Concern over amendment bill to regulate foreign owned security companies

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 The Security Industry Alliance says it's concerned at the passing of an amendment bill that inter alia, seeks to regulate foreign ownership of South African security companies.

Parliament's Portfolio Committee on Police passed the Private Security Industry Regulatory Authority Amendment Bill on Tuesday.

SIA legal advisor, Martin Hood, says with the exception of the section on foreign ownership, the Association is happy with the other amendments to the Bill which he says will improve the capacity of the regulatory authority to do its job.

However, he told Algoa FM News that the Bill may be unconstitutional in a number of respects.

"We have two concerns one relates to the process in which this Bill was adopted without proper consultation and secondly the content itself, because it restricts foreign ownership and is tantamount to expropriation of foreign owned assets in South Africa and is a disincentive to investment" he said.

Hood explains the impact of the Bill should it become law.

"Many households are protected by companies that have full or part foreign ownership. Those companies will be forced to sell their shares or dispose of their shares to South African citizens. The implications of that are far broader than just for the security industry, because it is tantamount to an indigenisation or expatriation of assets that are protected by the constitution"