Shivambu lashes Nxesi over security guards’ pension funds

The EFF has raised a red flag over the situation with security companies. The matter involves the alarming failure of private security companies to pay pension funds to their workers.

This is contained in a letter addressed to Minister of Employment and Labour Thulas Nxesi.

Alarming noncompliance

EFF deputy president and parliamentary chief whip Floyd Shivambu highlighted the urgency of the situation. He urged swift intervention to address the issue affecting the financial stability of security guards nationwide.

Shivambu’s letter revealed an alarming level of non-compliance among private security firms. It also highlighted their failure to meet their commitments. He accused these companies of orchestrating a systematic robbery against security guards.

“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,” Shivambu said.

“This non-compliance involves 2,224 companies neglecting their contributions to the Private Security Sector Provident Fund. This results 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.”

Need for accountability

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

The EFF expressed dissatisfaction with the Private Security Industry Regulatory Authority (PSIRA). He accused it of neglecting its duty to enforce the law and oversee companies under its jurisdiction.

Shivambu emphasised the need for accountability. He asserted that the regulatory body should be held liable for allowing these infractions to persist without intervention.

Call for probe

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

“We implore the Ministry of Employment and Labour Services to take swift and decisive action. This will protect the rights of workers in the private security sector. Your leadership in this matter will not only bring justice to the affected workers. It will also send a clear message [to security companies]. It will be the message that such fraudulent activities will not be tolerated in South Africa.”

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