ATC210514: Report of the Portfolio Committee on Police on the 2021/22 Budget, Annual Performance Plan and 2020-2025 Strategic Plan of the Private Security Industry Regulatory Authority (Psira), Dated 12 May 2021

Police

REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE 2021/22 BUDGET, ANNUAL PERFORMANCE PLAN AND 2020-2025 STRATEGIC PLAN OF THE PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY (PSIRA), dated 12 MAY 2021.

 

The Committee examined the Budget, Annual Performance Plan for the 2021/22 financial year and the 2020-2025 Strategic Plan of the Private Security Industry Regulatory Authority (PSIRA) and reports as follows:

 

 

1.Introduction

 

The Private Security Industry Regulatory Authority was established in terms of section 2 of the Private Security Industry Regulation Act (2001), which replaced the Security Officers Act (1987). The Authority is mandated to regulate the private security industry, and exercise control over the practice of the occupation of security service providers in the public and national interest, as well as in the interest of the private security industry itself.

 

 

1. Structure of the report

 

• The Report provides an overview of the 2021/22 Budget Hearings of the PSIRA and is divided into the following sections:
• Section 1: Introduction. This section provides an introduction to this Report as well as a summary of the meeting held during the hearing.
• Section 2: Impact of Covid -19
• Section 3:  Policy and Legislative Mandate
• Section 4: Strategic Priorities of the PSIRA for the 2021/22 financial year. This section provides a summary of the strategic focus areas for the Authority for the year under review.
• Section 5: PSIRA Budget and Performance targets for 2021/22. This section provides an overall analysis of the operating expenditure and revenue of the PSIRA for the 2021/22 financial year. This section also provides a programme analysis of the Authority.
• Section 6: Performance Indicators and Targets per programme
• Section 7: Committee observations. This section highlights selected observations made by the Portfolio Committee on Police on the annual performance targets and programme specific issues during the 2021/22 budget hearings and subsequent responses by the Authority
• Section 9: Recommendations. This section summarises the recommendations made by the Portfolio Committee on Police.
• Section 8: Conclusion. This section provides a conclusion to this Report.

           

 

1.2        Meetings held

The Committee received a virtual briefing from PSIRA’s Annual Performance Plan (2021/22) and Strategic Plan (2020/25) on 7 May 2021.

 

 

 

 

2.Impact of COVID-19

 

On the 15 March 2020, President Ramaphosa declared COVID-19 pandemic a national disaster and on 23 of March 2020, he further announced a national lockdown that commenced on 26 of March2020 midnight and has since continued on an adjusted risk strategy.

 

As part of the lockdown regulations, private security services were identified as an essential service. In the Authority’s 2021/22 APP, the Minister of Police acknowledged the key role played by the private security industry in curbing the spread of COVID-19, through protecting and safeguarding property and persons, and assisting businesses by ensuring they observe health protocols. During lockdown levels 4 and 5, there was in increased need for the protection of shops, businesses and assets. Many security businesses were unable to supply compliance certificates, which necessitated a response from PSIRA despite many of its offices being closed. This highlighted the need for digital systems, including: 

 

• Bulk renewals: To minimise contact, one representative from a security business was allowed to bring all relevant renewal documents to be certified instead of several individuals.
• Online appointment bookings: Reduced waiting times and congregation of persons outside PSIRA offices.
• Mobile platforms: The use of PSIRA’s mobile app has increased.

 

 

1. POLICY AND LEGISLATIVE MANDATE

 

 

3.1. Constitutional mandate

 

The Bill of Rights as contained in Chapter 2 of the Constitution, 1996, enshrines the rights of all people in South Africa and affirms the democratic values of human dignity, equality and freedom. The adequate protection of fundamental rights to life and security of a person as well as the right not to be deprived of property is fundamental to the well-being and to the social and economic development of every person. The protection of these rights is afforded to state security agencies established in terms of the Constitution, but the private security industry in general also plays an important role in protecting and safeguarding these rights.

Section 199 of the Constitution provides for the establishment of security services which includes a single police service, single defence force and any intelligence services established in terms of the Constitution. In terms of section 199(3) of the Constitution, any other armed organisations of services may only be established in terms of national legislation.

 

 

3.2. Legislative and policy mandates

 

The PSIRA was established in terms of Section 2 of the Private Security Industry Regulation Act, 2001 (Act No. 56 of 2001). The Authority’s mandate is to regulate the private security industry and to exercise effective control over the practice of the security service providers in the public and national interest, and in the interest of the private security industry itself.

 

The Private Security Industry Regulation Amendment Bill [B27D-2012] takes a stronger regulatory position on the involvement of private security outside the South African border. The Amendment Bill provides for far greater restrictions and detailed prohibitions/requirements imposed on security services rendered outside the Republic The most heavily contested provision of the Bill centred on the issue of foreign ownership of private security companies. The Amendment Bill if a company can only be registered as a security provider “if 51 percent of the ownership and control is exercised by South African citizens”. The Amendment Bill was introduced in Parliament during September 2012 and only adopted and submitted to the President for assent in March 2014.

 

Regarding the progress of the PSIRA Amendment Bill, there is still an exchange of information between the Civilian Secretariat for Police Service and other stakeholders. The stakeholders are still deciding whether the Bill should be sent back to Parliament or sent to the President to sign.

 

The Authority’s funding model based on annual fees and the growth of the private security industry in relation to employment levels, has become redundant. In this regard, the Authority intends implementing the Private Security Industry Levies Act, 2002 (Act No. 23, 2002) and is engaging National Treasury on this matter. These engagements continue for reviewing the Act into a Money Bill in terms of section 77 of the Constitution to be re-introduced in Parliament by National Treasury as the custodian of Money Bills. The Committee should engage the Ministers of Police and Finance to encourage the reintroduction of the Levies Act as a matter of urgency.

 

The establishment of an industry guarantee fund is a priority of the PSIR Act, which aims to provide limited liability cover for industry clients. However, the fund is reliant on the implementation of the Private Security Industry Levies Act, 2002 insofar as initial capitalisation of the fund is concerned.

 

 

4.STRATEGIC PRIORITIES OF PSIRA

 

The 2020-2025 Strategic Plan highlights six key outcomes for the Authority during this period:

 

• Maintain financial sustainability, accountability, relevance and performance;
• A professional, accountable and trustworthy private security industry;
• A capable and trained private security industry;
• Enhance relations and collaborations with stakeholders;
• The private security industry is vetted and efficiently registered; and
• The private security industry is transformed.

 

The Authority’s five-year Strategic Plan is aligned to Government’s MTSF 2019-2024 priorities with a specific focus on the following key outcomes:

 

• Strengthened relationships with all stakeholders, especially other entities of the Justice, Crime Prevention and Security (JCPS) cluster;
• Improved overall organisational performance;
• Effective implementation of the compliance and law enforcement strategy which is aimed at changing behaviour in the industry and improving industry compliance;
• Protection of the public interest through a more professional and trustworthy private security industry;
• A legitimate private security industry that contributes to improved relationships with state law enforcement agencies in the fight against crime;
• Build capacity through industry research and continuous stakeholder engagements;
• Improved IT infrastructure to enhance organisational efficiencies and service delivery mandate; and
• Improved industry-training standards to ensure industry professionalisation and attracting the youth to consider a career in one or more of the growing sectors of the industry.

 

 

National Economic Reconstruction and Recovery Plan

The growth in the private security industry contributes to economic growth and the National Economic Reconstruction and Recovery Plan, which the President tabled on 15 October 2020. According to PSIRA, the following is of specific relevance:

1. Job creation; and
2. Fast tracking the reduction of the cost of doing business and lowering the barriers to entry (digitisation).

 

Organisational review and redesign

PSIRA concluded an organisational review and redesign process in 2019/20, and developed a new organisational structure that will be implemented through a phased approach over the next five years. The core of the new structure is decentralisation aimed to improve decision-making, reducing process complexity, and balancing centralised policy development and decentralised implementation. The reasons for decentralisation include (amongst others):

 

• Ensuring improved business performance and PSIRA customer focus and management
• Improving co-ordination between operational teams
• Simplifying systems and processes to ensure efficiency and to improve service delivery while reducing costs
• Reducing duplication
• Simplifying and linking the new organisational structure with the activities in the value chain and support functions
• Improved risk management

 

According to PSIRA, this will create a larger span of control through new operational processes, which calls for new management practices, and supporting processes.

 

5.PSIRA BUDGET AND PERFORMANCE TARGETS FOR 2021/22

 

 

1. Overall Analysis

 

The budget analysis of the PSIRA is different to that of government departments. PSIRA, as a schedule 3 public entity, does not receive funds from Government, but generates revenue through the collection of annual and registration fees from private security businesses and security officers, as mandated in section 3 of the Private Security Industry Regulation Act (2001). The financial position of PSIRA is measured on potential revenue. National and provincial governments are on a modified cash basis of accounting, while local authorities and public entities use accrual accounting. Accrual accounting is best defined as “when transactions are recorded in the books of accounts as they occur even if the payment for that particular product or service has not been received or made. This method is more appropriate in assessing the health of the organisation in financial terms”.[1] Furthermore, accrual accounting records revenues and expenses when they are incurred, regardless of when cash is exchanged. The term "accrual" refers to any individual entry recording revenue or expense in the absence of a cash transaction.

 

 

5.2.Expenditure estimates per programme

 

In 2021/22, the Authority estimates a budget of R354 million, which is a nominal increase of 10.8 per cent compared to the previous financial year. Expenditure is expected to increase at an average annual rate of 9.8 per cent, from R319.5 million in 2020/21 to R423.2 million in 2023/24. The Administration Programme has a budget of R176.4 million in 2021/22, which is a nominal increase of 12.43 per cent compared to the previous financial year.

 

Table 1: PSIRA expenditure trends and estimates by programme

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R million	2020/21	2021/22
Administration	156.9	176.4	19.5	12.4	12.43 per cent	7.90 per cent
Law Enforcement	120.8	130.9	10.1	4.8	8.36 per cent	3.99 per cent
Communication and Training	23.3	25.5	2.2	1.2	9.44 per cent	5.03 per cent
Registration	18.2	21.0	2.8	2.0	15.38 per cent	10.73 per cent
TOTAL	319.4	354.0	34.6	20.3	10.8 per cent	6.37 per cent

Source: National Treasury (2021)

 

The Law Enforcement Programme has a budget of R130.9 million, which is a nominal increase of 8.36 per cent. The Communication and Training Programme has a budget of R25.5 million in 2021/22, which is a nominal increase of 9.44 per cent. The Registration Programme’s budget increased from R18.2 million in 2020/21 to R21 million in 2021/22, which is a nominal increase of 15.38 per cent, representing the largest increase of all Programmes. Considering inflation, the Registration Programme’s budget increased with 10.73 per cent compared to the previous financial year.

 

In terms of proportional allocations, there were not much change in that of individual Programmes. The proportional allocations of the Law Enforcement Programme decreased with 0.84 per cent. Although this is not a significant decrease, it should be noted as the Programme performs a core service. The Programme continues to receive the second largest proportional allocation at 36.98 per cent. Similarly, the proportional allocation of the Communication and Training Programme decreased slightly. The proportional allocations of the Administration and Registration Programmes increased with 0.71 per cent and 0.23 per cent respectively. The Administration Programme continues to receive the bulk of the Authority’s budget at 49.83 per cent.

 

 

 

 

Table 2: Percent of total budget per sub-programme

Programme	Budget	Percent of total budget per programme	Budget	Percent of total budget per programme	Change in percent allocation
R million	2020/21		2021/22
Administration	156.9	49.12 per cent	176.4	49.83 per cent	0.71 per cent
Law Enforcement	120.8	37.82 per cent	130.9	36.98 per cent	-0.84 per cent
Communication and Training	23.3	7.29 per cent	25.5	7.20 per cent	-0.09 per cent
Registration	18.2	5.70 per cent	21.0	5.93 per cent	0.23 per cent
TOTAL	319.4	100.00 per cent	354.0	100.00 per cent	0.00 per cent

Source: National Treasury (2021)

 

 

5.3.Programme 1: Administration

 

In 2021/22, the Administration Programme has a budget of R176.4 million, which is a nominal increase of 12.4 per cent. Considering inflation, the budget increased with 7.88 per cent. The increased allocation is driven by a significant increase in Consultancy and professional fees. The allocation increased from R4.04 million in 2020/21 to R8.64 million in 2021/22, which is a nominal increase of 113.78 per cent and a real increase of 105.16 per cent. The increased trend continues from the previous financial year, in which the allocation increased from R2.3 million in 2019/20 to R4 million in 2020/21, which was a nominal increase of 75.65 per cent.

 

Personnel expenditure is expected to increase from R82.8 million in 2020/21 to R93 million in 2021/22, which is a nominal increase of 12.37 per cent. Expenditure on Travel and subsistence is expected to decrease from R3.9 million in 2020/21 to R3.6 million in 2021/22, which is a nominal decrease of 5.79 per cent. Considering inflation, this is a real decrease of 9.59 per cent. The budget for Repairs and maintenance increased from R1.15 million in 2020/21 to R1.26 million in 2021/22, which is a nominal increase of 9.47 per cent. 

 

 

Table 3: Operating expenditure for 2021/22 - Administration Programme

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R'000	2020/21	2021/22
Personnel Expenditure	82 821.0	93 068.0	10 247.0	6 495.7	12.37 per cent	7.84 per cent
Administrative Expenditure	44 305.0	47 266.0	2 961.0	1 055.8	6.68 per cent	2.38 per cent
Repairs and Maintenance	1 151.0	1 260.0	109.0	58.2	9.47 per cent	5.06 per cent
Travel and Subsistence	3 904.0	3 678.0	-  226.0	-  374.2	-5.79 per cent	-9.59 per cent
Lease Payments	20 765.0	22 555.0	1 790.0	880.9	8.62 per cent	4.24 per cent
Consultancy and Professional Fees	4 042.0	8 641.0	4 599.0	4 250.7	113.78 per cent	105.16 per cent
TOTAL	156 988.0	176 467.0	19 479.0	12 366.1	12.4 per cent	7.88 per cent

Source: PSIRA 2021/22 APP

 

Proportionally, the significant increase in Consultancy and professional fees had a significant impact on the proportional allocation within the Administration Programme. Compared to the previous financial year, the allocation increased with 2.32 per cent. Expenditure on personnel continues to receive the bulk of the Programme’s allocation at 52.74 per cent, followed by administrative expenditure at 26.78 per cent of the Programme’s total budget allocation.

 

 

Table 4: Percent of total Administration Programme budget per sub-programme

Programme	Budget	Percent of total budget per programme	Budget	Percent of total budget per programme	Change in percent allocation
R’000	2020/21		2021/22
Personnel Expenditure	82 821.0	52.76 per cent	93 068.0	52.74 per cent	-0.02 per cent
Administrative Expenditure	44 305.0	28.22 per cent	47 266.0	26.78 per cent	-1.44 per cent
Repairs and Maintenance	1 151.0	0.73 per cent	1 260.0	0.71 per cent	-0.02 per cent
Travel and Subsistence	3 904.0	2.49 per cent	3 678.0	2.08 per cent	-0.40 per cent
Lease Payments	20 765.0	13.23 per cent	22 555.0	12.78 per cent	-0.45 per cent
Consultancy and Professional Fees	4 042.0	2.57 per cent	8 641.0	4.90 per cent	2.32 per cent
TOTAL	156 988.0	100.00 per cent	176 467.0	100.00 per cent	0.00 per cent

Source: PSIRA 2021/22 APP

 

 

5.4.Programme 2: Law Enforcement

 

In 2021/22, the budget for the Law Enforcement Programme increased from R120.6 million in 2020/21 to R130.9 million, which is a nominal increase of 8.5 per cent. Considering inflation, the Programme’s allocation increased with 4.12 per cent.The budget for personnel increased from R85.2 million in 2020/21 to R91.3 million, which is a nominal increase of 7.12 per cent.

 

In contrast to the significant increase in the allocation to consultancy and professional fees in the Administration Programme, the allocation thereof in the Law Enforcement Programme decreased from R38 000 in 2020/21 to R24 000 in 2021/22, which is a nominal decrease of 36.84 per cent. The 2021/22 allocation for travel and subsistence increased from R5.4 million in 2021/22 to R7.23 million, which is a nominal increase of 33.01 per cent. In light of significant reductions in the number of inspections that will be conducted in 2021/22.

 

 

Table 5: Operating Expenditure for 2021/22 - Law Enforcement Programme

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R'000	2020/21	2021/22
Personnel Expenditure	85 277.0	91 347.0	6 070.0	2 388.1	7.12 per cent	2.80 per cent
Administrative Expenditure	15 524.0	17 206.0	1 682.0	988.5	10.83 per cent	6.37 per cent
Repairs and Maintenance	585.0	561.0	-  24.0	-  46.6	-4.10 per cent	-7.97 per cent
Travel and Subsistence	5 441.0	7 237.0	1 796.0	1 504.3	33.01 per cent	27.65 per cent
Lease Payments	14 003.0	14 562.0	559.0	-  28.0	3.99 per cent	-0.20 per cent
Consultancy and Professional Fees	38.0	24.0	-  14.0	-  15.0	-36.84 per cent	-39.39 per cent
TOTAL	120 686.0	130 938.0	10 252.0	4 974.3	8.5 per cent	4.12 per cent

Source: PSIRA 2021/22 APP

 

Proportionally, the allocations within the Law Enforcement Programme did not change significantly. The significant increase in the allocation for travel and subsistence caused the proportional allocation to increase by 1.02 per cent. Personnel expenditure continues to receive the bulk of the Programme’s budget allocation at 69.76 per cent, followed by administrative expenditure (13.14 per cent of the Programme’s total budget) and lease payments (11.12 per cent of the Programme’s total budget).

 

Table 6: Percent of total Law Enforcement Programme budget per economic classification

Programme	Budget	Percent of total budget per programme	Budget	Percent of total budget per programme	Change in percent allocation
R’000	2020/21		2021/22
Personnel Expenditure	85 277.0	70.66 per cent	91 347.0	69.76 per cent	-0.90 per cent
Administrative Expenditure	15 524.0	12.86 per cent	17 206.0	13.14 per cent	0.28 per cent
Repairs and Maintenance	585.0	0.48 per cent	561.0	0.43 per cent	-0.06 per cent
Travel and Subsistence	5 441.0	4.51 per cent	7 237.0	5.53 per cent	1.02 per cent
Lease Payments	14 003.0	11.60 per cent	14 562.0	11.12 per cent	-0.48 per cent
Consultancy and Professional Fees	38.0	0.03 per cent	24.0	0.02 per cent	-0.01 per cent
TOTAL	120 686.0	100.00 per cent	130 938.0	100.00 per cent	0.00 per cent

Source: PSIRA 2021/22 APP

 

5.5.Programme 3: Training and Communications

 

In 2021/22, the budget allocation for the Training and Communications Programme increased from R23.3 million to R25.57 million, which is a nominal increase of 9.6 per cent. The allocation for administrative expenses increased from R6.6 million in 2020/21 to R7.38 million in 2021/22, representing a nominal increase of 11.71 per cent and a real increase of 7.21 per cent. Similar to that of the Law Enforcement Programme, the allocation for travel and subsistence increased compared to the previous financial year. The item received R1.55 million in 2021/22, which is a nominal increase of 27.09 per cent compared to 2020/21.

 

 

Table 7: Operating expenditure for 2021/22 - Training and Communications Programme

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R'000	2020/21	2021/22
Personnel Expenditure	14 191.0	15 332.0	1 141.0	523.0	8.04 per cent	3.69 per cent
Administrative Expenditure	6 610.0	7 384.0	774.0	476.4	11.71 per cent	7.21 per cent
Repairs and Maintenance	2.0	2.0	0.0	-  0.1	0.00 per cent	-4.03 per cent
Travel and Subsistence	1 222.0	1 553.0	331.0	268.4	27.09 per cent	21.96 per cent
Consultancy and Professional Fees	1 300.0	1 300.0	0.0	-  52.4	0.00 per cent	-4.03 per cent
TOTAL	23 325.0	25 570.0	2 245.0	1 214.3	9.6 per cent	5.21 per cent

Source: PSIRA 2021/22 APP

 

In terms of proportional allocations, there was no significant shifts within the Training and Communication Programme. Personnel expenditure continues to receive the bulk of the Programme’s budget allocation at 59.96 per cent, followed by administrative expenses at 28.88 per cent of the total budget allocation.

 

Table 8: Percent of total Training and Communication Programme budget per economic classification

Programme	Budget	Percent of total budget per programme	Budget	Percent of total budget per programme	Change in percent allocation
R million	2020/21		2021/22
Personnel Expenditure	14 191.0	60.84 per cent	15 332.0	59.96 per cent	-0.88 per cent
Administrative Expenditure	6 610.0	28.34 per cent	7 384.0	28.88 per cent	0.54 per cent
Repairs and Maintenance	2.0	0.01 per cent	2.0	0.01 per cent	0.00 per cent
Travel and Subsistence	1 222.0	5.24 per cent	1 553.0	6.07 per cent	0.83 per cent
Lease Payments	0.0	0.00 per cent	0.0	0.00 per cent	0.00 per cent
Consultancy and Professional Fees	1 300.0	5.57 per cent	1 300.0	5.08 per cent	-0.49 per cent
TOTAL	23 325.0	100.00 per cent	25 570.0	100.00 per cent	0.00 per cent

Source: PSIRA 2021/22 APP

 

5.6.Programme 4: Registration

 

In 2021/22, the Registration Programme received a budget allocation of R21.03 million, which is a substantial nominal increase of 15 per cent compared to the previous financial year. The Programme received the largest comparative increased of all the Authority’s budget Programmes Considering inflation, the Programme’s allocation had a real increase of 10.38 per cent. The allocation for administrative expenditure increased from R12.5 million in 2020/21 to R14.8 million in 2021/22, which is a nominal increase of 18.58 per cent and a real increase of 13.75 per cent. The allocation for personnel expenditure increased from R5.08 million in 2020/21 to R5.47 million in 2021/22, which is a nominal increase of 7.81 per cent. In contrast to other Programmes, the allocation for travel and subsistence received only a slight nominal increase of 4.08 per cent, which is a real decrease of 0.11 per cent compared to the previous financial year.

 

 

Table 9: Operating expenditure for 2021/22 – Registration Programme

Programme	Budget		Nominal Increase / Decrease in 2021/22	Real Increase / Decrease in 2021/22	Nominal Percent change in 2021/22	Real Percent change in 2021/22
R'000	2020/21	2021/22
Personnel Expenditure	5 080.0	5 477.0	397.0	176.2	7.81 per cent	3.47 per cent
Administrative Expenditure	12 520.0	14 840.0	2 320.0	1 721.8	18.53 per cent	13.75 per cent
Travel and Subsistence	686.0	714.0	28.0	-  0.8	4.08 per cent	-0.11 per cent
TOTAL	18 286.0	21 031.0	2 745.0	1 897.3	15.0 per cent	10.38 per cent

Source: PSIRA 2021/22 APP

 

The increased allocation for administration expenses had a significant effect on the proportional allocations of items in the Programme. Unlike other Programmes, administrative expenditure receives the bulk of the Programme’s total budget allocation at 70.56 per cent, followed by personnel expenditure at 26.04 per cent of the total allocation. It should be noted that the Programme has only 26 staff from a total staff complement of 379 staff (6.8 per cent).

 

 

Table 10: Percent of total Registration Programme budget per economic classification

Programme	Budget	Percent of total budget per programme	Budget	Percent of total budget per programme	Change in percent allocation
R million	2020/21		2021/22
Personnel Expenditure	5 080.0	27.78 per cent	5 477.0	26.04 per cent	-1.74 per cent
Administrative Expenditure	12 520.0	68.47 per cent	14 840.0	70.56 per cent	2.09 per cent
Repairs and Maintenance	0.0	0.00 per cent	0.0	0.00 per cent	0.00 per cent
Travel and Subsistence	686.0	3.75 per cent	714.0	3.39 per cent	-0.36 per cent
Lease Payments	0.0	0.00 per cent	0.0	0.00 per cent	0.00 per cent
Consultancy and Professional Fees	0.0	0.00 per cent	0.0	0.00 per cent	0.00 per cent
TOTAL	18 286.0	100.00 per cent	21 031.0	100.00 per cent	0.00 per cent

Source: PSIRA 2021/22 APP

 

 

6.Performance Indicators and targets

 

6.1.Programme 1: Administration

 

This programme is responsible for the overall coordination of all efforts and activities of the Authority towards the achievement of the strategic goals and achieving organisational success, the financial management of the Authority and providing institutional support and services to the other programmes. It is also responsible for institutional reporting, management processes and systems to track performance against each of the strategic objectives.

 

This programme has the following sub-programmes:

 

1. Finance sub-programme:Provides financial management, support and reporting. Facilitation and coordination of internal audit and risk management.
2. Corporate Services sub-programme: Provides human resource management services and support; Provides business and information technology services and support; and Provides legal services and support, and ensures legislative compliance.
3. Operations sub-programme:Conducts research about private security to inform development of policy, regulations and standards.

 

 

The table below summarises the performance indicators and targets for the Administration Programme.

 

Table 11: Programme Performance Indicators and Targets: Administration Programme

Outputs	Performance Indicator	2020/21 Target	2021/22 Target
Sub-programme: Finance
Unqualified audit opinion	Unqualified audit opinion with no significant findings	Unqualified audit opinion	Removed
Increased revenue collection	% Revenue collected	75% revenue collected on billed annual fees	78% revenue collected on billed annual fees Target increased
Established Guarantee Fund	Establish and Implementation of the Guarantee Fund	Guarantee Fund product designed and approved	Removed The Fund was established.
Audit Action Plan (AGSA) and Internal Audit findings	Percentage implementation of the Audit Action Plan	New indicator	100% implementation
Statutory tabling and reporting	Percentage compliance with statutory reporting requirements	New indicator	100% compliance
Risk Management	Percentage implementation of the approved Strategic Risk Mitigation Plan	New Indicator	100% implementation
Sub-programme: Corporate Services
Training interventions implemented	% of employee training interventions implemented as per Annual Training Plan	85%	Removed
Developed digital business strategy	Date for the development of a digital business strategy	30 June 2020	Removed The Strategy was developed
Business process digitised	% implementation of digital business strategy and implementation plan	20%	40% implementation Target increased
Human Resources management and development	Percentage of the vacancy rate against the approved funded positions	New indicator	Not more than 7%
	Percentage of employee performance rating assessed at 3 and above as per Performance Management System	New indicator	90% of assessed employees perform on rating of 3 and above
Developed security sector regulations and standards	Number of security sector regulations and standards developed	3 regulations and standards	Remained unchanged at 3 regulations and standards
Achieved service standards on appeals and exemptions	Average turnaround time of finalising exemptions/appeals	30 days	Removed
Sub-programme: Research and Development
Completed research reports, surveys and policy documents	Number of relevant research reports completed	5	Remained unchanged at 5 research reports
	Number of completed surveys	4	Remained unchanged at 4 surveys
	Number of policy documents developed	3	Removed
Private Security Industry Charter and Transformation Index	Draft Transformation Charter and Transformation Index for the Private Security Industry developed	Approval of the concept model for a Transformation for the Private Security Industry developed	Draft Transformation Charter and Transformation Index for the Private Security Industry developed

PSIRA 2021/22 APP

 

6.2.Programme 2: Law Enforcement

 

This programme is responsible for ensuring that industry players operate and comply with regulations and standards andtake appropriate action where violations occur. This programme consists of the following sub-programmes:

• Compliance and Enforcement sub-programme: Provides inspections and investigations to verify whether the industry complies with regulations and standards.
• Prosecutions sub-programme: Prepares and presents evidence about improper conduct by the industry participants.
• Operational management sub-programme: Provides regional capacity.

 

 

 

Table 12: Programme Performance Indicators and Targets: Law Enforcement Programme

Outputs	Performance Indicator	2020/21 Target	2021/22 Target
Sub-programme: Compliance and Enforcement
Security businesses inspected	Number of security businesses inspected to enforce compliance with applicable legislation	6 725	5 000 Decrease
	Percentage of registered active businesses completing industry compliance self-assessments	New indicator	40%
Security officers inspected	Number of security officers inspected to enforce compliance with applicable legislation	35 940	26 220 Decrease
Investigations finalised	% of investigations finalised against non-compliant Security Service Providers (SSPs)	90%	90% Unchanged
Registered criminal cases	% of criminal cases opened against non-compliant Security Service Providers (SSPs)	95%	95% Unchanged
Security businesses licenced for firearms inspected	Number of security businesses licensed to possess firearms inspected	1 500	1 575 Increase
Sub-programme: Prosecutions
Security service provider cases prosecuted	% of cases of non-compliant Security Service Providers (SSPs) prosecuted per year	92%	92% Unchanged

PSIRA 2021/22 APP

 

 

6.3.Programme 3: Training and Communications

 

This programme is responsible for the content and quality of the training offered in the industry and for communicating knowledge about the industry and sharing consistent information, results and relevance of the Authority. The programme consists of the following sub-programmes:

 

1. Industry Training programme: Provides development of sector-based training, accreditation services and standards.
2. Marketing, Brand Management and Communications sub-programme: Ensures that PSIRA’s functions and services are adequately promoted.
3. Stakeholder Relations sub-programme: It ensures that the promotion and advocacy mandate of PSIRA are realised.
4. Customer Care- Complaints Management. 
5. Corporate Social Responsibility.

 

 

Table 13: Programme Performance Indicators and Targets: Training and Communication Programme

Outputs	Performance Indicator	2020/21 Target	2021/22 Target
Sub programme: Training
Accredited training centres	Average turnaround time to finalise applications for accreditation of training institutions	20 days	15 days Improved
Accredited training instructors	Average turnaround time to finalise instructor applications for accreditation	7 days	7 days Unchanged
	Number of accredited instructors audited	New indicator	100 instructors
Accredited courses	Number of new accredited courses developed	3 qualifications	2 qualifications Decreased
Training assessment centres	Number of external training assessments centres established	2	Removed
External assessment	Percentage of learners completing online external assessments	Approval of concept document	20% of learners
Sub programme: Marketing, Communications and Stakeholder relations
Cooperation agreement	Number of new co-operation agreements entered into with international industry regulatory bodies	1	1 Unchanged
Marketing and communication	Number of external stakeholder awareness workshops conducted	New indicator	60 stakeholder awareness workshops conducted
Marketing and communication	Number of external stakeholder awareness campaigns held	New indicator	10 stakeholder awareness campaigns

Source: PSIRA 2021/22 APP

 

 

6.4.Programme 4: Registration

 

In 2020/21, the Registration Programme appeared as a separate Programme. In 2019/20, it was part of the Communication, Registration and Training Programme.

 

The Registration Programme is responsible for the registration of industry businesses and security officers and has no sub-programmes.

 

 

Table 14: Programme Performance Indicators and Targets: Registration Programme

Outputs	Performance Indicator	2020/21 Target	2021/22 Target
An efficient online registration process	Average turnaround time of applications for registration meeting all the requirements for security businesses (working days)	Average of 8 days	Average of 5 days Improved
	Average turnaround time of applications for registration meeting all the requirements for security officers (working days)	Average of 14 days	Average of 12 days Improved
	Implementation of online registrations	Online registrations implemented	30% of applicants Registered through the online registration platform

Source: PSIRA 2021/22 APP

 

 

 

1. COMMITTEE OBSERVATIONS

 

The Committee made the following observations during the 2021/22 budget hearings:

 

 

Self-assessment: The Committee was satisfied that the security service providers are conducting self-assessments. The Authority should explain what percentage of businesses implemented self-assessments.  A Member of the Committee wanted to know if the Authority believes that the self-assessment is the only sufficient way to conduct assessments.  A member raised a concern about security companies for not being enough as they were unable to decrease numbers as people were giving themselves high scores which they did not deserve. The Authority stated that it had implemented online self-assessments in their previous financial year in order to bring forward their strategic plan although they were supposed tostart implementing it in this current financial year. In view of Covid-19 they have seen it as an important tool to ensure implementation of industry regulation under difficult environment.

 

The Authority Highlighted the importance of self-assessments as it is not just a questionnaire that talks of businesses and submit it to them. It is a self-verification information on compliance but the businesses are required to submit everything they are reporting with supporting evidence, which evidence the Authority then evaluates. The Authority reported that they have a lot of information on their database, as far as compliance with the industry is concerned. The Authority matches and verifies information that is submitted against their own database, information and access to compliance. The Authority stated that if they discoverirregularities they conduct an enquiryand investigation in order to better improve their enforcement. If the business fails to submitits report that will lead to a site inspection. The regulatory scope is increasing with the self-assessment in order to be in line with their law enforcement strategy.

 

 

Inspections:The Committee wanted to know how often does the Authority visit the security officers on sites to obtain information relating to rates, hours and leaves. A Member reported ona complaint received about the company that deducted funds from its employees and did not deposit those funds to the pension fund for the employees at an early stage. The company contract was lapsing in December 2021. The Authority should explain the decrease in the number of inspections planned for 2021/22. The Authority confirmed that there are site inspections that form part of the inspection programmes and also output indicator talks about the number of inspections that are completed by their own inspectors at the sites. The Inspectors visit different sites to verify the security officer’s employment information pertaining to minimum payment, rate, hours and leaves.  All of those matters are addressed during the site inspections. If something is found to be irregular, it will trigger a process of site investigation and enforcement against the business in order for the business to comply.

 

 

Awareness campaign: The Committee noted that alarge proportion of the public is unaware of a regulatory authority for the private security industry. As such, it is possible that the public awareness campaigns run by the PSIRA are not effective. The Committee wanted to know what is the Authority target audience of campaigns? The Authority responded to that it can never say that they are doing enough as they need to do more work in that area.  The Authority have an operational plan that supports the Annual Performance target within which there are different targets audience.  The security officers are part of the targeted audience as well as the businesses, consumers and the public in general. The Authority is using different platforms to communicate its services. They are active on social media such as twitter and Instagram where they are continuously posting information to educate the industry.

 

Consultancy and Professional Fees: The Committee wanted an explanation from the Authority about the significant increase in the allocation for Consultancy and Professional Fees. The Committee also asked if the Authority have no sufficient internal capacity to perform the work. The Committee noted that the Authority is currently working on the turnaround strategyof fingerprints.  The Committee advised the Authority to look at in-house capacitation with regards to fingerprints and consultancy. The Authority conducts a gap analysis before they have consultancy in place to determine whether they have sufficient resources for what they are intending to do, itis an online automation of service which looks inside to find if they don’t have the capacity.  The other key driver in their consultancy is the training curriculum to be revised in terms of specialised training. These are some of the areas that are going to affect the consultancy.  The Authority explained that before consultancy servicesare procured, they conduct an assessment before approval in order to find out if they don’t have capacity internally.

 

The Authority reported on the items that were flagged as top five. They are constantly monitoring them to ensure that thereis cost saving. The Authority is looking at exploring methods of ensuring that the fingerprints are reduced.  The fingerprints are required to verify the registration revenue.

 

Training: The Committee asked the Authority to indicate whether the training of inspectors has improved and whether inspectors are trained in areas of cybercrime.  The Authority stated they are currently not offering a cybercrime training for inspectors although they have identified it as a need in the industry. They intend working together with Media Information Communication Technologies (MICT) and Sector Education and Training Authority (SETA) for Information Technology.  The Authority had an engagement with the Chief Executive Officer (CEO) of State Information Technology Agency (SITA). The Authority have a draft memorandum of understanding to develop qualification for cybercrime that will bring awareness to the industry. The Authority will follow-up on that and report on it in the near future. The Inspectors have undergone training programs on the security docks and firearm competency test in respect of all different types of firearms.  The Inspectors are competent in conducting inspections on the use of firearms.

 

 

Regulation of Firearms:The Committee raised a concern about the regulation of firearms by private security providers which should be strengthened, especially in terms of the types of firearms used.  The Committee also raised dysfunctionality of the Central Firearms Registry (CFR) which is affecting the ability of the Authority to inspect firearm licenses and usage. The Authority reported that the cooperation between CRF and them is unpleasant.  In general, they have a good relationship with SAPS although there are some areas that need to be improved for example the Authority has been requesting access to CFR database for security service providers.  The Authority is providing reports to the CFR on the challenges that have been identified in order for them to take action.  The Authority and CFR have an arrangement that for any security service providers that apply for firearm licenses, they should notify them first before they issue the firearm license.  The Authority will compile a report on whether the business is compliant or whether the business have qualified security officers.

 

Employment of Foreign Nationals:The Committee noted with concern that the majority of people who are employed by security companies are foreigners who are earning a low income.   The Committee provided instructed the Authority to provide a list of all the companies that are employing all foreign nationals. The Committee also observed that some of the foreign nationals who are deported to their countries for being in possession of illegal documentation.  The Authority explained that the Act states that a person must be a South African citizen and it also provides that if a person is a foreigner who has a permanent residence status in the country, they may operate. TheAuthority have developed a good working relationship with other government entities, for example a unit in the South African Police Service (SAPS) for Government Security Regulator and Government Security Council which the Authority forms part of. In that forum and structure the Authority continuously advises the government on compliance. It is also represented and responsible for implementation of National Key Point Act for strategic installation.  It gives them an extra assurance when it comes to their strategic installation for those security service providers that are deployed in that area are legally registered with Authority.

 

 

1. RECOMMENDATIONS

 

The Committee made the following recommendations during the 2021/22 budget hearings:

 

 

• The Committee recommends that the Authority should explore other methods that can be used together with self-assessment.
• The Committee recommends that the Authority should improve their awareness campaigns so that the public can understand their roles and functions.
• The Committee recommends that the Authority should empower and capacitate their own employees to do the work instead of using external consultants.
• The Committee recommends that the Authority should fast-track the training of cybercrime.
• The Committee recommends that the Authority should improve working relations with Central Firearm Registry (CFR) for the purpose of cooperation and good service delivery.
• The Committee recommends that the Authority should strengthen the regulations of firearms especially in terms of the types of the firearms that can be used by private security providers.
• The Committee recommends that the Authority should ensure that South African citizens are given preferential employment opportunities in the security industry in order to bridge the gap of the high unemployment rate in the country.

 

 

1. CONCLUSION

 

The Committee welcomed the Authority’s report and expressed appreciation for its continuous outstanding performance. The Committee further appreciated the Authority for receiving unqualified audit opinion in their previous financial year. The Committee encouraged the Authority to continue to uphold high standard and performance and should not drop the ball. The Authority should focus on the areas that were raised by the Committee in order to resolve all the outstanding matters.

 

 

Report to be considered

 

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National Treasury (2021)