Copper theft from parastatals and municipalities estimated at R46.5bn, says Minister Patel

The total cost of copper theft from agencies such as Transnet, the Passenger Rail Agency of South Africa (Prasa), and the electricity networks of Eskom and municipalities was an estimated R46.5-billion, said Trade, Industry and Competition (dtic) Minister Ebrahim Patel. He appeared before Parliament on Tuesday to brief the Trade and Industry Oversight Committee on a policy to ban the sale of scrap metal.

The dtic, with the departments of Mineral Resources and Energy, Public Enterprises, Transport and the South African Police Service (SAPS), gazetted a draft policy on 5 August. The draft policy proposes a six-month export ban on scrap and waste metal, including copper cable, in conjunction with a permit system for the export of specific semi-processed metal products, according to a previous statement by the department.

https://www.dailymaverick.co.za/article/2022-08-07-metal-theft-the-net-could-close-if-new-draft-policy-is-implemented/

 

Patel said the country faced a “serious challenge from theft of metal and the associated impairment and destruction of infrastructure”, and the theft of scrap metal — especially copper cable — imposed “costs far beyond the actual value of the material taken. 

“The theft of scrap metal and copper cable from public infrastructure hinders the performance of the economy by imposing enormous costs… some of the disruptions include the supply of energy and rail services due to vandalised rail tracks,” said Patel. Vandalised and unsecured electricity cables posed safety risks to communities, especially to children. 

“Cabinet directed that the dtic should lead the consultations within a limited period, and solicit inputs from the public and relevant sectors on effective measures that government can implement to stop the vandalising of critical economic infrastructure,” said Patel during Tuesday’s virtual meeting. 

Daily Maverick has previously reported that two state enterprises — Prasa and Transnet — had spent billions of rands to combat theft and vandalism across the country.

https://www.dailymaverick.co.za/article/2022-06-08-transnet-and-prasa-fork-out-billions-to-combat-theft-and-vandalism/

Breaking down the costs of the copper theft, Patel said that at Transnet, security, metal replacement, repair and lost service revenue had cost R4.6-billion, while gross forgone revenue faced by mines was R30-billion. Theft from electrical networks such as Eskom and municipalities stood at R7-billion. At Prasa, the results were broken down into:

• Metal replacement and repair  at R1.6-billion;


• Lost service revenue at R1.2-billion;


• Lost employee wages at R400-million; and


• Increased commuter costs at R1.5-billion.

Patel said the government had commissioned research from independent entities to track the extent of the problem and identify solutions. These experts included Trade and Industrial Policy Strategies and Genesis Analytics. Eskom, Transnet and the SAPS were also approached for input.

“Government intends to pursue a balanced approach having regard to the need to combat the scourge of metal theft in a proportionate manner,” said Patel. 

Public comment on the draft policy will conclude on Friday, 26 August. The comments will be evaluated before a final package of measures is provided to Cabinet. Final decisions will be made by the Cabinet and then implemented.

During the discussion with Patel and the oversight committee, the DA shadow deputy minister of trade and industry, Matt Cuthbert, said theft was a law enforcement problem and should be treated as such. 

“This ban is not going to work,” he said and reminded the committee that a debate on the issue would take place in Parliament on 1 September. Cuthbert said the SAPS and the National Prosecuting Authority needed to be sufficiently capacitated to fight metal theft.

But Patel said that while policing was an element of a potential solution, it was not a “very viable strategy” if the SAPS had to keep a 24/7 eye on infrastructure that could be stolen. He said communities also needed to report the cable thieves.

Committee chairperson Judy Hermans said public participation closes this Friday and that MPs like Cuthbert should remind stakeholders to comment on the policy before then. DM

Members of the public and interested/affected parties are invited to submit their written representations and comments regarding the draft policy, draft directives and notices. They can be submitted until this Friday by e-mail to [email protected] or hand-delivered at 77 Meintjies Street, Block A, 1st Floor, Sunnyside, Pretoria, 0132.