ATC230517: Report of the Portfolio Committee on Police on the 2023/24 Budget, Annual Performance Plan and 2020-2025 Strategic Plan of the Private Security Industry Regulatory Authority (PSIRA), dated 17 May 2023

Police

Report of the Portfolio Committee on Police on the 2023/24 Budget, Annual Performance Plan and 2020-2025 Strategic Plan of the Private Security Industry Regulatory Authority (PSIRA), dated 17 May 2023.

 

The Committee examined the Budget and Annual Performance Plan for the 2023/24 financial year, as well as the 2020-2025 Strategic Plan of the Private Security Industry Regulatory Authority (PSIRA) and reports as follows:

 

1.      Introduction

 

1.1.   Structure of the report

 

  The Report provides an overview of the 2023/24 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: Executive Summary. This section provides an executive summary of the budget and performance indicators of the Authority for 2023/24.     
• Section 3: Policy and Legislative Mandate. This section provides an overview of the Authority’s policy and legislative mandate.
• Section 4: PSIRA Focus Areas for the 2023/24 financial year.
• Section 5: PSIRA Budget and Performance targets for 2023/24. This section provides an overall analysis of the operating expenditure and revenue of the PSIRA for the 2023/24 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 2023/24 budget hearings and subsequent responses by the Authority.
• Section 8: Recommendations. This section summarises the recommendations made by the Portfolio Committee on Police.
• Section 9: Conclusion. This section provides a conclusion to this Report.

 

1.2.   Meeting held

 

The Committee received a virtual briefing on PSIRA’s Annual Performance Plan (2023/24) and Strategic Plan (2020/25) on 10 May 2023.

 

2.      Executive summary

 

According to PSIRA’s registration records, over 2.6 million security officers (SO’s) are currently registered, of which over 586 042 are employed (active) by 12 059 registered security businesses (SP’s). New registration for the Security officers is estimated to increase by 177 156 and Security businesses will increase by 1 987. The figure below shows the geographical spread of the registered security officers and registered security businesses.

Source: PSIRA 2023/24 APP, page 6

 

According to the Authority’s registration records, over 2.5 million security officers are currently registered, of which over 557 277 are employed (active) by 10 830 registered and active security businesses. The number of active employed security officers has increased by 43 per cent since 2010, while the number of security businesses has increased by 44 per cent.

 

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.

 

In 2023/24, the Authority’s budget is R452.7 million, which is a nominal increase of 10,5 per cent. Expenses are expected to match revenue in 2023/24, as such the Authority predicts no surplus or deficit during this financial year. Revenue is estimated to increase by an average of 9 per cent in the MTEF period. The Authority generates almost half of its revenue from annual fees (48 per cent), followed by course reports (24 per cent) and registration fees (13 per cent).

 

The Administration Programme has a budget of R246.5 million in 2023/24, which is a nominal increase of 18.8 per cent compared to the previous financial year. The Law Enforcement Programme has a budget of R138.6 million, which is a nominal increase of 2.7 per cent compared to the R134.9 million budget of the previous financial year. The Communication and Training Programme has a budget of R42.2 million in 2023/24, which is a nominal decrease of 2.6 per cent. The Registration Programme’s budget increased from R23.7 million in 2022/23 to R25.2 million in 2023/24, which is a nominal increase of 6.0 per cent.

 

In 2023/24, the Authority has 24 performance indicators, of which some targets were increased/improved compared to the previous financial year. The largest number of performance targets are in the Administration Programme (11 indicators), followed by the Communication and Training Programme (six indicators). 

 

The private security industry remains a key force-multiplier to the South African Police Service through proactive crime prevention and source of intelligence information, especially in rural safety. The strategic importance, geographic footprint and volumes of private security providers should be harnessed by the SAPS through structured co-operative arrangements.    

 

3.      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 mandate

 

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 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.

 

3.3.   Private Security Industry Regulation Authority Amendment Act, 2014

 

The President signed the Private Security Industry Regulation Amendment Bill, 2012 (B27-2012) into law on 23 September 2021 and it became the Private Security Industry Regulation Act, 2014 (No. 18 of 2014).

 

The Amendment Bill was first introduced to the National Assembly on 05 September 2012 and had a difficult journey through Parliament. Between October 2012 and January 2014, the Portfolio Committee on Police had 17 meetings to consider the Amendment Bill and adopted it on 28 January 2014. On 25 February 2014, the National Assembly adopted the Amendment Bill and it was transmitted to the National Council of Provinces (NCOP) Select Committee on Security and Justice for concurrence. The NCOP passed the Bill on 04 March 2016 and it was sent to the President for assent. As mentioned above, the President assented to the Bill on 23 September 2021 and was published in the Government Gazette (No. 45295, Vol. 676) on 08 October 2021. 

 

The Amendment Act strengthens the Council’s accountability to the Minister of Police. It provides that the Council must submit a quarterly report to the Minister in connection with the activities of the Authority, including:

·        The number of security service providers registered, sold, transferred, liquidated, suspended, dormant, merged, de-accredited and prosecuted;

·        The number of security officers registered, including category and functions;

·        The details of training undertaken by registered security officers and training institutions;

·        The number of training institutions registered, sold, transferred, liquidated, suspended and dormant;

·        The number of firearms registered to, lost by, stolen from, transferred by security businesses or destroyed in terms of the Firearms Control Act, 2000 (Act No. 60 of 2000);

·        Instances in which firearms were discharged by a security officer in the performance of his or her duties causing death or injury; and

·        Information of criminal complaints and investigations relating to security service providers reported to the Service by the Authority.

 

One of the most contentious provisions of the Bill was the limitation on foreign ownership of private security companies. On 13 November 2012, the Portfolio Committee on Police withdrew the provision, but it was abruptly reinstated during the voting process of the Committee on 28 January 2014. This provision was retained and was signed into law. Section 20 of the Principal Act, relating to the obligation to register and exemptions, is amended to stipulate that a security business may not use the services of a person who is not registered in terms of the Amendment Act to render a security service (the registration formerly only applied to persons performing executive or managing functions). Section 20(c) states that a security business may only be registered as a security service provider if at least 51 per cent on the ownership and control is exercised by South African citizens. However, the Minister may, taking into account the security interest of the Republic, and prescribe by regulation a different percentage of ownership and control in respect of the different categories of security businesses. The Act also establishes an Exemption Advisory Committee (consisting of the Authority, Civilian Secretariat, Department of Home Affairs, SAPS, Department of Trade and Industry and the State Security Agency), which can make recommendations to the Minister on exemptions. The transitional arrangements of the Amendment Act provide that the implementation of section 20(2)(c) (limitation on foreign ownership) with regard to a security business that is registered as a security service provider at the commencement of the Amendment Act must be done in accordance with legislation promoting and protecting investment in the Republic and the Republic’s international trade obligations.

 

3.4.   Private Security Industry Levies Act, 2002

 

A key legislative challenge for PSIRA remains its outdated funding model, which it cannot address before the Minister of Finance reintroduces the Private Security Levies Act, 2002 in Parliament. Parliament approved the Private Security Industry Levies Act, 2002 and the President signed it into law, but it was never operationalised. As this is a Moneys Bill in terms of section 77 of the Constitution, it must be re-introduced in Parliament by National Treasury as the custodian of all Money Bills. The National Treasury is currently attending to this matter as part of the review of the Act in a Money Bill in terms of Section 77 of the Constitution. The Levies Act will assist in dealing with the legacy problems created under the current annual fee funding model inherited from the repealed Security Officers’ Act, 1987, which relies on the continuous growth in employment within the private security industry.

 

National Treasury is dealing with the introduction of the revised Private Security Industry Levies Act, 2002 as a Money Bill in terms of section 77 of the Constitution in Parliament. This will presumably only happen in the 7th Parliament.

 

4.      PSIRA Focus areas for 2023/24  

 

According to the Authority, the following issues were identified as critical in 2023/24:

•        Review funding model (Guarantee fund and Levies Act).

•        Implementation of Organisational Redesign to ensure adequate capacity to support mandate.

•        Continuous review of Training Standards for the Private Security Industry.

•        Special Operations Unit.

•        Business Intelligence.

•        Transformation of the Private Security Industry.

•        Continuous awareness of PSIRA brand.

•        Development and Implementation of regulations.

•        Digitalisation of services.

•        Decentralisation of PSIRA services.

•        Review and update of the Database.

 

5.      Overall Budget 2023/24

 

The 2023 Medium-term Expenditure Framework (MTEF) focus areas for the Authority are:

• Decentralisation and restructuring of Authority services.
• Salary benchmarking.
• The establishment of Business Intelligent unit.
• Funding of the Special Operations Unit.
• Establishment of Complaints Management Unit and purchase of ERP module.

 

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”. 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.

 

In 2023/24, the Authority’s budget is R452.7 million, which is a nominal increase of 10,5 per cent. Expenses are expected to match revenue in 2023/24, as such the Authority predicts no surplus or deficit during this financial year. Revenue is estimated to increase by an average of 9 per cent in the MTEF period. The Authority generates almost half of its revenue from annual fees (48 per cent), followed by course reports (24 per cent) and registration fees (13 per cent).

 

The main cost drivers of the Authority are:

·        Employment costs: 50 per cent of expenses 

o   11 per cent increase in 2023/24 compared to the previous financial year.

o   The Authority plans to fill 39 vacancies over the MTEF period mainly to capacitate the Law enforcement, Legal and Registrations department.

·        Rental expenses: 8 per cent of expenses

o   8 per cent increase, aligned to general inflation rate.

·        Consultancy costs: 7 per cent of expenses

·        Fingerprint costs: 3 per cent of expenses

 

The following changes in the budget should be noted:

• Cleaning (41 per cent increase) – It is due to additional contract cleaning workers that have been hired.
• Legal Fees (63 per cent increase) - due to increased contingent liabilities and possible litigation as a result of the Levies Act implementation.
• Staff Training (30 per cent increase) - The training costs have been calculated at 1% of the employee costs as required by Skills Development Act.
• Security Costs (30 per cent decrease) as the Authority moves to electronic security and reducing physical security at offices.
• Repairs and Maintenance (93 per cent increase) – The depreciation of equipment, such as generators, computers and maintenance of PSIRA owned building in Arcadia.
• Audit fees (6 per cent increase) - This is due to the scope and inflationary rate increase.
• Bank charges (138% increase) – Online payment per transaction had an effect on bank charges.
• Insurance (77 per cent increase) – Additional purchase of assets has resulted in the increase of insurance costs.
• Sundry expenses (19 per cent increase) – Mainly due to electronic document management system that conforms to POPIA and Archive Act.

 

In 2023/24, the Authority estimates a budget of R452.7 million, which is a nominal increase of 10.5 per cent compared to the previous financial year.

 

Table 1: PSIRA expenditure trends and estimates by programme

Programme	Budget		Nominal Increase/ Decrease in 2023/24	Real Increase/ Decrease in 2023/24	Nominal Percent change in 2023/24	Real Percent change in 2023/24
R’000	2022/23	2023/24
Administration	207 385,0	246 561,0	39 176,0	27 658,9	18,89 per cent	13,34 per cent
Law Enforcement	134 954,0	138 684,0	3 730,0	- 2 748,1	2,76 per cent	-2,04 per cent
Communication and Training	43 419,0	42 260,0	- 1 159,0	- 3 133,0	-2,67 per cent	-7,22 per cent
Registration	23 782,0	25 208,0	1 426,0	248,5	6,00 per cent	1,04 per cent
TOTAL	409 540,0	452 713,0	43 173,0	22 026,3	10,5 per cent	5,38 per cent

Source: National Treasury (2023)

 

The Administration Programme has a budget of R246.5 million in 2023/24, which is a nominal increase of 18.8 per cent compared to the previous financial year. The Law Enforcement Programme has a budget of R138.6 million, which is a nominal increase of 2.7 per cent compared to the R134.9 million budget of the previous financial year. The Communication and Training Programme has a budget of R42.2 million in 2023/24, which is a nominal decrease of 2.6 per cent. The Registration Programme’s budget increased from R23.7 million in 2022/23 to R25.2 million in 2023/24, which is a nominal increase of 6.0 per cent.

 

Proportionally, the budget is allocated as follows:

·        Administration: 54.46 per cent of the total budget

·        Law Enforcement: 30.63 per cent of the total budget

·        Communication and Training: 9.33 per cent of the total budget

·        Registration: 5.57 per cent of the total budget

 

5.1.   Programme 1: Administration

 

In 2023/24, the Administration Programme has a budget of R246.5 million, which is a significant nominal increase of 18.9 per cent. Considering inflation, the budget increased by 13.3 per cent.

 

The following budget changes in operational expenditure should be noted:

·        Personnel expenditure is expected to decrease from R96.7 million to R95.0 million, which is a nominal decrease of 1.7 per cent.

·        Administrative expenditure is expected to increase from R73.7 million to R83.1 million, which is a nominal increase of 12.7 per cent.

·        Expenditure on repairs and maintenance is expected to increase substantially from R1.3 million to R2.9 million, which is a nominal increase of 119.6 per cent.

·        Expenditure on travel and subsistence is expected to increase from R4.0 million to R4.6 million, which is a nominal increase of 12.47 per cent.

·        Expenditure on lease payments is expected to increase from R17.9 million to R19.9 million, which is a nominal increase of 10.97 per cent.

·        Expenditure on consultancy and professional fees is expected to increase from R31.4 million to R40.9 million, which is a substantial nominal increase of 30.16 per cent.   

 

Table 3: Operating expenditure for 2023/24 - Administration Programme

Programme	Budget		Nominal Increase/ Decrease in 2023/24	Real Increase/ Decrease in 2023/24	Nominal Percent change in 2023/24	Real Percent change in 2023/24
R million	2022/23	2023/24
Personnel Expenditure	96 766,0	95 052,0	- 1 714,0	- 6 154,0	-1,77 per cent	-6,36 per cent
Administrative Expenditure	73 749,0	83 118,0	9 369,0	5 486,5	12,70 per cent	7,44 per cent
Repairs and Maintenance	1 321,0	2 901,0	1 580,0	1 444,5	119,61 per cent	109,35 per cent
Travel and Subsistence	4 097,0	4 608,0	511,0	295,8	12,47 per cent	7,22 per cent
Lease Payments	17 974,0	19 945,0	1 971,0	1 039,3	10,97 per cent	5,78 per cent
Consultancy and Professional Fees	31 452,0	40 937,0	9 485,0	7 572,8	30,16 per cent	24,08 per cent
TOTAL	207 385,0	246 561,0	39 176,0	27 658,9	18,9 per cent	13,34 per cent

Source: PSIRA 2023/24 APP

 

5.2.   Programme 2: Law Enforcement

 

In 2023/24, the budget for the Law Enforcement Programme increased from R134.9 million in 2022/23 to R138.6 million, which is a nominal increase of 2.8 per cent.

 

Table 4: Operating Expenditure for 2023/24 - Law Enforcement Programme

Programme	Budget		Nominal Increase/ Decrease in 2023/24	Real Increase/ Decrease in 2023/24	Nominal Percent change in 2023/24	Real Percent change in 2023/24
R’000	2022/23	2023/24
Personnel Expenditure	90 269,0	98 496,0	8 227,0	3 626,1	9,11 per cent	4,02 per cent
Administrative Expenditure	22 797,0	20 651,0	- 2 146,0	- 3 110,6	-9,41 per cent	-13,64 per cent
Repairs and Maintenance	292,0	218,0	-  74,0	-  84,2	-25,34 per cent	-28,83 per cent
Travel and Subsistence	7 520,0	7 186,0	-  334,0	-  669,7	-4,44 per cent	-8,91 per cent
Lease Payments	14 050,0	12 107,0	- 1 943,0	- 2 508,5	-13,83 per cent	-17,85 per cent
Consultancy and Professional Fees	26,0	26,0	0,0	-  1,2	0,00 per cent	-4,67 per cent
TOTAL	134 954,0	138 684,0	3 730,0	- 2 748,1	2,8 per cent	-2,04 per cent

Source: PSIRA 2023/24 APP

 

 

 

The following budget changes in operational expenditure should be noted:

·        Personnel expenditure is expected to increase from R90.2 million to R98.4 million, which is a nominal increase of 9.1 per cent.

·        Administrative expenditure is expected to decrease from R22.7 million to R20.6 million, which is a nominal decrease of 9.4 per cent. Considering inflation, the decrease is 13.6 per cent.

·        Expenditure on repairs and maintenance is expected to decrease from R292 000 to R218 000, which is a nominal decrease of 25.3 per cent.

·        Expenditure on travel and subsistence is expected to decrease from R7.5 million to R7.1 million, which is a nominal decrease of 4.4 per cent.

·        Expenditure on lease payments is expected to decrease from R14.0 million to R12.1 million, which is a nominal decrease of 13.8 per cent.

·        Expenditure on consultancy and professional fees is expected to remain unchanged at R26 000.00. 

 

5.3.   Programme 3: Training and Communications

 

In 2023/24, the budget allocation for the Training and Communications Programme decreased from R43.4 million in 2022/23 to R42.2 million, which is a nominal decrease of 2.7 per cent.

 

Table 5: Operating expenditure for 2023/24 - Training and Communications Programme

Programme	Budget		Nominal Increase/ Decrease in 2023/24	Real Increase/ Decrease in 2023/24	Nominal Percent change in 2023/24	Real Percent change in 2023/24
R million	2022/23	2023/24
Personnel Expenditure	16 402,0	19 209,0	2 807,0	1 909,7	17,11 per cent	11,64 per cent
Administrative Expenditure	19 759,0	17 040,0	- 2 719,0	- 3 515,0	-13,76 per cent	-17,79 per cent
Repairs and Maintenance	2,0	2,0	0,0	-  0,1	0,00 per cent	-4,67 per cent
Travel and Subsistence	1 686,0	872,0	-  814,0	-  854,7	-48,28 per cent	-50,70 per cent
Lease Payments	0,0	0,0	0,0	0,0	-	-
Consultancy and Professional Fees	5 570,0	5 137,0	-  433,0	-  673,0	-7,77 per cent	-12,08 per cent
TOTAL	43 419,0	42 260,0	- 1 159,0	- 3 133,0	-2,7 per cent	-7,22 per cent

Source: PSIRA 2023/24 APP

 

The following budget changes in operational expenditure should be noted:

·        Personnel expenditure is expected to increase from R16.4 million to R19.2 million, which is a nominal increase of 17.1 per cent.

·        Administrative expenditure is expected to decrease from R19.7 million to R17.0 million, which is a nominal decrease of 13.7 per cent.

·        Expenditure on repairs and maintenance is expected to remain unchanged at R2 000.00.

·        Expenditure on travel and subsistence is expected to decrease substantially from R1.6 million to R872 000 million, which is a nominal decrease of 48.2 per cent.

·        Expenditure on consultancy and professional fees is expected to decrease from R5.5 million to R5.1 million, which is a nominal decrease of 7.7 per cent.

 

5.4.   Programme 4: Registration

 

In 2023/24, the Registration Programme received a budget allocation of R25.2 million, which is a nominal increase of 6.0 per cent compared to the previous financial year.

 

The following budget changes in operational expenditure should be noted:

·        Repairs and Maintenance is expected to increase from R6.8 million to R7.5 million, which is a nominal increase of 10.3 per cent.

·        Expenditure on travel and subsistence is expected to increase from R16.4 million to R17.1 million, which is a nominal increase of 4.2 per cent.

·        Expenditure on consultancy and professional fees is expected to increase from R536 000.00 to R558 000.00, which is a nominal increase of 4.1 per cent.

 

Table 6: Operating expenditure for 2023/24 – Registration Programme

Programme	Budget		Nominal Increase/ Decrease in 2023/24	Real Increase/ Decrease in 2023/24	Nominal Percent change in 2023/24	Real Percent change in 2023/24
R million	2022/23	2023/24
Repairs and Maintenance	6 809,0	7 516,0	707,0	355,9	10,38 per cent	5,23 per cent
Travel and Subsistence	16 437,0	17 134,0	697,0	-  103,3	4,24 per cent	-0,63 per cent
Consultancy and Professional Fees	536,0	558,0	22,0	-  4,1	4,10 per cent	-0,76 per cent
TOTAL	23 782,0	25 208,0	1 426,0	248,5	6,0 per cent	1,04 per cent

Source: PSIRA 2023/24 APP

 

 

6.      Performance indicators and targets

 

In 2023/24, the Authority has 24 performance indicators, of which some targets were increased/improved compared to the previous financial year.  

 

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 subprogrammes:

 

1)     Finance subprogramme: Provides financial management, support and reporting. Facilitation and coordination of internal audit and risk management.

2)     Corporate Services subprogramme: 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 subprogramme: Conducts research about private security to inform development of policy, regulations and standards.

 

In 2023/24, the Administration Programme has 11 performance indicators, of which most targets remained unchanged compared to the previous financial year.  

 

Table 7: Programme Performance Indicators and Targets: Administration Programme

Outputs	Performance Indicator	2022/23 Estimated performance	2023/24 Target
Subprogramme: Finance
Increased revenue collection	% Revenue collected	80% revenue collected on billed annual fees	80% revenue collected on billed annual fees Unchanged
Audit Action Plan (AGSA) and Internal Audit findings	Percentage implementation of the Audit Action Plan	100% implementation	100% implementation Unchanged
Statutory tabling and reporting	Percentage compliance with statutory reporting requirements	100% compliance	100% compliance Unchanged
Risk Management	Percentage implementation of the approved Strategic Risk Mitigation Plan	90% implementation	75% implementation Decreased
Subprogramme: Corporate Services
Business process digitised	% implementation of digital business strategy and implementation plan	60%	100% implementation Increased
Human Resources management and development	Percentage of the vacancy rate against the approved funded positions	Not more than 7%	Not more than 7% Unchanged
	Percentage of employee performance rating assessed at 3 and above as per Performance Management System	95% of assessed employees perform on rating of 3 and above	95% of assessed employees perform on rating of 3 and above Unchanged
Developed security sector regulations and standards	Number of security sector regulations and standards developed	1 draft regulation approved by Council	1 draft regulation approved by Council Unchanged
Subprogramme: Research and Development
Completed research reports, surveys and policy documents	Number of relevant research reports completed	5 research reports	Remained unchanged at 5 research reports Unchanged
	Number of completed surveys	4 surveys	Remained unchanged at 4 surveys Unchanged
Private Security Industry Charter and Transformation Index	Draft Transformation Charter and Transformation Index for the Private Security Industry submitted for approval	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 submitted approved. Baseline for Transformation Index completed.

PSIRA 2023/24 APP

 

6.2.   Programme 2: Law Enforcement  

 

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

·        Compliance and Enforcement subprogramme: Provides inspections and investigations to verify whether the industry complies with regulations and standards.

·        Prosecutions subprogramme: Prepares and presents evidence about improper conduct by the industry participants.

·        Operational management subprogramme: Provides regional capacity.

 

In 2023/24, the Programme has six performance indicators, of which the targets of most indicators improved compared to the previous financial year. In 2023/24, the performance indicator for the completion of industry compliance to self-assessments was removed.   

 

Table 8: Programme Performance Indicators and Targets: Law Enforcement Programme

Outputs	Performance Indicator	2022/23 Estimated Performance	2022/23 Target
Subprogramme: Compliance and Enforcement
Security businesses inspected	Number of security businesses inspected to enforce compliance with applicable legislation	5 325	5 650 Increased
	Percentage of registered active businesses completing industry compliance self-assessments Target removed	40%	-
Security officers inspected	Number of security officers inspected to enforce compliance with applicable legislation	27 930	30 640 Increased
Security businesses licenced for firearms inspected	Number of security businesses licensed to possess firearms inspected	1 725	1 800 Increased
Investigations finalised	% of complaints finalised against non-compliant Security Service Providers (SSPs)	90%	90% Unchanged
Subprogramme: Prosecutions
Security service provider cases prosecuted	% of cases of non-compliant Security Service Providers (SSPs) prosecuted per year	92%	92% Unchanged

PSIRA 2023/24 APP

 

6.3.   Programme 3: Training and Communications

 

The Training and Communications 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 has six performance indicators in 2023/24, of which most targets were improved compared to the previous financial year.

 

Table 9: Programme Performance Indicators and Targets: Training and Communication Programme

Outputs	Performance Indicator	2022/23 Estimated Performance	2023/24 Target
Sub programme: Training
Accredited training instructors	Number of accredited instructors audited	200 instructors	300 instructors Increased
Accredited courses	Number of new accredited courses developed	8 qualifications	10 qualifications Increased
External assessment	Percentage of learners completing online external assessments	20% of learners	30% of learners Increased
Sub programme: Marketing, Communications and Stakeholder relations
Cooperation agreement	Number of new co-operation agreements entered into with international industry regulatory bodies	1 new corporate agreement entered into	1 new corporate agreement entered into Unchanged
Marketing and communication	Number of external stakeholder awareness workshops conducted	70 stakeholder awareness workshops conducted	70 stakeholder awareness workshops conducted Unchanged
Marketing and communication	Number of external stakeholder awareness campaigns held	20 stakeholder awareness campaigns	25 stakeholder awareness campaigns Increased

Source: PSIRA 2023/24 APP

 

As a key weakness in the Authority’s 2023/24 SWOT analysis, the Authority identified the lack of regulations for industry training and outdated training standards, systems and processes and that the Authority has not been asserting its role as the statutory body responsible for setting the standards for industry training, resulting in others doing training without reference to the regulations set. This causes credibility problems for the Authority and hampers its goals in professionalising the industry.

                                                                                                           

Furthermore, the Authority identified a need for focus on sector training and stated some challenges in this regard including:

·        Failure to appoint service providers for the review of specialised courses and development due to non-response of the market to procurement requests;

·        A lack of conclusion on engagements with Technical and Vocational Education and Training (TVET) colleges and that these engagements must be finalised to ensure the establishment of assessment centres for completed training;

·        Adherence to compliance and the monitoring of security training providers should be centralised;

·        There is a need to collaborate with Quality Councils (QCs) to address compliance requirements within the industry training landscape;

·        The professionalisation of specific occupations and the creation of designations in the industry should be considered through applicable legislation and policies;

·        Security training (locally and internationally) should be promoted; and

·        The Authority must provide the relevant IT infrastructure to enable e-learning systems.

 

6.4.   Programme 4: Registration

 

In 2023/24, the Registration Programme has a new set of three performance indicators. The Programme had two indicators in the previous financial year, which have been removed in 2023. These are:

·        Average turnaround time of applications for registration meeting all the requirements for security businesses (working days)

·        Average turnaround time of applications for registration meeting all the requirements for security officers (working days)

 

Table 10: Programme Performance Indicators and Targets: Registration Programme

Outputs	Performance Indicator	2022/23 Estimated Performance	2023/24 Target
Registrations	Average turnaround time for implementing registration committee resolutions for individual applications with an illicit activity	New indicator	7 days
	Number of active registered security businesses on the database reviewed.	New indicator	1 500
	Number of active registered security officers on the database reviewed.	New indicator	29    000

Source: PSIRA 2023/24 APP

 

7.      Committee Observations

 

The Committee made the following observation during the 2023/24 PSIRA budget and APP hearing:

 

Private Security Industry Regulation Amendment Act: The Committee observed that there was no reference made to the Private Security Industry Regulation Amendment Act, 2014 (Act No 18 of 2014) which was assented to by the President of the Republic of South Africa in 2021. The Committee sought clarity on the aforementioned Act. The Authority stated that even though the Amendment Act was assented to by the President, it has not been promulgated and as a result, the Act is not yet in operation. The Committee asked the Authority to explain why the Act has not been promulgated and to indicate when the Act will be promulgated. The Committee noted that in the Amendment Act there is an indication that key cutters are to be considered as locksmith, while locksmith is to be considered as the security business. The Authority should explain how it will ensure that locksmiths are registered and comply with the regulations like any other security businesses. The Committee pointed out that the Authority should prepare in advance in order ensure that all the security businesses are treated equally. The Authority explained that once the Act is promulgated, it will ensure that key cutters are inspected, and it will also design a specific template that will focus on key cutters.

 

Removal of performance indicator: The Committee welcomed the overall improvement on the set targets in the Law Enforcement Programme for 2023/24. The Committee asked the Authority to explain why the performance indicator for self-assessments was removed for 2023/24. The Authority explained that the self- assessments has been moved to the Annual Operation Plan (AOP).

 

Gender equality: The Community requested the Authority to indicate how gender equality is promoted in the private security industry across the country. The Committee noted with concerned that the male security guards are dominating in the industry compared to the female guards. The Authority should explain how is it going to address the issue of gender equality. The Authority noted that it is actively involved when it comes to gender equality and it has the statistics of the female and the male officers who are in the industry. The Authority mentioned that there was an issue that came out strongly during engagements in that female officers need to be empowered. The Authority is finalising the Transformation Charter to address these concerns, and it will also be embarking on the awareness campaigns to ensure that the female citizens are taking up the jobs that are available in the private security industry.

 

Basic conditions of employment: The Committee requested the Authority to indicate what steps have been taken to address non-compliance of security service providers (businesses) with the provisions of the basic conditions of employment. The Committee stated that there is a perception that security guards are being exploited by the companies when it comes to payment of salaries. The Authority said that it is taking steps against companies that are not complying with the Labour Relations Act, particularly on wages and recommended that the bargaining council should intervene to address these cases.

 

Deregistered businesses: The Committee requested the Authority to indicate the manner in which the monitoring of deregistered companies is done and what steps are taken to ensure that they do not operate within the industry. The Authority responded that it is constantly monitoring if deregistered companies are not clandestinely operating, and the Authority does not issue letters of good standing to companies that are deregistered.  The Authority stated that its database is running in real-time, meaning that members of the public are able to gain access to their database across the country to check if the company is registered or deregistered any at time.  The Authority responds to public complaints that it is receiving regarding companies that are offering services while deregistered. The Authority informs their clients in writing about companies that are deregistered in order for them to discontinue the employment of a particular company. The Authority said that in other cases companies would come forward to appeal on their decisions but if the matter is beyond their control, they will wait for the processes to be concluded before they can allow them to trade.

 

Firearms: The Committee wanted to know how the Authority monitors firearms that are in possession of deregistered companies, as well as security guards, to ensure that those firearms are not utilised illegal by the people who are no longer working in the industry.  The Authority stated that it is conducting inspections of companies that are in possession of licensed firearms, as well as the manner in which firearms are being utilised. The Authority explained that when it discovers that a companies have been deregistered but are still licensed to possess firearms, those cases are reported on a monthly basis to the South African Police Service (SAPS), particularly the Central Firearm Registry (CFR). The Authority mentioned that it is currently setting up a Law Enforcement Firearm Unit within the organisation and it is being capacitated through training and skills development. The purpose of this Unit is to specifically inspect and monitor deregistered companies.

 

The Committee questioned the manner in which the dysfunctionality of the CFR is affecting the Authority’s ability to inspect firearm licenses and usage. The Authority stated that it is having a challenge to access the database of firearms from the CFR.  The Authority has drafted the regulations on firearm possession and use in the industry, and have consulted for the republication of the regulations. The Authority highlighted that it will develop an electronic system that will be dealing with the management of firearms adequately to address all the issues, during the 2023/24 financial year.

 

Review of database: The Committee wanted to know the number of security service providers that are outside the institution (not registered). The Authority stated that it is cleaning its database to ensure that registered individuals are active in the industry. It also verifies what type of services the security officers are offering.

 

Investigation on the Komatipoort protest case: The Committee requested feedback on the steps taken against private security companies that were involved in the shooting incident that took place during a protest in Komatipoort (Mpumalanga province). The Committee further requested progress on the investigations, especially those involving murder. The Authority responded that there is a preliminary report regarding one of the companies that was involved in the shooting in Mpumalanga. The Authority stated that the matter was referred to the Regulatory Committee resulting in the suspension of a company. The company’s attorney wrote to the Authority making representations for the company to continue to trade but their representation was declined. The municipality wrote to the Authority seeking advice in terms of what it should do in this instance. The Authority explained that when there is an appeal it is essential to refer the appeal to the Minister of Police who will appoint an independent person. It is then that the Authority will have an opportunity to respond to (and defend) its decision to suspend the company. The Authority is considering approaching the court to prevent the companies from trading whilst waiting for the outcome on the appeal.

 

8.      Committee recommendations

 

The Portfolio Committee recommends the following:

 

1)     The Committee recommends that the Authority should fast-track engagements with the Minister of Police and the Presidency to promulgate the Private Security Industry Regulation Amendment Act, 2014 (Act No 18 of 2014), so that the provisions in the Act can become operational.

 

2)     The Committee recommends that the Authority should enforce the compliance of locksmiths to regulations and ensure that the security businesses are treated equally.

 

3)     The Committee recommends that the Authority should offer the same opportunities for both male and female officers to ensure that gender equality is balanced within the industry.

 

4)     The Committee recommends that the Authority should intensify its efforts to monitor compliance by private security businesses to the Basic Conditions of Employment in order to prevent the exploitation of private security guards.

 

5)     The Committee recommends that the Authority should constantly monitor deregistered companies to prohibit them from operating illegally in the industry.

6)     The Committee recommends that the Authority should monitor the usage of illegal firearms by deregistered companies, as well as the affected security guards.

 

7)     The Committee recommends that the Authority should continuously monitor its database to ensure that it is accurate and remove security officers who are no longer active in the industry.

 

9.      Conclusion

 

The Committee welcomed the Authority’s report and expressed appreciation for its continuous outstanding performance. The Committee encouraged the Authority to continue to uphold high standard and performance to effectively regulate the private security industry in South Africa and root out all unscrupulous companies from operating in this environment.

 

The Democratic Alliance (DA) and Economic Freedom Fighters (EFF) reserve their rights.

 

Report to be considered.