Unlicensed Private Security Companies: A Threat To Fair Business, Decent Work And National Security

The Scale of the Problem
According to the Ministry of the Interior’s website, between 170 and 180 private security companies are duly registered in Ghana. Yet an estimated 500 to 600 companies operate without a licence from the Ministry. In other words, unlicensed operators outnumber licensed ones by roughly three to one.

The Ministry of the Interior and the Ghana Police Service have on several occasions announced that these companies would be flushed out. Apart from the announcements, very little action has been seen on the ground, and the unlicensed companies continue to win contracts openly.

How This Affects Licensed Companies

1. Unfair competition. As members of the Association of Private Security Organisations of Ghana (APSOG), licensed companies operate within an approved price range. Unlicensed companies charge far below that range because they do not bear the cost of compliance, and most clients are now signing contracts with them.
2. Inability to meet statutory obligations. When licensed companies are forced to reduce their prices to survive, paying guards decently and meeting obligations such as SSNIT contributions, Tier 2 pensions and PAYE to the Ghana Revenue Authority becomes a major challenge. Some may be pushed out of business altogether, along with the jobs they provide.

Security Risks Associated with Unlicensed Private Security

The problem goes beyond business competition. Security is a sensitive service, and entrusting it to operators who have not been vetted places clients and the public at risk:

• No vetting of personnel. Licensed companies are expected to screen their guards. Unlicensed firms often employ people without background checks or verification of identity, so persons with criminal records may be placed at homes, banks, schools, offices and other sensitive locations.
• Insider collusion and crime. Guards who have not been vetted and are poorly paid are more easily tempted to collude with armed robbers, burglars and other criminals, or to leak information about client premises, staff movements and cash handling.
• Absence of training and professional standards. Untrained guards may not know how to handle emergencies, use force within the law, observe human rights, or work with the Police. Poor handling of situations can escalate into violence and injury, and expose clients to liability.
• Unclear accountability. When a theft, assault or breach occurs, clients of unregistered firms often find that the company cannot be traced, held accountable or made to pay compensation, and may have no insurance cover.
• Weapons and uniforms in the wrong hands. Unregulated operators may acquire uniforms, equipment or even firearms outside the control of the Police, creating a risk of impersonation, misuse of weapons and confusion during real emergencies.
• Weak intelligence sharing. Licensed companies are known to the Police and can be called on in a crisis. Unregistered ones operate outside that network, leaving gaps in crime prevention and in the country’s overall security architecture.
• Exploitation of workers. Guards of unlicensed companies are frequently denied social security, pensions and fair wages, leaving them vulnerable and open to temptation.
• Loss of revenue. Unlicensed companies evade licence fees and taxes, depriving the state of revenue that could support national development.

Our Appeal and Recommended Solutions
To clean up the system, we respectfully recommend the following:

3. Public education. The Ministry of the Interior and the Ghana Police Service should run adverts on radio and television to inform the public that doing business with unlicensed security companies is illegal, and that both the client and the unlicensed company will be sanctioned.
4. Verification of licensed firms. The Ministry should publish and regularly update a list of licensed companies on its website and through the media, so that clients can easily confirm the status of any company before signing a contract.
5. Collaboration with APSOG. APSOG should assist the Police Service by identifying clients who are using unregistered companies, and should support its members to maintain high standards.
6. Adequate resourcing. As the supervisory body, the Ministry of the Interior should provide adequate funding and logistics to APSOG and the Police to enable them to clamp down effectively on all unregistered companies.
7. Visible enforcement. There should be periodic, well-publicised operations to shut down unlicensed companies, prosecute offenders and apply the sanctions the law provides, so that announcements are matched by action.
8. Procurement compliance. Government ministries, departments, agencies, schools and other public institutions should be directed to contract only licensed companies and to demand proof of licence, tax clearance and SSNIT compliance.
9. Simpler and more accessible licensing. The licensing process should be efficient and transparent, so that genuine operators can regularise their status easily, while those who refuse to do so face the full consequences.
10. Citizen reporting. A hotline and online platform should be set up for the public to report suspected unlicensed security operators.

Conclusion
We plead with the Ministry of the Interior, the Ghana Police Service and National Security to enforce the laws and clean up the system. A well-regulated private security industry complements the Police, protects jobs and revenue, and makes Ghana safer. Licensed companies that play by the rules should not be driven out of business by those who ignore them.

Thank you.
Richard Beyemba Yorda
Security Administration Professional and Certified Data Protection Officer

Daniel Kweku Boachie
Chief Executive Officer, FLY-A5 Security Services Ltd