COMMUNITY AND EMERGENCY SERVICES CLUSTER

Security Management Unit

3 Jelf Taylor Place
Durban,4000
P.O. Box 49463,East End, 4018
Tel: 031 311 4510, Fax : 031 368 1467
www.durban.gov.za

09 October 2018

MEMORANDUM: 1X – 31747: PROVISION OF SECURITY SERVICES FOR ETHEKWINI MUNICIPALITY – SECURITY

MATTERS

1. PURPOSE

1.1. The purpose of this memorandumletter is to;

1.1. Record the resolutions adopted in various meeting Adopt the resolutions taken theld to address the
security threat emanating from Military Veterans.
1.2. Authorize all main security service providers to subcontract at leasta minimum of 30% of the value of
the current security contract to all targeted groups as regulated (the target group in this instance being
the Military Veterans);

2. BACKGROUND

2.1. Security Management Unit received information that the Military Veterans were planning to shut
down operations at all municipal guarded sites if the municipality did not implement the
“PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT, 2000: PREFERENTIAL PROCUREMENT
REGULATIONS, 2017”, within the security contract upon refusal by the current eight service providers
to meet with the Military Veterans.
2.2. They also highlighted that all other government spheres are implementing this regulation but the
municipality is not doing anything about it.
2.3. The eThekwini Municipality Safety and Security committee together with Security Management Unit
than took a proactive decision to engage with the current security service providers with a view of
mitigating the said risk.
2.4. Executives representatives from the following companies were present at various meetings;

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 COMMUNITY AND EMERGENCY SERVICES CLUSTER
Security Management Unit
3 Jelf Taylor Place
Durban,4000
P.O. Box 49463,East End, 4018
Tel: 031 311 4510, Fax : 031 368 1467
www.durban.gov.za

COMPANY REPRESENTATIVE SERVICE PROVIDER

ANU PADAYACHEE/ VIMAL DABIDEEN ISIDINGO

PHILANI MAJOLA VUSA ISIZWE

MAGESH MOODLEY/SEAN GOVENDER ROYAL SECURITY

XK MABANGA SHARKS SECURITY

NEVILLE NAIDOO/ DEREK LATEGAM EXCELLERATE

PAUL KRUGER IMVULA

SALEM MOYIDEEN K.S.A

SHARON HORNE/ RAYMOND HORNE IQPS

NIREN MAHABEEN/KRIBEN MOODLEY SECURECO METSU

2.5. The following municipal representatives were present at various meetings;

MUNICIPAL UNIT MUNICIPAL REPRESENTATIVE

SMU DUMISANI BHENGU

SMU NQOBILE PHEWA

SMU NURSE BIYELA

SMU AMANDA HLONGWANE

SAFETY & EMERGENCY COMMITTEE CLLR. DLAMINI

COMPLIANCE & LEGAL SIBUSISO SHEZI

COMPLIANCE & LEGAL MPUMELELO NGALO

SCM ANDRE PETERSON

SCM NICHOLAS MKHIZE

SCM THOBILE MAZIBUKO

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 COMMUNITY AND EMERGENCY SERVICES CLUSTER
Security Management Unit
3 Jelf Taylor Place
Durban,4000
P.O. Box 49463,East End, 4018
Tel: 031 311 4510, Fax : 031 368 1467
www.durban.gov.za
3. DISCUSSIONS

3.1. Meeting (1) held on the 1st of August 2018 at SMU boardroom;

3.1.1. There were two proposals that were tabled as the solution;

a) The companies agree to subcontract then later, discuss modalities with all relevant
stakeholders in particular, Legal and SCM or
b) Refuse to subcontract and deal with the consequences later, but then put measures in
place to ensure that municipal sites and employees are protected at all times.

3.1.2. The security company representatives then requested to report back to their boards and come
back with the full mandate on what actions would be taken to remedy the situation.

3.2. Meeting (2) held on the 7th of August 2018 at SMU boardroom
3.2.1. During the follow-up meeting companies then gave the following feedback from the boards;
3.2.2. All eight companies agree with the principle of subcontracting, but raised the following issues;
a) The methodology that was followed was problematic in that it only involved only one
targeted group.
b) They felt that any other pressure group can then adopt the similar approach to demand a
percentage within the contract then everything will spiral out of control. Therefore the
general view was that the subcontracting be opened to all targeted groups and not to
only one pressure group.
c) Subcontracting is not a contractual mandatory requirement, it would therefore be settled
by negotiations.
d) The city arrange for the long term contract to enable the companies to plan accordingly
and to alleviate uncertainties.
e) The City be a part of the negotiations as oppose to be the initiator and the facilitator in
order to address the grey areas around the court order.
f) Who shall the liability sit with?
g) Whom should be liable for non-payment by the City? The general view was that the
liability should be proportionally shared.
h) What if the Military Veterans companies don’t have enough resources to service the
contract or non-compliant? Are the main contractors expected to assist them step by
step?
i) There has to be some documentation that bind the municipality, main contractor and a
subcontractor.
j) The City was of the view that a lot of the issues raised were issues of modality that should
be discussed between the subcontracting parties (the main contractor and the potential
subcontractor) except the issue of, the tripartite agreement and the request by the
current service providers for a long term contract from the City.
k) The City was to give feedback on these in the next meeting after consulting the principals.
l) In general the security companies agree with the principle of subcontracting but a lot was
dependent on more details being given by the municipality together with the terms and
conditions proposed, but the City was of the view that a lot of the issues raised were
issues of modality.

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 COMMUNITY AND EMERGENCY SERVICES CLUSTER
Security Management Unit
3 Jelf Taylor Place
Durban,4000
P.O. Box 49463,East End, 4018
Tel: 031 311 4510, Fax : 031 368 1467
www.durban.gov.za
3.3. Meeting (3) held on the 28th of August 2018 at SMU boardroom

3.3.1. In this meeting the City gave feedback on the two issues;

a) The City will not extend the contractual arrangement beyond month to month as this is
regulated by and in line with the court order that was issued on the 9 th of November
2017.
b) The municipality will not form party to the subcontracting agreement but will only
facilitating the process for the subcontracting parties to discuss the modalities and assist
through business support.

3.3.2. The service providers further raised the following issues;

a) They would never be able to restrain any other targeted groups from coming with the same
expectations if we only sat around the table and spoke about the Military Veterans.
b) They cannot invest anymore in this contract because there is no certainty in terms of the
period and the duration of the contract. If they were to engage with a service provider to
subcontract and the City terminate this arrangement in 3 months, the subcontractors are
going to be worse off than even before touching this job because whether they are funded
by the prime contractors or their bankers, there is going to be an indebtedness created.
c) The prime contractor will not engage with any subcontractor that is not compliant.
d) No thresholds is forced upon us so we can to mitigate our risks.
e) To engage with the unions to discuss labor issues in compliance with the LRA since the
subcontracting arrangement affect employees.
f) Whether or not the subcontracting would be through the conventional way where a
subcontractor is contracted to the main contractor or the City will have a direct oversight
on the subcontractor. The City was of the view that subcontracting will be conventional
and will hold the main contract liable for the contractual obligations. The City will ensure
that the subcontractors are fully trained and compatible through Business Support and
any other relevant role players.
g) How are the service providers going to identify the companies owned by veterans?
Business support with SCM, as the custodians of our database, to engage in a process
where they collate a list of service providers and their profiles.

3.4. Meeting (4) held on the 13th of September 2018 at SMU boardroom
3.4.1. The Military Veterans again attempted to meet with the security service providers but only two
companies honored the meeting.
3.4.2. There was also a breakdown in negotiations between security service providers and Military
Veterans due to unpleasant emails that were circulating to the point that Isidingo recused
themselves from participating in the process.
3.4.3. Again The City made a plea to the parties involved to renew their commitment to the process
because if parties are not talking then there would be no solution.
3.4.4. The municipality then suggested that a task team be formed.
a) This task team must have representative from all parties.
b) They are to meet and discuss modalities.
c) Report back to the municipality once negotiations and contractual agreements are
finalized.
d) The reporting mechanism to the municipality will be discussed after the above has been
concluded.

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 COMMUNITY AND EMERGENCY SERVICES CLUSTER
Security Management Unit
3 Jelf Taylor Place
Durban,4000
P.O. Box 49463,East End, 4018
Tel: 031 311 4510, Fax : 031 368 1467
4. SUMMARY OF RESOLUTION www.durban.gov.za
4.1. Following several meetings which were held between eThekwini Municipality and the eight security
service providers, on 01/08/2018, 07/08/2018, 28/08/2018 and 13/09/2018 with regards to the
security threat emanating from Military Veterans, the following was resolved;

4.1.1. The security service providers and eThekwini Municipality agree with the principle of
subcontracting broadly.
4.1.2. Sub-contracting is not only limited to veterans but opened to all targeted groups, as legislated,
which are vetted by the main contractor even though the discussions were sparked by the
threats from the Military Veterans.
4.1.3. All eight companies remain the main contractors and they reserve the right to subcontract or
not and to determine the percentage they want to subcontract.
4.1.4. The municipality is only a facilitator in this process and will not be involved during the
negotiations/selection process between the main contractor and the potential subcontractors.
4.1.5. No subcontracting percentage threshold is not imposed on the current service providers.
4.1.6. Main contractor will carry all the risks.
4.1.7. A pool of potential subcontractors are available from the eThekwini Municipality database and
Business Support is also available to assist in developing subcontractors.
4.1.8. The municipality is currently contracted with the current eight companies on a month to month
bases based on the court order dated 09 November 2017 and will not extend the period
beyond the current arrangements.
4.1.9. A task team consisting of representatives from eight security service providers and Military
Veterans committee must be formed in order to take the negotiations forward.
4.1.10. After negotiations have been finalized and subcontracting contracts has been finalized the
task team must report back to the municipality, the report structure and content will be
finalized thereafter.

5. AUTHORITY TO SUBCONTRACT

5.1. The municipality hereby;

5.1.1. Adopts the resolutions taken to address the security threat emanating from Military Veterans.
5.1.2. Authorize all main security service providers to subcontract a atminimum of least 30% of the
value of the current security contract to all targeted groups as regulated;

6. ACKNOWLEDGEMENT OF RECEIPT AND CONFIRMATION OF ACCURACY OF RESOLUTIONS

6.1. Please acknowledge receipt of this memorandum.

6.2. Should you have any additions/disputes to the memorandum, please forward your comments to Nurse
Biyela for corrections via a formal letter in your letterhead.
6.3. Please confirm the accuracy of the resolutions taken on 01/08/2018, 07/08/2018, 28/08/2018 and
13/09/2018, and to subcontract to the targeted groups as outlined in 4.1.1 to 4.1.10 above, by signing
the acknowledgement and confirmation section below and return it to nurse.biyela@durban.gov.za or
hand deliver at the address reflected on the letterhead above for the attention of Nurse Biyela.
6.4. Submit the requested information by no later than 12 October 2018, at 16:00 noon.

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 COMMUNITY AND EMERGENCY SERVICES CLUSTER
Security Management Unit
3 Jelf Taylor Place
Durban,4000
P.O. Box 49463,East End, 4018
Tel: 031 311 4510, Fax : 031 368 1467
www.durban.gov.za

MEMORANDUM: 1X – 31747: PROVISION OF SECURITY SERVICES FOR ETHEKWINI MUNICIPALITY – SECURITY

MATTERS

I_______________________________________________ hereby acknowledges receipt of the attached

Memorandum and letter and agree with listed resolutionsconfirm its accuracy.

Contracted Company Name: __________________________________________________

Contracted Company Registration Number: _________________________________________

Name of Representative: __________________________________________________

Designation: __________________________________________________

#Signature: __________________________________________________

Date: __________________________________________________

#the above should be completed and signed by the person authorized to sign on behalf of the Contract.

Company Stamp

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