Last-ditch bid to stop 'crippling' security bill

THE impending signing of the controversial Security Bill into law by President Jacob Zuma could see South Africa face crippling sanctions and become embroiled in international trade litigation wars.

The warning was sounded yesterday at a South African Chamber of Commerce and Industry (Sacci) advocacy meeting in Johannesburg.

The meeting was held as the country's security industry pushes for an audience with Zuma to persuade him not to sign. Of the 5000 security companies operating in South Africa, 400 are foreign owned.

The industry contributes R50-billion annually to the economy and employs more than 500000 people.

The bill, the knock-on effect of which would "exponentially" drive up prices, security, would see foreign-owned companies seceding 51% ownership to South Africans.

There is no indication as to who the new owners would be.

The bill was first called for in 2012 by former police minister Nathi Mthethwa who raised fears that the number of foreign-owned security companies operating in South Africa were a threat to national security.

It not only affects the providers of security services, such as cash-in- transit companies, but also importers and exporters of security equipment and locksmiths.

Sacci chief executive Neren Rau said the organisation had written to Zuma. He said the bill's impact should not be under estimated.

"There have been no proper risk assessments. This law could have a severe effect. This bill, coupled with other controversial legislation, will have a crippling effect on us. It will shape the economy forever."

International trade expert JB Cronje said it would impact on international trade obligations. "Already in Washington South Africa and certain of its policies are being debated as to whether the country should still be part of certain trade agreements." - Graeme Hosken