PRESENTATION OF THE PROPOSED
SECURITY INDUSTRY REGULATION
Manager: Legislation and Policy Development
02 May 2001
To our understanding certain operations,
operational divisions and personnel of Telkom are
required to comply with specific provisions of the
Bill, which in terms of its objects is meant to apply
to the private security, private investigations and
related industries only.
BUSINESS UNITS POTENTIALLY
EFFECTED BY THE BILL
The following in-house operational units, functionaries
and support personnel of Telkom are potentially
effected by the Bill:
its in-house security and investigations section,
its market research section,
its market intelligence section,
its mergers and acquisitions section,
its credit control section,
its collections division,
its personnel division,
its risk management section, and
its information technology (IT) security division.
ADDITIONAL REGULATIONS FOR
The aforementioned functional units,
functionaries and support personnel will fall
under the jurisdiction of and be regulated or
prescribed to by inter alia:
the Security Industries Regulations Act;
regulations promulgated pursuant thereto;
the Minister of Safety and Security;
the Security Industry Regulatory Authority;
the Security Officers Board; and
the code of conduct for security service
REGISTRATION AS SECURITY
Telkom and other non-security entities might
arguably be obliged either to:
register as security service provider with the
Security Industry Regulatory Authority, or
if unable to comply with the qualifying
registration criteria or a failure to obtain
exemption from the Minister close down its
business investigations, intelligence and
OBJECT OF THE BILL
The sole stated purpose of the Bill is "To
provide for the regulation of the security
industry; for that purpose to establish a
regulatory authority; and to provide for mattes
MOTIVATION FOR THE EXCLUSION
OF NON-SECURITY INDUSTRIES
FROM THE APPLICATION OF THE
Telkom submits that as a public company -duly
incorporated in terms of the Companies Act of
1973 with as its principle object the rendering
telecommunications services- it should be
exonerated in all of its capacities from compliance
with any of the provisions of the Bill.
It is submitted that only those persons or
entities that have as their principal business
objective the rendition of security or associated
services do in fact belong to the security
industry or constitutes a security business
within the meaning of the object of the Bill.
PROVISIONS THAT MAY IMPACT ON
TELKOM'S OPERATIONAL AND
The definitions and other provisions hereafter listed
probably has the cumulative effect of making the
Security Industry Regulation Bill applicable on
Telkom's management, employees, activities,
operations, business associations and activities to a
greater or lesser extent; the relevant provisions
the definition of "code of conduct"
the definition of "private Investigator"
the definition of "security equipment"
the definition of "security industry"
the definition of "security officer"
the definition of "security service"
the definition of "security service provider"
the definition of "the Act"
section 2 of the Bill
section 20 of the Bill, and
section 28 of the Bill
These provisions, are potentially onerous,
disruptive, and harmful to Telkom's business
and operational interests, and will more fully
be dealt with hereafter.
The Implicit Distinction between
"Security Service Provider" and
Persons "… using …[their] … employees to
protect or safeguard merely …[their] … own
property and other interests, or persons or
property on the premises or under the control
of such person …" are excluded from the
definition of "security business" but
apparently not from the definition of "security
service" or of "security service provider".
Although the insertion of the phrase "for
remuneration or reward" in relation to
"security service provider" may have the
effect of excluding Telkom in certain
instances, it does not have a similar effect on
its security investigations and intelligence
The obligation to register with the Security
Industries Authority and compliance with the
industry code, for instance, will apparently
apply to Telkom equally if is binding on
members of its staff.
The Definition of "Private
The definition in the Bill of "private
investigator" includes most of the activities
normally performed by Telkom's security and
investigations, IT security, business
intelligence and many other sections also. This
definition contained in section 1 of the Bill
effectively transforms Telkom into a private
investigator with all the attendant obligations
of the Bill being imposed and binding on it.
The Definitions of "Security
Officer", "Security Service" and
A "security officer" is defined as someone who is
employed by another and performs for remuneration one
or more security services. The definition includes many of
Telkom's employees who render "security services" aimed
at protecting company property, particularly in the form of
incorporeal property such as business interests, but also
the installation and servicing of "security equipment" and
the monitoring of signals or transmissions from electronic
security equipment. We have already noted that in terms of
the Bill these personnel, as well as their supervisors and
managers are all regarded as security service providers in
their own right and therefore subject to all the provisions
of the Bill relating to security service providers.
Whilst it has undoubtedly become imperative for
the security and private investigation services
industries to be regulated, the introduction of
measures aimed at achieving that end should be
contained within the confines of its original
objectives and to the security industry in
Within the modern competitive business
environment the services of efficient
investigations, security and intelligence
functionaries within commercial companies have
become more than just a convenience.
Businesses have come to rely on these functions
to formulate policies and strategies on which
continued competitiveness and profitability, and
even its very existence depends.
In that sense and in that environment it is
extremely undesirable for either the operations
themselves or for the staff performing those
functions to be subject to undue regulation,
disruption, scrutiny or interrogation. Because
market forces and market movements are so
volatile, timing is often vital to the effect and
worth of the performance of an act or of the
conclusion of a transaction or listing so that and
any untimely interference or stoppage could
amount to an effective derailment.
In view of the aforementioned considerations it is
submitted that, notwithstanding any contrary
provision or interpretation of the Bill, all in-house
security, investigations and intelligence functions
performed by commercial companies -that do not
have as their principal business the provision of
security or private investigation services to third
parties- be expressly excluded from the
application of the Bill.
It is further submitted that the definition of
"private investigator" in section 1 of the Bill be
amended by the insertion of the following
words at the end of the section: "but shall
exclude any business intelligence
operations which a company may undertake
in the course and scope of its normal and
reasonable endeavours to safeguard its
security, strategic, operational, and
business interests and that of its holding
company or subsidiaries."