The parliamentary police portfolio committee has recommended the suspension of the director and CFO of the Private Security Industry Regulatory Authority (PSiRA) after revelations of irregularities and possible fraud involving a R130m training project funded by the Unemployment Insurance Fund.
PSiRA appeared before parliament on Wednesday to account for its role in the failed training programme, which began in 2019 and was supposed to last six months but dragged on for five years.
By the time training ended in 2024, only 118 trainees had been accredited.
The auditor-general’s office, which presented its material irregularity findings during the session, revealed that the programme was intended to train 7,071 unemployed learners in security-related qualifications.
However, while 6,507 learners were enrolled and trained, only 118 were officially accredited.
The AG also found that more than R30m was paid upfront to a supplier before any services were rendered.
“Through the audit process, we discovered that the supplier had not yet rendered services equivalent to the payments made. As a result, an amount of R30,182,839.73 was made as an advance payment,” the AG’s report noted.
Committee spokesperson Malatswi Molepo said it was unacceptable that the PSiRA council had not taken responsibility, especially given the duration of the misconduct.
“The committee’s recommendation was anchored on the view that the director and the CFO, as the delegated officials for the management of day-to-day operations of PSiRA as per the founding act, cannot objectively oversee the investigation of the programme they led. Furthermore, the committee is of the view that suspensions are necessary to ensure openness and accountability,” said Molepo.
This matter came to my attention late last year, and I raised it with the AG. This is a significant material irregularity, and despite several qualified audits since 2019, there has still been no meaningful consequence
— Ian Cameron
Committee chairperson Ian Cameron told Sowetan that the debacle started six years ago and that the delay in addressing the matter was “inexcusable”.
“They [PSiRA] have got nothing to show for it, and then the chairperson has the audacity to say they haven’t found who needs to be held accountable.
“This matter came to my attention late last year, and I raised it with the AG. This is a significant material irregularity, and despite several qualified audits since 2019, there has still been no meaningful consequence,” said Cameron.
In its presentation to the committee, PSiRA said the rest of the learners [apart from the 118 trainees who had been accredited] either did not complete training or were never accredited, and admitted that learner data was still being verified.
The AG described the matter as a failure in contract management, monitoring, and accountability.
A forensic report into the project was allegedly accessed and altered without authorisation, further casting doubt on PSiRA’s internal controls.
“Two officials illegally accessed the forensic investigation report without authorisation. An internal investigation confirmed that sensitive forensic project-related documents were accessed and downloaded unlawfully ... both officials involved were immediately suspended pending disciplinary proceedings,” read the PSiRA report.
Committee member Lisa Schickerling said the board must admit to massive oversight failure.
“We’re speaking about millions and millions of rand. I feel sorry for the learners who were part of this programme. It doesn’t feel like they received the best from PSiRA. Private security in our country is vitally important, and if the regulator allows such gross misconduct, then something is very wrong,” she said.
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