1. PRESENTATION OF THE AUTHORITY’S ANNUAL REPORT TO THE PORTFOLIO COMMITTEE ON SAFETY & SECURITY 4 th NOVEMBER 2005 Private Security Industry Regulatory Authority 1

2. A. INTRODUCTION Private Security Industry Regulatory Authority 2

3. 3 (b)Management of the Authority 1.Mr Seth Mogapi – Director 2.Mr Ntusi Mbodla – Deputy Director: Legal Services 3.Mr Ryal Mahipath – Deputy Director: Finance & Administration 4.Ms Amanda Potgieter – Manager: Administration 5.Ms Thea Lensley – Accountant 6.Mr Mogodi Mosoane – Manager : Facilities Management (c)Regional Breakdown of StaffREGION NUMBER OF STAFF NATION INVESTIGATION TEAM – PRETORIA102 WESTERN CAPE11 KWAZULU-NATAL14 EASTERN CAPE8 MPUMULANGA1 LIMPOPO2 JOHANNESBURG15 TOTAL153

4. Private Security Industry Regulatory Authority 4 (d)Organization and Staff Compliment The Authority is divided into three divisions. The staff compliment for the period under review is 153. Staff Compliment Director1 Deputy Director: Legal Services1 Deputy Director: Finance & Administration1 Head of Division0 Executive Management – Personal Assistant1 Managers4 LEGAL SERVICES DIVISION Administration7 Prosecutors5 FINANCE & ADMINISTRATION DIVISION Administration32 Finance13 Information TechnologyOutsourced Facilities4 Human Resources1 Limpopo Satellite Office Administration2 Mpumulanga Satellite Office Administration1 Communication Administration0 Investigators Administration0

5. Private Security Industry Regulatory Authority 5 LAW ENFORCEMENT & TRAINING DIVISION Training Administration5 NIT – Pretoria Administration6 Inspectors20 Western Cape Branch Office Administration5 Inspectors5 Prosecutor1 Eastern Cape Branch Office Administration5 Manager/Inspector1 Inspector1 Prosecutor1 KwaZulu-Natal Branch Office Administration8 Inspectors5 Prosecutor1 Johannesburg Administration14 Inspector1 TOTAL153

6. B. OVERVIEW OF KEY ACTIVITIES Private Security Industry Regulatory Authority AND ACHIEVEMENTS 6

7. B. Overview of Key Activities and Achievements The following slides depict the key activities and achievements of the Authority during the period under review: (a)Law Enforcement & Training Division 1.Number of Inspections conducted per province 2.Type of Inspections conducted per province 3.Different categories of Security Service Providers Inspected per Province 4.Number of Inspections conducted at Small, Medium and Large Security Service Providers per Branch 5.Inspection performance of Provinces in relation to the Target Set 6.Number of Improper Conduct Investigation Dockets compiled per Branch 7.Increase in Regulatory Performance of the Law Enforcement Division 8.Number of Improper Conduct Dockets compiled at Small, Medium and Large Security Service Providers per Branch 9.Number of Improper Conduct Dockets pertaining to Minimum Wage contraventions per Branch 10.Number of Criminal Cases opened per Branch 11.Criminal Cases Finalized per Branch 12.Criminal Cases Pending per Branch 13.Firearm Application Enquiries 14.Charge Sheets and Summonses issued 15.Human Resources Component of the Law Enforcement & Training Division 7

8. Private Security Industry Regulatory Authority (b)Legal Services Division 1.Number of Improper Conduct Enquiries finalized per Branch 2.Statistics for the period 1 April 2004 – 31 March 2005 3.Tender Enquiry Statistics – 2004/2005 (c)Finance & Administration Division 1.Security Service Provider Registration Statistics (1997 – 2005) – Historical Comparison 2. Challenges presented by the Rapid Growth of the Private Security Industry Statistics as 31 March 2005 Registered Active Security Service Providers – Individuals per Province – March 2005 5. Registered Active Security Service Providers – Businesses per Province – March 2005 6. Total of Services rendered by Security Service Providers in different Categories 7. Listing of Top 20 Employers based on Number of Security Officers employed – March 2005 8. Balance Sheet as at 31 March 2005 9. Income & Expenditure Statement for the year ended 31 March 2005 8

9. B(a)LAW ENFORCEMENT DIVISION Private Security Industry Regulatory Authority 9

10. REGION NUMBER OF INSPECTIONS Head Office (NIT) 3,677 ● Gauteng ● Mpumalanga ● Limpopo ● North West Province ● Free State/Northern Cape 2,287 315 410 339 326 Western Cape 921 Eastern Cape 290 KwaZulu-Natal1,139 TOTAL6,027 NUMBER OF INSPECTIONS CONDUCTED PER PROVINCE Private Security Industry Regulatory Authority 10

11. TYPE OF INSPECTIONS CONDUCTED PER PROVINCE Private Security Industry Regulatory AuthorityGautengMpumalangaLimpopoN/West Free State/ N/Cape Total Total number of Routine Regulatory Training Infrastructure Accreditation Inspections conducted 1,3111511941881872,031 First time inspections 24433283128364 Triggered inspections 27456272053430 Infrastructure inspections 23838812217396 11

12. Private Security Industry Regulatory Authority WESTERN CAPE EASTERN CAPE KWAZULU- NATAL TOTAL Total number of Routine Regulatory Training Infrastructure Accreditation Inspections conducted 5131685521,233 First time inspections10241103246 Triggered inspections6849288405 Infrastructure inspections673279178 TYPE OF INSPECTIONS CONDUCTED PER PROVINCE (CONTINUE) 12

13. DIFFERENT CATEGORIES OF SECURITY SERVICE PROVIDERS INSPECTED PER PROVINCE NATIONAL INVESTIGATION TEAM GAUTENG MPUMA- LANGA LIMPOPO NORTH WEST PROVINCE FREE STATE & NORTHERN CAPE Total Number of Routine/Regulatory/Training/ Infrastructure/Accreditation Inspections conducted 1,311151194188187 Category or Class of Security Service Provider inspected  Commercial/Industrial/  Residential/Guarding or Patrolling 1,090141182 134  Assets in transit  Close protection services  Reaction or Response services and monitoring signals from security equipment (control room)  Ensuring safety and order on premises (special events)  Car watch or related activities Providing advice on the protection of persons/ property (consultants/advisors) 1312161 Installing, servicing or repairing security equipment 6079165 Private investigators251181410 Providing security training or instruction as well as accreditation 17422142847 Providing services of a locksmith505143 Making persons or their activities available for rendering of security service (labour brokers) 34000 In-House3021911 Manufacturing, importing, distributing or advertising of monitoring devices 00000 Private Security Industry Regulatory Authority 13

14. DIFFERENT CATEGORIES OF SECURITY SERVICE PROVIDERS INSPECTED PER PROVINCE (CONTINUE) WESTERN CAPE EASTERN CAPE KWAZULU NATAL Total Number of Routine/Regulatory/Training/ Infrastructure/Accreditation Inspections conducted 513168552 Category or Class of Security Service Provider inspected  Commercial/Industrial/Residential/Guarding or Patrolling 376130493  Assets in transit  Close protection services  Reaction or Response services and monitoring signals from security equipment (control room)  Ensuring safety and order on premises (special events)  Car watch or related activities Providing advice on the protection of persons/ property (consultants/advisors) 104 Installing, servicing or repairing security equipment581015 Private investigators1738 Providing security training or instruction as well as accreditation392457 Providing services of a locksmith19129 Making persons or their activities available for rendering of security service (labour brokers) 005 In-House10412 Manufacturing, importing, distributing or advertising of monitoring devices 000 Private Security Industry Regulatory Authority 14

15. NUMBER OF INSPECTIONS CONDUCTED AT SMALL, MEDIUM AND LARGE SECURITY SERVICE PROVIDERS PER BRANCH REGION NUMBER OF INSPECTIONS Small Businesses Medium Businesses Large Businesses Infrastructure & Capacity Head Office (NIT)939348345396 Western Cape294688467 Eastern Cape109161132 KwaZulu-Natal336677079 TOTAL1,678499510574 Private Security Industry Regulatory Authority 15

16. INSPECTION PERFORMANCE OF PROVINCES IN RELATION TO THE TARGET SET REGIONTARGET NUMBER OF INSPECTIONS CONDUCTED PERFORMANCE NIT3,5693,677103% Gauteng2,2882,287100% Mpumulanga276315114% Limpopo340410121% North West Province 339 100% Free State & Northern Cape 326 100% Western Cape912921101% Eastern Cape268290108% KwaZulu-Natal1,0171,139112% Private Security Industry Regulatory Authority 16

17. NUMBER OF IMPROPER CONDUCT INVESTIGATION DOCKETS COMPILED PER BRANCH REGION NUMBER OF DOCKETS Head Office (NIT)1,003 Western Cape288 Eastern Cape112 Kwazulu Natal282 TOTAL1685 Private Security Industry Regulatory Authority 17

18. INCREASE IN REGULATORY PERFORMANCE OF THE LAW ENFORCEMENT DIVISION REGION NUMBER OF DOCKETS 20002001200220032004 Head Office (NIT)512640715812858 Western Cape243141160137267 Eastern Cape147223184148103 KwaZulu-Natal10392103147240 TOTAL1,0051,0961,1621,2441,468 Private Security Industry Regulatory Authority 18

19. NUMBER OF IMPROPER CONDUCT DOCKETS COMPILED AT SMALL, MEDIUM AND LARGE SECURITY SERVICE PROVIDERS PER BRANCH REGION NUMBER OF DOCKETS Small Businesses Medium Businesses Large Businesses Head Office (NIT)33092134 Western Cape973442 Eastern Cape3610 KwaZulu-Natal963952 Private Security Industry Regulatory Authority 19

20. NUMBER OF IMPROPER CONDUCT DOCKETS PERTAINING TO MINIMUM WAGE CONTRAVENTIONS PER BRANCH REGION NUMBER OF DOCKETS Head Office (NIT)466 Western Cape17 Eastern Cape7 Kwazulu Natal75 TOTAL565 Private Security Industry Regulatory Authority 20

21. NUMBER OF CRIMINAL CASES OPENED PER BRANCH REGION CRIMINAL CASES OPENED Head Office (NIT)270 Western Cape65 Eastern Cape31 Kwazulu Natal48 TOTAL414 Private Security Industry Regulatory Authority 21

22. CRIMINAL CASES FINALIZED PER BRANCH REGION SUCCESSFULLY PROSECUTED UNSUCCESS- FULLY PROSECUTED TOTAL Head Office (NIT)1999118 Western Cape056 Eastern Cape251944 KwaZulu-Natal24143 TOTAL46215261 Private Security Industry Regulatory Authority 22

23. CRIMINAL CASES PENDING PER BRANCH REGION CRIMINAL CASES OPENED Head Office (NIT)261 Western Cape46 Eastern Cape11 Kwazulu Natal56 TOTAL374 Private Security Industry Regulatory Authority 23

24. 24 FIREARM APPLICATION ENQUIRIES

25. Private Security Industry Regulatory Authority 25 CHARGE SHEETS AND SUMMONSES ISSUED 1 April 2003 – 31 March 2004 vs 1 April 2004 – 31 March 2005

26. HUMAN RESOURCES COMPONENT OF THE LAW ENFORCEMENT DIVISION HEAD OFFICE (NIT) KWAZULU- NATAL EASTERN CAPE WESTERN CAPE HEAD: LAW ENFORCEMENT & TRAINING 1--- MANAGERS1-1- INSPECTORS20615 SUPPORT STAFF5111 Private Security Industry Regulatory Authority 26

27. B(b)LEGAL SERVICES DIVISION Private Security Industry Regulatory Authority 27

28. NUMBER OF IMPROPER CONDUCT ENQUIRIES FINALIZED PER BRANCH MONTHNITW/CAPEE/CAPE KWAZULU- NATAL TOTAL April 200418300250 May 200459131714103 June 200462191147 July 20041316142164 August 2004421501370 September 2004961089103 October 2004140017113 November 200460311986 December 200410020121 January 2005 62 (not confirmed) 00062 February 2005 86 (not confirmed) 11124113 March 2005 86 (not confirmed) 8227123 Total678155104981,035 Private Security Industry Regulatory Authority 28

29. 29MonthRefusalsWithdrawalsAppealsExemptions Section 26(4)(a) Section 26 (4)(d) Criminal RecordForeignerCode of Conduct UpheldDismissedUpheldDismissedUpheldDismissed Apr 04100000000001 May 04202000000002 Jun 0410841463601001 Jul 044340030 01002 Aug 04235210693102010 Sep 043298110000001 Oct 0410500389807001 Nov 0443200732020010 Dec 0413600151000000 Jan 05196000000000 Feb 05401000000000 Mar 053454230000000 TOTAL 3, 023 181541052370130118 STATISTICS FOR THE PERIOD 1 APRIL 2004 – 31 MARCH 2005

30. TENDER ENQUIRY STATISTICS 2004/2005 Private Security Industry Regulatory Authority Enquiries Approved Denied Require further information Payments received 2,742 1,914 509 320 R525,701.12 30

31. B(c)FINANCE & ADMINISTRATION DIVISION Private Security Industry Regulatory Authority 31

32. 32 SECURITY SERVICE PROVIDER REGISTRATION STATISTICS (1997 – 2005) – HISTORICAL COMPARISON ACTIVE REGISTERED SECURITY BUSINESSES ACTIVE REGISTERED SECURITY OFFIC ERS Although on average there has been a modest increase in the number of security businesses, there has also been a sharp increase in the number of individual security officers as can be seen from the above graph.

33. CHALLENGES PRESENTED BY THE GROWTH OF THE PRIVATE SECURITY INDUSTRY Private Security Industry Regulatory Authority 33 1.Need to increase monitoring capacity to execute the core regulatory mandate. 2.Need to review the regulatory legislative framework based on the lessons learned from implementation to date. 3.Closer co-operation with other State Law Enforcement agencies. 4.Need to engage the industry to encourage “self- regulation”. 5.Research, development, and international “best practices”. Although on average there has been a modest increase in the number of security businesses during the period 1997 – 2005, there has been a sharp increase in the number of individual security officers, as can be seen from the aforegoing graph.

34. Private Security Industry Regulatory Authority 34 STATISTICS AS AT 31 MARCH 2005

35. Private Security Industry Regulatory Authority 35 Gauteng – 51% KwaZulu-Natal – 17% Northern Cape – 1% Free State – 2% North West – 3% Limpopo – 4% Western Cape – 12% Eastern Cape – 6% Mpumulanga – 4% REGISTERED ACTIVE SECURITY SERVICE PROVIDERS – INDIVIDUALS PER PROVINCE – MARCH 2005

36. Private Security Industry Regulatory Authority 36 Gauteng – 40% KwaZulu-Natal – 16% Northern Cape – 1% Free State – 4% North West – 4% Limpopo – 8% Western Cape – 14% Eastern Cape – 7% Mpumulanga – 6% REGISTERED ACTIVE SECURITY SERVICE PROVIDERS – INDIVIDUALS PER PROVINCE – MARCH 2005

37. TOTAL OF SERVICES RENDERED BY SECURITY SERVICE PROVIDERS IN DIFFERENT CATEGORIES Private Security Industry Regulatory Authority Security Guards (Industrial & Commercial)3,410 Security Guards (CIT)856 Body Guarding1,154 Security Consultants705 Reaction Services/Response Businesses743 E/Venue Control/Special Events2,212 Manufacturing of Security Equipment241 Private Investigator958 Training1,159 Security Equipment Installers701 Locksmith/Key Cutters333 Security Control Room1,189 Rendering S/S1,057 Car Watch448 Other462 Insurances331 Security & Loss Control256 Fire Prevention & Detection172 Consulting Engineer61 Alarm Installer48 In-House2 TOTAL1,6498 37

38. LISTING OF TOP 20 EMPLOYERS BASED ON NUMBER OF SECURITY OFFICERS EMPLOYED MARCH 2005 Private Security Industry Regulatory AuthorityRANKING RANKING SERVICE PROVIDER NUMBER OF EMPLOYEES % OF TOTAL SECURITY OFFICERS EMPLOYED IN THE INDUSTRY 1FIDELITY CORPORATE SERVICES (PTY) LTD20,2927.03% 2SECURICOR (SOUTH AFRICA) (PTY) LTD9,9283.44% 3ADT SECURITY GUARDING (PTY) LTD6,7822.35% 4MAGNUM-SHIELD SECURITY SERVICES (PTY) LTD 6,6752.31% 5GROUP 4 FALCK (PTY) LTD5,8782.04% 6COIN SECURITY GROUP (PTY) LTD4,8211.67% 7ENFORCE GUARDING (PTY) LTD3,9631.37% 8CHUBB & SUPERGROUP3,4751.20% 9PROTEA SECURITY SERVICES (PTY) LTD3,3281.15% 10GREMICK – A DIVISION OF SERVEST (PTY) LTD 2,7000.94% 11SECURITY PATROL EXPERTS CC2,5550.89% 12STALLION SECURITY (PTY) LTD2,1800.76% 13COMMAND SECURITY SERVICES (PTY) LTD1,9340.67% 14UNITRADE 1047 CC1,9060.66% 15MAXI STRATEGIC ALLIANCE (PTY) LTD1,7110.59% 16BOSASA SECURITY (PTY) LTD1,6270.56% 17HLANGANANI PROTECTION SERVICES (PTY) LTD 1,5750.55% 18NATIONAL FORCE SECURITY CC1,3920.48% 19NKULULEKO GUARDING SERVICES (PTY) LTD 1,3320.46% 20TELESAFE (PTY) LTD1,2710.44% 85,32529.56% INDUSTRY TOTAL 288,686100% 38

39. BALANCE SHEET AS AT 31 MARCH 2005 Private Security Industry Regulatory Authority Notes20052004 RR Assets Non-current assets Property, plant and equipment2 7 642 9956 262 786 Current assets 29 680 28823 143 668 Accounts receivable and prepayments3 5 566 9131 035 726 Term deposits 1 329 2471 329 568 Cash and cash equivalents4 22 784 12820 778 374 Total assets 37 323 28329 406 454 Equity and liabilities Capital and reserves Accumulated funds 33 564 53226 114 555 Non-current liabilities Long term liabilities5 711 8561 075 039 Current liabilities 3 046 8952 216 860 Accounts payable6 1 918 1251 252 861 Provisions7 772 084622 033 Current portion of long term liabilities5 356 686341 966 Total equity and liabilities 37 323 28329 406 454 39

40. INCOME & EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 MARCH 2005 Private Security Industry Regulatory Authority Note20052004 RR Income Annual Fees 31 808 22330 065 200 Registration Fees 6 533 2866 230 151 Interest received 2 421 2992 220 770 Fines received 3 231 7991 643 864 Sundry income 1 973 509721 851 Unallocated receipts 592 292303 305 ID Card Holder 2 327 4542 099 662 Infrastructure Assessment -1 124 965 48 887 86244 409 768 Expenditure Personnel 20 021 49019 488 849 Other operating expenses8 21 416 39513 147 103 41 437 88532 635 952 Excess of income over expenditure for the year 7 449 97711 773 816 Accumulated funds at beginning of year 26 114 55514 340 739 Accumulated funds at end of year33 564 53226 114 555 40