BARRY STREEK, Cape Town | Friday
THE British government is “very concerned” about the decision by the African National Congress majority in Parliament’s safety and security committee to ban foreign investment in South Africa’s private security industry, saying it contravenes the 1998 agreement between the two countries to promote trade and investment.
The proposed insertion of the clause into the Security Industry Regulation Bill was not discussed beforehand by Cabinet or the ANC’s parliamentary caucus. Nor was Minister of Finance Trevor Manuel consulted, although the clause was supported by the cluster of security ministers.
It has been learned that the security ministers were swayed by an investigation by the industry regulator, the Security Officers’ Board (SOB), into private security industries in other countries. However, the ANC proposal goes beyond the board’s recommendations.
The vice-chairperson of the SOB’s interim board, Hans Visser, says there are strict controls in many other countries along the lines of clause 22 of the Bill. This lays down that only South African citizens or permanent residents can be in the management of security companies. But, he added, the proposed ban on foreign investment in the industry went “a little further than we recommended”.
Nick Sheppard of the British High Commission says his government is concerned about the potential effect on wider – not merely British – foreign investment in South Africa. “We have been in touch with the four United Kingdom companies affected – Securicor, Group 4, Chubb and ADT – and from the reports we have seen are considering with the companies what action to take.
“It does seem to go against the United Kingdom South African Investment Promotion and Protection Agreement, signed in 1998,” says Sheppard.
The United States conglomerate Tyco invested R627-million in the security industry after being given assurances by the ANC that its investment was safe.
Within the industry and diplomatic circles it is hoped that wiser counsels will prevail, particularly after Manuel and Minister of Trade and Industry Alec Erwin, who are currently abroad, return to South Africa.
Questions are being asked about the potential impact on other security-related services, including telecommunications, water, electricity, transport and air travel.
John Sleep of the Security Services Employer Organisation says close to R3-billion recently came into the country in the form of foreign investment in the security industry. “How can this possibly be introduced when one of the economic priorities of the government is to attract foreign investment?” he asks.
Dick Aubin, chairperson of Gray Security, which is owned by the British-controlled Securicor, says the move is “absolutely ridiculous”. He says it does not matter whether shareholders come from Soweto or London, as long as the companies are professionally managed by South Africans.
Aubin says he does not understand the nature of the government’s security concerns. “As a South African I would be far more concerned about a right-wing or Pagad-related security firm, even if it was run by South Africans, than about a professional security company with foreign investors.”
He says Gray employs more than 10 000 people, but at the last count had only 483 firearms, which had to be registered twice a day.
It is understood that the stand by ANC members of the parliamentary committee followed a decision by the security cluster comprising Minister of Safety and Security Steve Tshwete, Minister of Defence Mosiuoa Lekota, Minister of Intelligence Lindiwe Sisulu and Minister of Justice and Constitutional Development Penuell Maduna – and Minister of Foreign Affairs Nkosazana Zuma that a private security industry under foreign control was a threat to national security.
“After all, the private security industry has more people power and more weapons than the police force,” one official told the Mail & Guardian.
Tshwete’s representative Andre Martin offers no explanation beyond saying that “the minister said there should be no foreign involvement in the private security industry”.
The position was endorsed by committee chairperson Mluleke George, who asked the government’s legal drafters to be unambiguous about excluding foreign involvement. He added, however, that there should be a transitional period, perhaps of two years, to allow South Africans to buy out the foreign interests.
Responding to Democratic Alliance calls for the ANC to reconsider its position, Qalas Kgauwe, speaking on behalf of the ANC study group, said there was “nothing to convince us” of a need to revisit the proposal.
Foreign companies will have to sell their companies to “white or black South Africans”.
The SOB’s Visser stresses the need for regulation of foreign involvement in the industry, arguing that South Africa cannot exercise control over foreigners. Foreign investors in the industry had bought into existing companies, and as such had not created new jobs.
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