Co-operative Governance and Traditional Affairs Minister Nkosazana Dlamini Zuma revealed on Wednesday that five metros have disclosed that they have spent a whopping R2.5 billion for the outsourcing of security services in the 2020/21 financial year.
Dlamini Zuma revealed this during her oral question session in the National Assembly when she was responding to questions from EFF MP Anthony Matumba.
Matumba asked the total amount the eight metropolitan councils paid for outsourcing security guards per annum and the difference in cost if the security guards were in-sourced.
In her response, Dlamini Zuma said out of the eight metros, five responded to the questions as follows:
• City of Cape Town R1.214bn;
• Buffalo City R13.6 million;
• Mangaung R92.9m;
• eThekwini R1.056bn; and
• Nelson Mandela Bay R2.62m.
She said the figures of two other metros still need to be verified.
Dlamini Zuma said the annual financial statement report of Ekurhuleni Metro showed that R447.3m was sent and the cost for the City of Johannesburg was R43.5m.
Tshwane Metro did not provide the figures because they did not disaggregate the security guards costs from the contracted services.
The minister also said they did not get a response from all the metros on the comparison of costs if the security services were in-sourced.
But, the Buffalo City said it costs R24 032 a year per security guard.
Mangaung said it would cost 20% more than their current costs while eThekwini said it would be R18.7m more.
EFF MP Hlengiwe Mkhaliphi said the in-sourcing of security guards saved a lot of money that went to labour brokers.
“Why is the government resisting calls for eradication of labour brokers. What does the government benefit from the kickbacks paid to officials?” she asked.
Dlamini Zuma said she could not really answer on kickbacks as she did not have evidence of that.
“I have not come across officials getting kickbacks from labour brokers,” she said.
Asked by ANC MP Fikile Xasa about a report about the high cost of in-sourcing of security guards from estimated R500m to R1.2bn in the City of Johannesburg and steps taken to ensure accountability, the minister said: “I will follow up on the matter.”
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