PSIRA Non-Compliance Penalties and Impact on Tender Eligibility
The cost of non-compliance is high. From hefty fines to blacklisting, here is what happens if you ignore PSIRA regulations.
PSIRA Non-Compliance Penalties and Impact on Tender Eligibility
The Private Security Industry Regulation Act (Act 56 of 2001) gives the authority teeth to enforce compliance. Ignoring adherence doesn't just result in a slap on the wrist; it can destroy your business.
Types of Non-Compliance
- Employing unregistered security officers.
- Paying below the sectoral determination (minimum wage).
- Failing to pay annual fees.
- Operating without registration.
- Using unauthorized firearms/uniforms.
The Penalties
1. Fines
PSIRA inspectors can issue fines ranging from thousands to millions of Rands depending on the severity and duration of the offense.
2. Criminal Prosecution
Directors can be held personally liable. Operating illegally is a criminal offense leading to a criminal record and potential imprisonment.
3. Suspension / Withdrawal
Your registration can be suspended or permanently withdrawn.
- Impact: You must immediately cease operations. You cannot deploy guards or invoice clients.
Impact on Tenders
Automatic Disqualification
Government supply chain management rules (PFMA/MFMA) strictly forbid awarding contracts to non-compliant entities. If your status changes to "Suspended" regarding a contract, the contract can be legally terminated immediately.
Blacklisting
Severe non-compliance can lead to being restricted on the National Treasury's Database of Restricted Suppliers. This bans you from doing business with the state for up to 10 years.
Conclusion
Compliance is cheaper than the alternative. The cost of training and fees is a fraction of the cost of legal defense, fines, and lost contracts.
Tags
Based on this article's topics, here are some current tenders that might interest you
APPOINTMENT OF A SUITABLY QUALIFIED AND EXPERIENCED SERVICE PROVIDERS TO SUPPLY AN AUTOMATED COMPLIANCE MANAGEMENT SOFTWARE /SYSTEM FOR THE AGRICULTURAL RESEARCH COUNCIL (ARC).
SERVICING AND MAINTENANCE OF POTABLE WATER COMPLIANCE LABORATORY EQUIPMENT AND SUPPLY OF RELATED CONSUMABLES, STANDARDS AND REAGENTS FROM 1 JULY 2026 TO 30 JUNE 2027
APPOINTMENT OF A SERVICE PROVIDER FOR GOVERNANCE, RISK AND COMPLIANCE (GRC) SOLUTION, A LEGISLATIVE LIBRARY AND BACKGROUND VERIFICATION PLATFORM INCLUDING MAINTENANCE, UPDATES AND SUPPORT FOR A PERIOD OF THIRTY-EIGHT (38) MONTHS.
APPOINTMENT OF A SERVICE PROVIDER TO CONDUCT OCCUPATIONAL HEALTH AND SAFETY (OHS) COMPLIANCE TRAININGS FOR THE DEPARTMENT OF WATER AND SANITATION: EASTERN OPERATIONS AS AND WHEN REQUIRED FOR A PERIOD OF 24 MONTHS.
TENDER FOR B/SM 51/26: PROVISION OF EXTERNAL COMPLIANCE AND REVIEW AUDITS FOR WASTE MANAGEMENT FACILITIES FOR THE STELLENBOSCH MUNICIPALITY FROM 01 JULY 2026 UNTIL 30 JUNE 2029
Appointment of a Panel for Provision of Professional Legal, Advisory, Governance, Compliance and Regulatory Services for Thembisile Hani Local Municipality for a period of 36 months, on as and when required basis
Want to see all available tenders?
Browse All Tenders →Share this article
PSIRA Non-Compliance Penalties and Impact on Tender Eligibility
The cost of non-compliance is high. From hefty fines to blacklisting, here is what happens if you ignore PSIRA regulations.