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www.ajshonduras.org

 

December 2004

The Rise In Security Companies In Honduras & Who Is Controling It

The theme, "The Rise in Private Security Companies," cannot be separated from what is known as "The Cold Era" or "The Eighties Decade" and with the lucrative business that was unleashed, that represents for it´s owners, the private security companies in Honduras.

According to the study, "Diagnostic Study about Private Security in Honduras," put out by the Aris Foundation in the Eighties, points to the violence that went unnoticed and undisputed in Honduran society. The threat to State security due to the Sandinista revolution in Nicaragua, the presence of the gorilla group, Farabundo Martí National Liberation Front (FMLN) in el Salvador, as well as the uprising of subversive groups in Honduras, gave way to an arms race within the Armed Forces, leading to a 50% increase in military expenses between 1980 and 1990.

The need to finance arms made it possible for a wave of criminal activity to be unleashed, primarily to obtain resources for gorilla groups in the region. During this era, there was also an increase in kidnappings perpetrated by these gorilla groups that went after business owners and their families, private banks and wealthy homes.

With this dramatic increase in violence came the need to provide an answer concerning personal security to those with power in Honduras. It was then that people began employing private guards for their homes and businesses. These positions were occupied mainly by ex military or police officials.

Giving life to the lucrative business of private security in Honduras, was also the "service agreements" between the private banks and the then, Public Security Force (FUSEP), a branch of the Armed Forces, through which the Special Forces Squadron was born, making the Honduran Military the principal supplier of private security services in the country.

Although the amount of income earnings generated by the Armed Forces through private security services is unknown during the eighties, approximated estimations presume that it is somewhere around 300 million Lempiras earned over an eight year period, the money going into their pockets. These generated funds were not utilized for things such as the improvement of police forces, as was stipulated by law concerning the exclusive function of providing private security services in the country.

On December 17, 1996, the Honduran Police Department was changed from being a military service to a civil service. With this change, the Armed Forces lost control not only over the National Police Department but the lucrative private security business as well.

With the reduction in personnel that the Armed Forces suffered between 1987 and 1995, of an estimated 3,000 soldiers and officials who pulled out, as well as more than 400 investigators who worked for the former National Investigation Office, has allowed for private security companies to continue flourishing being that the majority of these military officials and police officers found an easy fit with the business.

Who currently regulates these companies?

In 1998, through the Police Management Law, the private security companies started to be regulated, through the approval of the legislative decree #156-98 passed on May 28 of that year.

In Section IV of the Private Security Services Act, the Police Management Law establishes the parameters that authorize the operation of private security services. The law also designates the General Office of Special Services as the responsible party in charge of company registration and licensing.

Although there has been a system in place since 1998 to regulate these companies, it was not until February, 2003, when these private security companies began to register or pay the State taxes, say Danilo Amaya, Coordinator of private security companies for the Secretary of Security.

"Before February of last year nothing was done, no taxes were paid to anyone. People are used to no one regulating their practices." According to registrations, there are 166 security companies that operate in the country who, according to Article 95 of the Police Management Law, have to pay 100,000 Lempiras (around $5,550) in order to be licensed to operate, along with the 20 Lempira (about $1.10) annual fee charged for each security guard working for the company.

Once the original fee is paid, the operating license is extended indefinitely. Even though efforts have been made to create more accountability there still exists many "phantom" security operations that have not registered. "We recognize that there are some who have not completed the process of registering, and they will have to close. We are talking about at least eight operations," says Amaya, believing the number is really higher than that.

For the Honduran Human Rights Defense Committee President, Andrés Pavón, the Police Management Law is not enough to regulate Security Companies.

"They are working arbitrarily. I would say that these companies are illegitimate. Although the Secretary of Security gives them permission, this permission is outside legal boundaries because regulations are still missing."

Another stipulation to the law that the Human Rights defender questions is that which establishes that the total number of security guards of one company must not exceed 15% of total active members involved in private security. "I believe that this means one company can have about 150 employees or perhaps a little less, but here there are companies that have organized themselves in such a way to avoid this regulation, that they listed under different legal names when really they are the same person. So I suspect that some have 800 in one, 500 in another. Currently there are no regulations that point this problem out."

Large Earnings vs. Poor Benefits

For many years no committee existed that was responsible for controlling security companies. Millions in earnings have been generated since these companies started and they continue to bring in large profits. However, despite all this, one of the most frequent charges that is heard from employees that work as security guards for this company, is the little pay that they receive for the work they do.

The monthly salary of one security guard, according to the Secretary of Labor and Social Security, is 2,329 Lempiras (around $135). However, many times the security guards go unpaid, so what they make in actuality is perceived to be a lot less than what is documented.

Paradoxically, the security guards that put their lives on the line at work are given no insurance or economic help for their families if they are killed.

Mary Isabel Salgado is a security guard for a company called, Lempira Security Services (SERSEL). At seven in the morning you can find here attentive and friendly in front of the Ministry of Health, where she serves as a security guard.

She says that her company has everything in order, however, she goes on to say that, "we, security guards, deserve life insurance because we are risking are lives at work. Working as a security guard is very delicate, we deal with all types of individuals. There are some that are relaxed and others that are arrogant and will try to hit you and if possible, kill you. We cannot go on losing our lives, and for nothing."

For Amaya, the big problem with underpaying security guards, including salaries that lie within the minimum wage brackets, is "What is just?…that these companies make an effort so that all employees would have life insurance, but this is something we cannot legally impose on the companies at this time.

The question left hanging is; so who will then?

 


Articles:

Workers Without Rights

Rise In Security Companies

AJS Intervention

Law Does Not Protect Workers

Interviews:

Selvin Martinez
-Labor Inspector


Carlos Ayala
-Lawyer from the
Secretary of Labor

Richard Swasey
-Company Owner