Hon Speaker and hon members, the Portfolio Committee on Police met on 2 November 2010, just five days before my birthday ... [Applause.] ... to consider the annual report and financial statements of the Private Security Industry Regulatory Authority, PSIRA. [Interjections.] The PSIRA provides for the regulation of the private security industry ...[Interjections]
You are out of order, hon member. [Laughter.]
... and is governed by a council accountable to the Minister of Police for its functions. In 2009, a ministerial task team was appointed to conduct an in-depth inquiry into the functioning of the PSIRA. Key findings of the ministerial intervention task team were that the organisation was in a critical financial position and in dire need for realignment in order to conform to the Private Security Industry Regulatory Authority Act. There had been a high level of internal mismanagement within the authority and thus the first task of the new council was to stabilise the organisation before it could effectively regulate the industry. A new council was subsequently appointed in January 2010. Following many years of disclaimer audit opinions, the PSIRA received a qualified audit opinion in 2009-10.
The main reason for the qualified opinion were VAT liability and numerous matters of emphasis, as well as concerns around lack of adherence to legal and regulatory requirements, inconsistent reporting, nonadherence to requirements of the Public Finance Management Act, and lack of internal controls.
At its meeting on 2 November 2010 with the council of the PSIRA, the committee was disheartened by the report, which highlighted serious problems in the PSIRA in terms of its financial position, relationship with stakeholders, lack of business processes and resources, and low morale and lack of leadership in the structure. Key concerns of the committee included deficiencies in financial management, lack of achievement of the strategic objectives, and lack of a clear vision on how the PSIRA and the council would turn the situation around.
On 3 March 2011, the committee again met with the council where their interim turnaround strategy for the period between November 2010 and March 2011 was presented. The PSIRA presented strategies to address funding and debt management to deal with dormant service providers, firearms and illegal operators and to deal with criminality in the industry and corruption. They highlighted cost-cutting initiatives, the reprioritisation of regulatory inspections and provided information on how to improve debt collection.
During this meeting, many of the members were cautiously optimistic following this presentation, and the committee eagerly awaits the presentation of the final turnaround strategy and new strategic plan of the PSIRA early next term. This means that between November 2010 and March 2011 the newly appointed PSIRA council managed to turn around the situation in terms of finance management and its core business of being a private security industry regulator. The committee will be focusing on the work and performance of the PSIRA during the 2011-12 financial year.
I hereby table the Portfolio Committee on Police report on the annual report of the PSIRA for adoption. I thank you. [Applause.] There was no debate.
Hon Speaker, I move:
That the Report be adopted.
Motion agreed to.
Report accordingly adopted.