19th October 2018

BANGI: The Security Services Association of Malaysia calls on the government to review the security contracts signed between the Home Ministry and 800 firms in the country. Its president Datuk Seri Mustapa Ali said the existing contract was loop-sided, causing the security companies to incur unreasonable cost due to delay in payments. He said since the change of government, there has been more than RM300 million in payment arrears for services rendered by security firms for at least six months. “Due to the delay in payment, many security firms had to fork out their own savings with some took up loans to cover the payroll.

“On top of that, we are expected to contribute to the EPF (Employees Provident Fund) and (Social Security Organisation) Socso even when were did not receive any payments (from the government).“Most of these firms are run by government retirees who are police and military veterans. “As the third line security providers, after military and police, security services ought to also face risks in carrying out their duties,” he said, asking for a review in the contract terms and condition signed with the government. He said admittedly, the level of competency of security guards was on the decline recently, which he attributed to the payment issue, where many employers could not afford to pay for their guards and staff’s salaries for at least six months. He said the government also should not resort to the Treasury Instruction 58 which allowed the ministry to delay and carry forward security services industry payments.

“Government agencies and ministries using the services must be made to also clear their bill is just like the other sectors, (to be settled) within 14 days of the invoice sent to them because their delay (could cause) glitches on the security firm’s operation,” he said, after a dialogue session between security firms and representatives from various ministries and agencies including Finance, Education, Home Ministry, EPF and Customs Department at the Judicia and Legal Training Institute (ILKAP) here today. Mustapa said as a result, some of these firms became debt-laden, with 30 percent of the companies have been wound down. Mustapa said the security guards’ monthly salary now was normally in the range of between RM1900 and RM2100 for the 12-hour daily shift. “However, due to the recent decision to have the shift reduced to eight hours, the guards received lesser pay and were burdened because their monthly expenses are estimated around the amount of the (reduced) salary.”

He said the ministry’s proposal to reduce the number of security guards at schools from four to three people was also an issue because the remaining ones would be burdened with heavier workload. “Now, with the three shift (system), each security guard would barely make RM1,300 a month,” Mustapa said, expressing concern that no one would want to take up the job in future. “We have discussed among association members and the relevant stakeholders about revising the security company’s agreements. The current contract (causes the companies) to face higher debts in terms of loan interest and other issues. “We are being pushed by the staff as well as the banks and financial institutions, when it’s is not at all the firms fault,” he added. Mustapa said the association would bring the matter up to the ministry and to the Attorney-General’s Chamber soon. Meanwhile, the representatives from the Education ministry told the session participants that overdue payments of up to November this year would settled from today until Sunday, clearing out the backlog. There are 50,000 guards employed at 12,000 schools nationwide.


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