A businessman disappears and his captors demand a large ransom. It is a drama that could end in death, injury or financial loss for the unfortunate and it plays out all too frequently as kidnapping and extortion takes on the status of a growth industry with 12 500 incidents reported in 40 countries worldwide according to an AIG South Africa report.

Kidnapping is not unique only to South American countries but increasingly kidnapping and ransom have become part of the South African scenario as well. In fact, South Africa now has the dubious honour of being the country with the second greatest number of such incidents in Africa.

According to a study by AIG South Africa, there were 32 kidnapping/ransoms in SA from 1998 to 2002 and the number of incidents is increasing. In that year only Somalia had more than South Africa - at least those that were officially reported, simply because many victims prefer to stay anonymous and ironically, because paying a ransom is actually illegal under SA law.

"The number of official South African incidents has remained consistently high," says Penny Randall of AIG, who, together with financial services group, Glenrand MIB, is focusing attention on the need for corporate kidnap and ransom cover.

"It is all to do with the volatile and complex crime environment," she says.

"Typically the targets for kidnappings and ransom are high net worth individuals, their families, their staff, employees travelling overseas, companies with high profiles, those that handle large amounts of cash or work with sensitive information, even sportsmen and women, many of whom enjoy enormous incomes."

Kidnap patterns

Kidnap patterns, in Africa particularly, show that expats from international companies and the personnel of international aid organisations are likely victims.

In 1998 (the most recent SAPS figures available), there were over 7000 kidnappings and abductions, so something of a kidnapping 'culture' is already well entrenched, albeit mostly without the associated extortion part.

However, that is changing, and while the 'petty' kidnappings still go on, the quantum of high profile, high ransom incidents in South Africa is clearly on the increase and there is the fear that the likes of Nigerian syndicates, East Europeans, Asian and the more sophisticated South African operators are coming to the fore.

"Organised crime is definitely getting in on the act," says Randall. "It is arguably one of the unwelcome consequences of South Africa opening up to the world in the post apartheid era, along with the influx of drugs and weapons trafficking, much of which is supposedly interlinked.

"The motive, obviously, is profit, and in South Africa there are concentrations of high wealth and the 'market' is generally unexplored.

"There are also concerns locally that the Access to Information Act which obliges companies to disclose financial and other information on request, could exacerbate the situation by highlighting targets and ironically South Africa's corporate governance imperatives oblige companies to disclose the earnings of their senior executives, possibly making them more vulnerable.

"Internationally, kidnapping and ransom is a multibillion-dollar enterprise and while there are undoubtedly professionals in the game, there are also increasing numbers of amateurs who, in many ways, are more dangerous. It sounds like a cliché, but South Africans ignore the threat at their peril."

Accordingly, companies such as AIG, provide corporate and family kidnap/extortion and personal asset protection. AIG provides cover up to US$50-million. The company writes the business locally so rates are competitive and the cover extends globally. Various factors are taken into account in determining premiums.

"We have also expanded our crisis management capabilities via a network of specialised best in class consultants as a value add but the essence of the covers is protection against financial loss," explains Randall.

"The rationale for such cover is inescapable. Incidents and quantums of kidnappings and extortions in South Africa are definitely on the increase and where there are no dedicated SAPS anti-kidnapping units, where allegations of corruption and involvement in organised crime are rampant and where law enforcement agencies are allegedly under funded, the country is seen to be a soft target," she concludes.

For more information contact Andre Minnit, Glenrand MIB, 011 329 1167, aminnitt@glenrandmib.co.za