Question No 515
Mr I M Ollis (Democratic Alliance) to ask the Minister of Defence and Military Veterans:
(1) Whether her department makes use of private security firms; if so, how much money was spent on such firms in 2008;
(2) Whether these firms are used on a contractual basis; if so, (a) how many contracts did her department take out in this regard in 2008, (b) with which firms were these contracts taken out, (c) for what specific purpose was each contract taken out and (d) what was the value of the contract in each case;
(3) why is there a need for her department to use a private security firm as opposed to state security?
Reply
1. Yes, the Department of Defence makes use of a private security firm. An amount of R979 266.00 was spent in 2008.
2. Yes, the firm is used on a contractual basis
a. One (1) contract was concluded in 2008
b. The contract concluded with Fidelity Cash Management Services
c. The contract with Fidelity cash management Services is for Cash-in-Transit Services. (Transporting the Department of Defence cash assets between Finance Accounting Services Centres and commercial banks and vice versa).
d. Fidelity Cash Management Services – R979 266.00
3. The transfer of cash assets is renowned to be a high risk and very simple specialised function, which even the private financial and banking sector grapples with. Continuous improvements and measures have to be taken to counter criminal activities. The South AfricaN National Defence Force (SANDF) does not have a law enforcement mandate. Cash-in-transit services can thus only be acquired through the contracting of private security firms, which are accredited to carry out certain law enforcement functions.
Issued by: Department of Defence and Military Veterans
30 July 2009
