The state of crime is such that security services are deemed a necessity and not a luxury. With over 300 000 cases of theft and burglary reported each quarter in South Africa, business owners and private individuals have little choice but to rely on the R50 billion private security industry. Concerningly 300 – 600 guards die in the line of duty each year. These facts are an unfortunate indictment on society.

Alarmingly, from the first graph below, it is evident that, at least from 2010, we have deployed less police per person per year, notwithstanding the continual growth in population. Evident from the second graph depicting the Crime index, crime rates have not dropped and have remained uncomfortably stable and high. It is therefore no feat of great imagination to predict that our reliance on private security services will only increase in future.

When security services fail to protect property or life, the consequences can be severe (literally life or death), and clients are quick to hold security firms accountable, as recent case law demonstrates. What then are the key drivers behind claims in this space and what are the primary risks facing this industry?

Achilles Heel

With the exclusion of petty or chance theft, industry experts agree with us that, for the most part, criminal syndicates are responsible for organising most crime within this country. It is operated like a business and is exceptionally efficient. Claim investigations reveal that in most large-scale operations, one or more security officials have been bribed and in the few cases where bribes were refused, those guards are often kidnapped (or their lives threatened) and replaced with doppelgangers. Once the ‘replacement’ guard was let onto site, all the failsafe security systems and processes come to nought. In another case, the syndicate bribed two different security firms (onsite and offsite monitoring) and furthermore had inside knowledge on the building layout to locate and avoid the infrared beams.

The ‘Achilles heel’ then to the security industry is the apparent ease with which guards can be swayed to betray their employers, and furthermore, the lack of controls around ensuring that guards identities are properly authenticated prior to entry onto any site, irrespective if the person ‘looks’ like one of the regular guards. Much like cyber security, the weakest link is usually the human element.

Who watches the watchmen?

There is a lack of continuous oversight over the guards themselves. The philosopher Plato is credited with the quote ‘Quis custodiet ipsos custodes’: “Who watches the watchmen”. Independent checking and site supervision is key to keeping everyone honest. Based on our claims data, had there been independent oversight, perhaps in the form of a control room, it would forestall most if not all large-scale theft.

Without proper oversight, the trust placed in security officials is merely blind faith, and the risk of corruption is high. This risk is perhaps one born from socio-economic circumstances and with remuneration for security services being on the low end and consumers in South Africa being unwilling or unable to pay for absolute loyalty, these issues will persist.

To demonstrate effective risk mitigation, security service providers must implement measures to have ongoing oversight – to watch its watchmen.

Self-defence or trigger happy?

Another factor plaguing the reputation of the industry as well as being a leading cause for claims is the lack of restraint being exercised by security officials. The law calls for a proportional response when acting in self-defence or out of necessity. One would, for example, be hard pressed to convince a court that it was necessary to shoot a suspect in the back when they failed to surrender and were fleeing. Only the police can issue orders that are by law required to be complied with. Notwithstanding such orders, the police would not, per se, be entitled to shoot any suspect in the back for disobeying their orders to surrender.

Recently an unarmed man was shot by a security official because he refused to move away from an ATM that the guard wanted to refill. The use of force in this incident was on the face of it unnecessary and extreme.

In another matter, a security official, in attempting to prevent robbers from fleeing the scene, accidentally shot an innocent bystander.

Self-defence or necessity typically requires that force be proportional and used only as a last resort. These incidents highlight the risks and legal complexities surrounding the discharge of firearms. The lesson here is clear: the use of a firearm must be strictly proportional to the threat and employed only when absolutely necessary. Numerous claims have arisen from the disproportionate use of force, underscoring the need for robust internal training and clear policies on the use of firearms. The primary objective of the security guard is to protect, not arrest.

The South African private security industry is regarded as one of the most sophisticated in the world. Still, like any other industry, the industry is influenced by various elements which include, complying with the law, adhering to industry regulations and standards, maintaining commercial relationships, competition, meeting financial targets, managing reputational risk, investing and utilisation of technology, whilst simultaneously navigating the unique challenges that arise from other elements inherent to South Africa such as social inequality, poor economic performance, high levels of unemployment, lack of law enforcement, violence, and poverty ultimately contributing to a high crime rate.

When considering the unique challenges, the private security industry faces, as a portfolio manager (insurance broker and insurer), relying on the traditional methods of underwriting and risk evaluation may no longer be adequate. Therefore, underwriting a security company effectively will require a more collaborative approach, particularly through close partnerships with brokers and the security company to gain a comprehensive understanding of the security company. Portfolio managers should in addition to standard risk factors focus on the experience of the personnel responsible for the day-to-day operations and compliance, evaluate the security company’s standard operating procedures (SOPs), training programmes, recruitment and vetting practices, disciplinary procedures, and accident response plans.

Additionally, evaluating the firm’s primary customers, their experience in the type of security services rendered, and their approach to contractual risk management is essential.

During the 2024 underwriting year, the SHA team applied this approach, and we can confirm that the collaborations were fruitful and resulted in good engagements on important issues facing the security industry.

For example, when we engaged with security companies to understand how they are addressing some of the most common and aggravating factors challenging security companies, we learnt about some of the following mitigating factors being used:

Control rooms and 24/7 remote monitoring: This tool enables security companies to monitor sites remotely as opposed to the site itself. The monitoring technology used integrates the use of artificial intelligence, smart alarms, sensors and cameras allowing security companies to monitor multiple sites simultaneously with little to no actual human involvement with the operator just having to respond to an alert. Operators in the control room are subject to strict vetting procedures and access to the control room uses advanced biometrics systems. The combination of these features and controls allows security companies to combat and reduce the risk of the ‘Achilles heel’ which is probably the most common aggravating factor contributing to the failure to prevent theft, robbery, fidelity-type losses, and harm to security guards.

Drones: One of the security companies we engaged with started using and operating drones remotely from their control room. Aerial monitoring allows the security company to monitor large areas and difficult-to-reach sites (i.e. farms, mining operations, forestry, and remote estates) more frequently and in a time-effective manner. However, it should be noted that one of the challenges security companies will face in this space is the lack of legislation and/or regulation addressing the use of drones in the security industry.

Extensive firearm training including real life simulations: In addition to theoretical firearm training, during our site visits we witnessed practical training on shooting firearms including real-life scenario-based simulations training. The training is conducted and facilitated by ex-military and police officers. The purpose of this is to enable and help armed guards improve their decision making under high stress situations, develop their judgement and problem-solving ability based on various scenarios, improve their shooting skills and muscle memory, and help guards better adhere to protocols to ensure compliance with industry standards and legislation. This type of firearm training may help prevent “trigger happy” scenarios highlighted earlier.

The examples highlighted above are only some of the methods security companies are using to address their challenges, but they also illustrate some of the benefits of a more collaborative approach to managing a portfolio as it enables portfolio managers to improve their knowledge and understanding of the industry which will in turn improve underwriting practices, risk evaluation and selection.

In addition to the above, portfolio managers should consider monitoring PSIRA’s (Private Security Industry Regulatory Authority) performance. PSIRA’s performance is critical because it is responsible for the oversight, regulation, and enforcement of the security industry rules, standards, and practices. PSIRA releases an annual report available on its website. This report shares information in relation to the authority’s performance of various objectives which includes important areas such as their administration ability which focuses on how PSIRA achieves their strategic initiatives, objectives and goals.

The report also has a dedicated section focusing on the PSIRA’s ability to enforce the law. This section’s primary focus is ensuring that all security industry players operate and comply with regulations and standards and it takes appropriate action where violations happen and where necessary prosecute players who do not comply. The report includes key performance indicators such as the number of security companies inspected, the number of security companies firearm-related activities inspected, the number of complaints investigated, and the number of security companies prosecuted for non-compliance.

The annual report also covers the research and development activities of PSIRA which shares articles and surveys based on the research and investigations conducted by PSIRA, for example, in a report called “TRACKING THE VALUABLE: THE USE OF TRACKING DEVICES IN THE PRIVATE SECURITY SECTOR”, the report researched and investigated the tracking sector which can be split into the following 3 segments:

Technology: this segment includes the manufacturing and assembling of tracking devices and accessories;
The installation and monitoring segment which consists of companies that are fitting tracking devices and providing monitoring for motor vehicles, trailers, human beings, and animals;
And the segment responsible for tracking and recovery of vehicles, property, or people.

One of the interesting findings of the report highlighted several companies providing the services listed in the three points above are not registered service providers and recommended that service providers who fall within these segments are obligated to register and be certified with PSIRA.

Reviewing the annual PSIRA report may share valuable insights into the security industry which can enable portfolio managers to proactively address and prevent possible gaps that may exist in their security industry insurance portfolio.

Written by Jonathan Kaiser, Claims Manager at SHA Risk Specialists, and Miguel Malaj, Business Head at SHA Risk Specialists. SHA Risk Specialists, a division of Santam, is the largest provider of liability insurance on the African continent and internationally.

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“All we want is for the government to understand that the protection of their workers and companies contracted to them is our business,” said one of two members of a Philippi gang GroundUp spoke to on Friday.

The pair said neither they nor their gang were involved in shooting the security guards on 23 April, but claimed a rival gang was responsible.

The Western Cape SAPS media liaison office declined to release the names of the deceased security guards, with media liaison officer Joseph Swartbooi referring GroundUp to the National Prosecuting Authority (NPA). NPA spokesperson Eric Ntabazalila said it was “strange” that SAPS referred enquiries to him as the NPA were not involved at this point. 

The extortionists said they and other gangs had met and agreed that security companies would be attacked if they came into their areas.

The security companies were doing what the gangs are “supposed to be doing”, and by attacking them “we are showing they are useless”, the extortionists said.

They said if government paid the gangs to protect infrastructure and staff, there would be no intimidation, threats or killings. Government employees and their contractors are targeted because “the government does not seem to want to negotiate with us”.

“There will be no security company coming to our areas and escorting government workers and their contracted companies because that duty is for us to do. When the government does not want to meet us half-way, more lives will be lost and there will be bloodshed.”

The gangsters said what they wanted from the authorities was “a few thousands of rands from the millions of rands that they are paying the security companies”.

“R50,000 a month to protect workers from five different areas would not harm the government,” one of the gang members said. He said security companies were being paid more than the gangsters were asking.

On Tuesday the armed security guards had escorted five operational staff from the City to a site in Phola Park, Philippi East, where repair and maintenance on a sewer line was to be undertaken.

According to a statement by the City, the staff got out of their vehicle and gathered their tools to inspect the pipe. While they were busy, two armed men approached the City vehicle and another two headed to a nearby toilet block where multiple shots were fired.

The City staff and residents fled for their lives, but both security guards were fatally wounded. A City staff member was also injured in a hard fall.

SAPS Western Cape spokesperson Frederick van Wyk said the two victims were approached by two unknown men who shot them and took both their firearms. “The suspects also fled with the key of the City Council vehicle,” said Van Wyk.

So far, no arrests have been made.

Mayco Member for Water and Sanitation Zahid Badroodien said the City was “shocked at the senseless act which has claimed the lives of two men hard at work serving the community”.

Badroodien said staff were receiving medical attention and trauma counselling. “These horrendous experiences deeply impact everyone, especially those working at the forefront of service delivery.”

He said various City services were “severely impacted by criminal attacks” in parts of Philippi, including in Kosovo informal settlement, where a stormwater upgrading project was under way.

Tactical response and security services were being provided to both staff and contractors in the Philippi area in the face of continuing threats. In the last financial year this cost R8.5-million.

Badroodien said on 17 April, City staff were also robbed in two separate incidents. In one incident, a team was dealing with a blocked sewer pipe in Clarke Estate, Elsies River when one of the staff was robbed of his cellphone. In the second incident, a team of five was held at gunpoint and robbed of their personal belongings while they were in Blue Downs attending to a burst water pipe.

The City would not stop delivering services to these areas, but Badroodien appealed to residents to help “root out the criminals blocking progress in communities”.

David Bruce, a consultant at the Institute for Security Studies, said organised crime involving violent criminal groups has become entrenched in areas such as Nyanga, Philippi, and Khayelitsha. Bruce said a key element of the problem is the widespread availability of guns, and the police have “no proper strategy” to address gun violence. What strategy they have is “very reactive”, he said.

He said there had been previous attacks on City officials but believed the main motivation for the murder of the two security guards last week could have been to rob them of their guns, which were “highly prized possessions in the criminal world”. “It is clearly insufficient to deploy armed personnel to protect municipal workers, unless the guards are themselves properly trained and equipped to protect themselves against robbery or other attack.”

A security guard lost control of the company car he was driving when he was shot at by gangsters on Sagoloda Street in Philippi on Wednesday 24 April, and crashed into a house. He was injured and taken to hospital in a private car for treatment. While this reporter was taking photographs of the scene, he was placed under arrest and detained for nearly three hours before being released. GroundUp has since engaged with the police on this matter.

Written by GroundUp. The original article can be found here.

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The Ezingolweni Regional Court also found Bonginkosi Mabusela (34), Phelo Mdleleni (47), Sinenhlanhla Mhlamvu (33) guilty of theft of more than R709000. Their accomplice, Zitha Nobhadula died awaiting trial.

During their investigations, seasoned detectives from the Port Shepstone Serious Organised Crime Investigation discovered that the robbers were none other than the security guards, who had collected cash from a depot on 30 April 2021. They were travelling from Port Sheptone to Kokstad.

“Whilst travelling in convoy the other vehicle disappeared and the other one was allegedly intercepted by the suspects. An undisclosed amount of cash and firearms were taken. The witness who was passing by the crime scene was robbed of her cell phone and her vehicle keys were thrown in the bushes. The case was reported at Harding police station and the case docket was allocated to the Hawks for intensive investigation,” said Hawks spokesman Lieutenant Colonel Simphiwe Mhlongo.

He said detectives established the guards’ involvement when they interviewed them.  

“During the interview, it was established that Mabusela, Mdleleni and Mhlamvu were involved. It was also discovered that they conspired with the former security guard, Nobhadula and his accomplices to stage the robbery. Their houses were searched and R709510 cash was recovered.”

“The four accused were arrested and charged accordingly. They appeared in court and their bail application was successfully opposed. Nobhadula died in prison whilst awaiting trial,” said Mhlongo.

His three co-accused were found guilty on 8 March.

“Mabusela, Mdleleni and Mhlamvu were each sentenced to 15 years imprisonment for conspiracy to commit theft, 15 years imprisonment for theft of cash, 10 years imprisonment for theft of firearms, 15 years imprisonment for robbery, five years imprisonment for malicious damage to property and 5 years imprisonment for defeating the ends of justice. “

“The sentence of theft of firearms, malicious damage to property and defeating the ends of justice will run concurrently with other counts,” said Mhlongo.

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Health Approach Solutions NPC founder Thabiso Nzama started a WhatsApp group in 2020 that led to the creation of Security Cares – South Africa, a national programme aimed at counselling security officers.

“When security officers were declared essential workers during the Covid-19 pandemic, I started a WhatsApp group, offering health tips and support to the officers.”

“We have now started this initiative on a full-time basis. This programme is the first of its kind and follows a well-structured and coordinated partnership approach. Although we already have security officers in this program, we want to make it more structured, which is why we are inviting security companies to sign up for partnership,” he said.

Nzama, now a human resources practitioner and neuroscience coach, said the role and responsibilities of security officers were “huge” and often taken for granted.

“The responsibilities of security officers are often overlooked despite being enormous. Having worked as a security guard myself, I understand how these professionals are treated by our society and the risks and challenges they face in their workplaces.”

“Unfortunately, little is being done to support their health and well-being. It is unfair to expect security officers to be proactive and observant at work while their mental health is not being looked after. Therefore, there is a need for change in the policies to implement mental health support in the sector,” he said.

In addition, security guards may suffer from psychological trauma as a result of the demands and pressures associated with their job.

“When criminals attempt to break in and steal, the first line of defence are the officers. However, they are often targeted by criminals and many of them lack the necessary resources to defend themselves, making them even more vulnerable. Some officers are unable to take their medications for chronic diseases due to their off days not coinciding with their health facility visits. It’s a traumatic experience to wake up every day not knowing what might happen to your life. Unfortunately, some security firms are not equipped to deal with these traumatic experiences and hiring an external practitioner to assist is often a significant barrier.”

Nzama has urged security companies to support the initiative.

“By collaborating, we can enhance the mental health of security officers, benefiting the sector,” he said.

The first phase of the programme is expected to commence soon in Gauteng.

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