16 January 2024

Mr. Thulas Nxesi
Minister of Employment and Labour

Trusting that this letter finds you well,

Security companies’ failure to pay pension funds to workers

We are writing to bring to your attention a matter of great concern that requires immediate and decisive action from the Ministry of Employment and Labour Services.

The Economic Freedom Fighters (EFF) has recently brought to light the alarming issue of private security firms failing to pay pension funds to their workers, a situation that demands urgent intervention.

According to the information at our disposal, a staggering 83% of private security entities are not compliant with the payment of provident funds to workers. This non-compliance involves 2,224 companies neglecting their contributions to the Private Security Sector Provident Fund, resulting in an outstanding amount of R6 billion. Such blatant disregard for the rights and well-being of workers is a serious violation of Section 13A of the Pension Fund Act.

As you may be aware, these companies, by withholding funds meant for the security guards who risk their health and lives on a daily basis, are essentially engaging in an elaborate heist against the hardworking individuals of South Africa. It is disheartening that this has occurred under the watchful eye of the Ministry of Employment and Labour Services.

The EFF has rightly pointed out the failure of the Private Security Industry Regulatory Authority (PSIRA) to uphold the law and regulate companies within its jurisdiction. The regulatory body must be held accountable for allowing such violations to persist.

In light of these revelations, we urge you to conduct a thorough investigation into these private security firms that are in arrears. It is imperative that all non-compliant companies be brought to justice, and strict measures should be taken to ensure their compliance with the Pension Fund Act. It is our well-considered view that the EFF's proposal to link compliance with the renewal of operating licenses is a step in the right direction.

As concerned public representatives, we implore the Ministry of Employment and Labour Services to take swift and decisive action to protect the rights of workers in the private security sector. Your leadership in this matter will not only bring justice to the affected workers but also send a clear message that such fraudulent activities will not be tolerated in South Africa.

We trust that you will treat this matter with the urgency and importance it deserves. Thank you for your attention to this critical issue, and we look forward to hearing about the actions taken to rectify this situation soonest.

Thank you for your attention to this matter.

Regards,
N F Shivambu
EFF Deputy President and Parliamentary Chief Whip