Steve Conradie, CEO of the Security Industry Alliance (SIA), released a statement Thursday morning, 1 December, notifying the industry of SIA’s intent to apply to the High Court to stop the exorbitant hike in annual fees for private security industry, as promulgated on 25 November 2011 in Government Gazette No 34775. The SIA statement is printed in full below.
The new PSIRA fees would see some companies facing a 1000% increase in their annual fees, while security officers, not the highest paid employees as it is, will be expected to pay their fees annually in advance.
With PSIRA noted for its lack of interest in actually serving the industry that pays its bills, one must ask what the new fees are going to accomplish. As Conradie notes: “An astronomical increase in the prescribed amount is called for with no reciprocal increase in service delivery by PSIRA being promised or even contemplated.”
In its 2010/2011 Annual Report, PSIRA ended with just over R13 million in cash and cash equivalents, a decrease of just over R10 million on the previous year, and its net assets stood at approximately R11,5 million while posting a deficit of just over R23 million, more than 10 times what it was the previous year. What is all this new money to be used for?
This issue was raised in October by Hi-Tech Security Solutions, but the association has shown little regard for the health and long-term viability of the industry, and absolutely no regard for the impact this may have on employment levels – the security industry is the second largest employer in South Africa.
Hi-Tech Security Solutions will be approaching PSIRA and other role players for more information on these increases for publication in our February 2012 issue.
It seems November was the month to implement ethically questionable laws in South Africa.
Any comments are welcome at [email protected].
The statement from SIA
SA security industry under severe threat
South Africans have to rely on the security industry for safety and security. With high crime rates and an under-resourced police force, what else is there to do?
This industry, however, is under serious threat after new and controversial regulations dealing with annual fees in the private security industry were promulgated on 25 November 2011 in Government Gazette No 34775 (‘the new Regulations’). The new Regulations take effect on 1 December 2011, less than a week after their promulgation. These regulations radically change the regime of regulatory fees which are payable by the security service providers and security officers to PSIRA. Prior to the new regulations coming into effect these fees were prescribed by the Regulations Relating to Security Officers GN R797, published under GG 12413, 2 April 1990 (‘the old Regulations’).
The new regulations stipulate that the amount payable by security service providers under Regulation 9(3)(a) and (b) is increased by approximately 40% and is no longer payable on a monthly basis, but must be paid annually up front. Furthermore the monthly amount payable by security service providers under Regulation 9(3)(c) in respect of each of their employees is increased by 1000% and also has to be paid annually upfront and in full before 30 April, rather than monthly. Should a company not be in the position to pay a 10% penalty and interests will be raised.
With high crime rates and a weak economy already creating immense pressure on the security industry these regulations are in direct contrast with the government policy on the support of small and medium businesses in South Africa. The impact of the new regulations on small and medium businesses in the security industry will be catastrophic. Even the large companies will be threatened by these regulations and the unrealistic increases it will institute.
Security Industry Alliance (SIA), an umbrella organisation representing, amongst others security service providers and employers’ associations, providing a unified voice for the security profession to interface with government and other stakeholders, is alarmed and deeply concerned by the regulations. Mr Steve Conradie, chief executive officer of SIA, contends that the new regulations are beyond the powers of the Private Security Industry Regulatory Authority (PSIRA) and unlawful. “These regulations were made without adequate consultation with the industry and where responses were received it was not considered. There was no logical thought process behind these arbitrary increases. It is just a blatant and astronomical increase with no reciprocal increase in service delivery by PSIRA” says Conradie. “There is no correlation between the price increases and the operating cost of PSIRA and it is beyond the powers of PSIRA to levy any amount in excess of its reasonable needs”.
SIA will therefore urgently launch a High Court application to review and set aside the new regulations. In the interim, SIA’s members, who are affected by the new regulations, will continue to pay their regulatory fees as prescribed by the old regulations. Pending the final determination of the review application referred to above, any action taken by PSIRA to attempt to enforce compliance with the unlawful new Regulations will be met with the appropriate legal action.
“SIA regrets that it has been forced to assume this stance. However, the current position is entirely due to PSIRA’s unreasonable conduct in drafting and promulgating the new regulations”, holds Conradie. “A company and its directors in person, not providing the correct information will be fined to the value of R1000. South African should stand together to protect the industry that protect them”.
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