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New law to govern second-hand cellphones

By Bhavna Singh
Johannesburg, 25 Nov 2005

A new proposed law will be a breakthrough in the fight against stolen goods, says Business Against Crime SA.

The law will force the sellers of second-hand goods to identify their suppliers and keep records of what they buy and sell.

The Second-hand Goods Act has been, and remains, a valuable tool for law enforcement in the of dealers in second-hand goods and the disposal of stolen items, says the organisation.

The original Act (Act No 23 of 1955) has become outdated in that it has not kept abreast with modern times, does not provide for the incorporation of various classes of goods, including electronic equipment, computers and cellphones, and lacks sound business principles, it adds.

"Household and office equipment was also not covered under the old legislation," says Bert van de Walt, director of the SA Police and drafter of the Bill.

In addition, the business community has complained for many years that complying with the requirements of the existing Act has been frustrating, tedious, costly and, in some instances, impossible. It has therefore become necessary to redraft the Act, says Lorinda Nel, project manager for organised crime, Business Against Crime.

The new legislation means the relationship between the police and the private sector has been formalised, says Graeme Wright, national project manager, organised crime and co-ordinator, Business Against Crime SA. The new law will also allow the police to seal off businesses during investigation of a crime, which wasn`t possible before, says Van de Walt.

One of the changes to be made to the current legislation is accountability. Whereas in the past the police would grant licences, associations will now be responsible for accrediting and licensing dealers.

Associations will now also be responsible for assuring criteria are met in accredited members, says Nel.

"The major job of the associations is to make sure members remain compliant," adds Noddy Shutte from the Independent Dealers Association.

Those dealers who do not belong to an association, or those that don`t have one yet like the cellphone industry, will have to follow the old procedure of applying for a licence at the police station. The onus is on the cellphone industry`s key players to get together and formalise an association on their own, she says.

The benefit of applying through an association is that recommendations may then be made to grant exemptions. This means people would be able to smelt and granulate non-ferrous metals, for cables for example, on the same premises as the second-hand dealership, both of which were not allowed under the old legislation, says Nel.

The free licences will now apply for a period of five years as opposed to the previous one-year time frame, she says.

According to Business Against Crime, the proposed Act will substantially boost the police`s powers to combat the buying and selling of stolen goods and will expose illegal dealings. The organisation has thrown its full weight behind the draft Bill, which seeks to limit the trade in stolen goods and promote ethical standards in the second-hand goods trade.

The large South African market for second-hand cabling, cellphones and electronic goods is a major factor in contributing to the crime rate, says Wright.

The draft Bill was published in the Government Gazette on 28 October and will be up for comment until the first week of December.

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