Guarding the guardians:

New regulations for the Private Security Industry

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Published in Nedbank ISS Crime Index
Volume 4 2000
Number 3, May - June

The South African private security industry has grown rapidly over the past decade. Security officers outnumber uniformed police officers by more than two to one. The industry’s annual turnover is fast approaching the police’s annual national budget. A new regulatory framework to govern the industry is to be tabled in parliament later this year.

Growth in private security

The fear of crime, the limited and often inadequate services offered by the South African Police Service (SAPS), and the demand for specialised security services have contributed to the tremendous growth of the private security industry in South Africa.

Between September 1997 and March 2000 the number of active security officers registered with the Security Officers’ Interim Board increased by 44% from 115000 to 166000 (Figure 1). Most of the security officers are registered in Gauteng (54%), followed by KwaZulu-Natal (16%), Western Cape (11%), Eastern Cape (6%), and Mpumalanga (5%).

It is estimated that there are an additional 50000 in-house security officers in South Africa. Compared to the 216000 security officers there are approximately 90000 uniformed police officers employed by the SAPS.

Between September 1997 and March 2000 the number of active registered security businesses increased by 11% from 4499 to 4980. The relatively slow growth in the number of security businesses can be attributed to the increasing consolidation which is taking place within the industry. Some 38% of the security businesses are registered in Gauteng, followed by KwaZulu-Natal (17%), and the Western Cape (14%).

Most of the registered security businesses are small. In February 2000 over half or 2 734 companies employed fewer than six people. A further 32% employed between six and 50 people. Only 14 companies employed more than 1 000 people (Figure 2).

Over the last decade the growth in the turnover of the private security sector has been substantial. The industry’s turnover was estimated at R1.2 billion in 1990. This increased to approximately R11billion in 1999 (Figure 3). By contrast the 2000/2001 national budget for the SAPS is R15.5 billion.

Regulating the industry

In South Africa legislation, regulations, and training specifications exercise control over large parts of the private security industry and its employees. The Security Officers’ Act of 1987, as amended, created a statutory body, the Security Officers’ Board, to exercise control over the occupation of security officer. The Act provides for compulsory registration with the board of all contract security officers. Exempt are security officers providing in-house security — that is, security services rendered by an employee on behalf of his employer.

The Act empowers the board to "take such steps as are necessary to maintain standards and regulate practices" for security officers, and to "take such steps as it may deem expedient or necessary in connection with the training of security officers".

The Act lays down grounds for disqualification from registration. These include:

that the applicant is of unsound mind;



that the applicant has been found guilty of improper conduct; and



that the applicant has committed one of a number of offences specified by the Act (these include most common law offences involving violence and dishonesty).

In 1992 regulations were promulgated regarding the training of security officers. The training regulations give the board the power to determine different training levels for different categories of security officers. Courses are presented by training establishments accredited with, and subject to inspection by, the board. No private security firm may require of an employee who is a security officer to render a security service, unless the employee is in possession of a training certificate issued by the board.

The Security Officers’ Amendment Act of 1997 replaced the board with the Security Officers’ Interim Board. The interim board continues with the work and duties of its predecessor. It also has the function of advising the minister for safety and security on the constitution of a new permanent board, and the enhancement of its representative character regarding the security services industry and the community.

The duties of the interim board are specifically to protect the public interest: "The object of the board shall be to exercise control over the occupation of security officer, to maintain, promote and protect the status of the occupation, and to ensure that the industry acts in the public interest."

New regulatory framework

The interim board is engaged in a process of identifying policies and principles that should govern the future regulation of the private security industry.

The interim board’s point of departure is that proper regulation is necessary for the private security industry. Still to be decided are:

the scope of future regulation;



the nature of the regulatory body; and



the exact principles and methods to be used in regulating the industry in the future.

According to the interim board the legitimate object of regulating the security industry are:

the protection of the public interest and the interests of the state;



ensuring that a proper quality of service is rendered to consumers;



the protection of the rights of employee security officers;



the promotion and protection of the status of the occupation of security officers; and



the collection of accurate information on the occupation of security officers and the security industry in general.

The interim board proposes that the present scope of regulation be retained, but that, inter alia, the following categories of security services be covered in a future regulatory framework:

the rendering of an in-house security service;

private investigation and intelligence gathering;

advising on and monitoring signals from electronic security equipment; and

the activities of ‘bouncers’ and those involved in ‘car watch’ activities.

It is the interim board’s mandate to advise the minister for safety and security on a new regulatory framework for the private security industry. The minister must present legislation in respect of this regulatory framework to parliament by 15 August 2000. It is the difficult task of the interim board, the private security industry, its employees, other interested parties, and the minister to come up with a new regulatory framework which will be to the satisfaction of all.

Martin Schönteich
Institute for Security Studies