At least 1 583 security firms in KwaZulu-Natal have neglected to give the government the money that was withheld from their workers for medical assistance and pensions, putting 90 000 workers at risk of leaving active duty bankrupt.
According to the National Union of Mineworkers of South Africa, the Abanqobi Workers Union, the Democratic Transport Logistics and Allied Workers Union, the South African National Security and Allied Workers Forum, and the South African Transport and Allied Workers Union, these security companies are contracted to government departments in the province.
These unions presented a joint memorandum to premier Thamsanqa Ntuli’s office in Pietermaritzburg, requesting that his government take action against these dishonest businesses.
“Fraudulent deductions affect about 90 000 active security officers in KwaZulu-Natal, depriving them of their rightful benefits, such as health insurance and a provident fund, because of these dishonest, irregular, and fraudulent deductions,” reads the joint memorandum.
“Not paying over deductions to the appropriate funds for these 90 000 security officers is a sophisticated form of employee theft because the money stays on the balance sheets of the corrupt companies and ends up in the pockets of avaricious executives and their bosses as bonuses and dividends at the end of each fiscal year.”
Cheated out of millions a month
In the same memorandum, they told Ntuli that poorly paid security officers lose over R15.5-million of hospital cover benefits per month to bosses.
“This deception exposes security officials to massive expenses when they get injured on duty.”
“Premier Ntuli, security officers lose over R65.9-million of the provident fund to corrupt security companies every month.
“They also lose over R13-million of UIF [Unemployment Insurance Fund] per month to these unscrupulous individuals. This has a negative impact on security officers when they retire or have their contracts terminated.
“We are dissatisfied that the KwaZulu-Natal provincial treasury not only allows non-compliant security companies to operate freely in the province but also continues to outsource to companies involved in the alarming exploitation of poor security officers by failing to comply with the laws of the republic.”
