In what appears to be a first for South Africa, banking and wealth management group Investec said last week that it would be spending as much as $121 520 (about R2 million) a year on each of its executive directors’ personal security as crime levels in the country surge.
While the executives previously paid for security services themselves, the cover by the company was approved by shareholders at the lender’s annual general meeting (AGM) last Thursday.
“The personal security arrangements are something which we feel we need to put in place for the executives based in South Africa. The measure was introduced given that they are high-profile, and given the number of other examples that are around of high-profile business people and other people being targeted,” Henrietta Baldock, chairperson of the bank’s remuneration committee, said at the AGM.
South African crime data published by the government shows that kidnappings more than doubled in the three months through to March to 3 306 incidents, while the number of sexual offences increased by 14 percent to 13 799.
Each of South Africa’s nine provinces has seen an increase in kidnappings.
The economic centre of Gauteng has seen more than 1500 cases of abduction in the first quarter of the year.
That’s almost three times the number of incidents in the same period last year.
The news raised some eyebrows in the country, with many taking to Twitter to share their views on the matter.
Take a look at what some people had to say about the matter below:
@Investec want to pay R2 million for each executive's bodyguards per year? This is ridiculous.
— Senzo Mkhize (@Senzo_Mkeeze) August 5, 2022
I guess the only big news here is that the bank will be paying for the security, and not that the directors chose to spend this from their own pockets.
One concern, though, is whether Investec execs have been involved in shady deals that might warrant such...
On a serious note though, I think Investec paying for their EXCO’s security is going to put their staff in danger too. Criminals will probably target Investec staff, it’s already assumed they earn a lot, this resolution attracts attention.
— Thabang (@_thabang_m) August 5, 2022
The banking group Investec says it will now pay around R2mn to provide security for each of its executive directors. What does this tell us about our society? #SAfmSunrise @SAfmRadio
— Stephen Grootes (@StephenGrootes) August 5, 2022
Not us much about our society but more about our useless police leadership
They paid for the security themselves, now the firm will: it says that firms are willing to find creative ways to hide pay rises.
— Peter Carswell (@pete_carswell) August 5, 2022
What snout the hundreds of politicians enjoying this as well? Paid for by tax payers who hardly eat well themselves?
— Petro Taljaard (@PetroTaljaard) August 6, 2022
It tells us that Investec does not give a dog for the lives of all its other employees. How ugly.
What do you think?
— Colin Donian (@KarooWorld) August 5, 2022
How about focusing on solutions rather than all the problems?
BTW. Another story about rich & poor, about a rotten system.
Clive Maher, chief executive of SCP Security, told Business Report that this had become a hot topic for all high-profile and wealthy businessmen and women in South Africa.
Maher said that in the past security details were relatively an exclusive service for politicians and other government officials. He added that there had always been a niche market for the ‘super wealthy and high-profile executives’ representing banks, mines, mobile telecoms and the likes investing in bodyguards and CPOs (close protection officers) for their own protection.
“The security industry is a highly regulated industry and this is where the cost of such services comes in. There are many fly-by-night security companies not correctly registered, offering similar services at reduced costs but they not only put the client at risk, they are also not properly insured and more than likely the CPO is not properly qualified,” Maher said.
He said the growing trend of kidnappings may have sparked Investec to implement and invest in a security detail for their executives to prevent such events from taking place.
“Kidnappings have become quite a popular source of income for these syndicates as they prey on individuals who have access to cash. Normally the victim has been profiled as to his worth or the family’s worth and the kidnappers always ask for an amount they know they can get,” Maher said.
“What is worrying is the growing trend where the victim is kidnapped, kept hostage for a week or so and only then communication is made as to the ransom, where by this stage the family is so desperate they pay whatever is asked,” he added.
“Kidnappers are definitely on the rise and soon will be more popular than CITs (cash-in-transit robberies) as no shots are fired, no big scene is created and the extortion is a ‘behind the scenes’ transaction.
“Security is one of those businesses where so long as there is crime we are in business so, of course, we want to sell as much protection as possible. However, if you are a target by means of your net worth and you are susceptible to such crime, I would without a doubt suggest you invest in security for you and your family’s peace of mind,” Maher told Business Report.
“I always say that if they catch you by surprise they are in control. If you catch them by surprise you are in control. For a high-profile exec it’s always a good insurance to have a security officer as your reminder to keep alert and aware of your surroundings,” Maher added.
Chad Thomas, chief executive of IRS Forensic Investigations, has been a registered security services provider since 1995.
He has advised many corporates on the protection needs of their executive members and designed and implemented security measures for their executives.
Thomas said: “Many corporates have taken cognisance of the risk that their executives face, especially in terms of targeted contact crimes such as hijacking and kidnap for ransom.
“Without going into too much detail, an executive, depending on the threat assessment and the position that he or she holds, may have a complete protection detail. This could include an escort vehicle, a bulletproof vehicle for the principal (the executive) which is driven by an armed driver and an extra crew member both trained in offensive and defensive driving, and a chase vehicle generally with a close protection officer on board with some level of paramedic training.
“However, more common place is the scenario where an executive may have a single armed close protection officer who is a qualified offensive / defensive driver, has taken a course in emergency first aid, and understands the planning of routes and is trained to be observant,” Thomas told Business Report.
“We are seeing a growth in the close protection officer industry with many businesspeople opting to have a close protection officer or close protection team dedicated to ensuring their safety and security.
“One needs to take heed of the fact that close protection is a specialised industry and a person who is registered by PSIRA (the Private Security Industry Regulatory Authority) and firearm-trained doesn’t necessarily mean that he or she knows how to protect a principal.
“Close protection is a niche industry with very few people with the actual experience and training to effectively manage and execute a well-run close protection detail. It is crucial to check and verify any credentials presented by a person that you are considering engaging to perform these services and it is very important to ensure that they are backed up by a reputable PSIRA-registered security company.”
“Generally speaking, close protection officers are PSIRA-registered specialists with either a military or police background having served in either the Military Police VIP Protection Section, or the SAPS Presidential Protection Unit or VIP Protection component. There are also specialists in the civilian close protection industry that served in either the SANDF Special Forces or the SAPS Task Force,” Thomas added.
BUSINESS REPORT