Africa-Press – Uganda. Private security firms have petitioned the Speaker of Parliament to save their businesses from new fees and unfair competition by government armed forces.
In their petition received by the Office of the Speaker of Parliament on Tuesday, which this publication has seen, the Uganda Private Security Association (TUPSA) argues that the current tax regime, new fees and unlevelled ground that is favouring the new firm owned by Uganda People’s Defence Forces (UPDF) is pushing them out of business.
TUPSA cited the new fees for purchase of a permit for a firearm, which has been increased from Shs100,000 to Shs1m.
Mr Grace Matsiko, the chairperson of TUPSA, confirmed that their association petitioned the speaker to intervene to resolve new challenges that are sinking the private security sector.
“We hope that the Parliament will come to our aid because the issues we raised are important for the survival of the sector and protection of lives and property of the people. We want to be addressed,” Mr Matsiko said yesterday.
TUPSA has more than 300 members across the country with about 100,000 guards.
In the petition, TUPSA stated that they used to pay Shs75,000 as a permit to acquire new firearms, but the police issued new fees that forced them to pay Shs100,000 for a permit per gun.
“The Ministry of Finance in 2013 agreed to increase the fees from Shs75,000 to Shs100,000, but surprisingly, this was unilaterally raised to Shs1m per gun. In addition, Shs100,000 was agreed as permit fee was later misinterpreted and imposed as a single unit (gun) fee,” the petition reads in part.
Mr Matsiko said the importer of the firearms is also supposed to pay Shs1m for the same gun that is imported. This means that you pay Shs2m fees on the same gun.
“The impact of this irregular fees has led companies to use obsolete weapons, under deployment or lack weapons and retarded the growth of the sector including the collapse of some companies leading to loss of jobs and investment,” the petition reads.
The government also imposed a $50 charge for a permit to purchase every 100 bullets, which TUPSA said has affected their growth and replenished the ammunition stocks.
TUPSA members asked Parliament to create a levelled playing field after the creation of NEC Security Services Ltd, which is owned by National Enterprise Corporation.
“PSOs (private security organisations) face unfair competition from state security agencies such as Uganda Police Force, The Reserve Forces and lately the entry of National Enterprise Corporation,” TUPSA stated.
Luweero Industries and NEC Security Services Ltd is a business under NEC, a commercial arm of the UPDF. Private security firms buy 90 percent of their guns from Luweero Industries.
TUPSA members alleged that NEC Security Services Ltd uses government vehicles, personnel and carry automatic rifles, which other private security firms aren’t allowed to carry, which gives them a huge advantage in the market.
According to Mr Matsiko, his members say government owned security firms will likely bill to a client less than others than incur all the operational costs.
In July, the Chief Executive Officer of NEC, Lt Gen James Mugira, told Parliament that NEC Security Services Ltd would not deploy UPDF personnel.
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