Delinquency rampant in security companies
Innocent Selatlhwa | Monday May 29, 2023 06:00
Secretary for Security Services, Kago Ramokate has called on security service consumers to hold companies to account using the law, in addition to contracts they enter into with them.
He was speaking at a stakeholder’s seminar for local authorities to engage on matters relating to private security services. Ramokate said there are challenges faced by the industry especially the employees of security companies. “We note the prevalence of violations of the Private Security Services Act in this industry, leading to low compliance levels.
My ministry, through Compliance Inspection, has accumulated fines totaling P708 800.00 from a total of 102 registered companies in the last year. Such inspections will continue to be done randomly throughout the year to improve compliance and thus service delivery.
Therefore, security companies and procuring entities such as yourselves need to familiarise themselves with the law,” he said.
Ramokate was however, quick to point out other critical issues affecting security service providers which need to be resolved and those include: Late payment of security companies which affects their cash-flow; Award of tenders to companies that under charge or under-quote and are then unable to operate; Award of tenders to companies that pay employees below the minimum wage or approved rates as per the Employment Act; and General disregard for the contract signed by both parties.
“This is the reason for the convergence by all of us here today as players in the procurement and management of private security services in government. It is evident that Local Authorities are a major consumer of this service hence the need to engage you all. Often times companies complain of late or non-payment by the Councils, award of tenders to incompetent bidders, flawed invitation to tender documents and general disregard for contractual agreements. We therefore have representatives of the security Association of Botswana to shed further light on these matters,” he said. Ramokate noted that the challenges are not just one-sided on the part of local authorities.
He said they will therefore be hosting stakeholder’s seminars for security service providers, where issues from the side of consumers will be deliberated. He said there are issues of productivity and professionalism which they also need to address to ensure procuring entities get value for their money. “Ministry of Defence and Security is committed to professionalising this industry to become an effective contributor and player in the security infrastructure of Botswana. As our valued stakeholders, you are pivotal in achieving this goal. Remember we need a safe and secure environment for the private sector to flourish, but local authorities must support security service businesses.
The more vigilant the security sector, the more attractive our district will be to investors,” he said. PPRA warns against non-compliance For his part, Phenyo Victor, Contractor registration administrator at Public Procurement Regulatory Authority (PPRA) said not all contractors are aware of the new Private Security service Act and licensing requirements.
He also said they noted contractors apply for new security services categories without relevant licences causing a lot of back and forth in the registration process hence a need for more public education. “The authority has also noted some lapses in information sharing between them and licensing authorities. There is a need for more constant deliberate engagements through collaborations and MoU’s for all parties to be appraised on new developments,” he said. Victor further shared that the Authority continues to see incorrect use of PPRA registration codes by Procuring Entities where contractors are expected to attach or submit codes on PDF format.
“This is contrary to circular no 2 of 2017 which talks to online verification of registration codes. This is a big risk because contractors are tempted to submit fraudulent documents. In the end tenders are awarded to non-compliant contractors, bringing the procurement process into disrepute,” he lamented. Victor also said they had noted improper use of the price guide by procuring entities. “It was been noted that PE’s lump the rate into daily rate when preparing the BOQ. PE’s therefore find it difficult to evaluate reasonableness.
It also becomes difficult to manage the contract whenever there are some price adjustment during the course of the project, and improper budget preparation (10% adjustments),” he said. Security Companies blame gov't For his part, secretary-general of Security Association Botswana, Benny Dimakatso lamented that the Least Cost Method, the manner of awarding a tender to the lowest bidder by procuring entities should be abolished as it breeds failure in operations, payments of salaries and severance benefits by security companies.
“A rate of Security Guard is P7.37 and a bidder will quote P7.70 then be awarded a tender because of the Least Cost Method. 10 security officers for a month will be P27, 720 – P25, 000 salaries = P2, 720 – P7, 500 for relievers = (P4, 780),” he said, adding that the minimum rate recommended by PPRA on the price rate catalogue must be adhered to without fail.
Dimakatso also said they would like to see procuring entities employ qualified security personnel within the field of security and engage them in tendering processes. “The Security Private Act must also indicate or make it a requisite for all security companies to be vetted by a Security Association which is recognised by the Act. And all which are not registered with the recognised Association will not be in good standing for tendering purposes,” he said. Dimakatso further said they as the association would like for site visits not to be compulsory as a bidder is the one who does a risk assessment, and if they feel it is necessary, they will carry it out.
He said this brings unnecessary exorbitant costs to security companies. i.e.,a procuring entity requesting the deployment of one Security Guard in a post around different posts in the country wide. “ITT must be the same in all Government procuring entities not where the other requires security companies to have a certain amount in an account, but others doesn’t apply the same methodology and this affect or rejects newly established security companies,” he said.