Security companies: SA's other army


Security companies: SA's other army

The threat of an industry in turmoil.

Contributed by iFacts
Removing your people risk

South Africa's crime levels, both actual and perceived, have caused the nation's private security industry to balloon into one of the world's largest. Despite its much smaller population, “this country has more people working in the security sector than the UK and most countries in Europe”, says Jenny Reid, president of the South African Security Association (SASA).

According to the Institute of Security Studies (ISS) over 1,78-million men and women are employed by some 8,500 private security companies in South Africa, turning over an estimated R50-billion a year. “And that doesn't include the many unregistered personnel employed by uncertified companies, or self-employed individuals who make a living formally or otherwise in the sector guarding cars and other property, so the real number might well be much higher,” says Ms Reid.

“Many new companies entering the sector, as well as a large number of existing ones, are underfunded and run by unskilled people; and in a growing number of cases are themselves adding to our crime statistics,” says Ms Reid. “The industry's topsy-turvy growth is attracting a flood of new entrants, many with little knowledge of the business and who are simply chancers after a quick buck.”

The outdated crime statistics report released by government along with a mixture of perceived and actual facts regarding the true state of crime levels in South Africa, has caused many home- and business owners alike to turn to private security firms for protection.

 “I am not convinced that South Africans are comforted by the fact that 300 fewer people were murdered as reported in the SAPS' latest period under review. What hits between the eyes is the stark realisation that 16,000 of their fellow citizens died violently, mostly at the hands of criminals, and this is what motivates them to take whatever personal safety measures they can to avoid being counted in the next round of statistics.”

The number of under-qualified and unregistered security firms who do not comply with the regulations of the Private Security Industry Regulatory Authority (PSIRA), is reaching critical levels; a dangerous situation propagated by customers seeking cheap security services.

“It all comes down to budget constraints and fear,” says Ms Reid. “While citizens understand the need to be protected, many view security as a grudge purchase and this is where the problem starts as residence- and business owners opt for the services of cheaper, often non-compliant companies.”

The industry's guarding sector is most susceptible to 'fly-by-night' infiltration and the most likely to have the highest number of unregistered companies. In October 2012 the PSIRA registration certificates of just under 100 security service providers were withdrawn for non-payment of annual fees.

For some the issue goes further than withholding membership payment. Industry players are incensed at PSIRA's hike in annual fees, which would see some member companies facing increases of around 1,000 percent “while security officers, not the highest paid employees as it is, will be expected to pay their fees annually in advance”, says Steve Conradie, CEO of the Security Industry Alliance. “An astronomical increase in the prescribed amount is called for with no reciprocal increase in service delivery by PSIRA being promised or even contemplated. What do they want all this money for?” An application to stop the fee hike has been lodged with the High Court, but until the matter is settled, members say they will continue to pay the old fees.

“Currently,” says Sabela Gumedze, former senior researcher at ISS, “PSIRA is self-funded mainly through member contributions, fines and interest from investments. The bill proposes funding by the state, over and above the self-funding model.”     

Meanwhile, SASA has appealed to residential and industrial clients to ensure their security organisation of choice is a member of SASA or other recognised industry bodies and is PSIRA certified. “This is one positive step in trying to drive the cowboy security companies out of business or at least force them into being PSIRA compliant,” says Ms Reid. “But, of course, this is complicated by the current legal battles and fee-structure convolutions that PSIRA is embroiled in.”


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