The privately-run security firm United Associates Security and Domestic Services (UAS&DS) is reportedly on the verge of closure following the reallocation of state sites previously assigned to the company to two other companies.
A source close to the UAS&DS has told Stabroek Business that this week’s announcement by the Ministry of Local Govern-ment that contracts have been signed by two security companies, RK Security Service and Strategic Action Security Service, to provide security services at state schools, hospitals, offices, residences and other premises in the country’s ten administrative regions could effectively spell the demise of the UAS&DS.
The UAS&DS was launched in November 2001 following government’s decision to relinquish res-ponsibility for providing security services at state installations. Assigned several hundred sites across the country, the UAS&DS immediately became the single largest security service in the country.
The UAS&DS was set up by two public sector trade unions, the National Union of Publlic Service Employ-ees (NUPSE) and the Union of Agricultural and Allied Workers (UAAW) and the signing of the Agreement with government more than six years ago was widely regarded as a high point in relations between government and the trade union movement.
While the company was managed by the two trade unions, the key player in its day-to-day operations has been Robert Johnson, the long-standing President of NUPSE. Johnson served first as Chairman of the company’s Board of Directors after which he assumed the position of Chief Executive Officer. Former General Secretary of the UAAW Seelo Baichan was Chairman of the Com-pany’s Board of Directors until his death last year.
In November 2005 the company became embroiled in a scandal over allegations that it had “billed” the region Six administration for “ghost” guards, a development that was regarded as a severe embarrassment to the political administration that had done so much to facilitate the setting up of the company. In the wake of that scandal other issues surfaced including the protracted delays in meeting the wages and salaries of security guards and the alleged non-payment of guards’ NIS contributions.
Two years ago government dropped a broad hint that the multi-million dollar annual security contract which the UAS&DS had enjoyed since 2001 ought not to be taken for granted when it reassigned Region Four, the largest of the country’s ten administrative regions to another security service. At the same time the company again came under the spotlight over a multi million dollar NIS contributions backlog. NIS had told this newspaper that the company’s refusal to make the payments had resulted in legal action being taken. The matter remains in the court.
The Company source told Stabroek Business that all that remains of its once “large security empire” are a few state sites in George-town and some private sites. “Given the size of the operation that had been set up – including two buildings – to run what was a large country-wide operation, I do not see how they can possibly continue,” the company source told Stabroek Busi-ness. According to the source some attempts had been taken in recent years to diversify the company’s operations but it was unclear how successful those initiatives were.
What would appear to be the likely demise of the UAS&DS is also seen as an embarrassment for the local trade union movement which, during the initial stages, had thrown its weight behind the company. As early as two years into its establishment, however, labour officials had been expressing concern over aspects of its management.
Asked to comment on the likelihood that several persons currently employed as security guards with the company could lose their jobs the source told Stabroek Business that guards in far-flung regions were likely to be offered positions with the new companies to save those companies the cost and trouble of having to recruit new guards.
