PSIRA

The BAC recommended cancellation of TMPD-3 because the specification did not include PSIRA guidelines, which was a valid reason according to the evidence.

“the reason that the BAC recommended the cancellation of TMPD-3, one of the reasons is the specification does not say anything about PSIRA guidelines, and you say that was a valid reason for cancellation.”

The tender specifications did not explicitly refer to or consider the PSIRA pricing guidelines, which are regulated and relevant for assessing pricing.

“The specifications were silent on the PSIRA pricing guidelines that should be considered ... PSIRA is regulated and they give pricing ... The document in its own was not clear whether that would be taken into account ... The specifications did not have a clear indication on what happens on the regulations of PSIRA and the prices that are there”

The tender process excluded considering regulated pricing from PSIRA, which is viewed as a material irregularity.

“Because this is a regulated area from a pricing perspective. So we need to be clear that we are not going to follow those potential pricing that are regulated by PSIRA ... why is that a material irregularity? ... You are going to assess these bidders on price and BEE after you have excluded people who do not qualify ... Why do you have to refer to PSIRA guidelines?”

PSIRA has strict guidelines on how much is to be paid per guard which should have been clearly indicated in the City’s bid specifications to avoid binding bidders to their own prices instead of PSIRA prices.

“PSIRA has got strict guidelines on how much you need to pay per guard... The City’s specification document was silent on this matter... they are aware of how the industry operates, to avoid a situation where we award a bidder then comes award date, he then tells us PSIRA says you need to pay this amount”

There was concern that bids with prices below PSIRA guidelines might escalate later up to the PSIRA maximum during renegotiation or escalation periods.

“If I understand you correctly... PSIRA has guidelines that may be higher than the bid prices and you were worried that come renegotiation time, or come escalation time, people would want to escalate up to the PSIRA maximum. Is that what the concern was?”

The City documents showed a Department's request to BAC for approval to grant price escalations subject to PSIRA rate calculations despite the tender being closed.

“on page 38... a request from the Department... coming to BAC saying we want to extend this bid because the previous tender had not closed... recommendation number 4 states that they also want an approval to be granted for any envisaged price escalation subject to verifiable annual cost calculation in line with Private Security Industry Regulation Authority, PSIRA, rates”

The tender document did not grant right to escalate prices in accordance with PSIRA and had no reference to PSIRA guidelines making the bid binding to its stated price only.

“If they do not give you a right to escalate in accordance with PSIRA ... then your bid is your bid. And in this case, there was no reference to PSIRA guidelines”

Mr Mnisi knew that Ngaphesheya did not have Grade A guards but still requested General Dlamini to advise on how to get an upgrade to Grade A during an open tender process.

“M f o w e t h u , p l e a s e s e n d t o U S a n d r e q u e s t h i m t o p r o v i d e h i m w i t h i n f o r m a t i o n f o r t h e c o r r e c t i o n . ... Meaning they would need to apply for that ... The tender process was still open ... They need to get advice on how the application process works to get an upgrade ... The advice that they were going to get from General Dlamini was how you can get an upgrade to Grade A ... From my perspective, they had Grade B ... They were never going to be complying for that ... I had to refer them to someone who had more knowledge of PSiRA and the security industry which was the General at this instance”

Director Malatji is suspicious that Commissioner Spies is not registered with PSIRA as required for persons appointed to perform, supervise, or manage private security services.

“I am suspicious that he is not registered with PSIRA, which is a requirement for any person appointed to perform, supervise, manage private security services.”

Director Malatji admits he does not know any fact that Commissioner Spies is not registered with PSIRA, saying it is just a feeling based on how appointment requirements were designed.

“I do not know any fact. It is just a feeling. It is based, the feeling is based on how the requirements for appointment were designed.”

Advocate Khumalo states Metro Police officers do not fall under PSIRA jurisdiction as they are public security, not private security.

“If you are a Police Officer or a member of the Metro Police, you do not fall under PSIRA jurisdiction because you are not regarded as private security sector. You are in public security, not in private security.”

Director Malatji stated he raised the issue of PSIRA registration with the office of the Chief of Police in writing before Commissioner Spies was appointed as a complaint or inquiry.

“I raised the issue of the PSIRA with the office of the Chief of Police. That was in writing, long before Commissioner Spies could be appointed.”

The bid relating to Tender 1/2425 in Tshwane had deficiencies including non-certification by PSIRA, director being Grade B rather than Grade A as required, missing licensed firearm registration, no proof of Provident Fund contributions, missing ICASA lease or license, missing bank rating, no list or photos of vehicles/tools, no reference or experience indicated, wrong CSD report attached, and no rates and taxes clearance certificates.

“There were 12 independent grounds on which your brother's bid should have been disqualified... including the PSIRA certificate not certified, director Grade B, letter of good standing Grade B, no licensed firearm registration, no proof of Provident Fund, missing ICASA agreement, no bank rating, no list of tools or vehicles, wrong CSD report, no rates and taxes certificates.”