South African municipalities should consider implementing risk reduction strategies to control the increasing problem of vandalism and theft which has cost the City of Johannesburg an estimated R3,6-million this year.
Choruma says that municipalities should put more emphasis on implementing risk reduction strategies and identifying alternative measures of dealing with vandalism and theft.
“While the local government has made major inroads to bolster its risk management strategies, more effort should be placed on dealing with the theft of manhole covers, guard rails, street-name poles, steel-grid inlets, fencing posts, poles and traffic light cables.
“This can be done by holding regular strategy sessions with brokers and insurers where alternative risk management strategies can be developed to protect municipalities from incurring financial losses.”
He says that when a risk has been identified and cannot be completely eliminated, risk reduction measures should be implemented to contain it. As a result, municipalities should explore alternative risk management strategies of dealing with the problem at hand.
The local government can effectively deal with the theft of manhole covers and guard rails by imposing stricter regulation on the scrap metal industry.
He explains that as long as a market for stolen scrap metal exists, there will always be a demand for municipal manhole covers and guardrails. Regulating the scrap metal industry and reducing the number of illegal traders available can provide relief for municipalities. This can be done by ensuring that all scrap metal traders are licensed.
“If a scrap metal operator is caught buying illegal goods it should be penalised and lose its license. The risk of losing a license should deter operators from buying stolen goods,” adds Choruma.
The government should also consider introducing jail sentences for people caught stealing from municipalities.
He says that the local government can also curb this problem by replacing stolen goods with material that is not in demand by criminals. For example, replacing manhole covers with concrete slabs.
While items like manhole covers, fencing posts and poles are often excluded from insurance policies, the local government still has a responsibility to make sure that these items are replaced immediately when stolen, to avoid liability risks. For example, liability risks arising from accidents, as a result of a missing manhole cover.
“It is essential for municipalities to work closer with their insurance advisers and brokers to regularly review and update risk management strategies to avoid bearing the brunt of financial losses as a result of repair and replacement costs,” concludes Choruma.