A fourth group that is possibly also benefiting from copper cable theft is the private security industry. Private security firms have the potential to profit from copper cable theft, which should set alarm bells ringing for those analysing organized crime. Similar to the logic of racketeering, private security companies depend upon the problem continuing – not being resolved. Some have been awarded large contracts to combat copper theft and protect state assets; however, there is little evidence of their effectiveness. It is useful to compare loss statistics from Transnet and Telkom, which rely on outsourced private security companies, with Eskom, which has recently switched to in-house security mitigation.
Eskom has the smallest security budget overall (spending R18.2 million as compared to Transnet’s R116 million and Telkom’s R231 million), but has experienced the best results. Transnet’s losses have tripled over the last 5 years, and Telkom’s losses have also substantially increased. Eskom’s losses, however, have begun to level off in the last year, suggesting that in-house security is a cheaper and more effective option.
So, before proposing more security to stem the copper trade, the questions should be asked: who is making the most from copper cable theft and what sorts of interventions will restrain thieves, scrap dealers and security companies alike?
