The call follows reports that four contracted security companies, Vemisane Security Services (VSS), Bolle Technologies (Pty) Ltd, Gap Management Solutions, and SA Tiger Security, informed workers that salary payments would be delayed because of outstanding payments from the ailing metro.

The situation exposes the financial instability of some companies entrusted with safeguarding municipal infrastructure, according to Afrikan Alliance of Social Democrats representative Zwelakhe Msabe. 

‘Borrowed money to pay May salaries’

The current outsourcing model places both workers and municipal assets at risk when companies cannot absorb payment delays, he said.

On 5 June, workers employed by Vemisane Security Services received letters informing them the company had borrowed money to pay May salaries. It said the metro had indicated funds would not be available to pay security service providers for three months, until after the July budget allocations.

It urged employees to use their remaining funds sparingly, particularly for transport costs, to ensure they continued reporting for duty. 

In a communication dated 17 June, Bolle Technologies informed employees supplier payments would not be processed until July because of the metro’s financial year-end audit processes.

“We anticipate cash flow pressure and immediate engagement with our bank and other financial services to secure interim funding to cover payroll. The application process is taking longer than expected due to the required documentation and approvals. Hence, we are not able to commit to a specific date as yet.”

Frustrated workers have approached  OFM News, claiming they have been left struggling to survive while waiting for their salaries. Some alleged they were encouraged to apply for advances from their company and accept food hampers while their wages remained unpaid.

SA Tiger Security had already warned workers on 25 May about delays in salary payments because of financial difficulties. The company indicated it had been paying employees deployed at libraries and patrol services from its own funds, but could no longer sustain the arrangement after reportedly failing to qualify for further bank overdraft facilities.

The situation raises serious concerns about the sustainability of the current outsourcing model, said Msabe. The inability of some companies to carry salary costs during municipal payment delays creates operational risks for the metro and hardship for workers. 

“All of them, with the exception of Gap Management, whose communication is not publicly shared, if there is any, do not have enough cash flow to go at least a month or two when Mangaung delays or does not make any payment.”

“This observation is not limited only to finances. It draws with the operational adequacy risk of guards not reporting for duty, which automatically exposes the city’s assets and buildings to crimes, including vandalism and theft,” he said.

The companies are neglecting the welfare of their employees, Msabe alleged. 

“These security companies do not care about workers or their families. Security guards go months without being paid their salaries, not sure whether their monthly deducted UIF, pension funds, and medical insurances are paid to third-party recipients.”

Security guards are being squeezed from all directions, with rising living costs placing additional pressure on workers who are already among the lowest-paid employees, Msabe argued. High fuel and food prices have worsened the situation for workers who depend on public transport. 

“It’s unfortunate, security guards are facing an onslaught from all sides. The state has adopted austerity measures that attack workers with high fuel prices, with most using public transport and food prices increasing, whilst on the other hand, the security companies are paying them a poor wage.”

The AASD believes the solution lies in bringing security services in-house, he said. The party aims to eliminate the middleman, protect workers’ wages, and stop the looting of the city’s funds, said Msabe.

OFM News/Kekeletso Mosebetsi dg

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