Security Focus Africa November 2019

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PSIRA UPDATE

What’s coming in 2020/2021? As a result of the concerns and suggestions raised by the security industry during consultations with PSiRA (Private Security Industry Regulatory Authority) during 2019, the regulator has issued what it terms a “consultation paper” for the 2020 / 2021 financial year. In summary, the concerns to be addressed in the 20 page document include: 1. That security businesses not generating revenue should not be charged annual fees To this end, PSiRA with support from National Treasury, is in the process of implementing the Levies Act, which is aimed at reducing the burden of paying annual fees with particular relevance to small security businesses.

2. That there should be special payment terms for small security businesses As of the 2017/2018 financial year, PSiRA

introduced special payment terms from security businesses employing less than 100 security officers. Regulation 7 was therefore amended as follows: • Where security businesses employ 0 – 20 security officers, 50 per cent of their fees will be payable by 7 May of each year. The remaining 50 per cent will be payable in five (5) equal instalments: 7 June, 7 July, 7 August, 7 September and 7 October of each year. • Where security businesses employ 21 – 100 security officers, 50 per cent of their fees will be payable by 7 May of each year. The

TABLE 1 Class or Class of security service category of providers security service provider

Current fees

Method of payment

Business

Largest (>5 000 SOs employed)

R55 000

Larger (2 001 to 5 000 SOs employed)

R50 800

Large (801 to 2 000 SOs employed)

R47 700

Medium A (401 to 800 SOs employed)

R35 000

Medium B (201 to 400 SOs employed)

R33 400

Emerging small (101 to 200 SOs employed)

R15 900

Small (51 to 100 SOs employed)

R10 100

Smaller A (21 to 50 SOs employed)

R7 600

Fee payable by registered security service providers annually. Such fees are payable on or before 7 May each year. Extended payment terms are available for security businesses employing 100 and less security officers.

Smaller B (6 to 20 SOs employed)

R7 000

Smaller C (< 6 SOs employed)

R6 300

Largest (>5 000 SOs employed)

R2.70

Larger (2 001 to 5 000 SOs employed) Large (801 to 2 000 SOs employed)

Fee payable for each security officer employed, on a monthly basis.

Medium A (401 to 800 SOs employed) Medium B (201 to 400 SOs employed)

Small (51 to 100 SOs employed) Smaller A (21 to 50 SOs employed) Smaller B (6 to 20 SOs employed) Smaller C (< 6 SOs employed)

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SECURITY FOCUS AFRICA NOVEMBER 2019

3. The failure by PSiRA’s inspectorate to deal with unregistered businesses, especially in malls and residential areas PSiRA has conducted joint operations with the South African Police Service (SAPS) and the Department of Labour in terms of inspecting security service providers operating from malls and residential premises. Arrests and criminal cases have been opened against unregistered security service providers and code of conduct dockets against non-compliant security service providers.

4. Whether PSiRA’s pricing structure is compulsory and if PSiRA is investigating businesses for tender and security contract under-quoting To this end, PSiRA says that it is investigating and conducting inspections to establish compliance with the relevant Sectoral Determinations and the National Minimum Wages Act. Matters relating to underpayment of wages and non-compliancy concerning the industry’s Provident Fund are being dealt with in terms of the Improper Conduct Regulations.

5. The opening of PSiRA offices in North West and Northern Cape

Emerging small (101 to 200 SOs emplyed)

Individual All Security Service Providers (security officers)

remaining 50 per cent will be payable in two equal instalments: 7 June and 7 July of each year.

R84.00

Fee payable by employed security officers annually. Fees are payable on or before 7 May each year.

On the back of industry growth in all provinces, PSiRA will be establishing new offices throughout the country, particularly where it currently does not have a footprint. Moreover, the entity will be increasing its current footprint in order to improve service delivery through identifying functions that can be best performed using technology

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Security Focus Africa November 2019 by Contact Publications - Issuu