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Estimate costs Private Security Industry Regulation Bill,2012 7 November 2012. Tittle Goes here…. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012. Introduction

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  1. Estimate costs Private Security Industry Regulation Bill,2012 7 November 2012 Tittle Goes here…

  2. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Introduction The cost estimation tabled in Parliament on 30 October 2012 with respect to the implementation of the Amendment Bill, took into account the following factors: • Renewal of registrations post implementation of the Bill, in order to give effect to section 9 and 11 (limitation of foreign ownership and control); • Capacity building in the law enforcement and compliance functions; • National footprint, by establishing provincial offices in North West, Free State and Northern Cape; • Design and implementation of an ERP software to support, operations, revenue management, decision making and reporting; • Capital expenditure estimates with respect to procurement of business tools for the law enforcement and compliance unit, such as a fleet of vehicles used by inspectors in operations;

  3. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 • Clauses 9 and 11 of the Bill deal with limitation of ownership and control by non- citizens of South Africa. • Post implementation of the Bill, there will be a need to renew registrations of both security officers and security service providers (businesses). • Section 22 of the principal Act provides as follows: • “The Minister may prescribe procedures and principles in respect of periodic applications for the renewal of registrations by registered security service providers and the conditions and requirements for the granting of such applications”. • To this end, capacity building, capital expenditure, national foot print of the Authority flows from implementation of clauses 9 and 11

  4. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Baseline expenditure and revenue (R’000)

  5. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Estimated costs of Bill Implementation (R’000)

  6. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Estimated costs of Bill Implementation (R’000)

  7. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Consolidated budget incl. Bill (R’000)

  8. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Baseline revenue

  9. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Implementation approach and plan • As at October 2012, the PSIRA database had 2 112 636 registered security officers and 27 450 security businesses. • Due to the large number of renewals that will be undertaken, the process is envisaged to take 24 months, from the date the Bill is put into operation. • There are two approaches that can be adopted. i.e. registration will lapse on the month of birth of the security officer, or the month which the security officer’s registration was so registered prior to the Bill implementation. • The above approach will ensure that there is proper scheduling of renewals and avoid influx of renewals.

  10. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Benefits for renewal process • Currently, security service providers are not classified and categorized in terms of section 2(1)(d)(i) of the Private Security Industry Levies Act, 23 of 2002 which provides as follows: Council may determine the amount of levies for different categories or classes of security service providers by having regard to th training level, position, functions or other classifications • The renewal process will be an opportunity to classify security service providers to give effect to categorization and classification • Improve operational efficiencies with respect to monitoring and control of criminality in the industry

  11. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Resources required for renewal project • Capacity building in the law enforcement and compliance functions; • National footprint, by establishing provincial offices in North West, Free State and Northern Cape; • Design and implementation of an ERP software to support, operations, revenue management, decision making and reporting; • Capital expenditure estimates with respect to procurement of business tools for the law enforcement and compliance unit, such as a fleet of vehicles used by inspectors;

  12. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Renewals project plan

  13. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Renewals project assumptions • 50% of the total Security officers and businesses on the registrations database will respond to the renewal process. • The total number of renewals for security officers is estimated to be 1 056 318 • The total number of renewals for security businesses is estimated to be 13 725

  14. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Renewals project estimated costs (R)

  15. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Renewals project estimated costs

  16. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Capacity building • Lack of capacity mainly on human capital has been a deterrent to the Authority’s effectiveness to regulate the private security industry. • Lack of capacity is best illustrated by the ratio of inspectors to security service providers that are actively operating in the industry. • The following table depicts number of inspector geographically, relative to the number of security service providers in a particular province.

  17. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012

  18. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Capacity building • Firstly statistics show that on average for each inspector currently employed by the Authority, there are 233 security businesses • Secondly, for each inspector currently employed, there are 10 413 security officers in the industry • The consequence of such a large ratio, is that very few businesses are inspected annually, which increases the risk of non-compliance, exploitation of labour, and criminality in the industry. • Lack of visibility by the law enforcement division also has an impact on revenue collection, since some businesses misrepresent their payroll numbers in order not to pay the appropriate annual fees to the Authority • Without the capacity proposed, the Authority cannot implement sections 9 and 11 of the Bill

  19. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Proposed additional inspectors and prosecutors

  20. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Cost of compensation per programme

  21. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Cost of compensation per programme

  22. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Cost of compensation per programme

  23. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Cost of compensation per programme

  24. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 National foot print • Additional provincial offices in North West, Free State and Northern Cape are proposed to be established. • Furthermore, Limpopo and Mpumalanga provinces which currently have walk in centres are proposed to be capacitated in order to provide a fully fledged service which includes the law enforcement functions.

  25. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Estimated costs of National foot print (R’000)

  26. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 Capital expenditure (Rand)

  27. PRIVATE SECURITY INDUSTRY REGULATORY BILL 2012 ERP software development (Rand)

  28. THANK YOU Tittle Goes here…

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