bill targets dealers in stolen goods 
14 February 2008

The long-awaited Second Hand Goods Bill, which targets dealers profiting from cable theft and the sale of stolen cellphones and other electronic equipment, has finally reached Parliament.
The draft bill was first published in October 2005.  Once enacted, it will replace the Second Hand Goods Act of 1955.

Cable theft, most notably from Telkom, Spoornet and Eskom was estimated last August to cost the economy more than R5bn a year. Cable theft also contributes to electricity failures, train delays and lost production for businesses that lose their power or communication lines. Commentators have often wondered why tougher action was not taken against those who sell stolen cables.

There are thousands of stolen cellphones on the market as they are one of the main targets for muggers and housebreakers. Many South Africans have been injured or killed by robbers going after cellphones.  The bill will require dealers and pawnbrokers to establish the identity of those they buy from, and verify that the goods are the property of the seller.

The bill provides that all dealers in second-hand goods must register with the police. Dealers who fail to do so will face fines, or a maximum prison term of 10 years, or both. Anyone who has served a prison term without the option of a fine in the past three years will be disqualified from registering as a second-hand goods dealer.  If approved in its present form the bill will restrict registration of dealers to people over 18, and to permanent residents of SA.

All dealers and pawnbrokers will be required to keep a register for all the goods they both acquire and sell. The full name, address, identity number and verification of identity of all who sell second-hand goods to the dealer must appear in the register. In addition, the serial number of the item (if it has one) and the price paid must be recorded.

The register of acquisitions and sales must be updated daily. Failure to do this is also an offence punishable by a fine, or a maximum of 10 years in prison, or both.  In regard to “controlled metals”, every dealer must also register as a recycler with the police. No person may possess equipment for recycling metals unless they are registered.  For communications equipment the dealer must record a description of the item, its international mobile equipment identity number , and the full name, address and a copy of the original identity document of the seller.

Attempts to reach Cash Crusaders and Cash Converters, the two giants of the second-hand goods industry, were unsuccessful yesterday.

Wyndham Hartley,  www.businessday.co.za