Factory theft and hijacking syndicates are becoming increasingly sophisticated in South Africa, with insider crime, fraud and money laundering at the centre of their operations. This was the warning from private security company, Phangela Group, following a recent investigation that led to the arrest of an alleged kingpin in the Western Cape.

The syndicate, whose name is being withheld due to the sensitivity of the investigation, operated through a mix of registered and unregistered front companies and had been linked to theft networks dating back as far as 2019

The breakthrough came earlier this month after a factory client reported suspicious losses. Surveillance and undercover work eventually linked stolen goods to a storage facility in Strand, where police and Phangela’s tactical team coordinated a sting operation. On 21 August, three accomplices were arrested and appeared in court on 25 August, while the alleged kingpin remained in custody and is scheduled to appear in court on 3 October 2025.

High-level evidence pointed to a sophisticated modus operandi involving front company setups and anomalies in supporting paperwork, although full details are being withheld pending further investigations. Intelligence gathered so far also indicated cross-border links, with vehicles and industrial/mining-grade ropes being smuggled into Zimbabwe and distributed into other parts of Africa.

The arrests were made possible through collaboration with Lwandle SAPS, the Western Cape Flying Squad, and Woodstock SAPS, who worked alongside Phangela’s investigative and tactical units.

“This is not petty theft,” said Christopher Thornhill, CEO at Phangela Group. “These are structured, coordinated networks that operate like businesses. They use logistics systems, shell companies, and laundering mechanisms designed to look legitimate. Every month of inaction makes it harder for businesses to recover losses.”

Phangela warned that while this case was significant, it represented a broader trend. SAPS crime statistics showed that commercial crime increased by 17% nationwide in the past year. In addition, the South African Banking Risk Information Centre (SABRIC) reported that financial crime cost South Africans R3.3 billion in 2023. Analysts estimated that organised crime drains at least 10% of South Africa’s GDP annually, according to the World Bank.

“Insider collusion is one of the most dangerous threats facing South African businesses today,” added Thornhill. “Companies must move away from reactive security and invest in intelligence-led investigations, technology, and collaboration with SAPS to protect their assets.”

Phangela urged companies to act early and remain alert to red flags such as unexplained stock variances, staff accessing sensitive areas without reason, or employees living beyond their means.

The security firm said the case underlined how proactive, intelligence-driven private security could complement the work of SAPS in disrupting organised crime and protecting South African businesses.