Extortion
As well as being a means of raising finance for terrorist operations, extortion has also been used effectively since the early 1970s to exercise paramilitary control over the community. Extortion probably generates millions of pounds per annum for paramilitary organisations. Although the activity is assessed to be carried out predominantly by loyalist groups, members of dissident republican groups have been convicted of such offences during 2005. Detailed analysis suggests that the true extent of Northern Ireland’s extortion problem is not reflected in the number of cases successfully prosecuted; it is likely that less than 10% of extortion is reported to police although the number of businesses coming forward to ask for PSNI assistance is increasing.
The building trade is worst affected though fast food outlets, restaurants and licensed premises, car dealerships and other retail outlets have also been affected. Extortion threatens inward investment and increases the cost of doing business. This may be reflected in higher prices for the consumer and additional costs to the taxpayer. Extortion destroys families and relationships and businesses - particularly in witness intimidation cases. Extortionists drive people out of business and out of their homes and police are forced to devote scarce resources to the protection of vulnerable individuals. In a United Kingdom context, extortion as described here is almost unique to Northern Ireland.
The PSNI Extortion Unit mounts proactive and reactive operations to tackle extortion. It is often a difficult crime to investigate due to the victim’s fear of reprisal and the threatening nature of the crime itself and often involves the use of undercover officers in order to obtain the necessary evidence while protecting the victim. In approximately 85% of cases reported, the victim declines to work with PSNI to conduct an investigation. Where PSNI is able to conduct an investigation, all cases have resulted in the extortionists being convicted.
In 2005, the Unit arrested and charged 24 people with extortion offences.
According to reported incidents, the construction industry is subjected to a significant level of extortion demands and, to assist police efforts, OCTF is exploring additional ways of dealing with the problem. A pilot project to test the Independent Private Sector Inspector General (IPSIG) initiative was introduced to public sector building contracts by Central Procurement Directorate (CPD) of the Department of Finance and Personnel earlier this year. A Steering Group, comprising representatives from CPD, PSNI, HMRC, NI Housing Executive, Environment and Heritage Service and NIO, monitored the project and commissioned an evaluation to assess its potential broader application. The IPSIG concept has potential to deter and detect extortion within public sector building contracts but understanding and practical application of the concept need further testing. The IPSIG model has been reconfigured and applied to a further six to eight public sector contracts. That will provide a clearer assessment of how IPSIG can be applied effectively in Northern Ireland.
