TimesLIVE Investigations found South African kidnapping-for-ransom syndicates emerged after gaining experience from their Mozambican counterparts, who started the scourge.
A surge in SA’s kidnappings for ransom has business owners and companies flocking to insurance firms for financial surety.
Insurance and risk analysis companies say SA’s skyrocketing kidnappings are driving the increase in demand for ransom insurance.
Justin Naylor, MD of ITOO special risks, part of Hollard insurance group, said: “SA’s kidnapping profile has made ransom insurance common.
“In the last 18 months our consultancy has dealt with 32 incidents in SA. Over the past three years there has been a marked increase in kidnappings.”
He said the crimes were heavily underreported, especially when ransoms were demanded.
“Insurance companies do not like to advertise it and victims want to keep it private. People often do not go to the police because they are scared of repercussions from the kidnappers and because they distrust the police.
“We work with consultants who provide families and businesses advice on how to deal with kidnappers.”
Naylor described SA as the “perfect kidnapping environment” as such incidents are rife in countries affected by lawlessness, poverty, inequality and political instability.
He said ransom demands were directly linked to the victim’s wealth.
“Syndicates obtain a wealth of information on their targets. We have seen ransoms vary from R1m and R76m.”
It was crucial, said Naylor, to keep knowledge of ransom insurance hidden.
“If kidnappers know, they will not budge on their demands. Keeping that information quiet gives negotiators time. In a negotiation time is crucial because it allows you to obtain important information on the kidnappers.”
He said traditionally clients were corporate, insuring their employees against kidnapping in other African states.
“But in the last few months individuals and households from SA’s Muslim and Indian communities were rapidly signing on.”
We also believed that there will be a rise in the kidnapping of children. These kidnappings are already on the rise.
— Jason Griessel, Broll Risk Management director
Jason Griessel, Broll Risk Management director, said the degradation of SA’s safety and security environment, ease of access to anonymous financial applications and deteriorating economic conditions had created a thriving environment for kidnapping.
“A safety-and-security vacuum has allowed syndicates to gain easy access to sophisticated technology to commit their crimes. The disenfranchisement of SA’s population, who see kidnappings as a quick means to wealth, is fuelling the growing number of syndicates, leading to a rise in kidnappings.”
He said analysis showed kidnappings were rapidly morphing in sophistication and frequency.
“For criminals, kidnappings have become a less risky return on investment plan, requiring low risk and capital investments to execute.
“It is a greatly misunderstood crime which is often incredibly difficult to investigate and prosecute to the point that the masterminds are convicted.”
Griessel said syndicates were linked to national and transnational organised crime gangs, which specifically targeted communities operating high cash turnover family-run businesses and who they know have money to pay ransoms.
“That is not to say that executives or corporations are immune. I predict we will see syndicates targeting CEOs and other business executives to test the market to see whether big corporations will pay ransoms for their key employees.
“We also believed that there will be a rise in the kidnapping of children. These kidnappings are already on the rise.”
He said while kidnapping in SA was still in its infancy compared with other global hotspots, “the country is fast becoming a hotspot, especially in Africa”.
“Kidnappers, for now, are still taking a soft approach on SA, with victims not held for long periods and often released unharmed. But we cannot rule out that in the short term we will not see more violent attacks taking place, where kidnappers increasingly harm victims because ransom demands are not adhered to. We believe within the year we will see kidnappers adopt a far more hardline approach in the commission of their crimes.”
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