Grain theft is a regular and growing problem within the agri value chain, and the commodity is most vulnerable to theft during transport.
Wimpie Nel, a specialist grain theft investigator and former police captain investigating commercial crimes, told Agbiz Grain Quarterly that the various levels of grain fraud and theft most commonly occurred in the transport link between the producer and the buyer of grain.
“Most grain is stolen somewhere between the farm and storage facility. The driver could offload grain en route, or the truck could be hijacked. Identifying a specific batch of grain poses a challenge because it is impossible to trace it back to its origin. Producers must remain in control by tracking the truck until the grain is offloaded at the silo.”
Falsified documentation is also a common tactic to illegally gain control of cargo.
“We’ve seen a sharp rise the past three years in cloned drivers’ licences and documentation for trucks. When trucks arrive (on the farm) to load grain, drivers present false documents, which are not always verified. It is the producer’s responsibility to make sure that his/her grain is indeed collected by the correct truck and driver,” says Nel.
“Grain theft syndicates sometimes steal documentation and change the details of the owner. This falsified documentation is then sent to the client. Always make sure the transport contractor appointed is legitimate.”
Syndicates have also developed means to monetise stolen grain through the official silo process.
“A folio number is required to offload grain at a silo. This includes, among others, the sender’s bank details. Criminals collaborate with someone who has a folio number and money is deposited into that bank account. From there the funds are transferred to the thieves.”
He says grain theft syndicates often get a foot in the door when a regular transport contractor is not able to handle a specific load and subcontracts the job.
“Often, there is no due diligence and the subcontractor’s details are not checked, and before you know it, false documents are used to load and transport your grain to some unknown destination.”
In such a case, the contractor’s insurance would not cover a claim due to deviation from required protocols. “The same applies to the producer’s insurance because the subcontractor’s details were not verified.”
