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PSIRA TURNAROUND STRATEGIES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY

This presentation outlines the turnaround strategies implemented by the Private Security Industry Regulatory Authority (PSIRA) to address concerns such as non-payment of fees, deregistration of dormant service providers, illegal operators, and vetting of applicants in the private security industry.

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PSIRA TURNAROUND STRATEGIES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY

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  1. PSIRA TURNAROUND STRATEGIESPRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY PRESENTATION TO THE PORTFOLIO COMMITTEE ON POLICE 03 MARCH 2011

  2. PSIRA TURNAROUND STRATEGIES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY REPRESENTATIVES

  3. PSIRA TURNAROUND STRATEGIES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY OVERVIEW • Introduction by the Chairperson of Council • Last Briefing – 02 November 2010 • Interim Turnaround Initiatives • PSIRA Overhaul Strategy • Conclusion

  4. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY The Honorable Members of the Portfolio Committee on Police raised amongst others, the following concerns at the last briefing: • Non payment of fees by debtors • Deregistration of dormant service providers • Illegal operators and fire-arms in the industry • Vetting of applicant service providers for criminal records

  5. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Funding and Debt Management In order to address funding and debt management, we introduced the following changes: • We decentralized debt collection to provinces and focused on customer relations management • We introduced segregation of duties between billing, collections and updates • We relocated “Letters of good standing” from legal to finance • Introduced Agreements for Debt arrangement (payable over 3 months) • Implemented termination of services for non paying providers • Presented a Discussion Paper to National Treasury which proposes a practice note on Awarding of Security Service Contract in the Public Sector

  6. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Funding and Debt Management • Aligned procurement processes to PPPFA and PFMA • Appointed a reconciliation team to achieve the following objectives: • Address credit balances • Billing errors • Analyzing and recommending debtors for writing off • Clearance and allocation of unknown deposits • Since our interventions we achieved the following objectives: • We introduced training fees to recover disbursements (R 650 000 in 3 weeks / R24 million per annum) • On 1 February 2011, increased other services fees not reviewed for the past 9 years • Introduced finger prints fee to recover costs [savings of R 9 million per annum] • Reversed R 16 million in VAT contingent liability

  7. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Dormant Service Providers • Our strategy is to review the legal status of all providers on our data base in the following manner: • We appointed a data analyst to unpack our data • We rolled out access to forensic tools to all our debtors, legal and Senior inspectors • We reviewed the legal principles on suspensions and deregistration i.e. PAJA • Inspectors to conduct physical verifications of addresses prior to actions • We established a full time Regulatory Advisory Sub-committee of EXCO to consider the following • Suspensions of service providers in arrears • Applications for voluntary suspensions • Deregistration of dormant and untraceable service providers • Deregistration of voluntary liquidations • Confirmations of improper conduct findings

  8. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Dormant Service Providers(database cleaning) • Since our last briefing we achieved the following objectives: • We introduced new requirements for applications by foreigner nationals to prevent identity fraud e.g. Green bar-coded ID instead of hand written certificate of permanent residence issued by DHA • All foreigner application are subject to approval by the registration sub-committee based on policy guidelines • We introduced motivations for the discretionary powers of the Authority for applications not meeting requirements • We stopped capturing of incomplete business applications to reduce the numbers of applications received without progress • We stopped the multiple reissuance of lost registration certificates to prevent fraud • We stopped receiving applications with no training linked to PSIRA to prevent fraud • We do monthly analysis of registration data to identify risk patterns

  9. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Dormant Service Providers(database cleaning) • Since our last briefing we achieved the following objectives: • The process of deregistration takes 3 months due to PAJA principles • Suspended 212 service providers for non payment of levies • Deregistered 43 service providers (businesses) for non payment of levies • Deregistered 10 individual security officers following convictions on scheduled offences • Deregistered 10 individual security officers for submission of false information • Confirmed 88 findings of improper conduct against service providers • The backlog of 1393 business applications was addressed s follows: • Rejected 801 business applications for not meeting the required legal standards for registration(on going) • 592 business applications are under consideration

  10. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Fire–arms and illegal Operators • Our strategies in dealing with illegal operators are as follows: • We analyzed the data on the PSIRA master file to identify cases of identity fraud • Partnered with South African Police to tackle fire-arms and illegal operations(planned Blitz on going) • Crime Intelligence • Central Fire-arm registry • We conducted blitz on various places(on going) including Shopping Malls • Most of our interventions were intelligence driven • We established a dedicated team of investigators to identity fraud

  11. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Fire–arms and illegal Operators • Since our last briefing we achieved the following objectives: • We conducted 31 operations around the country • We arrested 78 illegal operators • We arrested 13 service providers for fire-arm related contraventions • We participated in the seizure of 244 fire-arms by SAPS • We participated in the seizure of 1474 ammunition • We identified 742 cases of possible identity fraud by foreign nationals for investigations

  12. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY

  13. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY

  14. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Criminality in the industry Our strategies in dealing with criminals are amongst others the following: • We reviewed legal requirements of registration because they were misinterpreted by staff • We identified registration process as the source of criminals in industry • We are motivating for promulgation of renewal of registration regulations • We introduced guidelines for considerations of applications for registrations • We established a Registration Subcommittee of EXCO to assess and consider the following applications: • Applicants with pending criminals cases for scheduled offences • Applicants who are being prosecuted for scheduled offences • Applicants with scheduled convictions over 10 years • Applicants with scheduled convictions under 10 years • Applicants for business registrations • Applications by foreign nationals

  15. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Criminality in the industry Since our last briefing we achieved the following objectives : • We suspended 197 security officers found guilty of scheduled offences after registration with PSIRA • We rejected 759 applications of persons with records of scheduled offences • We identified 933 applications with pending scheduled offences for rejections • We identified 577 who were registered prior 2010, for reclassification • We currently have 1 case in the Eastern Cape High Court against PSIRA by a rejected applicant with a scheduled criminal conviction • We are currently drafting a registration policy to address legal ambiguities

  16. INTERIM TURNAROUND INITIATIVES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Tariff increase • We reviewed the tariff structure for services offered by the Authority for the past 9 years • Introduced a fee to recover finger print disbursements

  17. INTERIM TURNAROUND INITIATIVES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY New tariff introduced • As part of its mandate, the PSIRA processed course reports on behalf of training institutions such that security officer can be registered in terms of the PSIR Act. • We introduced a tariff for processing of course reports • Cover for costs of labour • Maintenance of IT infrastructure which is highly pressured by volumes of data processed monthly • Recover the costs of maintenance paid to service providers

  18. INTERIM TURNAROUND INITIATIVES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Re-prioritized Regulatory Inspections • There was only one prosecutor since June 2010 and no cases that were placed on the roll • During November 2010 we had a baglog 3411 dockets • We beefed legal services with 4 more prosecutors to handle the cases of improper conduct • We fast tracked finalization of cases by considering speedy settlement of providers pleading guilty Since our last briefing we intervened and achieved the following • We issued 653 new charge sheets • We summoned 549 service providers for code of conduct hearings • We finalized 408 code of conduct dockets • We settled 114 matters of providers who pleaded guilty • We recorded R 1,023,400 in settlements • We collected R 512,833 cash since November on settlements(Excludes other fines)

  19. INTERIM TURNAROUND INITIATIVES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Robust debt collection •  Collection agent • A debt collection agency has been appointed to collect outstanding debt. • The target per month is R1 million. This target will be monitored with a view to increase their performance so as to stabilize the liquidity of PSIRA.

  20. INTERIM TURNAROUND INITIATIVES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Robust debt collection (contin..) Segmental debt collection The current arrangement of debt collection at the PSIRA was fragmented for the following reasons: • There is no synergy between the inspectorate and the finance division • Debtors personnel were allocated accounts alphabetically • Debt collections not linked to regions • Lack of reporting system reporting capabilities •  Management has taken a decision to allocate debtors accounts on a regional basis, including regional inspectors. The aim of this intervention was to create synergy between the inspectorate with the finance division.   • As part of the intervention, a new reporting tool (Clickview) has been acquired to facilitate reporting of debtor performance.

  21. INTERIM TURNAROUND INITIATIVES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY General cost cutting initiatives • The above initiatives were directed towards increasing revenue in the long term. However, majority of the costs are structural in nature which leaves little room to reduce costs. • For instance the salary bill on its own is 56% of the income of the PSIRA. General expenditure items that were earmarked are outlined below: •  Office expenditure • Electricity • Telephone costs • Water supplies and rental of machines • Security costs • Courier services • Electricity costs • Accommodation

  22. INTERIM TURNAROUND INITIATIVES PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Dealing with Corruption and Dishonesty Since our last briefing we dealt with the following disciplines matters: • We issued 3 final written warnings • We suspended 5 employees on allegations of corruptions • We dismissed 5 employees for misconduct related to dishonesty • We have four 4 pending investigations of allegations of dishonesty

  23. LAST BRIEFING PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY

  24. TURNAROUND STRATEGIC PRIORITIES (3 YEAR) PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY • In order to achieve a complete overhaul of PSIRA we identified the following key strategic priorities: • Industry Stewardship (Knowledge and Advocacy) • Stakeholder and Customer Relationship Management • Financial Management and Funding • Excellent Service Delivery (Effective Regulation) • Efficient and Effective Processes and Systems • Effective Organisational Structures with Skilled, Competent and Motivated Workforce • Enabling Environment (Organisational Culture) • The 2012 – 2014 Strategic Plan has been considered and recommended to the Minister of Police for approval

  25. CONCLUDING REMARKS PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY • We are confident that our current strategy will effectively regulate the Private Security Industry; • We continue to build on the successes of the Interim Turnaround Strategy • PSIRA funding model needs to be finalised

  26. INTERIM TURNAROUND INITIATIVES THANK YOU

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