Private security firms downplay JKT entry

ENTRY of Suma JKT in competing with private security firms to offer its services is not a threat after all although it contravenes fair competition rules.

Tanzania Security Industry Association (TSIA) Chairman, Almas Maige told ‘Daily News’ that Suma JKT has such a small number of guards to tilt the balance in the industry which has an estimated 800 private companies with over 1.2 million guards.

“This is a huge industry and there is room for everyone, Suma JKT are welcome to compete,” Mr Maige who is also Executive Chairman of SSTL Group of Dar es Salaam, said.

He pointed out that with less than 2,000 guards, Suma JKT can only offer its limited services to a dozen companies. “We have huge companies such as Ultimate Security and KK Security with more than 5,000 guards each so Suma JKT is nothing comparable,” he argued as owners and managers of some of the big companies complain of unfair competition.

“Suma JKT uses taxpayers’ money to buy uniforms, receive food rations or eat at the barracks and use JKT vehicles which are run by taxpayers’ money,” said one of the TSIA members whose company has lost contracts to Suma JKT since entering the sector last year.

“It doesn’t make sense when public institutions and especially sensitive ones like JKT, engage in competition with struggling small private companies,” the source who preferred anonymity said.

He gave an example of a recent contract won by Suma JKT at CRDB Bank Plc whereby the public company was not a clear favourite according to tender conditions.

“The crucial condition set by CRDB was that the winning bidder should offer its guards a salary of not less than 300,000/- which some big companies offered 600,000/- but Suma JKT won with 400,000/- salary,” pointed out the source.

Maige acknowledged receiving complaints relating to CRDB Bank’s security contract to Suma JKT but pointed out that sometimes clients look for other qualities also including professionalism, decent dressing and reliability.

“I don’t clearly know why CRDB picked Suma JKT when some private companies offered salaries of as high as 600,000/- but were not chosen, it’s better to ask the bank’s management,” said the TSIA Chairman.

An official from CRDB said the bank chose Suma JKT probably because of its good record and reliability as a state institution which observes professionalism.

“You can get details of the contract from the Managing Director’s office,” the official noted. Efforts to get CRDB Managing Director Dr Charles Kimei failed until we went to press yesterday.

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