Everything procurement officers need to know before hiring a security provider — mandatory registrations, verification steps, and how to protect your organisation from legal exposure.
The Hidden Costs of Hiring Unregistered Security Companies
South Africa’s Private Security Industry Regulatory Authority (PSIRA) estimates that over 30% of active security operations in the country are either unregistered or operating with lapsed credentials. For procurement officers drafting tenders or replacing vendors, this statistic represents a minefield of legal, financial, and reputational risk.
Under the Private Security Industry Regulation Act 56 of 2001, both the unregistered security provider AND the client who knowingly engages them can face criminal prosecution, fines up to R100,000, or imprisonment. Beyond the legal penalties, your corporate insurance policy will almost certainly deny claims arising from incidents involving unregistered guards — leaving your organisation fully exposed.
⚠️ Key Risk: If guards are found unregistered during an incident, your insurer can reject the entire claim — even for multi-million rand losses.
The Mandatory Registration Checklist: 6 Documents Every Security Vendor Must Hold
Before awarding any security contract, verify that your prospective vendor holds current, valid documentation for each of the following. Any missing item is a disqualifying red flag.
1. PSIRA Registration (Business & Individual)
The security business must be registered with PSIRA, and every individual guard deployed must hold a valid PSIRA registration grade (A–E). Verify both the company registration number and individual guard numbers on the PSIRA online portal
.2. COIDA Letter of Good Standing
The Compensation for Occupational Injuries and Diseases Act requires all employers to register and maintain contributions. Without COIDA coverage, your company inherits vicarious liability for any on-duty guard injuries.
3. UIF Compliance Certificate
Unemployment Insurance Fund registration confirms that the vendor is lawfully contributing for all employees. Non-compliance signals labour exploitation and exposes you to Department of Employment and Labour penalties.
4. Tax Clearance Certificate (TCC)
A valid TCC from SARS confirms the vendor’s tax affairs are in order. Required for all government and most corporate tenders. Verify the tax reference number directly on SARS eFiling.
5. Public Liability Insurance
Minimum R10 million cover is industry standard. This protects your organisation if a security employee causes third-party injury or property damage while on your premises.
6. B-BBEE Certificate or Sworn Affidavit
Required for preferential procurement scoring. Ensure the certificate is current (valid for 12 months) and issued by an accredited verification agency listed with SANAS.
How to Verify a Security Company’s Registrations
Never accept photocopied certificates at face value. South Africa’s security industry is plagued by fraudulent documentation. Every registration can be independently verified through official channels: PSIRA offers a free online verification tool at psira.co.za, SARS provides TCC validation on eFiling, and COIDA letters can be confirmed through the Compensation Fund.
Build verification into your procurement SOP. Request original documents during the tender evaluation phase, set calendar reminders for annual re-verification, and include a contractual clause allowing immediate termination if any registration lapses during the contract period.
Pro Tip: Request that vendors provide PSIRA registration numbers upfront in their tender response. Verify these before shortlisting — it eliminates 30%+ of non-compliant bidders immediately.
How AfriFranco Meets (and Exceeds) Every Compliance Standard
At AfriFranco Security Services, compliance is not a box-ticking exercise — it is the foundation of our service delivery. We maintain active PSIRA registration for the business and every deployed operative, current COIDA and UIF certificates, valid Tax Clearance, minimum R20 million Public Liability cover, and a verified Level 2 B-BBEE certificate.
We proactively share compliance documentation with our clients quarterly — before you need to ask. Our dedicated compliance officer monitors all registration renewals 90 days in advance, ensuring zero lapses. When you partner with AfriFranco, you remove regulatory risk from your security procurement entirely.
