Revise act that will hurt security industry

IN RESPONSE to an article, “ANC wants foreign-owned security firms booted out” (The Star, August 17), the Security Industry Alliance (SIA), which represents both local and multinational security firms operating in South Africa, would like to clear the many misconceptions raised in the article.

It is true that multi-national private security companies like ADT, Chubb, Securitas, G4S and security equipment manufacturers, distributors, installers and suppliers like Panasonic, Sony, Bosch, Honeywell, Motorola, Siemens and many other international investors are at risk of losing 51 percent or more of their local shareholding if Section 20 of the Private Security Regulation Amendment Act is signed into law by the president.

The reason given for the inclusion of the expropriation clause is that the multi-national companies invested in South Africa may pose a risk to national security.

However, there simply is no basis for this notion. Firstly, there are already laws in place which prohibit any company working in the private security sector from employing foreigners.

To be registered as a private security provider in South Africa, a company must consistently pass the rigorous compliance tests set out by the industry regulator, the PSIRA.

Part of the requirements is that all staff must be South African citizens or permanent residents.

The multi-national companies are all compliant with these laws. Every single person working at these companies, from guards to directors, are South African citizens or permanent residents. As such, it is preposterous to think that the country’s own people would stage any kind of threat to its own government or country.

Secondly, no company in the private security sector is allowed, by law, to take part in any mercenary or intelligencegathering activities, here or elsewhere. It is simply not allowed, by law.

Companies like ADT, Chubb, G4S and Securitas are purely mandated to protect customers and their properties and assets. These companies are listed on global stock markets and have to adhere to the strictest governance and compliance rules, both in their primary listing countries and in those in which they provide their services.

Also, according to the industry regulator, there are about 455 000 private security officers in the country. Of this total, less than 10 percent work for the multi-national companies that are invested in South Africa, of which there are only a handful, and all of those are citizens or permanent residents.

We have often heard South Africa has the largest private security industry in the world – it does not, we are in a paltry seventh place. We have also heard that the ratio of police to private security guards is astronomically high – this is also not correct. There are 2.25 private security guards for every police officer in South Africa. This ratio isn’t any different from the US (2.26 private security guards for every police officer) or Australia (2.19 private security guards for every police officer).

As representatives of the sector, we must acknowledge that there are companies that don’t comply with the law or the industry regulator. These companies may be employing people from other countries, but these are not multi-national companies, they are our own South African-owned firms.

Enforcement of the law and a serious effort by the government, the regulator and sector, to close the loop for non-compliant companies can fix this problem.

The industry body is committed to constructive dialogue with the government to clarify misperceptions and to find solutions to improving governance and compliance within the sector.

Limiting foreign ownership through expropriation of multi-national companies that are legal, compliant and operate within the law is not the answer.

South Africa is working hard to ensure that it is able to attract muchneeded foreign direct investment.

We urge the president to return this Act to Parliament for the removal of Section 20. Chief executive of the Security Industry Alliance