Companies

High costs frustrate efforts to curb theft of money in transit

g4s

Firms using smoke boxes pay Sh5,000 application fee to CBK and Sh100,000 licence fee. Photo/JAMES NJUGUNA

The high cost of installing cash-defacing boxes is frustrating security companies’ efforts to curb cash-in-transit robberies.

Private security companies had banked on the boxes, which spray the money with indelible ink making it easily detectable hence worthless in transactions — to deter robbers from stealing cash in transit.

Only KK Security Lodgit is using the boxes, popularly known as smoke boxes, which were allowed for use by the Central Bank in July in a move that came at a time when insider robbery in some CIT companies was on an increase.

“The boxes are already in our vehicles,” said Rocky Hitchcock, an executive with KK Security Group.

Security companies attribute the poor uptake to the cost of buying them amid concerns of environmental pollution from the ink used to deface the cash.

The boxes are also small compared to the huge amount of money transported, meaning many boxes would be needed for one consignment.

Bob Morgan Services sales and marketing manager Richard Ndege said the use of the box was also a challenge because of the lifespan of the ink.

The cost for each box ranges between Sh300,000 and Sh500,000 and the defacing ink has to be replaced after every five years.

However, the red flag has been raised over the availability of machines that can erase the ink.

Smoke boxes

The smoke boxes are imported from South Africa, Europe and the US.

It was not possible to establish whether there are local dealers in the boxes although a number of security equipment sellers had expressed interest in vending the boxes.

Ann Naliaka, the marketing manager of G4S, said the company was still studying regulations on the use of the smoke box.

CIT companies that use the gadget are required to pay Sh5,000 application fee to CBK and an additional initial licence fee of Sh100,000, the same amount paid for annual renewal of the license.

CBK also charges to replace defaced currency. It charges Sh10 per dye-stained note in respect of attempted robbery claims, Sh20 per dye-stained note in respect of accidental discharge.

Other charges include Sh10,000 per cash in transit box being administrative costs, and Sh20,000 per cash in transit box in respect of cases in which the user of the cash in transit has fails to comply with the manufacturer’s specifications, in terms of packaging of the volumes and notes.

The box releases either smoke or ink, spoiling the cash and rendering it useless to the criminal.

Any attempt to change stained bank notes will notify the cashier that the money is from the proceeds of a crime.

The smoke boxes were meant to result in reduced use of Administration Police officers in guarding CIT vehicles and cut down on the cost of transporting money.

It is estimated that a chase car, an additional driver and at least four APs cost CIT companies approximately Sh120,000 a month.

These costs are transferred to client as administration charges.

It was also expected that insurance costs for cash in transit will be revised downwards because the defacing will render the money useless to the user, hence no need to compensate the amount lost although the law requires that all cash in transit be insured in full.

[email protected]