down – may also rely on GSM authentication as a step-up option. Naicker points out that GSM authentication also offers compelling inclusivity benefits “This authentication method is perfect for South African companies. USSD (Unstructured Supplementary Service Data) functionality means that customers don’t have to have a smartphone. This is great for companies where inclusivity is a big priority, especially healthcare, financial services and even government services. This service works beautifully as a simple way to onboard new users, and the use cases for this alone are endless,” he says. An additional benefit for companies

looking to transition from SMS is the meaningful cost saving. SMS remains an expensive delivery method, and for companies that need to authenticate hundreds of thousands of transactions every day, this may quickly add up. Finally, Naicker says that while Entersekt’s GSM authentication solution has always had a strong showing with South Africa’s banks and MNOs, they are seeing strong interest from other sectors. “All local companies now have to show that they are protecting their customers’ and partners’ data. Adding layers of complexity and cost by deploying technology that is no longer safe is just not sensible. For companies looking for a safe, simple solution that won’t introduce additional friction or confuse customers, GSM authentication is a great option.” About Entersekt Entersekt is a leading provider of strong device identity and customer authentication software. Financial institutions and other large enterprises in countries across the globe rely on its multi-patented technology to communicate with their clients securely, protect them from fraud, and serve them convenient new experiences irrespective of the channel or device in use. They have repeatedly credited the Entersekt Secure Platform with helping to drive adoption, deepen engagement, and open opportunities for growth, all while meeting their compliance obligations with confidence.

SECURITY FOCUS AFRICA SEPTEMBER 2021

COMPLIANCY FRAUD

Will a fraudulent document keep you from greener pastures? Many will tell you that the road is long with many a winding turn. Truck drivers in South Africa have had a torrid time of late and a severe shortage of truck drivers in the US has led to more companies bringing in drivers from South Africa. The US has been grappling with a chronic lack of drivers for years, but the shortage has reached crisis levels because of the Covid-19 pandemic, which simultaneously sent demand for shipped goods soaring while also seeing a surge in early retirements. Sonya Skipp, General Manager iFacts, discusses the challenges that a fraudulent driver’s license could create for you.

ringing in foreign workers comes with a number of challenges, including visa limits and complicated immigration rules. Arnoux Mare, chief executive of Innovative Solutions Group, told RSG that this was not a new trend and that South Africans have been in demand for several years. He added that these drivers would still be required to do their licences and learn the various road rules, so South Africans should not expect to start working straight away. Sonya Skipp of iFacts says that 47% of public driving permits verified in 2020 were fraudulent. She stresses that it is essential for drivers to have their documentation verified when applying to work overseas. Many people are found to be frantically scrambling for police clearance certificates and certified copies of documents at the last minute, and delays in having the correct documentation could lose the driver the opportunity to move on.

South African truck drivers operating in South Africa have also been challenged by the number of foreign drivers operating in the country and the Minister of Transport recently published a bill requiring South African trucks to only be driven by someone holding a South African PDP (professional driving permit). The Government Gazette proposes that a foreign citizen (driver) who holds a certificate/document that allows the driving of certain classes of vehicles in the home country of the foreign citizen (where such document is required and was issued) will no longer be valid (acceptable) in South Africa for the driving of any South African-registered vehicle that requires a PDP (class D, G or P). Skipp says she cannot help but wonder how this may affect the people who are out trying to “sell” licenses to those desperate for work. She refers to a recent scam at the Tshwane Licensing Department where Tshwane MMC for

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Roads and Transport, Dikeledi Selowa, warned of scams at licensing centres. These scams target people who need learner or driving licences, as well as those who have outstanding fines. Here are some pointers to avoid being scammed: • Only do any business inside the designated licensing office • Ensure that you are dealing with an official and you are within your right to insist on obtaining the name of the official • Do not make any payment without obtaining an official receipt from the relevant department • Driving schools are not able to issue any driving licenses • Know what the gazetted fees for licenses are Sadly, fraud is real in South Africa due to the high levels of corruption. We need to ensure that we have the correct documentation to avoid massive challenges in career advancement.

securityfocusafrica.com

COMPLIANCY FRAUD

Scammers targeting communities in Limpopo (Giyani) http://www.statssa.gov.za/?p=14551

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tatistics South Africa (Stats SA) wishes to caution members of the public about imposters pretending to be fieldworkers from Statistics South Africa. The scammers are going door-to-door and claim to be profiling households. They request members of the public to provide their banking details and also to confirm if they have mobile banking apps. It is alleged that some members of the community have been robbed of money by these scammers. Stats SA does not ask respondents to provide their banking details, nor confirm if they are using mobile banking apps. Members of the public are urged to be vigilant and not fall victim to the scam. The organisation has communicated its temporary suspension of all face-to-face data collection due to the latest Covid-19 restrictions. This includes the frame update project, in which fieldworkers go door-to-door collecting contact details from households so that we may use alternative interviewing modes, including

computer-assisted telephone interviewing (CATI) and computer-assisted web interviewing (CAWI), to ensure the continued provision of much-needed economic and social statistics. We are currently conducting a risk assessment to determine when we will be able to resume face-to-face data collection. The public will be informed once this decision has been finalised. Stats SA fieldworkers can be easily identified in the following ways: They will have Stats SA-branded bibs, Stats SA ID cards, and introduction letters. To verify that the person at your door is a legitimate Stats SA staff member you may check online (http://www. statssa.gov.za/Fieldworkerverification/ FWVerification.php ), contact the call centre on 0800 110 248, or your nearest provincial or district office. Issued by Statistics South Africa http://www.statssa.gov.za/?p=14551

SECURITY FOCUS AFRICA SEPTEMBER 2021

ON THE MARKET

Securing digital consent in a cookieless world Privacy legislation like POPIA and GDPR demands that companies are accountable for offering, collecting and storing customer consent. Here’s how SAP and Wunderman Thompson are managing the legislation.

he Covid-19 pandemic saw customers increasingly engaging with online channels — be it from a purchasing, self-service or support point of view. And this increase in activity means an increase in customer data that companies and marketers may use to better understand consumer behaviour and drive appropriate actions. But it’s not so simple. Global and local privacy legislation like the General Data Protection Regulation (GDPR) and the Protection of Personal Information Act (POPIA) dictates that for brands to use this personal data, there needs to be an element of customer consent. With the power now sitting in the customer’s hands, individuals have greater control over how their data is collected and used. But what does this mean for brands and advertisers who have predominantly been using third party cookie data to identify consumers and track their online activity? While POPIA does not explicitly regulate the use of cookies, these ‘online identifiers’ do fall under the definition of personal information. As such, how we use cookie data is set to fundamentally change; particularly relating to the collection of third-party data. Third-party cookies allow advertisers to track users as they move across the internet and target advertising at these individuals wherever they go. “With global privacy legislation gaining traction, the likes of Google and other providers are fundamentally changing how they use cookie data to collect customer related information. Subsequently, third party cookie data becomes less relevant and first party data – rich data around an individual’s behaviours; actions and interests demonstrated across online properties – becomes significantly more powerful,” explains Marc Emert, Customer Experience Sale Lead for SAP Africa. Add a dash of customer data management Privacy legislation like POPIA doesn’t

prevent you from collecting customer data, continues Emert. But it does mean that any data collection must be done in a GDPR/POPIA aligned manner. “Going forward, while you’re collecting this rich, contextual data that may be used for marketing engagements and targeted advertising, you need to also make sure that you’re collecting the consent directly from the customer. If a marketer or brand is sending something to a consumer, they’re sending it because that person has opted in to receive it.” SAP’s Customer Data Cloud (CDC) solution makes the process of gaining this consent easier, he adds. “With CDC, marketers and brands may gather first party data from customers across various digital channels and make sure that they are also securing consent throughout the engagement process. Customer-provided consent is then integrated into an existing automated marketing solution, which delivers one-to-one personalisation at scale and is based on trust.” CDC also makes progressive profiling possible, adds Emert. As a customer engages with a brand, they’re being asked to provide different pockets of information about themselves, he says. So, while I’m selling a mother a certain type of baby formula for her new-born, I’m gaining insights that allow me to market other products to this mom as her baby grows up. “Basically, you’re progressively collating more and more first party data that may be used to engage with customers broadly and through different stages of their lives.” And the results speak for themselves. SAP’s CDC has helped a global academic and educational publisher manage the data of over 4.5 million users and achieve 100% GDPR compliance in forty countries. And in just four months, a German supermarket chain got up and running on the SAP CDC system, centralising omnichannel customer data to GDPR standards and boosting membership to their loyalty programme by 25%. “Similarly, for three years the

SECURITY FOCUS AFRICA SEPTEMBER 2021

Technology Centre of Excellence team in Wunderman Thompson South Africa has been using SAP’s CDC solution to do just that,” notes Niel Mouton, MD of Wunderman Thompson Technology SA. “Home to over 4,000 technology specialists across the globe with 54 technology centres in 33 countries, we support forward thinking businesses to design, build, run and operate digital programmes wherever they are.” “With the onus in a cookieless world now falling on brands to collect and build their own first party data, Wunderman Thompson has used SAPS’s CDC solution across thirty implementations for brands like Nestle Purina, Bayer Pharmaceuticals, Colgate and the International Olympic Committee (IOC). Our teams used SAP CDC to create customised solutions for their clients, allowing these businesses to collect first party data, while protecting privacy and complying with personal information legislation,” he continues. According to Mouton, conversations around privacy, data collection and POPIA/ GDPR centre around trust, which is fitting because the Wunderman Thompson partnership with SAP is also about trust. “With SAP, we may trust the quality and standard of the product. There are no teething issues on a product as mature as this. All we have to do is understand the client’s business need and adapt the SAP product to their requirements.” While Mouton admits that it would be possible to be compliant without a solution like CDC, it’s near impossible for enterprise businesses like banks or pharmaceutical companies to manage the scale of personal data they’re dealing with, while keeping their customers and their business safe, without an automated offering. Customer experience has become a major market differentiator. The following white paper highlights why modern businesses need to understand the importance of customer identity. Click here to find out more.

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ON THE MARKET

New game-changing flameproof cable glands A new flameproof cable gland range from Pratley allows for soft-bedding cables like PVC and the like, which are prone to creep, to be fitted to flameproof equipment without any concern regarding cable damage or poor long-term sealing.

he Pratley Taper-Tech® flameproof gland range consists of four separate glands in two unique categories. First is the Pratley Taper-Tech® gland for armoured and braided cable. This is a ‘double compression’ gland, meaning it has both an inner and an outer seal. The second is the Pratley Taper-Tech® single-seal flameproof gland, also for armoured and braided cable, but with a durable rubber shroud. The range also includes two ‘double compression’ glands for unarmoured cable, one being a hose-tail version that features a spigot on the compression nut. This is intended to be fitted with flexible hosing, for example, where cables are fitted to mining machines, for protecting the cable outer sheath. The unique feature of this flameproof cable gland range is that all versions are fitted with Pratley Taper-Tech® flame seal technology, consisting of tapered seals made from superior, Pratley developed, high temperature, and low compression-set elastomers. The seals all have a taper on the leading edge that abuts against the gland nipple taper on the inside. The taper on the bush and the one on the cable gland’s nipple are angled differently. This means that, under thrust or pressure from the front, when it is tightened, this differential taper allows the bush to slide down the taper easily, reducing the force needed to achieve radial compression. “In other words, less torque to reduce the diameter of the bush,” explains Sven Breedt, Electrical Research & Development Manager. A major benefit of this technology is low initial radial pressure or a small amount of contact pressure on the cable. This is important because most cables in the field are made from PVC, which exhibits ‘cold flow’, meaning the relaxation of the cable bedding over time. “This may be dangerous for both the flameproof sealing properties of the termination, as well as the secureness of the cable to the equipment,” points out Breedt. Flameproof cable glands fitted to flameproof equipment are intended to seal against extremely high explosion pressures, which in many cases may be as

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high as 30 bar. For the seal to function properly, there must be adequate pressure between the seal and the gland bedding. “Imagine the explosive gases travelling down the cable and pressing against this seal. This seal is now being pressed on its taper which, due to the taper action, forces the bush to press down onto the cable, increasing the seal force. As the pressure rises, the contact pressure between the bush and the cable increases proportionally. Even if you increase the pressure to 40 or 50 bar, the seal will accommodate that pressure by further closing onto the cable. Once that pressure is released, the bush will relax again, and reduce the contact pressure on the cable,” Breedt explains. As the leading edge of the seal forms a taper in the direction of the applied explosive pressure, when this applied pressure increases, so too does the contact radial seal pressure on the cable bedding. Once the pressure is relieved, the bush returns to its initial low-pressure state, so the high seal pressure is only on the cable when it is needed. The same technology is amplified in the cable gland for unarmoured cable, which not only has to seal against high explosion pressures, but also retain the cable axially against pull-out forces. “This is achieved in a similar manner to that used for sealing, however, the rear outer seal has a taper which is in the direction of the cable pull-force. This, too, increases proportionally to the pull-force on the cable, meaning that high contact pressures are only present on the cable when it is being pulled on. Taper-Tech® completely negates cable damage usually experienced with subpar weak-back seals, while complying 100% to the stringent IECEx flameproof cable gland requirements,” he says. The main features of the different versions in the Pratley Taper-Tech® Flameproof Cable Gland range are as follows: Pratley Taper-Tech® Flameproof Double Compression Gland for armoured and braided cable • Flameproof double compression gland for both SWA and braided cables

• Complete with unique Taper-Tech® flame seal technology • Fully certified to both SANS and IECEx Standards • Quad certified Ex d/e/nR and t, for Fiery Mines and Surface applications • IP66/68 tested to 350m continuous • Continuous operation at -35° to 120° C • Patented cable safety gauge • Red Ex band, for easy identification in the field Pratley Taper-Tech® Flameproof Double Compression Gland for armoured and braided cable with a shroud • Flameproof gland for both SWA and braided cables with a durable UV resistant rubber shroud • Complete with unique Taper-Tech® flame seal technology • Fully certified to both SANS and IECEx Standards • Quad certified Ex d/e/nR and t, for Fiery Mines and Surface applications • IP66/68 tested to 350m continuous • Continuous operation at -35° to 120° C • Patented cable safety gauge • Red Ex band, for easy identification in the field Pratley Taper-Tech® Flameproof Double Compress Gland for circular unarmoured cable • Flameproof double compression gland for circular unarmoured cables • Complete with two unique Taper-Tech® sealing technology seals • Fully certified to both SANS and IECEx Standards • Quad certified Ex d/e/nR and t for Fiery Mines and Surface applications • IP66/68 tested to 350m continuous • Continuous operation at -35° to 120° C • Patented cable safety gauge • Red Ex band, for easy identification in the field Connect with Pratley on Social Media to receive the company’s latest news Facebook: https://www.facebook.com/ PratleySA/ Twitter: https://twitter.com/PratleySA

SECURITY FOCUS AFRICA SEPTEMBER 2021

INDUSTRY OPINION

What is driving digital transformation in South Africa? The onset of the Covid-19 pandemic in South Africa in March last year massively disrupted the market. Suddenly, people were forced to work remotely, with the emphasis falling squarely on being online and connected. But, while challenging, the rapid push for digital transformation has also unlocked new opportunities for companies across industry sectors. By Andreas Bartsch, Head of Innovation and Services at PBT Group.

artsch says, “Online shopping, banking, education, and the like became normalised virtually overnight. And while working remotely is not a new thing as such, the scale at which it had to be done was. For instance, job interviews had to be managed remotely, with new employees having to be onboarded online as well. Client introductions took place online with no physical face-to-face engagement happening at all. And from a business perspective, the underlying application systems and data had to be accessible from anywhere, triggering many migrations into a cloud environment.” This has resulted in a different mindset required to adjust to the behavioural challenges associated with the ‘new normal’. For example, new skills

associated with virtual meetings entailed everything from etiquette on whether to put a camera on, what calls could be recorded, and being mindful of the background, to name just a few. Technology adoption The dramatic changes that took place coincided with the availability of more sophisticated technologies like the cloud, 5G, edge computing, and the Internet of Things (IoT). All these started maturing while the pandemic was taking place. However, it also highlighted how technology has the potential to make everything possible. “From an organisational perspective, executives had to adjust as a matter of survival and then needed to consider both the medium and long-term impact that this shift would have on their

SECURITY FOCUS AFRICA SEPTEMBER 2021

operating environments. However, this also opened the door to new opportunities people did not consider before,” says Bartsch. For instance, automation has become a central theme to digital transformation. With the emphasis turning to artificial intelligence (AI) and machine learning (ML), attention has shifted towards establishing smarter organisations driven by data. It also meant that those companies wanting to benefit the most from the changes happening, had to ensure that their data would allow the enablement of these technologies. Skills growth Furthermore, the push towards digital

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INDUSTRY OPINION

transformation highlighted the importance of finding the right talent. New skills become critical in this new environment. Those who have been able to best adapt, will be the ones that are the most successful. As organisations start to adapt to the cloud, they also need to understand the cloud services available to them. This is no easy task even for companies in the ICT space. Most, if not all, organisations are still trying to catch up to the skills required in this changing market. From a talent perspective, working remotely has become standard operating procedure. At most, companies will adapt to a hybrid environment that will be differentiated to enable people to work from any location. Employees must be willing to empower themselves with the skills needed in this regard. “Companies will have to identify innovative ways to attract and retain talent in this regard. There will be a

significant emphasis on getting the right skills and expertise in place. However, people have already shown they can be more productive especially if they do not have to commute. But there is a risk that they can become overworked, so companies must balance this very carefully too,” he says. Managing risk Throughout all this, it is about putting people first and retaining the skills that will be critical for a company to remain competitive. “As such, people need to have the ongoing desire to enhance their own careers. Communication skills will be even more important than ever. Executives must also show that they have a good understanding of what technology can do and how it can support and enable the business to embrace the cloud and let their employees be more effective working remotely.”

And because much of this is datadriven, governance cannot be neglected. Companies must plan on what data is required, how its data is protected, and what the regulatory requirements are that go with it. And as the business embraces more technology associated with digital transformation, it will result in more data being generated. This makes it critical for the business to effectively use the data to make more relevant decisions. “Ultimately, the environment provides great opportunities for the executive leadership to embrace technology and become more forward-thinking. Data must be nurtured as an asset for the business (and) risks need to be carefully managed especially when it comes to migrating to the cloud, but the advantages it presents are clear,” concludes Bartsch. www.pbtgroup.co.za.

INDEX

Contributors and advertisers index ENTITY Corruption Watch

PAGE WEBSITE 20

www.corruptionwatch.org.za

Entersekt 28 www.entersekt.com Excellerate Services

www.excellerate.co.za

IFacts 30 www.ifacts.co.za Institute for Security Studies

https://issafrica.org

International Hologram Manufacturers Association

https://imha.org

Kasperky

26, 27

www.kaspersky.com

Minerals Council South Africa

16, 22

www.mineralscouncil.org.za

PBT Group

Peter Bagshawe

www.pbtgroup.co.za

PratleySA 33 www.pratley.com Security Association of South Africa

6, IBC

www.sasecurity.co.za

Skynamo 21 https://skynamo.com StatsSA 31 www.statssa.gov.za www.sap.com SAP 32

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SECURITY FOCUS AFRICA SEPTEMBER 2021

THE LAST NEWS WORD

POST INSURRECTION The previous article ‘Insurrection cannot be tolerated’ outlined events that took place in Kwa-Zulu Natal and Gauteng between 9th and 18th July 2021 and the impact that the insurrection, associated looting and arson had on the economy and communities impacted upon by these events. By Peter Bagshawe

ubsequent to the cleanup, the restoration of law-andorder and task of repairing the physical damage to infrastructure, buildings, businesses, and lives has commenced and the major focus in this regard has been on the indemnity available to businesses and individuals who had taken insurance cover through the South African Special Risks Association (Sasria). Sasria, in its current form, originated out of a Special Risk Insurer Association founded in 1979 to provide insurance for political violence and associated damage, which had become unobtainable via conventional insurance markets. In 1998, under a Constitutional dispensation, Sasria was converted into a public company owned entirely by the State and

SECURITY FOCUS AFRICA SEPTEMBER 2021

accordingly becoming a State-Owned Enterprise. Given the starting position of the Association, the role of Sasria (which is a registered Financial Services Provider) is to provide insurance cover in respect of the ambit of risks extracted below: • Any riot, strike or public disorder or any act or activity which is calculated or directed to bring about a riot, strike or public disorder; • Any act calculated or directed to overthrow or influence any State or government (including any provincial, local, or tribal authority) with force, or by means of fear, terrorism or violence; • Any act which is calculated or directed to bring about loss or damage in order to further any political aim, objective, or cause, or to bring about any social or economic change, or in protest action

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THE LAST NEWS WORD

against any State or government (including any provincial, local or tribal authority) or for the purpose of inspiring fear in the public, or any section thereof; • Any attempt to perform any of the above acts; • The act of any lawfully established authority in controlling, preventing, suppressing or in any other way, dealing with any of the aforementioned acts or attempted acts; and • Looting would be covered provided it falls within the policy terms broadly stipulated above. Historically Sasria – as an SOE – has had a strong balance sheet and has not previously required State funding. Initial estimates of damage indicated by Sasria in mid-July were in the region of R7 billion. This has, however, now increased and Sasria expects claims from the unrest to total between R20 billion and R25 billion. It appears that Sasria, at the time it

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commenced settling claims, had assets of some R10 billion and reinsurance of some R7 billion. Treasury has given a commitment of R3.9 billion. However, should the total claims come in at the R25 billion estimate, Sasria would need to look at Treasury for an additional injection. Sasria has also indicated that increased amounts of between R5.6 billion and some R7 billion (depending on the level of claims settled) would be needed in order for Sasria to comply with regulatory solvency margins in terms of legislation. Sasria is not a mandatory cover and is available to a maximum of R500 million as a Primary layer with Excess of Loss cover available to a maximum of R1 billion, with additional layers available on application from Sasria or, with dispensation, from conventional insurance markets. As such Sasria tends to be taken out by larger, more formally structured businesses. Sasria is, however, offered as part of bond, homeowners, motor, and other covers offered via brokers or financial institutions. Sasria cover is not available for purchase directly by the public and may only be purchased through insurers who have been appointed by Sasria as their agents. Turning away from Saria, accurate figures are not available for the number of businesses impacted by the unrest who did not have Sasria cover in place at the time of loss. Unofficial estimates seem to indicate that some two thirds of the businesses (smaller traders, small businesses, informal traders, and those who elected not to take cover for economic and – in some cases – religious reasons) have no indemnity available to them. This has been recognised by Government who, in addition to the Sasria allocation, have announced an Unrest Support Package to support small businesses not covered by Sasria, with an allocation of R2,3 billion being made available via Treasury with the involvement of the Department of Small Business Development and the Department of Trade, Industry and Competition. Additionally, Government has temporarily reinstated the R350 per month Social Relief of Distress grant until the end of the financial year. The quantum of the Unrest Support Package and its adequacy is open to debate as are the mechanisms through which funding will be made available and the control of the funding. The timing of the rebuilding of businesses and their ability to withstand the impact of business interruption and

associated cash flow impact are widely variable. Those with Sasria cover had the opportunity of taking out business interruption coverage, many would have done so and should be better placed due to this. The availability of business interruption (and the ability of smaller businesses to prove this aspect) in terms of the Unrest Support Package is, from my perspective, an unknown. Irrespective of the availability of claims settlement via either Sasria or the Unrest Support Package the timing of rebuilding of shopping malls, retail space and the resumption of trading will take place, in the event of major physical damage, over several years. What is worth noting is the open question on how much of the infrastructure will be rebuilt. As an example, the Shoprite Group has posted annual results that provide insight. Of the total of 231 stores that were significantly damaged during the unrest, 83 remained closed at the time of the announcement and the Group has decided not to reopen six of the stores damaged. The basis of the decision not to reopen was not made available, however the locations are likely either marginal from a trading perspective or because of the high-risk profile of the location. Added to the impact of the businesses affected by the unrest, estimates are that some 150,000 jobs are at risk in KwaZulu-Natal and in Gauteng 45,000 jobs were lost. Additionally, during the second quarter of 2021, 83,000 jobs were lost in the manufacturing sector, according to Stats SA’s quarterly labour force survey, further impacting on the unemployment rate which currently sits at 32,6% according to government figures. The impact of the unrest will continue for a lengthy period on both micro and macro levels within the economy. The indemnity provided by Sasria (where available) will smooth the impact to businesses over a wide range of sectors and the projected income to and job creation in the construction sectors should have a positive input economically. Where indemnity is not available there is a potential upside via the Unrest Support Package. However, this does not negate the negative impact on an already weakened South African economy. PETER BAGSHAWE holds a Bachelor of Law degree from the former University of Rhodesia and a Bachelor of Laws degree from the University of the Witwatersrand.

SECURITY FOCUS AFRICA SEPTEMBER 2021

Security Focus Africa September 2021 Vol 39 No 9

Articles inside

THE LAST WORD

INDUSTRY OPINION

FRAUD

CYBER SECURITY

CYBER SECURITY

CYBER SECURITY

ISS

SPECIAL REPORT

MINING SECURITY

NEWS

News snippets from around the world

ASSOCIATION NEWS

ASSOCIATION NEWS

EDITOR’S COMMENT

ILLEGAL MINING Fact Sheet

ON THE MARKET

ON THE MARKET

FRAUD

PERSONALITY PROFILE

CORRUPTION