Crime makes Leaders wealthy.

Posted by on February 15, 2011 in Blog | 2 comments

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Question: “What is the influence of crime on the S.A. Govt?”
Answer: Crime generates millions and millions of Rands for the SA Government

As the Leadership expert on The One Day Leader reality TV show, I think it is prudent to share this. I’ve said it for years – that Government profits from crime and therefore have a vested interest in not combating it to the full extent.

Here are the facts….

Example 1:

Take just one million home owners in Gauteng who pay for “armed crime reaction” (not crime prevention) where private security companies react AFTER the crime has taken place – no wonder they never make any arrests!

This service costs on average R250 p.m. Therefore 1,000,000 x R240.00 x 12 months x 14% VAT, generates R403 million in tax revenue for the SA Govt!

Example 2:

A car thief steals a R500,000 car and receives between R10,000 and R30,000 for his deed. The car owner is paid out by insurance and then purchases another similar vehicle, on which
he pays 14% VAT of approx R70,000 as a direct result of crime. Who profited the most? The thief or the SA Govt?

We must begin with a mechanism whereby the SA Govt is forced to reconsider this unconstitutional and immoral practice of profiting from crime!

All South Africans should demand that all payments related to protection of life and property should be VAT free and Tax deductible!

This principle should also apply to replacement of stolen property as well as estate duty. If a person dies as a result of crime we should also demand that estate duty not be paid. How much do you think the SA Govt. has made out of estate duty from the murders of 1300 South African farmers?

The S.A. Govt likes to compare us to overseas. Well overseas your safety and security is covered by your income tax and is tax deductible!

It is time that South Africans stood together and made the Govt. and public aware of the Govt’s “income” from crime. In the meantime crime is the goose that lays the golden egg.

Is it also not unreasonable to expect victims of violence and hijackings to pay their own medical costs? The Govt. should pay for these expenses as well as family counselling for victims!

Come on South Africa, ask the right questions and demand the right answers!

2 Comments

  1. It is private sector that benefit immensely from crime like you mentioned security companies and car companies for example. Look at how property developers make billions (they build security complexes), insurance companies make a killing from insuring your things, medical aid, car tracking companies,i can go on and on, all of them profiting handsomely from crime . Yes government makes money but they are doing nothing wrong as it is their duty to collect taxes from every industry and to suggest that its government leaders who makes money out of crime is disingenius and divisive as it suggest that it is the government that is fueling the crime.

    Crime is a socio-economic issue and yes there are those who benefit either directly or indirectly from it.It will be in the best interest of the government to combat crime as it would mean fewer people in prison, it would mean increased investor confidence resulting in more companies investing in SA creating employment meaning fewer people turning to crime to make a living and an increase in tax revenues and this will lead to a reduction in the cost of living and improved living conditions for the majority of South Africans.

    Machaka Itsweng

  2. From the picture that you have painted, there is no doubt that the govt. is making money.
    I think the questions should be,how can we as citizens, taxpayers, victims of crime hold the govt. accountable? If we can get that right, then we can all be proud and say crime doesn’t pay.

    Bridgette

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