From a Showmax docuseries to numerous true crime podcasts to countless deep-dives on social media videos, the shocking Thabo Bester story captured attention globally. Its twists and turns defied what many South Africans, already accustomed to high levels of crime, could ever have deemed feasible. Tragic acts of murder, rape, and a burned body made news headlines the world over. Equally unbelievable, however, was the corporate fraud and scams perpetuated by Bester over decades.
He lured models to their death by offering fake job opportunities, ran a sham media and events company from prison, and even convinced several people to pay deposits for construction projects by his property company, which were never completed.
Such flagrant disregard for the rule of law has impacted the lives of many people and whether through failed investments, fake purchases, or unpaid bills, Bester’s crimes have had an egregious financial impact. The government is reported to have spent R1.4 million for a private jet to transport Bester back to South Africa after his arrest in Tanzania. Other associated costs, such as the court case and Bester’s imprisonment, have not yet been accounted for but are racking up.
Research proves that as a nation, we are widely preoccupied with our vulnerability to crime and violence. We become aware of it in daily news bulletins such as the R16.5 million fraud arrest of a former KPMG staffer, and the rising rate of kidnappings of business people and entrepreneurs who are held until a ransom is paid.
Incidences like these are so prevalent that in South Africa, our fear of crime is now classified as a health issue. Fear of crime drives common mental disorders and increases the likelihood of depression.
Mental health presenteeism alone has been estimated to cost R235 billion (or 4.2% of GDP), or R96 500 per employee annually. Absenteeism pales in comparison, at a cost of R33 billion. Research has indicated a correlation between increases in both property and violent crime with significant increases in depression symptoms. Research from 2020 informs us that the feeling of being under constant threat of attack has serious physical and psychological consequences.
Under strain and overburdened
By 2021, the then-National Police Commissioner Khehla Sitole had admitted twice to Parliament that the South African Police Service (SAPS) cannot fulfil its mandate. This mandate is ultimately to keep South African society safe, and the SAPS’ inability to perform leaves South Africans at risk of ever-increasing crime rates and instances of violent crime.
Additionally, the criminal justice system cannot cope with the demands placed upon it. While the National Prosecution Authority has a reasonable conviction rate, the number of crimes converted into prosecution is too low.
Strain theory is a sociological and criminological theory developed in 1938 by Robert Merton. It proposes that pressure derived from social factors, such as lack of income or quality information, drives individuals to commit crimes. The theory states that society pressures individuals to achieve socially accepted goals even though these individuals lack the means to do so.
Financial inequality within South Africa is widely acknowledged, given that it has the highest Gini coefficient in the world. The Gini coefficient measures income and wealth inequality. The impact of this inequality on crime was highlighted in research by Harris and Vermaak in 2015 which found that a 1% increase in the Gini coefficient is associated with a 2.3% to 2.5% increase in the homicide rate. Their research also indicated that extreme inequality was a determinant of property crime.
According to the UBS Global Wealth Report 2023 the Gini coefficient has increased from 80.4 in 2000 to 88.8 in 2022, which is a 10.4% increase. South Africa has among the highest homicide, rape, and vehicle hijacking rates in the world. The Global Organised Crime Index 2023, implemented by the Institute for Security Studies and Interpol in affiliation with the Global Initiative Against Transnational Organised Crime, ranks South Africa’s criminality as the seventh-highest out of 193 countries. The cost of this crime problem to the South African economy is estimated by the World Bank to be 10% of GDP annually, as stated in its 2023 report Safety First: The Economic Cost of Crime in South Africa. It reveals that high crime rates damage the economy and contribute to the misallocation and inefficient use of resources. This, in turn, inflicts an estimated cost of at least 10% of GDP every year.
According to the World Bank, this amount, which was R700 billion in 2023, combines transfer costs associated with stolen property, protection costs, and opportunity cost. “Crime reduces firms’ competitiveness, crowds out productive private and public spending, damages basic infrastructure, and affects people’s quality of life, all of which contribute to the misallocation of resources in the economy, reducing the country’s growth potential and the welfare of its citizens. Given the difficulty in quantifying some costs, this is a conservative estimate, and the overall economic and social impacts of crime are probably much higher. Ultimately, crime undermines the country’s development objectives of high and inclusive growth.”
Lower crime for better business
Crime is a concern to South Africans and is entrenched in the consciousness of the country. Gillian Eagle in her 2015 article Crime, Fear and Continuous Traumatic Stress in South Africa: What Place Social Cohesion? argues that the South African population, in general, is widely preoccupied with vulnerability to crime and violence. Businesses are operating in this crime-rich context and therefore quantifying the impact of crime to business is necessary.
The 2023 Cost of Violence Study: South Africa by the Center on International Cooperation highlighted the first cost category as being tangible costs, which it then separated into first-order and second-order tangible costs. Its classification was that first-order tangible costs “arise immediately and directly after a violent incident” while “second-order costs are costs that followed months or years later”.
First-order tangible costs accruing to the healthcare system and criminal justice sector, across which 10% of costs were attributable to interpersonal violence, stood at R15.7 billion and R35.2 billion, respectively. “The costs of absenteeism, presenteeism, and early retirement were estimated at R35.8 billion and the impact on human capital formation and lifetime earnings even higher, at R42.3 billion.”
The study authors noted, however, that these figures likely represent a significant underestimation of true total costs as some second-order tangible costs could not be quantified, including the risk perception effect on business activity, increased security spending, and the cost of emigration. Overall, they found that “tangible costs are estimated to be approximately R129 billion, or 2.3% of 2019 GDP; the intangible costs were extremely high and amounted to more than three times tangible costs at 7.1% of 2019 GDP”.
Presenteeism, which refers to lost productivity when employees are not fully functioning in the workplace, and absenteeism, which is where an employee is absent from work, have a notable impact on the economy, and these costs demonstrate an effective loss to business.
Whether a staff member skips work because they need to go to the police station to get an affidavit, or they come to work but are so distracted and distraught they can’t really function, crime costs companies. Recognising this extraordinary cost of crime is vital and must lead to the implementation of a safety wellness programme that addresses the full scope of the problem.
South Africa does have an Integrated Crime and Violence Prevention Strategy promulgated in 2022, which is described as “a whole-of-government and whole-of-society approach” and it does include, at a high level, all the necessary crime prevention actions. These include developing a knowledge base through research and evaluation of crime and violence prevention programmes and mobilising resources needed to sustain community safety. However, while it is a well-considered and extensive strategy, the ability of the government to implement it must be questioned, given the fiscal restrictions.
Many businesses initiate employee assistance and wellness programmes, and most of these include trauma counselling to address the psychological impact of crime victimisation. There is sufficient research to highlight the impact of wellness programmes, especially on absenteeism. Some of these programmes do from time to time include some form of personal safety education or self-defence training but none have to-date embedded it into their core offerings.
Organisations can benefit from implementing a proactive, holistic safety wellness programme to reduce the negative impact that crime has on their employees. An initiative of this nature can positively affect the presenteeism and absenteeism caused by crime-related events while also illustrating the concern the organisation has for its employees. This combination can contribute to making the organisation a desirable and attractive prospect to attract top talent, retain staff and build a strong employer brand.
Pillars that protect
Shanti Innovations has developed these three pillars of safety wellness that must be implemented simultaneously to positively benefit employee wellness.
- PROGRAMMES that focus on risk mitigation. These can serve to educate employees about how to stay safe in an unsafe world. Participants can learn how to conduct personal and home vulnerability assessments, as well as learn about situational awareness, threat identification, and intent detection. These are delivered through a mix of videos, safety tip emails, checklists, and e-books.
- PRODUCTS so that individuals can defend themselves, should they fall victim to crime. Resources such as the BrollyGuard, personal alarms, torches, pepper sprays, and stun guns are explained and evaluated. Ideally, organisations should purchase and provide these products to staff or assist through part-funding or enabling payment terms.
- PREVENTION, which pertains to the actions necessary to maintain personal safety on an ongoing basis. This reiterates the preventative actions from the education programme, which are needed to buy the time for the arrival of armed response, which can be requested via the personal safety app.
Russell Jones is the chief innovator and personal safety expert at Shanti Innovations. He has a background in the elite military and personal protection and has a passion for enabling, empowering, and equipping people to stay safe from violent crime.
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