S. African bill to constrain foreign private security companies sparks debate

The Private Security Industry Amendment Bill, introduced by the government in an attempt to constrain foreign ownership of private security companies, has sparked a heated debate in South Africa.

The opposition maintains that the bill, if implemented, would drive out foreign private security firms out of the country, thus dampening anti-crime efforts and worsening the already high unemployment.

"If private security firms leave, and they will if this bill is passed in its current form, thousands of security industry employees are certain to lose their jobs and there will be more demand on an already over-stretched SAPS (South African Police Service)," the opposition Democratic Alliance (DA) said on Friday.

"In the end it will be the communities with the highest rates of crime that will feel the brunt."

Under the bill, a security business may only be registered as a security service provider if at least 51 percent of the ownership and control is exercised by South African citizens.

The DA argues that the stipulation means that it is at the sole discretion of the Police Minister who "may prescribe a different percentage – it may be 60, 80, 90 or even 10 percent."

It is this discretionary clause that the DA has long taken issue with.

"This means that the Minister of Police can at any time decide on a whim to expropriate anywhere from 10 percent to 90 percent of a company of his choosing," the DA said.

In an address to the Private Security Services Conference at Wits University in Johannesburg on Thursday, Police Minister Nathi Nhleko came out in support of the bill which he said is constitutional in its current form, despite severe problems with the legislation.

Nhleko said the amendment was not discriminatory, but rather addressed potential security threats.

"We are aware that this industry increasingly gathers intelligence which sometimes can compromise national security.

"Some of these companies have strong links outside the country and it would really be unrealistic not to guard against these potential dangers," he said.

The bill has already been passed by parliament and the National Council of Provinces, and is before President Jacob Zuma to be signed into law.

The DA has petitioned the president not to sign it and instead send it back to parliament for revision.

In its Friday statement, the DA said Nhleko has absolutely no credibility on the constitutionality of anything.

DA Shadow Minister of Police Dianne Kohler Barnard urged Parliament to step in and correct the "job-killing and xenophobic" bill which may destroy an industry that employs thousands of South Africans across the country.

"Private security companies are essential in the fight against crime. Private security companies free up capacity for the South African Police Service to focus on areas where violent crime is at its highest, and in communities which cannot afford private security at all," said Barnard.

Nkleko has vowed to defend any legal challenge, be it at the international level or domestic level because "we believe that our premise is correct." Endi