Traffic Enforcement as a Business - Business Plan

Business Plan 2015

CONFIDENTIAL

TRAFFIC ENFORCEMENT AS A BUSINESS

TECHNICAL SOLUTIONS

TO AN OLD PROBLEM

BUSINESS

PLAN

Prepared by: B T FRYER DUDLEY

Monday, 30 March 2015

Business Plan 2015

CONFIDENTIAL Page i

Table of Contents

Page

Confidentiality Agreement ii

1) Executive Summary 1

2) Company Description 2

Promoters, shareholders and Board 2

Advisors 2

Products and services 2

Long Term Aim of Business 2

Objectives 2

S.W.O.T. Analysis 2

3) Market Analysis 3

Target market 3

Total market valuation 3

Targeted share 3

Market trends 3

Profile of competitors 3

Competitive advantage 4

Benefits to clients 4

4) Marketing/Sales Strategy 5

Income sources 5

Marketing strategy 5

Pricing 5

Advertising and Promotion 5

Sales Strategy 6

5) Research & Development 7

Patents, copyrights and brands 7

Product/Service Development 7

R&D 7

6) Staffing and Operations 8

Management Organisation Charts 8

Staffing 8

Training Plans 8

Operations 8

7) Financial Projections 9

Key Assumptions 10

Profit and Loss Accounts 11

Balance Sheets 12

Cashflow Projections 13

8) Sales Pipeline 14

9) Funding Requirements 15

10) Appendices 16

Business Plan 2015

CONFIDENTIAL Page ii

Confidentiality Agreement

The undersigned reader acknowledges that the information provided in this business

plan is confidential; therefore, the reader agrees not to disclose it without the express

written permission of Barry T. Fryer Dudley

It is acknowledged by the reader that information to be furnished in this business plan

is in all respects confidential in nature, other than information that is in the public

domain through other means, and that any disclosure or use of this confidential

information by the reader may cause serious harm or damage to Barry T. Fryer Dudley

Upon request, this document is to be immediately returned to B T FRYER DUDLEY.

___________________________

Signature

___________________________

Name (printed)

___________________________

Date

This is a business plan. It does not imply offering of securities.

Business Plan 2015

CONFIDENTIAL Page 1

1. Executive Summary

As in all walks of life, the rapid advance of technology is

taking an ever-more central role in the provision of effective

traffic solutions. An old way to capture and issue violations

has now been supported by technology and processes.

Traditional traffic departments focus on speed, with payment

rates of 0.5 to 15%.

Approval for the moving violation process is about to be

obtained from the DPP. 63 potential clients have been

approached; with a number of contracts with Municipal

clients signed. A traffic department has been created and

staff including Traffic Officers has been appointed. Road

Blocks have been held and Violations have been captured

by camera, Fines have been issued. Fine have been paid, at

over 65% payment rate within 14 days

Funding preferably linked to shareholding and influence on

the award of the contract / BEE for sales and marketing to

secure the tenders is required. The proposal is to set up a

team to franchise the solutions proposed.

The purpose of this plan is to provide enough information to

allow an outside management company to identify if a

franchise model is the appropriate way forward? The ability

to enter into as many contracts in as short a time as possible

will ensure maximum payment rates. In that way a camera

in location 1 can capture the violation, a road block in

location 2 delivers the summons and the warrant of arrest is

executed in location 3 (more than likely in the drivers own

local municipality), ensuring a high payment rate.

Finding the local management team, local BEE partner

(possibly the same people) and the head office / franchise

management team is the purpose of this plan. With R180

Billion currently outstanding and the ability to capture and

issue thousands of fines a day per camera, sustainable

payments rates over a long period need to be proved in

multiple locations and communities. Drivers will change

behavior and the rate of change needs to be understood

before flooding the market with solutions.

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2. Company Description Technology and Shareholders

Technology

1. Barry T. Fryer Dudley

2. Depending on the site, a wide range of solutions may be needed

Management structure and areas of responsibility

1. Required for the proposed Head Office, central processing

2. Required per site

Shareholders, no. of shares, % shareholding and cash investment to date

1. The share holding for the head office and per site would be structured

to ensure the award of the contract, the management of the

opportunity and investment required.

2. The technology and processes have been developed from

experience in KwaSani, Port St John’s,

Estcourt, Kokstad, Impendle,

Pietermaritzburg, Durban, Residential

Estates including: Centurion, Woodhill

and Ebotse Golf Estates

Advisors

Financial - Required

Legal

Jooste and Jooste

DPP

Technical

Camera

LPR

ASD

Products and services

Traditional traffic departments focus on speed and

have very poor payment rates. By focusing on

moving violations with road block based summons

delivery and aggressive debt collection a high

number of fines can be captured (1.1 per vehicle)

with a good rate of issue and a high rate of fine

payment can be achieved. The actual numbers

and the sustainability of the income stream over a

long duration needs to be confirmed.

Background to its development

1. Started in the US in 1998, by an Imaging Company (i-Cube)

2. Head Hunted by SA Technology Company, Intervid who spent part of

USD 50 million to develop the LPR and Facial technology further.

3. The technology needs to continue to be developed to keep ahead of

the driver, traffic officer and staff innovations.

Benefits and Features

1. High violation capture rate

2. High fine delivery rate

3. High payment rate

4. Large numbers of low educated staff can be employed

5. Technology enhances the ability for staff employment

6. Reduces crime by more than 90%

Unique selling points

1. Reduce the death toll and save lives where no other action by

anybody has proved to reduce the high death toll in South Africa

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CONFIDENTIAL Page 3

2. Employs lots of local people, in parking, enforcement stations, reviews

3. Modular, rolled out in phases, ensuring sustainable income stream

4. Can be self funding from exiting unpaid traffic fines

Advantages to customers

1. Generates income

2. No Cost

3. Technology supports the staff

4. Stops bribes of traffic officers

5. Employs local staff

Disadvantages or weak points

1. Needs a tender / Section 32 of SCM / Award

2. Must have support of the Council / MM / Traffic Chief / CFO

3. BEE required is not an option

Future developments >>

1. Weight,

2. By laws,

3. Pound

4. Other Municipal Debt

Long Term Aim of the Business

Enforce all 2 000 traffic and 1 500 municipal by laws, generating income, saving lives

and employing local staff on a sustainable basis.

Objectives

Have 1 reference town in each province within 3 years (the usual duration of a

tender) to get 51% of towns on board within 6 years.

SWOT Analysis

Strengths

New Application

New Technology

International opportunities

Weaknesses

Requires support of multiple

parties to get the award

Management

Opportunities

Existing Fines

New Fines

Moving Violations

By Laws

Reducing crime

Threats

Existing Traffic Companies

Staff accepting performance

remuneration

Politics

Technology could be copied

The cameras can be used for

both traffic and security solutions

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CONFIDENTIAL Page 4

3. Market Analysis

The opportunity

The GAP in the market is moving

violations, by laws and delivery of

violations

This GAP has been created due to

the focus on speed, corrupt traffic

officers and poor management.

Target Market

Any authority that can legally issue a

violation

Local Government

Provincial Government

National Government

International opportunities

Estates

Large Businesses

Mines

Total Market Valuation

SA - R180 billion

International USD 3 TRILLION Target Company revenue

While the ratio of vehicles to captured violations is known (1.1), the unknown factors

of delivery rate, payment rate, change of driver behaviour and long term costs are

unknown, making target company revenue a complete guess. The 1st few sites will

provide key data to calculate the possible company revenue.

Market Trends

Internationally a range

of technology is being

used to support traffic

officers. In South Africa

limited use of

technology is currently

in the field. The ability

to get traffic officers to

react to inputs rather

than allowing them to

react on their own is

KEY to stopping bribes,

tracking traffic officers

and ensuring traffic

officers work.

Recent

changes in

South Africa is

the use of

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CONFIDENTIAL Page 5

Average Speed Determination which has allowed many more (over 100 000

additional) violations a month per site without any increase in the payment

rate. Getting drivers to pay is KEY

Future predictions are extremely difficult as political appointments have

greater influence, so a huge opportunity to companies that can influence this.

Drivers such as demographic changes, economic and legislative factors have

the ability to influence payment rates, positively if appropriately managed.

Implications of changes in national or local by laws can have dramatic

improvements in payment rates; hence this must be exploited to the full.

A flexible approach by the management team to future demands and

changes in the market will ensure success.

Profile of Competitors

The main competitors are Syntell, TMT, TCS, Magna FS and a number of other small

local players. Until the DPP approval is obtained there appears to no focus on

moving violations or enforcement stations.

Many municipalities either do not have or run their own traffic departments.

These are key customers we need to target.

AS the key players focus on mobile speed enforcement without moving

violations or enforcement stations, staff employment focus they are not

currently competitors. A study of their company size, turnover, profitability

etc) and their market share would not prove useful.

The KEY Advantages of the competitors’ offerings is existing clients where they

could introduce this technology. A JV with TCS was entered into without

success. Discussions with TMT did not result in anything. The KEY disadvantages of the competitors’ offerings is the amount of money

they charge the client, without the focus on local staff cooperatives /

employment, security, the amount the competitors can charge is much lower.

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Competitive Advantage

Focus on a wide range of solutions not just saving lives on the road,

employment, security, free internet, and training with substantial income

generation.

Benefits to Clients

Increase Employment

Increase income

Increase efficiencies

Save money

Save time

Maximise resources

Reduce errors

Reduce downtime

By entering into a contract to

change the status quo

substantial benefits will be

secured. The current focus on

speed can be replaced with a

greater range of enforcement,

including those that actually

cause accidents. The

combination of different technology to focus on a wide range of violations linked to

local employment to issue fines on the side of the road in the form of a summons,

ensuring a high payment rate, can bring a paradigm shift not seen before.

4. Marketing/Sales Strategy A reference site showing the complete solution is required. 2 applications to the DPP

have been submitted. Once these sites have a single camera operational and the

fines have been issued and paid, is should be easy to approach the whole of SA and

the world.

Marketing Strategy

The current strategy of focusing on no cost, revenue generation, employment of local

staff, security, cameras and training has not worked. A new focus on political

connections to fit into the new South Africa is required.

Segments of the market to be targeted first are those where political influence

will ensure the project is awarded and goes ahead

How this could be developed to reach the full target market is why senior

advisors are being sought.

How to differentiate the range of product and services per site?

What key benefits will be highlighted locally, provincially and internationally?

The customers already targeted include KZN, EC and OFS municipal clients

The test sites in operation provide valuable feedback on the size of the

opportunity which is why DPP approval is being obtained to use camera.

Local success will generate market awareness and sales, as bush telegraph

between local municipal client’s works incredibly well.

Revenue Sources

Traffic Fines

By Laws

Sales Strategy

Directly

BEE Agent

Sales rep

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CONFIDENTIAL Page 7

Website

Revenue Sharing Partners

It is proposed to approach BEE partners is each town to develop a local partner who

can secure the contract, with the head office supplying the processes and

technology.

Pricing

The clients are provided with a range of solutions which will not cost the client

anything. The service provider covers all costs and makes money from the

opportunity. By focusing on Moving Violations which have a far higher value

(average of R1 500.00) than speed (average of R300.00) more income would be

expected. Offering value added services such as employment, free internet, no

costs, by laws etc. allows a higher income to be achieved compared to competitors.

Competitors’ prices vary from R25 to R40 per violation issued to R9.75 to

R175.00 per violation paid.

Level of competition in the market is moderate, with 6 to 8 competitors

expected per tender in the top 6 towns, and often no competitors in the

smaller towns. It is the smaller towns with access to National roads where one

should focus in the short term.

Perception of price by customers is not something these clients see as

important so the increase security, employment and BEE partner influence has

a higher level of influence in the decision making process.

Production costs and overheads are substantially lower than competitors

Chain of distribution can be very simple and profitable with added-value at

each stage.

The extent to which the buyer can control the price is limited when very few

companies wish to work in the small towns.

Each product or service which leads to an income source could be linked to a tariff

table in the municipality (assuming a by law was pasted), which could be controlled

by the BEE influence, giving us control and the ability to generate substantial income.

An example of this is what is currently happening in the Western Cape with the far

higher fines for cell phone violations. Parking a by law, could have fines from R150 to

R500 and more.

Marketing and Communications Strategy

To promote this product / service in the marketplace it is proposed to find local

partners in each town, or province and on a national basis both within SA and

internationally. Without the political influence in South Africa many sites have failed.

Advertising – To identify the right partners who have the right influence is KEY

Public relations while important is not crucial once the contracts and by laws

have been passed and appear in the Government gazette.

Direct marketing to the BEE Partners is suggested as in each location / town

there would be a few possible partners one could approach

Website and internet marketing needs to be considered, especially with the

ability to view your video, images, audio and pay your fine online

Exhibitions and conferences to identify those partners who need to be

approached could be a way forward?

Word of mouth may be the best way to break into the market?

Internationally the market is ready for this solution, and in London the cost for

using a cell phone while driving is over R40 000.00.

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CONFIDENTIAL Page 8

5. Research and Development Technology Roadmap

The are a range of existing solutions which could be

applied which could improve payments rates in South

Africa to what is enjoyed in the rest of the world (over

98% in 2 weeks).

One of these is the ability to with hold a drivers licence

or registration disk until all fines are paid.

Underlying Principles:

- Visible policing and manual enforcement (where an offender is immediately

stopped and issued with a fine / infringement notice) should take preference.

- Manual enforcement may be conducted at any site without any prior

authorisation.

- Highways, where the speed limit

is 120 km/h, will be granted automatic

authorisation for the entire route upon

application.

- As by far the most accidents

take place at intersections the focus

should therefor rather be on fixed

speed and/or red light cameras at intersections. Furthermore, fixed cameras operate

24/7 and in adverse weather conditions, as opposed to manned mobile cameras

which use are typically limited to daytime office hours and fair weather.

- The use of mobile speed cameras, where an offender

is not immediately stopped and issued with a fine /

infringement notice, should therefore be the last available

option.

Platforms used

Milestones to be achieved

System Overview Diagram>>

Research and Development

Traditionally, two types of operational policing methods have

been used to reduce speeding, but only one of them has

proved to be effective in influencing behaviour and crashes.

The first type is the stationary method generally involves an

observation unit, typically more or less hidden at the roadside,

and an apprehension officer clearly visible which stop

speeding drivers and issue fines. This is found to be the most

effective in changing driver behaviour and attitude.

The second type is camera speed enforcement at specific locations is defined as

enforcement of traffic behaviour, and apprehension of individual offenders at a

specific location on the road where the offender is not stopped. Studies that have

evaluated experiments with above enforcement only, indicate that mobile methods

neither have any lasting, measurable effect on speed behaviour, nor on speed-

related crashes.

Seat belt use

Every year in South Africa 15 000 people die and another 200 000 people are injured

in road traffic accidents. The human loss is traumatic but the economic cost is huge.

The bills for police and emergency services, damage to vehicles and property, and

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CONFIDENTIAL Page 9

lost output cost the country an estimated R15 billion per annum.The use of seat belts

has been one of the most effective road safety measures ever implemented, saving

more lives than any other intervention. The effectiveness of seat belts depends upon

the type and severity of the crash and the seating position of the passenger.

Use of seat belts can reduce the risk of death in a road crash by up to 50% for front

seat, and 25% for rear seat passengers. Seat belts prevent being catapulted into the

vehicle structure or ejected from the vehicle. Vehicle occupants being ejected dies

in 75% of the cases.

It is therefore crucial in introducing effective

measurements in order to force motorist to

buckle up. Although wearing a seatbelt will not

prevent crashes, it is scientifically proven to

reduce and \ or prevent serious injury in the

event of a crash.

Many studies show that enforcement increases

seat belt use when combined with other

activities such as information campaigns. The

best way of achieving increases currently is

through intensive, highly visible and well

publicised enforcement.

Cell phones

Cell phone offences causes 25% of all

accidents, exceeding drinking and driving as

the lead cause of accidents.

Priority or “right of way” offences

Failure to observe red lights or pedestrian crossing lights is a

major safety issue in urban areas. The same applies to offences

which involve failure to observe the priority or right of way of

other road users, which comprise about half of the road

collisions in urban areas.

However, little enforcement effort is devoted to these types of

offences. The same observation applies to offences such as use

of restricted lanes, making U-turns or turning left or right where

prohibited or overtaking in chevron indicated areas. All these

types of behaviour emerge as disproportionately risky in crash

analysis but are rarely the targets of systematic

enforcement.

Traffic regulation enforcement has mostly concentrated to

date on the important problems of speeding, alcohol

impairment and failure to use seat belts. At the same time,

there are other important offences in road safety terms

which have yet to be included as priority areas in police

work. For example, errors in overtaking or overtaking

offences result in very serious crashes.

Failure to observe red lights or pedestrian lights is a major

safety issue in urban areas. Maintaining short distances

(tailgating) substantially increases the risk of rear-end

collision.

All these types of behaviour appear disproportionately risky

but are rarely the target of systematic enforcement. Aggressive driving is a major

source of irritation amongst road users.

The next page shows the number of violations that is possible to ID, R100 000 per hour.

.

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CONFIDENTIAL Page 10

DATE TIME LICENCE PLATECharge CodeVIOLATION REGULATION COLOUR TYPE FINE ISSUE NO.Charge 1

2015/03/23 08:14:00 AM NP163374 81593 REG. 213(5) Act 93/1996 WHITE NISSAN NONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:14:00 AM NDE21751 17691 REG. 58(1) Act 93/1996 WHITE TOYOTA NONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:15:00 AM NMR6934 81593 REG. 213(5) Act 93/1996 WHITE TAZZ NONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:15:00 AM NMR6934 81593 REG. 213(5) Act 93/1996 WHITE BAKKIE NONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:15:00 AM 81593 REG. 213(5) Act 93/1996 WHITE GOLF NONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:15:00 AM NMR81 17691 REG. 58(1) Act 93/1996 WHITE TOYOTA NONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:16:00 AM NMR81 81593 REG. 213(5) Act 93/1996 GREY MITSUB BAKKIENONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:16:00 AM NMR2311 17691 REG. 58(1) Act 93/1996 WHITE TOYOTA HIACENONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:17:00 AM CS89HTGP 17691 REG. 58(1) Act 93/1996 GREY NISSAN NONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:17:00 AM NMR2407 17691 REG. 58(1) Act 93/1996 WHITE TOYOTA HIACENONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:17:00 AM NMR1154 17691 REG. 58(1) Act 93/1996 GREY OPEL BAKKIEDid not come to a complete STOP at a Stop Street

2015/03/23 08:17:00 AM NR21826 17691 REG. 58(1) Act 93/1996 BLUE UNKNOWNNONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:18:00 AM ND625357 17691 REG. 58(1) Act 93/1996 WHITE TATA TruckDid not come to a complete STOP at a Stop Street

2015/03/23 08:18:00 AM NMR9097 17691 REG. 58(1) Act 93/1996 WHITE MERC TAXINONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:19:00 AM CL49698 17691 REG. 58(1) Act 93/1996 GREY NISSAN NONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:19:00 AM ND267870 81593 REG. 213(5) Act 93/1996 GREY MITSUB BAKKIEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:19:00 AM FLS967FS 17691 REG. 58(1) Act 93/1996 WHITE SCANIA TruckNONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:19:00 AM NMR**** 81593 REG. 213(5) Act 93/1996 WHITE NISSAN BAKKIENONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:19:00 AM NR27386 81593 REG. 213(5) Act 93/1996 WHITE TATA TRUCKNONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:21:00 AM ND546411 17691 REG. 58(1) Act 93/1996 WHITE LANDROVER DISCO 4NONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:22:00 AM NMR9584 81593 REG. 213(5) Act 93/1996 WHITE TOYOTA HIACENONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:22:00 AM ND546411 17691 REG. 58(1) Act 93/1996 BLUE NISSAN NONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:22:00 AM NUZ4555 17691 REG. 58(1) Act 93/1996 BROWNTOYOTA NONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:23:00 AM NPS16079 17691 REG. 58(1) Act 93/1996 GREY UNKNOWN BAKKIEDid not come to a complete STOP at a Stop Street

2015/03/23 08:23:00 AM NMR9584 81593 REG. 213(5) Act 93/1996 WHITE TOYOTA HIACENONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:23:00 AM NV93 17691 REG. 58(1) Act 93/1996 WHITE LANDROVER DISCO 4NONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:23:00 AM ND546411 83464 REG. 300 Act 93/1996 WHITE FORTUNER TOYOTANONEFailed to give a signal to move left or right

2015/03/23 08:24:00 AM ***76GP 81593 REG. 213(5) Act 93/1996 WHITE TOYOTA HIACENONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:25:00 AM PGZ612GP 81593 REG. 213(5) Act 93/1996 GREY NISSAN BAKKIENONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:25:00 AM NR18441 17691 REG. 58(1) Act 93/1996 WHITE FORD BAKKIENONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:26:00 AM FPL802FS 83464 REG. 300 Act 93/1996 WHITE TRUCK NONEFailed to give a signal to move left or right

2015/03/23 08:26:00 AM NMR1685 81593 REG. 213(5) Act 93/1996 WHITE TRUCK NONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:26:00 AM FPL802FS 83464 REG. 300 Act 93/1996 WHITE NISSAN BAKKIENONEFailed to give a signal to move left or right

2015/03/23 08:27:00 AM ND504976 17691 REG. 58(1) Act 93/1996 WHITE AUDI NONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:27:00 AM NMR1528 17691 REG. 58(1) Act 93/1996 WHITE BAKKIE NONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:27:00 AM NP57311 83464 REG. 300 Act 93/1996 WHITE NISSAN BAKKIENONEFailed to give a signal to move left or right

2015/03/23 08:28:00 AM HHR629EC 17691 REG. 58(1) Act 93/1996 WHITE NISSAN BAKKIEDid not come to a complete STOP at a Stop Street

2015/03/23 08:28:00 AM FYS443MP 17691 REG. 58(1) Act 93/1996 WHITE ABNORMAL TRUCKNONEDid not come to a complete STOP at a Stop Street

2015/03/23 08:29:00 AM NR15176 81593 REG. 213(5) Act 93/1996 GREY CHEV NONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:30:00 AM NMR6062 81593 REG. 213(5) Act 93/1996 WHITE DATSUN NONEAdult person on row of seats did not use an available seatbelt

2015/03/23 08:31:00 AM No plate found84135 REG. 308A(1)(a) Act 93/1996BLUE VW GOLFNONEHeld cell phone in hand or hands or with other part of body

2015/03/23 08:31:00 AM NMR1436 17691 REG. 58(1) Act 93/1996 WHITE NISSAN BAKKIEDid not come to a complete STOP at a Stop Street

2015/03/23 08:33:00 AM NP21236 17691 REG. 58(1) Act 93/1996 WHITE FORD BAKKIEDid not come to a complete STOP at a Stop Street

Business Plan 2015


Technical Partners

Cameras – high speed and high resolution, night operation

Wireless – communication

Storage – over 100GB per hour per camera possible

Mobile operations – Process and Print on the road

Debt Collectors – Postage, call, SMS, email, Fax, communicate

and collect

IP, Patents, Copyrights, Brands

The requirement to have a traffic officer adjudicate the

violation prevents anyone from using the idea to issue fines.

DPP approval is needed for the cameras, which is a major

barrier to enter within the traffic enforcement community

Hand held technology to issue the violation on the side of

the road compared to the traditional writing fines by a traffic officer keeps the traffic

officer honest and allows the issue of more violations that are correct.

With suitable funding it should be possible to take out a number of patents to offer

additional protection.

It is proposed to have different operating companies in each site, based on the BEE /

influence factor to get the contract.

Business Plan 2015


6. Staffing and Operations Due to the previous experiences in numerous sites, it is proposed to have a single

traffic officer with a camera operating a mobile operation. Over time, and once a

high number of violations have been captured, local staff would be trained to

operate a road block and deliver the recently captured moving violations and past

fines. This would then be expanded to the enforcement of the new by laws, including

taxi cameras.

Management (including Board) Organisation Chart

Required

Staffing

Proposed

Training Plans

Select a number of local

staff based on the

number of staff needed

to issue 5% of the

violations.

Train as peace officers (1

week)

After a period train the

best 10% of those as

traffic wardens (3

months), while ensuring

the staff are kept honest

and do not steal

After a period train the

best 10% of those as traffic officers

And keep going

Operations

Premises – 1 desk in the

Traffic Department or a

small office

Equipment – 1 camera

Demo facilities – head

office required

Infrastructure – Fibre link or

40 MB uncapped ADSL link

Communications facilities –

3G and wireless

Costs involved

Suppliers >>


7. Financial Projections I Key Assumptions

II Profit and Loss Accounts

III Balance Sheets

IV Cash flow

I Key Assumptions Traffic fines will be paid, due to ease of payment, summons and warrants of arrest

Traffic officers will not take bribes due to technology

DPP will grant permission

Contracts will be secured

Income sources

Traffic fines

By Laws (phase 2)

Debt Collection (phase 3)

Parking (phase 3)

Number of employees projected for each year and their intended salaries

1. Each site should start with a single staff member until the DPP approval is obtained.

2. Once obtained, start with 10 local staff and 1 traffic officer, as per the attached.

Projected investment in equipment and materials

1. Please see attached excel document for detail

Projected R&D costs

1. Depends on a wide range of factors per site

Depreciation allowed for


Expected rent and rates charges


Creditor days expected and debtor days allowed


Expense calculations


II Profit & Loss Accounts 1. Please see attached excel document for detail

II Balance Sheets 1. Please see attached excel document for detail

IV Cashflow 1. Please see attached excel document for detail

8. Sales Pipeline Once the approval from the DPP is obtained, real world data will be obtained from which

every town needs to be approached. The way the approach is made via a local partner

with political connections is what is required.

9. Funding Requirements 1. Please see attached excel document for detail

It is proposed to start with a single camera and road block until real data is obtained.

Assuming there is already a traffic department the current outstanding fines may contribute

to the required funds.

Sources:

BEE, with influence over the tender process.

Bank lending

Grants or loans from agencies are possible again with the right BEE partners

Investment for staff employment is possible as local employment can be well funded?

Investors with influence in local government are currently being actively sought

Required for:

Marketing; Securing Tenders; Equipment; Staffing


9. Appendices

LEGAL PRINCIPLES IN CAMERA ENFORCEMENT Probative material refers to anything a court may take into consideration in making a finding.

Real evidence can be photographs, video and audio recordings. The Criminal Procedures Act, 51 of

1977 expressly allows for production of photographs as evidence. Video recordings, including digital

recordings, are to be considered as merely a series of photographs and are therefore allowed as

evidence in terms of the same section of this act. In S v MPUMLO supra Mullins J stated at 490 h-i that

a video film like a tape recording, “is real evidence as distinct from documentary evidence, and,

provided it is relevant, it may be produced as admissible evidence, subject of course to any dispute

that may arise either as to its authenticity or the interpretation thereof.”

In S v M 2002 (2) SACR 411 (SCA) the following was stated at 432c-d:

“Real evidence which is procured by illegal or improper means is generally more readily admitted

than evidence so obtained which depends upon the say-so of a witness (see, for example, R v Jacoy

(1988) 38 CRR 290 at 298) the reason being that it usually possesses an objective reliability.

It does not ‘conscript the accused against himself’ in the manner of a confessional statement (R v

Holford [2001] 1 NZLR 385 (CA) at 390). The letter in this case can be classified as real evidence of a

documentary nature (notwithstanding the doubts which the Court a quo expressed).

Real evidence is an object which, upon proper identification, becomes, of itself, evidence (such as a

knife, photograph, voice recording, letter or even the appearance of a witness in the witness-box).

Schmidt Bewysreg 4th ed at 326, Hoffman & Zeffertt The South African Law of Evidence 4th ed at 404,

Cross & Tapper on Evidence 8th ed at 48.”

ELECTRONICALLY EMANATED EVIDENCE MAY BE ADMITTED IN EVIDENCE IN A CRIMINAL COURT UNDER

THE:

• Common Law

• Criminal Procedure Act No 51 of 1977

• Section 3(1) of the Law of Evidence Amendment Act No 45 of 1988 (Hearsay)

• Electronic Communications and Transactions Act No 25 of 2002 (ECT Act)

Definition of document under the Common Law

• Any written thing capable of being evidence. See R v Daye 1908 KB 330 at 340;

• “Everything that contains the written or pictorial proof of something. It does not matter much

of what material it is made”. See Seccombe v Attorney-General 1919 TPD 270, 272, 277‑278. This

definition includes a photograph. See Mpumlo 1986 (3) SA 485 (E) which was agreed to by Baleka

1986 (4) 192 (T) 196H.

• If it in fact contains written proof of facts, (in writing or ciphers), it is a document. See

Seccombe v Attorney-General, supra p.277-278;

• The ordinary meaning of the word ‘document’ is wide enough to include computer printouts.

See Harper 1981 (1) SA 88 (D) 96C-F; De Villiers 1993 (1) SACR 574 (Nm) and Ndiki 2008 (2) SACR 252

(Ck).

• It includes a “coin” according to Protea Assurance v Waverley Agencies 1994 (3) SA 247 (A)

249H-I.

PRINCIPLES RELATIVE TO PROVIDING REAL EVIDENCE OF A DOCUMENTARY NATURE UNDER THE

COMMON LAW:

Real evidence

• Identify\”Authentic

• Reliability of the equipment

• No need for the original: Mdlongwa 210 92) SACR 419 (SCA) 427b-g; De Villiers 1993(1) SACR

574 (NM); HNP v Sekreatris van Binnelandse Sake 1979(4) SA 274(T)

Real evidence of a documentary nature:

We prove the truth of the contents via proving the reliability and correct functioning of the computer

and its software.

Reliability of the computer system

The reliability and accuracy of the computer and its operating systems are quite obviously relevant

factors to be considered in the exercise of the court’s discretion. Ndiki 2008 (2) SACR 252 (Ck) 261d-h

(par 54).

REAL EVIDENCE

Functional Reliability


Could be supplied by circumstantial evidence of the usual habit or routine regarding the use of the

computer.

This is sometimes referred to as the presumption of regularity which is a commensense inference,

which may be drawn where appropriate.

• When the information was recorded by mechanical means without the personal involvement

of a human being.

• A person only activate the electronic system.

• The system then generates information based on its software.

• The system mainly records and stores.

• The above is real evidence.

Videos, audios, recordings from surveillance equipment and the like, can be admitted under the

electronic communications Act 25 of 2002.

The courts already identified real evidence of a documentary nature in 1976, without referring to it as

such. This is the case where the printout came about by the computation, sorting, collating and

synthesising of data by the computer and not by a person.

Narlis v South African Bank of Athens 1976(2) SA 573 (A): Holmes Ja, Jansen JA, Rabie JA, Kotze AJA

and Viljoen AJA

- Sections 33 to 38 of the Civil Proceedings Evidence Act 25 of 1965

- Section 222 of the Criminal Procedures Act 51 of 1977, sub-section (4) of section 34.

Harper 1981(1) SA 88(D): Milne J

De Villiers 1993(1) SACR 574(Nm): O’Linn J, Teek J

Ndiki 2008(2) SACR 252(Ck): Van Zyl J

- Section 221 of the Criminal Procedures Act 51 of 1977.

HARPER 1981(1) SA 88 (D), S v Ningise and others, Case No CC4/2002 (Nm)

“‘document’ includes any device by means of which information is recorded or stored” see

definition in section 221 of the Criminal Procedure Act.

Harper: Applied the ordinary meaning of the word ‘document’ which is wide enough to include

computer printouts, to admit computer processed information;

Ningise: Applied the extended definition of ‘document’ to admit a printout where the device which

printed the cell phone records, only records and stores the information, where interconnectivity is in

issue.

RELIABILITY CASE LAW

S v De Vries (67/2005) [2008] ZAWCHC 36 (10 June 2008) (Western Cape High Court) See from par 92

of the report. www.saflii.co.za

Mdlongwa 2010 (2) SACR 419 (SCA) 424g – 4215b

Dos Santos 2010 (2) SACR 382 (SCA)

S v Van der Vyver (SS 190/06) [2007] ZAWCHC 69 (29 November 2007)

THE EFFECT OF EX PARTE ROSCH ON THE LAW OF EVIDENCE

Extends the law relative to the admissibility of videos and audios (FUHRI 1994 (2) SACR 829 (A) to

computer printouts from mechanically operated equipment:

- Real evidence

- Proof of the truth of the contents

- Not hearsay evidence

- Original not in question

- Proof of functional reliability by:

o Judicial notice

o Expert evidence

o Laymen’s evidence

THE EFFECT OF NDIKI (EXHIBITS D5-D9) ON THE LAW OF EVIDENCE

Extends the law relative to the admissibility of videos and audios (FUHRI 1994 (2) SACR 829 (A) to

computer printouts from mechanically operated equipment (Ex Parte Rosch) to computer printouts

where the computer processes the information:

- Real evidence of a documentary nature

- Proof of the truth of the contents

- Not hearsay evidence

- Original not in question

- Proof of the functional reliability of computer software and operating systems by:

o Judicial notice


o Expert evidence

o Laymen’s evidence

Having said that, the court in Ndiki admitted the printout as real evidence of a documentary nature

under section 221 of the Criminal Procedures Act.

CONCLUSION

The lack of physical evidence, it is the officer’s word against the driver’s word, leads to unnecessary

arguments and confrontations between drivers and law enforcers. A photo of the offense being

committed will be the physical evidence required to collaborate the officer.

CRIMINAL PROCEDURE ACT 51 OF 1977

[ASSENTED TO 21 APRIL 1977] [DATE OF COMMENCEMENT: 22 JULY 1977]

WRITTEN NOTICE TO APPEAR IN COURT (S 56)

56 Written notice as method of securing attendance of accused in magistrate's court

(1) If an accused is alleged to have committed an offence and a peace officer on reasonable

grounds The offence was committed in the presence of the Peace officer/Traffic Officer he physically

saw the offence being committed and has captured the offence on video/camera, believes that a

magistrate's court, on convicting such accused of that offence, will not impose a fine exceeding the

amount of * determined by the Minister from time to time by notice in the Gazette, this amount

changes but is normally the maximum amount for a single offence that can be issued, otherwise a no

admission of guilt fine is written on the 56 notice whereby the offender has no pay amount but has to

appear in court, such peace officer may, whether or not the accused is in custody, this section

implies that even if an offender has been arrested, irrespective of the period he has been in custody,

therefore no time limit, hand to the accused a written notice which shall -

(a) specify the name, the residential address and the occupation or status of the accused;

(b) call upon the accused to appear at a place and on a date and at a time specified in the

written notice to answer a charge of having committed the offence in question;

(c) contain an endorsement in terms of section 57 that the accused may admit his guilt in

respect of the offence in question and that he may pay a stipulated fine in respect thereof without

appearing in court; and

(d) contain a certificate under the hand of the peace officer that he has handed the original of

such written notice to the accused and that he has explained to the accused the import thereof.

(2) If the accused is in custody, the effect of a written notice handed to him under subsection (1)

shall be that he be released forthwith from custody.

(3) The peace officer shall forthwith forward a duplicate original of the written notice to the clerk

of the court which has jurisdiction.

(4) The mere production to the court of the duplicate original referred to in subsection (3) shall

be prima facie proof of the issue of the original thereof to the accused and that such original was

handed to the accused.

(5) The provisions of section 55 shall mutatis mutandis apply with reference to a written notice

handed to an accused under subsection (1)

The relevance of Section 56 (1) is the following:

1. Peace Officer/Traffic Officer one, man the camera.

2. He observes the offence and has recorded it on camera.

3. He communicates the offence, vehicle type and colour and registration number to a second

Peace Officer/Traffic Officer a distance away.

4. The second Peace Officer/Traffic Officer directs the vehicle to stop alongside the road and is

then given a 56 written notice for the specific offence.

5. The traffic officer also inspects the vehicle for any other violation under the NRTA and issue

additional 56 written notices for such fines if any.

In the event of an offending motorist somehow not stopped at the roadside checkpoint, record is still

kept of the offence and stored on the database. At a later stage (days weeks, months after) when

the vehicle with which the offence was committed in, is stopped at a roadside checkpoint, the driver

of the vehicle is then issued with a 56 written notice for that offence. The date on the 56 written

notice must be the date of the offence and not the date the notice was issued.

The question is now what if the driver that committed the above offence and another driver of the

same vehicle are stopped at a roadside checkpoint? Can this driver that did not in fact commit the

offence be issued with a 56 written notice?

Here we revered to the NRTA and the AARTO Act:


In any prosecution charging a violation of any law or regulation governing the stopping, standing,

parking or driving of a vehicle described in the complaint, was in violation of any such law or

regulation, together with the proof that the defendant named in the complaint was at the time of

the violation the registered owner of such a vehicle, shall constitute in evidence a prima facie

presumption that the registered owner of such vehicle was the person who parked, placed or drove

such vehicle at the time during which such violation occurred.

Administrative of Road Traffic Offences Act, No. 46 of 1998, (AARTO),

4.3 Identification of Driver :

Provide information, to the satisfaction of the Agency that he or she was not the driver of the motor

vehicle at the time of the alleged infringement, together with the full name, acceptable

identification; as well as residential and postal addresses and telephone numbers of the alleged

driver or person in control of the vehicle at the time of the infringement. In such cases the Agency will

cancel the original Infringement Notice and serve a second Infringement Notice per registered mail

to the person so identified. Should such identified Infringer fail to respond in the prescribed manner

within 32 days, the original Infringement Notice will be reinstated and the first Infringer will become

liable to pay both the penalty and the prescribed fee of the Courtesy Letter to be issued in such a

case.

The above legislation therefore allows a Peace Officer\Traffic Officer to issue a section 56 written

notice to the driver of a vehicle for an offence. If the driver that receives the 56 written notice was

not the driver that committed the offence at the time of the offence, he\she can inform the traffic

department in writing that he\she was not the driver at the time of the offence, but must supply the

traffic department with the name and address of the person that was in fact the driver of the vehicle

at the time of the offence. Failure to do so will result in the driver summoned to pay the fine.

Automated Traffic Violation Monitoring Systems

SECTION 31-41.2-6

31-41.2-6 Driver/registered owner liability.

(a) The registered owner of the motor vehicle shall be primarily responsible in all prosecutions

brought pursuant to the provisions of this chapter except as otherwise provided in this section.

(b) In all prosecutions of civil traffic violations based on evidence obtained from an automated

traffic violation detection system, the registered owner of a vehicle which has been operated in

violation of a civil traffic violation, may be liable for such violation. The registered owner of the vehicle

may assume liability for the violation by paying the fine; or by defending the violation pursuant to the

procedures in § 31-41.2-4.

(c) The lessee of a leased vehicle shall be considered the owner of a motor vehicle for purposes

of this section.

CHAPTER 8 ADMISSION OF GUILT FINE (ss 57-57A)

57 Admission of guilt and payment of fine without appearance in court

(1) Where-

(a) a summons is issued against an accused under section 54 (in this section referred to as the

summons) and the public prosecutor or the clerk of the court concerned on reasonable grounds

believes that a magistrate's court, on convicting the accused of the offence in question, will not

impose a fine exceeding the amount * determined by the Minister from time to time by notice in the

Gazette, and such public prosecutor or clerk of the court endorses the summons to the effect that

the accused may admit his guilt in respect of the offence in question and that he may pay a fine

stipulated on the summons in respect of such offence without appearing in court; or

(b) a written notice under section 56 (in this section referred to as the written notice) is handed to

the accused and the endorsement in terms of paragraph (c) of subsection (1) of that section

purports to have been made by a peace officer, the accused may, without appearing in court,

admit his guilt in respect of the offence in question by paying the fine stipulated (in this section

referred to as the admission of guilt fine) either to the clerk of the magistrate's court which has

jurisdiction or at any police station within the area of jurisdiction of that court or, if the summons or

written notice in question is endorsed to the effect that the fine may be paid at a specified local

authority, at such local authority.

(2) (a) The summons or the written notice may stipulate that the admission of guilt fine shall be

paid before a date specified in the summons or written notice, as the case may be.

(b) An admission of guilt fine may be accepted by the clerk of the court concerned

notwithstanding that the date referred to in paragraph (a) or the date on which the accused should

have appeared in court has expired.


(3) (a) (i) Subject to the provisions of subparagraphs (ii) and (iii), an accused who intends to pay

an admission of guilt fine in terms of subsection (1), shall surrender the summons or the written notice,

as the case may be, at the time of the payment of the fine.

(ii) If the summons or written notice, as the case may be, is lost or is not available and the copy

thereof known as the control document-

(aa) is not available at the place of payment referred to in subsection (1), the accused shall

surrender a copy of the summons or written notice, as the case may be, at the time of the payment

of the fine; or

(bb) is available at the place of payment referred to in subsection (1), the admission of guilt fine

may be accepted without the surrender of a copy of the summons or written notice, as the case

may be.

(iii) If an accused in respect of whom a warrant has been endorsed in terms of section 55 (2A)

intends to pay the relevant admission of guilt fine, the clerk of the court may, after he has satisfied

himself that the warrant is so endorsed, accept the admission of guilt fine without the surrender of the

summons, written notice or copy thereof, as the case may be.

(b) A copy referred to in paragraph (a) (ii) may be obtained by the accused at the magistrate's

court, police station or local authority where the copy of the summons or written notice in question

known as the control document is filed.

(c) Notwithstanding the provisions of subsection (1), an accused referred to in paragraph (a) (iii)

may pay the admission of guilt fine in question to the clerk of the court where he appears in

consequence of such warrant, and if the said clerk of the court is not the clerk of the magistrate's

court referred to in subsection (1), he shall transfer such admission of guilt fine to the latter clerk of the

magistrate's court.

(4) No provision of this section shall be construed as preventing a public prosecutor attached to

the court concerned from reducing an admission of guilt fine on good cause shown.

(5) (a) An admission of guilt fine stipulated in respect of a summons or a written notice shall be in

accordance with a determination which the magistrate of the district or area in question may from

time to time make in respect of any offence or, if the magistrate has not made such a determination,

in accordance with an amount determined in respect of any particular summons or any particular

written notice by either a public prosecutor attached to the court of such magistrate or a police

official of or above the rank of non-commissioned officer attached to a police station within the

magisterial district or area in question or, in the absence of such a police official at any such police

station, by the senior police official then in charge at such police station.

(b) An admission of guilt fine determined under paragraph (a) shall not exceed the maximum of

the fine prescribed in respect of the offence in question or the amount* determined by the Minister

from time to time by notice in the Gazette, whichever is the lesser.

(6) An admission of guilt fine paid at a police station or a local authority in terms of subsection (1)

and the summons or, as the case may be, the written notice surrendered under subsection (3), shall,

as soon as is expedient, be forwarded to the clerk of the magistrate's court which has jurisdiction, and

such clerk of the court shall thereafter, as soon as is expedient, enter the essential particulars of such

summons or, as the case may be, such written notice and of any summons or written notice

surrendered to the clerk of the court under subsection (3), in the criminal record book for admissions

of guilt, whereupon the accused concerned shall, subject to the provisions of subsection (7), be

deemed to have been convicted and sentenced by the court in respect of the offence in question.

(7) The judicial officer presiding at the court in question shall examine the documents and if it

appears to him that a conviction or sentence under subsection (6) is not in accordance with justice

or that any such sentence, except as provided in subsection (4), is not in accordance with a

determination made by the magistrate under subsection (5) or, where the determination under that

subsection has not been made by the magistrate, that the sentence is not adequate, such judicial

officer may set aside the conviction and sentence and direct that the accused be prosecuted in the

ordinary course, whereupon the accused may be summoned to answer such charge as the public

prosecutor may deem fit to prefer: Provided that where the admission of guilt fine which has been

paid exceeds the amount determined by the magistrate under subsection (5), the said judicial officer

may, in lieu of setting aside the conviction and sentence in question, direct that the amount by

which the said admission of guilt fine exceeds the said determination be refunded to the accused

concerned.

National road traffic Act


87 Service of notices

(1) Whenever in terms of this Act any notice is authorised or required to be served upon or issued to

any person, such notice shall either be served personally upon the person to whom it is addressed or

be sent to him or her by registered post to his or her last known address: Provided that the address

furnished by the holder of a driving licence at the time of his or her application for such licence or

recorded against his or her name in a register of driving licences, or the address recorded against the

registration of a vehicle in a register of motor vehicles as the address of the owner of such vehicle,

shall serve as his or her domicile of summons and execution for all purposes arising from or for the

purposes of this Act, for the service of notices, post or process on that person.

(2) Service by registered post in terms of subsection (1) shall be deemed to have been effected on

the tenth day after the date stamped upon the receipt for registration issued by the post office which

accepted the notice.

(3) A certificate by the officer who issued the notice referred to in subsection (1), or by a person

subordinate to such officer, stating the time, place and manner of issuing such notice, shall be prima

facie proof that such notice was duly issued.

3F Powers and duties of inspector of licences

In addition to the powers and duties conferred upon him or her or under this Act, an inspector of

licences may, subject to the provisions of this Act or any other law-

(a) by notice in writing as prescribed, direct the owner, operator, driver or person in charge of any

vehicle, wherever found, which in his or her opinion does not comply with the requirements for

roadworthiness certification provided for in this Act or in any other law, to produce such

vehicle for inspection, examination or testing to an appropriately graded

testing station for such class of vehicle at a time and place specified in such notice;

(b) in respect of any motor vehicle, demand from the title holder, owner, operator or driver thereof

the production of any document which such person is required to have in respect of that motor

vehicle in terms of this Act or any other law, or any like document issued by a competent authority

outside the Republic;

(c) require from any instructor-

(i) where such instructor is engaged in teaching or instructing another person in the driving of a motor

vehicle, forthwith; or

(ii) where such instructor is not so engaged, within seven days, to produce evidence of his or her

registration;

(d) examine any motor vehicle in order to satisfy himself or herself that it is the motor vehicle in

respect of which a document referred to in paragraph

(b) was issued;

(e) impound any document referred to in paragraph (b) which appears to be or which the officer

suspects to be invalid or which has been or appears to have been unlawfully altered or defaced or

which is being put to unlawful use, and where any document is so impounded, the inspector shall

issue a receipt in respect thereof to the person concerned;

(f) require the owner, operator or driver or person in charge of any vehicle forthwith to furnish his or

her name and address, and give any other particulars required as to his or her identification, and

where applicable, immediately to produce a professional driving permit;

(g) demand from any person immediately to produce a licence or any other prescribed

authorisation authorising him or her to drive a motor vehicle, and to produce any other document

which he or she is required to have in respect of any motor vehicle in terms of this Act or any other

law;

(h) impound any licence or document produced to him or her in terms of paragraph (g) which in his

or her opinion may afford evidence of a contravention or evasion of any provision of this Act or any

other law, and where any licence or document is so impounded, the inspector shall issue

a receipt in respect thereof to the person concerned;

(i) require any person, whether or not this person is in a vehicle, to furnish his or her name and address

and to give other particulars required as to his or her identification, as well as such information as is

within his or her power to furnish and which may lead to the identification of the owner, operator

or driver of the vehicle concerned;

(j) require any person to furnish him or her with any information as is within the power of such person

to furnish and which may lead to the identification of the driver, owner, operator or person in charge

of a vehicle at any time or during any period; or


(k) at any reasonable time, having regard to the circumstances of the case, without prior notice, and

in the exercise of any power or the performance of any duty which he or she is in terms of this Act or

any other law authorised or required to exercise or perform, enter any premises on which he or she

has reason to believe that any vehicle is kept.

3I Powers and duties of traffic officer

In addition to the powers and duties conferred upon him or her or under this Act, a traffic officer may,

subject to the provisions of this Act or any other law-

(a) exercise or perform any of the powers or duties conferred upon an inspector of licences under

section 3F;

(b) when in uniform, require the driver of any vehicle to stop such vehicle;

(c) inspect and test or cause to be inspected and tested by a person whom he or she considers

competent to do so, any part and the functioning of any vehicle, and the equipment thereof, with a

view to ascertaining whether the vehicle concerned or the functioning thereof and the equipment

comply with the provisions of this Act: Provided that no officer or person instructed by the officer to

inspect or test such vehicle shall, in the exercise of the power hereby conferred upon him or her,

dismantle the mechanism or any working parts of any motor vehicle unless he or she is also a

qualified motor mechanic or has passed an examination for examiners of vehicles as prescribed, and

if he or she has so dismantled the vehicle, he or she shall reassemble the dismantled mechanism or

parts to the same condition in which it was before it was dismantled unless he or she is requested by

the person in charge of the vehicle not to do so;

(d) ascertain the dimensions of, the load on, or the mass, axle mass load or axle unit mass load of,

any vehicle, or the mass of any combination of vehicles, loaded or unloaded, and if necessary for

the purpose of ascertaining such mass, require any vehicle or combination of vehicles to proceed to

a mass-meter or mass-measuring device, and if the mass of any vehicle or combination of vehicles

exceeds the mass allowed in terms of this Act, prohibit the operation of the vehicle or combination of

vehicles on a public road until the mass has been reduced or adjusted to comply with this Act:

Provided that where the load on a vehicle includes any hazardous substance as contemplated in

the Hazardous Substances Act, 1973 (Act 15 of 1973), the reduction and handling of the mass shall

be undertaken in terms of that Act;

(e) drive any vehicle where necessary in the performance of his or her duties if, in the case of a motor

vehicle, he or she is licensed to drive a motor vehicle of the class concerned;

(f) if a person, being the dr iver or the person apparently in charge of a motor vehicle, appears, by

reason of his or her physical or mental condition, howsoever arising, to be incapable for the time

being of driving or being in charge of that vehicle, temporarily forbid the person to continue to drive

or be in charge of that vehicle and make the arrangements for the safe

disposal or placing of the vehicle as in his or her opinion may be necessary or desirable in the

circumstances;

(g) regulate and control traffic upon any public road, and give such directions as may, in his or her

opinion, be necessary for the safe and efficient regulation of the traffic, which may include the

closing of any public road, and, where he or she is of the opinion that the driver of a motor vehicle is

hampering or impeding the normal flow of traffic on a public road, direct the driver to remove the

vehicle from such road and to follow another route with the vehicle;

(h) require any person to furnish his or her name and address and other particulars which are

required for his or her identification or for any process if the officer reasonably suspects this person of

having committed an offence in terms of this Act or any other law or, if in the opinion of the officer,

he or she is able to give evidence in regard to the commission of any such offence;

(i) in respect of any motor vehicle, demand from the owner, operator or driver thereof to produce

any document prescribed in terms of this Act;

(j) impound any document referred to in paragraph (i) produced to him or her and which in his or her

opinion may afford evidence of a contravention of or failure to comply with any provision of this Act

or any other law related to road traffic matters and where any document is so impounded, the traffic

officer shall issue a receipt in respect thereof to the person concerned;

(k) require any professional driver or the operator or owner of any motor vehicle to produce for

inspection and to have a copy made of-

(i) any record or document which that person is required in terms of this Act to carry or have in his or

her possession or which is required to be affixed to any such motor vehicle; or

(ii) any record which that person is required in terms of this Act to preserve;

(l) at any time enter any motor vehicle of an operator and inspect such vehicle;


(m) at any time enter upon any premises on which he or she has reason to believe that a motor

vehicle of an operator is kept or any record or other document required to be kept in terms of this

Act is to be found, and inspect such vehicle and copy any such record or document, which he or

she finds there;

(n) if he or she has reason to believe that an offence in terms of this Act has been committed in

respect of any record or document, inspected by him or her, impound that record or document, and

where any document is so impounded, the traffic officer shall issue a receipt in respect thereof to the

person concerned;

(o) inspect any motor vehicle or part thereof and impound any document

issued in connection with the registration and licensing of such motor vehicle which relates to the

motor vehicle, where it is found that the engine or chassis number of the motor vehicle differs from

the engine or chassis number as specified on the document, and direct that the motor vehicle be

taken, forthwith, to any police station specified by the traffic officer for police clearance, and may

after such clearance has been obtained, return the impounded document to any person who is

entitled thereto, or notify the owner of the motor vehicle concerned that the vehicle must be re-

registered, as the case may be; and

(p) require from the owner, operator or driver of a motor vehicle registered or deemed to be

registered in any prescribed territory, police clearance in respect of the motor vehicle before

allowing the motor vehicle to be taken across the borders of the Republic: Provided that the chief

executive officer may exempt any owner, operator or driver in the prescribed manner from having to

provide such police clearance.

CRIMINAL PROCEDURES ACT

39 Manner and effect of arrest

(1) An arrest shall be effected with or without a warrant and, unless the person to be arrested submits

to custody, by actually touching his body or, if the circumstances so require, by forcibly confining his

body.

(2) The person effecting an arrest shall, at the time of effecting the arrest or immediately after

effecting the arrest, inform the arrested person of the cause of the arrest or, in the case of an arrest

effected by virtue of a warrant, upon demand of the person arrested hand him a copy of the

warrant.

(3) The effect of an arrest shall be that the person arrested shall be in lawful custody and that he shall

be detained in custody until he is lawfully discharged or released from custody.

40 Arrest by peace officer without warrant

(1) A peace officer may without warrant arrest any person-

(a) who commits or attempts to commit any offence in his presence;

(b) whom he reasonably suspects of having committed an offence referred

to in Schedule 1, other than the offence of escaping from lawful custody;

(c) who has escaped or who attempts to escape from lawful custody;

(d) who has in his possession any implement of housebreaking or carbreaking as contemplated in

section 82 of the General Law Third Amendment Act, 1993, and who is unable to account for such

possession to the satisfaction of the peace officer;

[Para. (d) substituted by s. 41 of Act 129 of 1993.]

(e) who is found in possession of anything which the peace officer reasonably suspects to be stolen

property or property dishonestly obtained, and whom the peace officer reasonably suspects of

having committed an offence with respect to such thing;

(f) who is found at any place by night in circumstances which afford reasonable grounds for

believing that such person has committed or is about to commit an offence;

(g) who is reasonably suspected of being or having been in unlawful possession of stock or produce

as defined in any law relating to the theft of stock or produce;

(h) who is reasonably suspected of committing or of having committed an offence under any law

governing the making, supply, possession or conveyance of intoxicating liquor or of dependence-

producing drugs or the possession or disposal of arms or ammunition;

(i) who is found in any gambling house or at any gambling table in contravention of any law relating

to the prevention or suppression of gambling or games of chance;

(j) who wilfully obstructs him in the execution of his duty;

(k) who has been concerned in or against whom a reasonable complaint has been made or

credible information has been received or a reasonable suspicion exists that he has been concerned


in any act committed outside the Republic which, if committed in the Republic, would have been

punishable as an offence, and for which he is, under any law relating to extradition or fugitive

offenders, liable to be arrested or detained in custody in the Republic;

(l) who is reasonably suspected of being a prohibited immigrant in the Republic in contravention of

any law regulating entry into or residence in the Republic;

(m) who is reasonably suspected of being a deserter from the South African National Defence Force;

[Para. (m) amended by s. 4 of Act 18 of 1996.]

(n) who is reasonably suspected of having failed to observe any condition imposed in postponing the

passing of sentence or in suspending the operation of any sentence under this Act;

(o) who is reasonably suspected of having failed to pay any fine or part thereof on the date fixed by

order of court under this Act;

(p) who fails to surrender himself in order that he may undergo periodical imprisonment when and

where he is required to do so under an order of court or any law relating to prisons

(q) who is reasonably suspected of having committed an act of domestic violence as contemplated

in section 12* of the Domestic Violence Act, 1998, which constitutes an offence in respect of which

violence is an element.

41 Name and address of certain persons and power of arrest by peace officer without warrant

(1) A peace officer may call upon any person-

(a) whom he has power to arrest;

(b) who is reasonably suspected of having committed or of having attempted to commit an offence;

(c) who, in the opinion of the peace officer, may be able to give evidence in regard to the

commission or suspected commission of any offence, to furnish such peace officer with his full name

and address, and if such person fails to furnish his full name and address, the peace officer may

forthwith and without warrant arrest him, or, if such person furnishes to the peace officer a name or

address which the peace officer reasonably suspects to be false, the peace officer may arrest him

without warrant and detain him for a period not exceeding twelve hours until such name or address

has been verified.

(2) Any person who, when called upon under the provisions of subsection (1) to furnish his name and

address, fails to do so or furnishes a false or incorrect name and address, shall be guilty of an offence

and liable on conviction to a fine not exceeding R300 or to imprisonment for a period not exceeding

three months.

54 Summons as method of securing attendance of accused in magistrate's court

(1) Where the prosecution intends prosecuting an accused in respect of any offence and the

accused is not in custody in respect of that offence and no warrant has been or is to be issued for

the arrest of the accused for that offence, the prosecutor may secure the attendance of the

accused for a summary trial in a lower court having jurisdiction by drawing up the relevant charge

and handing such charge, together with information relating to the name and, where known and

where applicable, the residential address and occupation or status of the accused, to the\ clerk of

the court who shall-

(a) issue a summons containing the charge and the information handed to him by the prosecutor,

and specifying the place, date and time for the appearance of the accused in court on such

charge; and

(b) deliver such summons, together with so many copies thereof as there are accused to be

summoned, to a person empowered to serve a summons in criminal proceedings.

(2) (a) Except where otherwise expressly provided by any law, the summons shall be served by a

person referred to in subsection (1) (b) by delivering it to the person named therein or, if he cannot

be found, by delivering it at his residence or place of employment or business to a person apparently

over the age of sixteen years and apparently residing or employed there.

(b) A return by the person who served the summons that the service thereof has been effected in

terms of paragraph (a), may, upon the failure of the person concerned to attend the relevant

proceedings, be handed in at such proceedings and shall be prima facie proof of such service.

(3) A summons under this section shall be served on an accused so that he is in possession thereof at

least fourteen days (Sundays and public holidays excluded) before the date appointed for the trial.

PENDLEX: Criminal Procedure Act 51 of 1977 after amendment by the Judicial Matters Amendment

Act 66 of 2008 Section 56 (1)

If an accused is alleged to have committed an offence referred to in section 57 (2)

(a), a peace officer may, whether or not the accused is in custody, hand to the accused a written

notice which shall


(a) specify the name, residential address and the occupation or status of the accused;

(b) call upon the accused to appear at a place and on a date at a time specified in the written

notice to answer a charge of having committed the offence in question;

(c) contain an endorsement in terms of section 57 that the accused may admit his or her guilt in

respect of the offence in question and that he or she may pay the stipulated fine as determined by

the Minister in terms of section 57 (2) (b) in respect thereof without appearing in court; and

(d) contain a certificate under the hand of the peace officer that he or she has handed the original

of that written notice to the accused and that he or she has explained to the accused the import

thereof. Section 56 (2)

If the accused is in custody, the effect of a written notice handed to him or her under subsection (1)

shall be that he or she be released forthwith from custody.

Section 57 - Admission of guilt and payment of fine without appearance in court

(1) An admission of guilt fine referred to in this section may only be imposed and paid in respect of an

offence which the Minister determines, as provided for in subsection (2).

(2) For purposes of this section, the Minister may, from time to time, by notice in the Gazette, and

after consultation with the Chief Justice, the National Director of Public Prosecutions and the Minister

for Safety and Security, determine-

(a) the offences in respect of which an admission of guilt fine may be

imposed and paid; and

(b) the amount of an admission of guilt fine which can be stipulated in a summons under section 54

(in this section referred to as the summons) or a written notice under section 56 (in this section

referred to as the written notice), in respect of each offence.

(3) Where-

(a) a summons is issued against an accused under section 54 and the public prosecutor of the court

concerned, in accordance with the directives issued by the National Director of Public Prosecutions

provided for in subsection (11), endorses the summons to the effect

that the accused may admit his or her guilt in respect of the offence in

question and that he or she may pay a fine stipulated on the summons

in respect of that offence without appearing in court; or

(b) a written notice under section 56 is handed to the accused and the endorsement in terms of

subsection (1) (c) of that section purports to have been made by a peace officer, the accused may,

without appearing in court, admit his or her guilt in respect of the offence in question by paying the

fine stipulated (in this section referred to as the admission of guilt fine) either to the clerk of the

magistrate's court which has jurisdiction or at any police station within the area of jurisdiction of that

court or, if the summons or written notice in question is endorsed to the effect that the fine may

be paid at a specified local authority, at that local authority.

(4) (a) The summons or the written notice may stipulate that the admission of guilt fine shall be paid

before a date specified in the summons or written notice, as the case may be.

(b) An admission of guilt fine may be accepted by the clerk of the court concerned notwithstanding

that the date referred to in paragraph (a) or the date on which the accused should have appeared

in court has expired.

(5) (a) (i) Subject to the provisions of subparagraphs (ii) and (iii), an accused who intends to pay an

admission of guilt fine in terms of subsection (1), shall surrender the summons or the written notice, as

the case may be, at the time of the payment of the fine.

(ii) If the summons or written notice, as the case may be, is lost or is not available and the copy

thereof known as the control document- (aa) is not available at the place of payment referred to in

subsection (3), the accused shall surrender a copy of the summons or written notice, as the case may

be, at the time of the payment of the fine; or (bb) is available at the place of payment referred to in

subsection (3), the admission of guilt fine may be accepted without the surrender of a copy of the

summons or written notice, as the case may be.

(iii) If an accused in respect of whom a warrant has been endorsed in terms of section 55 (2A) intends

to pay the relevant admission of guilt fine, the clerk of the court may, after he or she has satisfied

himself or herself that the warrant is so endorsed, accept the admission of guilt fine without the

surrender of the summons, written notice or copy thereof, as the case may be.

(b) A copy referred to in paragraph (a) (ii) may be obtained by the accused at the magistrate's

court, police station or local authority where the copy of the summons or written notice in question

known as the control document is filed.


(c) Notwithstanding the provisions of subsection (3), an accused referred to in paragraph (a) (iii) may

pay the admission of guilt fine in question to the clerk of the court where he or she appears in

consequence of that warrant, and if that clerk of the court is not the clerk of the magistrate's court

referred to in subsection (3), he or she shall transfer that admission of guilt fine to the latter clerk of the

magistrate's court.

(6) No provision of this section shall be construed as preventing a public prosecutor attached to the

court concerned from reducing an admission of guilt fine on good cause shown in writing.

(7) An admission of guilt fine stipulated in respect of a summons or a written notice shall be in

accordance with the determination made by the Minister from time to time in respect of the offence

in question, as provided for in subsection (2).

(8) An admission of guilt fine paid at a police station or a local authority in terms of subsection (3) and

the summons or, as the case may be, the written notice surrendered under subsection (5), shall, as

soon as is expedient, be forwarded to the clerk of the magistrate's court which has jurisdiction, and

that clerk of the court shall thereafter, as soon as is expedient, enter the essential particulars of that

summons or, as the case may be, that written notice and of any summons or written notice

surrendered to the clerk of the court under subsection (5), in the criminal record book for admissions

of guilt, whereupon the accused concerned shall, subject to the provisions of subsection (9), be

deemed to have been convicted and sentenced by the court in respect of the offence in question.

(9) The judicial officer presiding at the court in question shall examine the documents and if it

appears to him or her that a conviction or sentence under subsection (8) is not in accordance with

justice or, except as provided in subsection

(6), is not in accordance with a determination made by the Minister under subsection

(2) or does not comply with a directive issued by the National Director of Public

Prosecutions as provided for in subsection (11) that judicial officer may set aside the conviction and

sentence and direct that the accused be prosecuted in the ordinary course, whereupon the

accused may be summoned to answer that charge as the public prosecutor may deem fit to prefer:

Provided that where the admission of guilt fine which has been paid exceeds the amount

determined by the Minister under subsection (2), the judicial officer may, in lieu of setting aside the

conviction and sentence in question, direct that the amount by which the admission of guilt fine

exceeds the said determination be refunded to the accused concerned.

(10) Any determination made by the Minister under this section must be tabled in Parliament for

approval.

(11) (a) The National Director of Public Prosecutions must issue directives regarding the cases and

circumstances in which a prosecutor may issue a summons referred to in subsection (3) (a) or a

written notice referred to in section 57A (1) in which an admission of guilt fine may be imposed in

respect of the offences which the Minister determines under subsection (2) and any directive so

issued must be observed in the application of this section.

(b) The directives referred to in paragraph (a) must ensure that adequate disciplinary steps will be

taken against a prosecutor who fails to comply with any directive.

(c) The Minister must submit any directives issued under this subsection to

Parliament before those directives take effect, and the first directives so issued, must be submitted to

Parliament within four months of the commencement of this section.

(d) Any directive issued under this subsection may be amended or withdrawn in like manner.

341 Compounding of certain minor offences

(1) If a person receives from any peace officer a notification in writing alleging that such person has

committed, at a place and upon a date and at a time or during a period specified in the

notification, any offence likewise specified, of any class mentioned in Schedule 3, and setting forth

the amount of the fine which a court trying such person for such offence would probably impose

upon him, such person may within thirty days after the receipt of the notification deliver or transmit

the notification, together with a sum of money equal to the said amount, to the magistrate of the

district or area wherein the offence is alleged to have been committed, and thereupon such person

shall not be prosecuted for having committed such offence.

(2) (a) Where a notification referred to in subsection (1) is issued by a peace officer in the service of a

local authority in respect of an offence committed within the area of jurisdiction of such local

authority, any person receiving the notification may deliver or transmit it together with a sum of

money equal to the amount specified therein to such local authority.

[Para. (a) substituted by s. 9 of Act 64 of 1982.]


(b) Any sum of money paid to a local authority as provided in paragraph (a) shall be deemed to be

a fine imposed in respect of the offence in question. [Para. (b) substituted by s. 9 of Act 64 of 1982.]

(c) Not later than seven days after receipt of any sum of money as provided in paragraph (a), the

local authority concerned shall forward to the magistrate of the district or area wherein the offence is

alleged to have been committed a copy of the notification relating to the payment in question.

(d) If the magistrate finds that the amount specified in the notification exceeds the amount

determined in terms of subsection (5) in respect of the offence in question, he shall notify the local

authority of the amount whereby the amount specified in the notification exceeds the amount so

determined and the local authority concerned shall immediately refund the amount of such excess

to the person concerned.

(e) For the purpose of this subsection 'local authority' means any institution or body contemplated in

section 84 (1) (f) of the Provincial Government Act, 1961 (Act 32 of 1961), and includes-

(i) a regional services council established under section 3 of the Regional

Services Councils Act, 1985 (Act 109 of 1985);

(ii) any institution or body established under the Rural Areas Act, (House of Representatives), 1987

(Act 9 of 1987); [Sub-para. (ii) amended by s. 4 of Act 18 of 1996.]

(iii) a local authority as defined in section 1 of the Black Local Authorities Act, 1982 (Act 102 of 1982);

(iv) a local government body contemplated in section 30 (2) (a) of the

Black Administration Act, 1927 (Act 38 of 1927); and

(v) any committee referred to in section 17 (1) of the Promotion of Local Government Affairs Act,

1983 (Act 91 of 1983). [Para. (e) substituted by s. 25 of Act 33 of 1986 and by s. 16 of Act 26 of 1987.]

(3) Any money paid to a magistrate in terms of subsection (1) shall be dealt with as if it had been

paid as a fine for the offence in question.

(4) The Minister may from time to time by notice in the Gazette add any offence to the offences

mentioned in Schedule 3, or remove there from any offence mentioned therein.

(5) The amount to be specified in any notification issued under this section as the amount of the fine

which a court would probably impose in respect of any offence, shall be determined from time to

time for any particular area by the magistrate of the district or area in which such area is situated,

and may differ from the admission of guilt fine determined under section 57 (5) (a) for the offence in

question. [NB: Sub-s. (5) has been substituted by s. 17 of the Judicial Matters Amendment Act

66 of 2008, a provision which will be put into operation by proclamation.

334 Minister may declare certain persons peace officers for specific purposes

(1) (a)31* The Minister may by notice in the Gazette declare that any person who, by virtue of his

office, falls within any category defined in the notice, shall, within an area specified in the notice, be

a peace officer for the purpose of exercising, with reference to any provision of this Act or any

offence or any class of offences likewise specified, the powers defined in the notice.

(b) The powers referred to in paragraph (a) may include any power which is not

conferred upon a peace officer by this Act.

(2) (a)32* No person who is a peace officer by virtue of a notice issued under subsection (1) shall

exercise any power conferred upon him under that subsection unless he is at the time of exercising

such power in possession of a certificate of appointment issued by his employer, which certificate

shall be produced on demand.

(b) A power exercised contrary to the provisions of paragraph (a) shall have no legal force or effect.

(3)33* The Minister may by notice in the Gazette prescribe-

(a) the conditions which shall be complied with before a certificate of appointment may validly be

issued under subsection (2) (a);

(b) any matter which shall appear in or on such certificate of appointment in addition to any matter

which the employer may include in such certificate.

(4) Where the employer of any person who becomes a peace officer under the provisions of this

section would be liable for damages arising out of any act or omission by such person in the

discharge of any power conferred upon him under this section, the State shall not be liable for such

damages unless the State is the employer of that person, in which event the department of State,

including a provincial administration, in whose service such person is, shall be so liable.

DECLARATION OF PEACE OFFICERS IN TERMS OF SECTION 334 (2008) (GN 275 in GG 30856

of 7 March 2008)

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