Security Jobs Finder - Insights
24th Edition
1. Newsletter Update:
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This week, our Article of the Week explores Private security and transport firms top list of worst pension fund offenders. Bonus content includes Extortion poses serious threat to State and citizens – Mashatile, tips for answering the interview question "What Are Your Preferred Working Hours?", and a spotlight on: The Role of a Law Enforcement Liaison Officer.
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2. Private security and transport firms top list of worst pension fund offenders
FSCA publishes list of thousands of employers that deduct contributions from workers and fail to pay them over to pension funds.
By Adriaan Kruger 19 Dec 2024 04:02
The public naming and shaming saw almost 1 000 employers taking swift action to clear their arrears. Image: Shutterstock
The Financial Sector Conduct Authority (FSCA) again asked pension funds to furnish it with the names of employers that are not paying contributions to their employees’ pension funds – and promptly published the names.
Not all of the names, ‘just’ the top 2 330 transgressors that are in arrears by R50 000 and/or are more than five months in arrears.
See the list of employers here.
Pension funds actually reported 7 700 employers that are breaking the law by deducting pension fund contributions from workers’ wages and not paying the workers’ money to the respective pension funds.
The worst offenders are private security companies, with the Private Security Sector Retirement Fund reporting 56 companies to the FSCA, and the Transport Sector Retirement Fund, which says 442 transport companies are not complying with the provisions of the Pension Funds Act (PFA).
The Hairdressing, Beauty and Skincare Industry Pension Fund reported 129 errant employers, the names of which suggest that many smaller salons are not caring for their employees.
It sounds funny – but is not funny – that a security guard and a hairdresser should not count on having a relaxing retirement.
Councillors
It boggles the mind that politicians who promise every four years that they will look after the community and the municipal employees who are employed to actually do the work cannot even look out for themselves when it comes to their retirement.
The South African Local Authorities Pension Fund and the Municipal Councillors Pension Fund reported no fewer than 172 transgressors. In many cases, municipalities did not pay over contributions on behalf of these employees or councillors.
The FSCA says employers must note that Section 13A (1) of the PFA requires that the employer of any member of a pension fund must pay any contribution which, in terms of the rules of the pension fund, is to be deducted from the member’s remuneration – as well as any contribution for which the employer is liable in terms of the rules of the relevant pension fund.
Getting tough
The FSCA is getting tough on transgressors and promises to institute criminal charges against individuals who are responsible.
Unathi Kamlana, the commissioner of the FSCA, recently warned that the financial services watchdog is going to make life hard for employers that are deducting pension fund contributions from workers and failing to pay it over to pensions funds.
Kamlana says the public naming and shaming approach has proven to be effective in driving compliance.
“As a result, following the publication, almost 1 000 employers took swift action to clear their arrears, recognising the potential reputational damage and legal consequences of their non-compliance.
“In addition, many retirement funds have used the visibility provided by these publications as leverage to enter into settlement arrangements with defaulting employers, ensuring that outstanding contributions are paid over time,” he adds.
Kamlana, delivering the inaugural annual lecture of the Gys Steyn chair in financial regulation law at Stellenbosch University in November, said the latest data indicates that the total arrear contributions amount to some R5.2 billion.
“When arrears accumulate in this fashion, the trust that retirement fund members place on the retirement system meant to provide for them in their later years is severely affected.
“Timely and consistent contributions are critical to the ultimate value of retirement savings over time and by extension are a significant determinant of whether or not an employee secures a comfortable retirement. When an employer fails to make timely payments into pension funds, there is a major negative impact on the employee’s retirement savings, potentially undermining the financial foundation that many South African workers depend on, leading to a direct loss in the growth potential of their savings and leaving workers vulnerable to financial insecurity in their retirement years,” he says.
Bleak retirement
Kamlana mentioned the well-known statistics: Less than 10% of people are able to retire comfortably and household savings amount to a mere 2% of GDP.
Nearly 60% of the savings are in the form of contractual retirement funds. Thus, there is a heavy reliance on retirement funds, which makes it important for these funds to be well-protected and managed, ensuring that contributions are made consistently and in full.
“At the heart of our retirement fund system are tax-subsidised contributions aimed at building a safety net during an individual’s active working life, in order to provide for their financial needs and a cushion upon their retirement. This tax-subsidy approach to accumulating personal savings makes it all the more important for us to ensure adequate regulatory outcomes for members of retirement funds,” he says.
Kamlana warns that when arrears in pension fund contributions amount to billions of rand and reach a prudentially significant amount, it could destabilise the broader retirement ecosystem.
“As pension funds rely on steady contributions to maintain liquidity and fulfil their obligations, they may become strained when contributions are inconsistent or delayed. This in turn could limit their ability to invest in long-term projects, diminishing their role as major institutional investors in the economy.
“So it’s not just the employees who suffer; the entire retirement system becomes more vulnerable,” he says.
The commissioner had hard words for municipalities. “The issue of pension fund arrears is fast becoming a pervasive phenomenon and a deeply troubling issue within the local sphere of government, with potentially devastating consequences for employees of municipalities in terms of their retirement savings outcomes.
“Across the country, just under 150 municipalities have been implicated in failing to remit pension contributions deducted from employees’ salaries, with the total amount of unpaid contributions estimated to be about R1.4 billion.
“One particularly egregious practice contributing to this is the recycling of employer pension contributions – a financial mismanagement tactic where municipalities, instead of forwarding contributions to pension funds, divert the funds for operational expenses or to pay salaries.
“This practice not only breaches fiduciary duties, but also exacerbates the financial instability of the municipality as it creates a backlog of unpaid pension obligations that accrue interest and penalties over time.
“It places employees in an untenable position, where their long-term financial security is sacrificed to meet short-term financial needs within the municipality and importantly, it increases the contingent liabilities of the state,” he says.
Criminal offence
Deducting pension fund contributions from employees and not paying them over to the relevant pension fund, or not paying the employer’s contribution, is criminal. The FSCA lauded recent action by law enforcement agencies to act against officials who are responsible for the criminal actions, with the Directorate for Priority Crime Investigation (Hawks) investigating.
Three senior managers at the Renosterberg Municipality in the Northern Cape were charged with fraud, theft and contravention of the Municipal Finance Management Act (MFMA) and the PFA for failing to remit R73.5 million in pension contributions between 2018 and 2023.
“The legal framework governing pension funds in South Africa is primarily underpinned by the PFA. Section 13A of the PFA is particularly crucial, as it clearly stipulates the responsibility of employers to make both their own contributions and those of their employees on time, ensuring that pension funds are adequately funded to meet their obligations
“It requires employers to ensure that monthly contributions deducted from employees’ salaries are fully paid to the registered retirement fund in which they participate by no later than the seventh day of the month following the month in respect of which such contributions are payable,” says Kamlana.
Trustees and members
The FSCA notes that pension fund trustees and members must realise that they also have a responsibility to ensure compliance.
“Crucially, the PFA places a responsibility on the Board of Trustees of pension funds to ensure compliance with contribution requirements and to facilitate the timely payment of contributions. Over the years, many boards have actively pursued defaulting employers, either by referring cases to the Pension Funds Adjudicator or by initiating civil litigation to recover unpaid contributions,” says Kamlana.
“While civil litigation has proven effective in many cases, it is not without its challenges. For smaller funds, the pursuit of legal action can be financially burdensome, as the associated costs can impact the retirement savings of members.”
As a result, some umbrella funds that pool the assets of various employers into a single pension fund have terminated businesses when contributions are in arrears for too long. However, this impacts on members and leaves them without a pension.
Members are also not without powers when it comes to addressing issues of arrear contributions.
“While it is established law that arrear contributions are owed to the fund and that the fund itself has standing to institute legal proceedings as a creditor, there have been important legal developments that strengthen the role of individual members in this regard,” says Kamlana, referring to a high court ruling that fund members can bring an application for execution against an employer’s property when contributions are in arrears.
He warns that the payment of pension fund contributions does not rest solely with the company as a corporate entity.
“The PFA extends personal liability to directors and senior management. This means that those involved in the financial affairs of the employer can be held directly accountable if the company fails to pay over pension contributions as required.
“Failing to pay pension fund contributions on time is not just a breach of contract, it is a serious violation of the law. Section 37(1)(a) of the PFA classifies the non-payment of contributions as a criminal offence, punishable on conviction by a fine not exceeding R10 million or imprisonment for a period not exceeding 10 years, or both,” he says.
List of employers.
Source: https://www.moneyweb.co.za/news/south-africa/private-security-and-transport-firms-top-list-of-worst-pension-fund-offenders/
3.Weekly Poll
Last editions’ poll results:
Responses: We had 11 responses to last weeks poll:
27% of respondents are currently employed
73% of respondents are currently unemployed and looking for work.
4. Interview Q & A
How to Answer the Interview Question: "What Are Your Preferred Working Hours?"
In the security industry, flexibility is often a key requirement. Security roles typically involve varying shifts, including nights, weekends, and public holidays. When an interviewer asks about your preferred working hours, they aim to gauge your availability, flexibility, and suitability for the role’s demands.
Why Do Interviewers Ask This Question?
Interviewers ask this question to determine:
Your Compatibility with the Job: Security positions often require irregular schedules, so they want to know if your availability aligns with their needs.
Your Willingness to Adapt: Employers seek candidates who can adapt to shifting schedules and fill in during emergencies if required.
Your Commitment: Your answer can reveal whether you fully understand the responsibilities of the role and are willing to meet its demands.
How to Structure Your Answer
To craft a thoughtful response:
Understand the Job Requirements: Review the job description to understand the hours required. If possible, research the company’s standard shift patterns.
Be Honest but Flexible: While it’s important to express your preferences, showing willingness to adapt will leave a positive impression.
Align with the Role: Tailor your answer to reflect the needs of the job without overpromising availability you can’t realistically manage.
Model Answer
Interviewer: "What are your preferred working hours?"
Candidate:
"I understand that the security industry often requires flexibility in terms of working hours, and I am prepared to adapt to the needs of the role. I am comfortable working night shifts, weekends, and public holidays if required, as I know these times are critical for maintaining security. While I do prefer a consistent schedule whenever possible, I am open to rotating shifts and on-call responsibilities as needed. My priority is to ensure the safety and security of the premises I’m assigned to, regardless of the hours."
Why This Answer Works
Shows Flexibility: The candidate expresses willingness to work various shifts, which is crucial in the security industry.
Aligns with Industry Needs: The answer demonstrates understanding of the job’s requirements.
Balances Honesty and Commitment: The candidate mentions a preference for consistency but prioritises the company’s needs.
Additional Tips
Clarify Expectations: If you have specific constraints, such as family obligations, communicate them honestly but emphasize your commitment to finding a workable solution.
Express Enthusiasm: Highlight your dedication to the role to assure the interviewer that your availability aligns with your commitment to the position.
Conclusion
When answering the question about your preferred working hours in a security interview, balance honesty with flexibility. Demonstrate your understanding of the job’s demands and your willingness to adapt. This approach shows the interviewer that you’re a dependable and committed candidate who prioritises the role’s requirements.
5. The different career options available in the security field:
The Role of a Law Enforcement Liaison Officer in the Security Industry
In today’s complex security environment, seamless coordination between private security companies and law enforcement agencies is essential. This is where a Law Enforcement Liaison Officer (LELO) plays a critical role. These professionals act as the bridge between private security operations and public law enforcement, ensuring smooth communication, collaboration, and efficiency in addressing security challenges.
What Does a Law Enforcement Liaison Officer Do?
The primary responsibility of a LELO is to establish and maintain strong relationships with law enforcement agencies. Their duties include:
Facilitating Communication: Acting as the primary point of contact between private security teams and police or other law enforcement bodies.
Coordinating Responses: Assisting in the rapid and efficient handling of incidents, such as thefts, break-ins, or public disturbances.
Sharing Intelligence: Ensuring that relevant information, such as crime trends or threats, is shared between security companies and law enforcement.
Providing Expertise: Offering guidance on legal protocols, reporting procedures, and evidence handling to ensure compliance with the law.
Training and Awareness: Educating security teams about best practices when working with law enforcement agencies.
Why Is This Role Important?
A LELO is crucial for improving collaboration between private security and law enforcement. By fostering trust and understanding, these officers ensure:
Quicker Response Times: Effective communication helps expedite law enforcement responses to security incidents.
Improved Crime Prevention: Shared intelligence leads to better preventive measures and strategies.
Compliance and Accountability: LELOs ensure that private security companies operate within legal frameworks and adhere to established procedures.
Community Confidence: Effective partnerships between security providers and law enforcement build public trust.
Skills and Qualities Needed for a LELO
A successful Law Enforcement Liaison Officer should possess:
Strong interpersonal and communication skills.
A deep understanding of both the security and law enforcement sectors.
Knowledge of local laws and regulations.
The ability to manage conflict and mediate between parties.
Problem-solving and organisational skills to coordinate complex operations.
Career Path and Opportunities
Becoming a LELO typically requires experience in security, law enforcement, or a related field. Many in this role have prior experience as police officers or security managers. Additional training in public relations or criminology is also advantageous.
This position can open doors to leadership roles in security management or consultancy. It’s an ideal career choice for professionals who are passionate about public safety and have a knack for collaboration.
Conclusion
The role of a Law Enforcement Liaison Officer is indispensable in the modern security landscape. By bridging the gap between private security companies and law enforcement agencies, LELOs ensure a cohesive, coordinated approach to public safety. Their efforts not only improve crime prevention and response but also enhance trust within the communities they serve.
For those looking to make a meaningful impact in the security industry, becoming a Law Enforcement Liaison Officer offers a fulfilling and dynamic career path.
6. Bonus Article:
Extortion poses serious threat to State and citizens – Mashatile
Civil Security Published on 11 November 2024 BySANews
Deputy President Paul Mashatile says an economy grappling with extortion, controlled by “ruthless gangsters”, poses a serious threat to both government and law-abiding citizens.
“We have also responded to a related question in the National Assembly, highlighting the urgent need for government to take decisive action to deal with extortion-related criminality,” Mashatile said on Thursday.
The Deputy President was responding to questions in the National Council of Provinces (NCOP) relating to several critical issues impacting South Africa’s township and rural economies.
The Deputy President quoted Police Minister Senzo Mchunu, who in September spoke about township economic sabotage in four provinces. These provinces include mainly Gauteng, KwaZulu-Natal, the Western Cape and Eastern Cape.
“According to the Minister of Police, these provinces carry 73% of crime levels in South Africa. The gravity of these crimes alone, including extortion, are of serious concern to government, and must be dealt with immediately,” said Mashatile.
He announced that the South African Police Service (SAPS) has since initiated the signing of cooperative agreements with provincial and local governments, which include operational plans that will provide details on the integration of resources against crime.
In addition, Extortion and Kidnapping Task Force Forums have been established in all affected provinces, which involve all the relevant stakeholders, including private business.
On the implementation of measures to deal with sabotage of basic service delivery, such as water and sanitation, by “unscrupulous” owners of water tankers, the Deputy President said the Departments of Water and Sanitation and Cooperative Governance and Traditional Affairs have intervened.
According to the Deputy President, the two departments are assisting struggling municipalities with water tankers as a short-term intervention, while bulk water infrastructure challenges are being resolved.
“In addition to the challenge of construction mafia, which is rife all over the country, we have received reports of unscrupulous owners of water tankers, who are interfering with service delivery initiatives in municipalities, thus extorting money to rent their services, and some selling water to vulnerable communities.”
He stressed that the State was encouraged by the work of Community Policing Forums, whistleblowers and community members, who are actively involved in addressing service delivery-related acts of criminality and extortion across all provinces that have been identified as hotspots.
“However, much more needs to be done to resolve this challenge,” Mashatile said.
https://www.protectionweb.co.za/civil-security/extortion-poses-serious-threat-to-state-and-citizens-mashatile/
In conclusion:
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