Government has taken the Private Security Industries Act of 2001 and attempted to close what they deem to be loopholes. However, in the process, the draft has introduced a number of grey areas that are open to interpretation. By trying to broaden the scope of the Bill, they are in fact making the whole process more onerous and difficult for companies to comply with.
According to Anthony Rosenbaum, director of Xtravision and a committee member of the recently-formed Electronic Security Industry Alliance (ESIA), the draft Amendment Bill will cause confusion rather than clarification in the industry.
“Over the past 12 years there has been a focus on the guarding industry in the Act. To register with PSIRA, irrespective of who you are, you need to obtain a guarding qualification. This approach leaves much to be desired as it fails to differentiate between those involved in physical guarding and those involved in the electronics security industry,” added Rosenbaum.
In an official document issued by Nathi Mthethwa, Minister of Police, to MV Sisulu, MP and Speaker of the National Assembly, on 4 June 2012 it was stated that: “The draft Amendment Bill was also a product of an open and transparent consultative process. On 30 May 2012, Cabinet approved the Private Security Industry Amendment Bill, 2012 for introduction to parliament.” Rosenbaum countered: “If this was the case, specifically with respect to the electronic security industry, then I do not believe there would still be so many grey areas.
“The security industry, including electronics security, is extremely large, with an estimated half a million people involved in the industry. Surely then, as such a large contributor to the economy of the country, both in terms of turnover and employment opportunities, our industry should have a stronger voice? We firmly believe that both government and the regulatory authorities need to be more amenable to participating in constructive consultation with the industry with respect to amendments to the Act,” said Rosenbaum.
The substitution in terms of the definition of the security industry is complicated and worrying, according to Rosenbaum:
Amendment of section 1 of Act 56 of 2011.
(h) the substitution for paragraph (e) of the definition of 'security service' of the following paragraph:
“(e) manufacturing, importing, distributing or advertising of monitoring devices contemplated in ....”
If one takes this definition as the letter of the law, then by implication, the writer of this article, as well as the editor and publisher of Hi-Tech Security Solutions, could possibly be deemed to be security service providers. This implies that qualification as a security guard would be necessary. Likewise, a retailer selling CCTV cameras or similar security equipment would be similarly categorised. Amazingly, the same argument, by definition within the proposed Amendment Bill, applies to the driver who delivers the products.
Rosenbaum pointed out another contentious section of the Amendment:
Under section 9((b)(-c)) of the amendment it states that “...if at least 51% of ownership and control is exercised by citizens....”
“This clause in the amendment will clearly discourage foreign investment since there is no chance of majority shareholding by offshore companies. This will result in retardation of local growth. While we all acknowledge the prudence of addressing the BBBEE issues, it is obvious that this clause could do damage.”
In terms of the amendments to the Act, those companies who are not registered with PSIRA could face closure. “However, this presupposes the institution of policing and inspections. Since PSIRA currently lacks a workforce that is suitably qualified to make determinations in respect of compliance, how will they be able to enforce the Act?” added Rosenbaum.
“It is obvious that urgent discussions are required between Government, PSIRA and the industry to sensibly move this Act forward to the benefit of all stakeholders,” Rosenbaum concluded.
What is ESIA
Rosenbaum explained that the Electronic Security Industry Alliance (ESIA) has been formed under the auspices of the Security Industry Alliance (SIA) to unite the entire electronic security industry.
“We envisage participating in negotiations, together with SIA, at a high level to ensure that the security industry has a common voice on matters that affect its members. In addition, we need to create opportunities for school leavers to acquire electronic security industry-specific qualifications. We are also aiming to attract all sectors of business involved in electronic security including import, distribution, manufacturing, installation, retail sales, consulting and transportation, who we believe can make a positive contribution to the industry. The electronic security industry must be transformed into a unified and professional sector in order to tackle the many challenges that lie ahead,” said Rosenbaum.
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