By Charlene Smith
South Africa's freight and fuel industry is losing hundreds of millions of rand a year through fuel theft, and now major players have asked Transport Minister Dullah Omar to intervene.
Despite the prevalence of the theft there is no national police investigation in place into increasing fuel theft, whether
it involves petrol card scams or big syndicates that drain tankers.
Tanker Services, a major freight operator, has just installed equipment worth R8-million on their 640 vehicles to "cut out theft and manage fuel more efficiently", according to sales and marketing director, Steve Hills. At present they have losses running between R15-million and R20-million a year.
They are only one of hundreds of big companies around the country battling the impact of fuel theft on their bottom-line profits.
The Scorpions have at least four major fuel fraud investigations under way, including one at Sasol's Secunda plant involving millions of rands.
In another instance, an AngloGold mine lost R2,2-million in a scam involving a storeman at a mine and a truck driver over the past two years.
Petrol at R4 a litre has made it one of the most desirable and easy-to-steal commodities in the country.
Around South Africa there are multiple cases of theft ranging from the brazen emptying of tankers into underground holds between Zeerust and the Botswana border, to petrol card scams, taxi industry heists and even paraffin being mixed into fuel to increase profits (and wreck car engines).
Thieves have been found filling dustbins with fuel at petrol stations late at night and taxis have got away with filling barrels with fuel at depots and racing past security guards and barriers with their valuable loot.
David Parry of British Petroleum, who heads the fuel industry crime and related matters working group, said fuel theft was "a major problem involving many intermediaries, companies and cross-border syndicates".
Engen and Caltex say the situation is "grave".
Sasol said it had "not had a single fuel theft loss in the past nine years" - but the next day the Cape Times learnt of the Scorpion investigation at Secunda.
The fuel industry is reluctant to discuss theft, believing this could lead to further losses.
But it is petrol stations, big business - including the mines - and the road freight industry carrying the largest losses.
Ben Deysel, who heads the Road Freight Association (RAF) and is chief executive officer of Bulktrans, a major conveyor of fuel, says fuel theft is "pervasive and very widespread on a national basis. It is severe in mining areas, across borders and at filling stations."
He says that because the theft is often difficult to prove, very little is covered by insurance.
The costs of fidelity insurance were also prohibitive, so most is absorbed by the trucking industry.
Shortly before Christmas, the RFA approached Omar and requested a joint approach to clamping down on theft and fraud, including exposing those individuals involved in these crimes. The RFA meets with Omar in two weeks.
Colin McLelland of the South African Petroleum Industry Association said fuel theft was a serious problem.
Scorpions spokesperson Sipho Ngwema referred queries to Gerhard Nel of the Scorpions, who failed to respond to calls.