Row over lucrative security tender

Royal Security has accused Seal Security of being non-Private Security Industry Regulatory Authority (PSiRA)-compliant and also queried whether its guards are registered with the body. Picture: Private Security Industry Regulatory Authority (Psira).

Royal Security has accused Seal Security of being non-Private Security Industry Regulatory Authority (PSiRA)-compliant and also queried whether its guards are registered with the body. Picture: Private Security Industry Regulatory Authority (Psira).

Published Jul 31, 2023


Durban — Private security company Royal Security has queried Seal Security’s operational procedures and ethics after the companies bid for a lucrative contract in the Western Cape.

Durban-based Royal Security won a R282-million tender in the Western Cape. The Western Cape High Court has dismissed Part A of an application to interdict Royal Security’s contract with the province’s Infrastructure Department.

Royal Security is linked to Durban businessperson Roy Moodley.

Seal Security, a rival bidder that failed to win the two-year security services contract at properties owned by the provincial government, made allegations of serious irregularities in the tender process.

In Part A of its application, Seal Security wanted the department interdicted from appointing Royal Security while in Part B of its application, which is still to be decided upon, it wanted the court to set aside the tender decision to appoint Royal Security as the successful bidder.

In its court arguments, Seal Security alleged that Royal Security did not have the adequate resources at its Cape Town offices to render the services it had tendered for. Until a ruling is made on Part B, the status quo remains, and Royal Security will continue providing security services.

In court papers Royal Security asked to know why Seal Security is not tax-compliant, why it is not paying the correct taxes to SARS and why it was that PAYE and UIF were not deducted from the security guards in its employ.

The company demanded to know why the security guards were not registered with the National Bargaining Council Private Security Sector, whether it was providing medical aid to its employees, whether it is Private Security Industry Regulatory Authority (PSiRA)-compliant, whether it contributed to the Bargaining Council Levy and if any Provident Fund was provided.

Further, it accused Seal Security of being politically connected and corrupt, saying it was connected to former human settlements MEC Bonginkosi Madikizela. It further alleged that Madikizela signed personal surety on behalf of Seal Security performance guarantees, which meant that either Seal security company founders Jurie Grobler or Deneys van Dyk were fronting for him.

It was alleged that when the company was formed, Madikizela was human settlements MEC and it was queried how the Western Cape government allowed a politically connected person to sign a surety for a security company.

Apparently, Seal Security had failed to disclose the relationship it shared with Madikizela, which meant it should have been disqualified from the tender shortlist.

Royal Security further added that sharing the relationship with Madikizela meant a massive fraud was perpetrated by Madikizela, who allegedly had Grobler and Van Dyk fronting for him.

It further accused Madikizela of having enjoyed massive proceeds of the Western Cape government security tenders over the many years he was leader of the DA in the Western Cape.

In court papers Royal Security wanted to know how the Western Cape government allowed a premier and a politically connected MEC and an advisor to the premier and Western Cape government to do security business with the premier’s office and sign surety for his security company, where his shares were being held in a fraudulent relationship with the present shareholder and former director of Seal Security.

“The SIU and Hawks will have to investigate this corrupt relationship, and also the DA will have to take legal action against this fraudulent conduct of Madikizela. His security company has fraudulently captured the provincial government for profit making, and has brought the premier’s office into disrepute,” Royal Security said.

It further accused Seal Security of being in serious violation of many legislative requirements to bid for the security contract, while the department officials were fighting to retain it as service providers.

Asked if he knew anything about the allegations levelled against him, Madikizela said he had no connections with Seal Security and did not know anything about its operations.

“I cannot comment on the issue as it is a matter before the courts,” Madikizela replied.

The Western Cape Premier’s office said the Western Cape was a government that respected and promoted the rule of law, adding that this meant that all those accused of this matter had a right to be treated as innocent until proven guilty in a court of law.

In his reply to a WhatsApp message sent to him, Jurie Grobler from Seal Security said the matter was before the courts and therefore he was in no position to discuss it.

SARS spokesperson Siphithi Sibeko said SARS had no knowledge of any such allegations against Seal Security, and added that seeing that these were serious allegations levelled against the company, it was still going to file for investigations to be instituted into the matter.

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