Documentation fraud moves to the fore

JOY ORLEK THEFT REMAINS the number one security issue facing the local shipping industry in the view of Sue Russo, managing director of Johannesburg-based GIB Marine Insurance Brokers. But while hijacks and armed robberies have in the past accounted for a large percentage of cargo loss, resulting in premium increases and high claims excesses, a new scourge has moved to the fore. “Thieves are now turning to theft by fraudulent means where cargo is collected from suppliers using documentation which appears to be bona fide, often in collusion with inside contacts,” says Russo. The solution is rigid controls by suppliers. “This includes routinely double checking the legitimacy of the purchase, documentation and identification of collecting personnel as well as careful selection of their own staff. Insider information and collusion with potential thieves is often involved,” she added. “There is little doubt that such problems are not restricted to South Africa and indeed the fraudulent methods used may well be imported.”