In the period since the early 1990s and the fall of communism in South Eastern Europe, the private security industry has moved from a position of virtual non-existence to becoming a presence in every country or entity in the region. While the market in some parts of the region is still relatively undeveloped, in other parts – most notably Bulgaria – the industry has expanded to a point where the number of PSC employees exceeds the police personnel by a significant amount (see Table 1 below). As discussed in the introduction, this pattern reflects the trend seen elsewhere in Europe and the Western world over the last few years. Therefore, it is likely that most other countries and entities in the region will, in the near future, match the present stage of development of the private security industry in Bulgaria.
Table1: Comparison of Police and PSC numbers in SEE
COUNTRY POLICE PRIVATE SECURITY GUARDS RATIO OF POLICE TO GUARDS
Albania 1 N/A 4,092 N/A
Bosnia and Herzegovina 2 16,000 (Estimate) 2,000 8 / 1
Bulgaria 3 28,000 130,000 1 / 4.6
Croatia 4 21,000 (Estimate) 15,000 1.4 / 1
Kosovo 5 6,282 2,579 2.5 / 1
Macedonia (FYROM) 6 9,789 3,000 3.8 / 1
Moldova 7 13,431 (Fully Licensed) 3,000 (PSC
Employees) 10,000
1.3 / 1 (PSC Employees)
Montenegro 8 4,427 (Legal) 1,900
(Estimate Unregistered) 500
2.3 / 1 (Legal)
Romania 9 45,830 (PSC Employees) 37,291 1.2 / 1
Serbia 10 21,000 (Estimate) 30,000 1 / 1.4
1 PSC figures from a speech by the General Director of State Police, Leader Bajram Ibraj, in the meeting with PSCs, on 06 November 2004.
2 Police figures as of 2003, from: news.bbc.uk/1/hi/world/Europe/2661873.stm PSC estimate as of February 2005 from Muamer Bajraktarević, Sarajevo Canton Inspector for the Ministry of Internal Affairs and Duško Vejnovic, Professor, Advanced School for Internal Affairs in Banja Luka.
3 PSC Figures from Ministry of Interior.
4 Figures as of September 2002. See Secretariat Report of the Sub-Committee on Central and Eastern Europe of the Political Committee, NATO Parliamentary Assembly, see: www.nato-pa.int/default.asp?TAB=326, February 2005. Estimate by Ms. Ankica Vrbanc, President, Association of Security Services (with Croatian Employers’ Association), and also Director, ‘Zagreb-Štit Vrbanc’ (Private Security Company), Zagreb, Vlaška 90. Interview held on 17 February 2005.
5 Figures from February 2005. See UNMIK: unmikonline.org/pub/news/fact_sheet.pdf. PSC figures from SSPIU, Weapons Authorisation Section, UNMIK.
6 Police Figures from 2000. (Source: www.nationmaster.com/country/mk/crime). PSC figures from Interview with Tihomir Nikolovski, Chairman of Chamber for Security of People and Property, Skopje, 28 February 2005.
7 Figures from 2000. (Source: www.nationmaster.com/country/md/crime). PSC figures from Ministry of Internal Affairs, (not counting Transdniestria).
8 2001 Police figures from Small Arms Survey SALW Survey Republic of Montenegro, 2004, p 8. According to the Survey, the Ministry of Interior of Montenegro was planning to downsize its total police force to 3,000 by June 2004. However, revised police figures are unavailable due to ongoing restructuring. There are no official numbers of licensed PSC guards and there is a sizable unlicensed sector so this is a conservative estimate based on our research.
9 Figures from 2000 (source: www.nationmaster.com/country/ro/crime) PSC figures Romanian Police www.politiaromana.ro.
10 According to the OSCE Report on Policing in the Federal Republic of Yugoslavia in 2001, employees of the Serbian MoI numbered near 35,000, with approximately 21,000 uniformed officers (OSCE 2001; p. 34). This figure suggests a ratio of 2.8 uniformed police officers per 1000 citizens. October 2002 official Ministry figures, however, give a ratio of 2.41. Information from the MoI does not disclose the raw data from which this figure was reached. (See Marijana Trivunovic, ‘Police Reform in Serbia’, Geneva Centre for Democratic Control of Armed
As table 1 indicates, in most countries the private security sector remains quite small. This makes it possible to support improved training and professionalisation at relatively low cost, and the governments of the region should look to improve oversight and regulation of the industry in the immediate future before its natural growth makes the task that much harder. The international community should also seize an opportunity to address outstanding problems in the private security sector in tandem with existing work to promote professionalisation and transparency in the public security sector. For reasons discussed in the introduction, it is disappointing that the importance of this sector has generally not been recognised by those countries and international institutions who have been providing security sector reform (SSR) support in the region. Although relevant to the entire international community, the private security sector in SEE is perhaps of greatest interest to the EU, since a professional and well-regulated sector is vital for the successful development of these countries’ economies. In terms of prioritisation, it is clear that Serbia, Montenegro, Albania and Macedonia are all countries where support for the state in regulating and professionalising the private security sector are perhaps of greatest importance.
The findings of this research show that the rapid expansion of the industry in SEE over the last decade has not been without its problems. However, despite the rather chaotic origin of the industry, with the exception of Serbia most countries have chosen to introduce regulation of the industry. While this has not entirely eliminated those companies with links to organised crime, regulation of the industry has generally led to an increase in professionalism and addressed many of the principal concerns that observers had. An important additional factor in this growing professionalism is the fact that, as major international or multinational companies invest in the region, they are also expecting PSCs to operate to European standards. This has added an economic inducement for the industry to professionalise. In recent years the industry has shown signs of consolidation in most countries, leading to a net decrease in the numbers of companies that operate despite an overall expansion in the sector. Such consolidation acts as a further spur to greater professionalism, as larger companies cannot afford to develop a bad reputation and need to operate with far more discipline than a small company.
Domestic PSCs continue to dominate the private security market in the region and very few international firms have a presence there. This is in part due to a prohibition on the operation of international PSCs in many countries.
However, in the SEE EU candidate countries, the private security market has opened up to foreign competition and a number of international firms have already entered the market. The most high-profile foreign PSC operating in the region is Group 4 Falk, a Scandinavian company, which is currently the second largest PSC globally. A South East European PSC that operates across the whole region has yet to emerge. Further, with the exception of Kosovo, those international companies that have entered the region have generally done so through purchasing already existing local PSCs.
Despite the generally positive direction being taken in most countries, a number of concerns remain. These are best illustrated in the following matrix, which presents the key findings in this report in a summarised form.
The matrix examines some of the key issues addressed in each country study. It shows the areas of greatest concern in dark blue, those areas that need greater attention in light blue, and gives a brief summary of the main outstanding matters according to the research findings in each cell. The judgements made in the matrix and in the following section of the report are made on the basis of a normative framework for the regulation of the private security sector that is described in detail in the introduction to the report, and which all states should strive to employ. However, as in some cases it did not prove possible to access sufficient information on the effectiveness of existing regulation and monitoring by states, some parts of the matrix remain incomplete. 11
11 There were additional concerns about a lack of transparency in some countries, though on different issues in each case. Although transparency was found wanting at some point in most countries studied, particular problems were encountered in Moldova, Serbia and Albania.
AREAALBANIABosnia and BULGARIACROATIAFYROMMOLDOVAROMANIASCG HerzegovinaKOSOVOMONTENEGROSERBIA Licensing of companiesYesYesYesYesYesYesYesYesYes but not enforcedNo - Objective criteriaNo informationYesYesNo informationNo informationYes but unclear what they areYesNo informationYesNA - Background checksYesYesYes, criminal record checks onlyYesProhibitions barring criminals from owning PSC but no checks Criminal record checks onlyYesYesYesNo Unlicensed operators at workYes (private individuals)Officially no, but some evidence that law is flouted
No but loophole exists for companies who establish self guarding units NoYes (some small firms)Incongruity between official numbers and industry estimates make this a possibility
NoNoYes, probably the majority of companiesNA Proven cases of inappropriate links (political, criminal, ethnic, security sector)
Evidence of previous political links Some evidence of all types of affiliation Political affiliations, may be residual criminal links Some evidence of political affiliationsSome evidence of all types of affiliation No informationProbable organised criminal linksEvidence of paramilitary affiliations
No informationLinks with securit sector, criminal groups and politics Licensing of personnelYesYesOnly if they wish to use firearmsYesYesYesYesYesUnclear but technically employees must have past an exam or be ex-police
NA - Background checks 12PartialYes, but questions on effectivenessNoYesProhibitions barring criminals from working PSC but no checks except if they wish to carry arms
YesYesYes for security guards only, limited checks for bodyguards
NoNo Licensing of weaponsLicensed both to company and individual guard
Licensed to CompanyLicensed to company or to ‘sole entrepreneurs’ though guards can use them Licensed to companyLicensed to companyLicensed both to company and individual guard New law unclear but weapons may now be licensed to the individual guards Prohibited for local PSCs. SALW licensed to international PSCs and individual bodyguards
Licensed to companyLicensed to Individual Prohibition of military-style SALWNoYesYes, but automatic weapons permittedYesYes- with some exceptions also some allegations of use of illegal SALW by PSCs
YesMachine guns allowed in some cases
NoYesNO Law on carriage of SALW Concealed weapons prohibitedYesYesYesUnclearYesProhibition on concealed weaponsYesLimited with significant exemptionsYes Law on carriage of ‘non-lethal’ equipmentNo informationProhibitedPermittedProhibitedNo informationBatons and sprays permittedPermittedPermittedNo informationNo information Law on use of force / SALW consistent with UN Basic Principles
Further elaboration requiredBroadly but does not include first aid training
YesYesYesYesNot elaboratedYesUnclearNo basic training standards Storage of SALW and ammunitionMixed storage of weapons and ammunition Some home storage
Stored in company armouryStored in company armouryStored in company armouryLegal position unclearStored in company armouryYesStored in company armoury No informationYes 12 How detailed are the requirements for background checks, and are they effectively carried out?
AREAALBANIABosnia and BULGARIACROATIAFYROMMOLDOVAROMANIASCG HerzegovinaKOSOVOMONTENEGROSERBIA Known misuse of force / SALWIsolated casesNone reportedSome cases of abuse reportedFew reports of abuseIncidents of excessive use of force None reportedIsolated casesIncidents of excessive use of force Non reportedSome cases reported State-approved training curriculaState examination, training by individual PSCs
Yes provided by the relevant entity bodies Yes for new employees but unclear about long term employees YesYesYesYesYesYesNo Minimal use of force included in training curricula 13Varies between different training providers
Yes but no first aid trainingYesYesYesYesGenerally but gap in training with regard to dealing with the general public YesUnclearNA Dual roles for police officers 14No informationNoPolice offer private security services in competition to PSCs
NoNoNo informationProhibitedPSC-style services provided to public institutions by KPS Security Division Common practice for police officers to do private security work when off duty.
Prohibited Joint police / PSC working arrangementsSome informal joint working arrangements
Some informal joint working arrangements YesNo informationUnclearYesNoneNo informationLimited to public eventsNo official agreements Trade associationsYes (newly formed)NoFive different industry associationsYesYesYesThree different industry associations
No trade associationOnly one company seems to have registered with the Chamber of Commerce Yes Codes of conductNoNoSome associations have codes of conduct
NoYesNoSome associations have codes of conduct Some companies have their ownSome companies claim to have one but content is confidential
Some companies adhere to international codes while others do no Police / MoI oversightQuarterly reporting to police Periodic inspections Annual review of licences
Oversight practised by the relevant Entity/ Cantonal Ministry of Internal Affairs. Some flaws in application YesYesNoYesYes but questions raised about effectiveness of implementation Yes, but with minimal involvement of Kosovar nationals Presence of unlicensed operators in the market indicates problematic
Some inspection b the MoI but unclear what Parliamentary / ombudsman oversightNoNoParliamentary powers to oversee MoI not exercised in this area Ombudsman’s office not well functioning
Parliamentary powers to oversee MoI not exercised in this area Parliamentary powers to oversee MIA not exercised in this area Parliamentary powers to oversee MoI not exercised in this area Parliamentary powers to oversee MoAI not exercised in this area NoParliamentary powers to oversee MoI not exercised in this area
Parliamentary powers to over MoI not exercised in this area 13 In accordance with the UN Basic Principles on the Use of Force and Firearms by Law Enforcement Officials. 14 Can the Police legally work for a PSC? Are any Police working illegally for a PSC?
2 Contemporary security threats
While the crime rates in the region seem to be coming under some control, especially with regards to issues such as assassinations and kidnapping, there continues to exist an environment where PSCs are needed. The principal threats seem to be armed robbery and theft – both types of crime that PSCs can provide an effective deterrent against. Racketeering and other organised crime continue to be a problem in the region, but as the state security sector gains strength this will probably diminish.
3 Services provided by Private Security Companies
PSCs across the region offer largely similar services that reflect worldwide industry norms – guarding offices, factories, and other public buildings as well as providing armed response units and escorting valuable commodities and cash when in transit. Some of the countries in the region display smaller niche private security markets largely directed at the provision of close protection services (bodyguards) and, very rarely, the provision of private security to private homes.
One interesting type of service offered in a number of countries and which represents a potential grey or even illegal area, is surveillance and private detective work. In a number of the countries and entities examined, companies offering surveillance and related services are active. These companies, often staffed by former intelligence and security agents from the communist period, provide some services that are clearly within the remit of this report, including industrial counter espionage, (for example, sweeping offices for surveillance equipment), and the provision of individual bodyguards, (close protection). However, some of these companies also offer more questionable services, such as private detection work, whether to assist people who have marital difficulties or to investigate staff that are suspected of stealing from their employer, through to work that can be classified as ‘industrial espionage’. This sector is largely beyond the remit of this report but its existence and its semi legal/clandestine status in many parts of the region is such that it merits greater attention and further research.