Iliyan Panchev, President of the Managing Board of the National Association of Equipment Based Security (NAFOTS)

2020 marks the 20th anniversary of NAFOTS’s establishment. What path have you walked in this decade?

NAFOTS was founded on 10.09.2002 by companies with similar interests and problems in the field of private security and in the field of security with technical means. In the 20 years since its foundation, NAFOTS has gained solid experience and established itself as a clearly recognizable organization through its activities and goals. Back in 2004, NAFOTS became a member of the Advisory Council on Private Security Activities, established on the basis of the Law on Private Security Activities (PSА). In 2007 - the then only 5-year-old Association became a member of EUROALRAM. Since 2012, NAFOTS is a regular member of BIA. The association is the first organization in the field of private security services, which already in 2005 adopted and implemented a Code of Ethics. This is the brief description of the development of NAFOTS for this 20-year period, and I hope that this development will continue at the same dynamic pace.

What were the biggest challenges you faced?

During this period, a number of difficulties and problems related to the private security activities were experienced. I will only briefly highlight one part of them, starting with the Law on PSA adopted in 2004, which has been amended 8 times in the period 2010-2015 alone, 5 of them through transitional and final provisions of other laws. There have also been many problematic texts in the 2018 PSA and its accompanying regulations. Relationships in the industry, the need to curb the "grey" sector, unfair competition and the flawed procurement procedures are another part of the problems we are constantly facing. There is a need for a balance between the quality of services and their prices, for preferences for legal and natural persons who are honest with their clients and the state, and for the prestige of the security profession to be raised. As a result of these problems, the idea of possible self-regulation through the creation of a unifying branch organization has emerged, but there is still no significant progress on this idea.

And now, 20 years later - what are the problems of the industry?

In recent years, the private security sector has continued to face a significant set of challenges, despite numerous improvements in the legal and economic environment. These include irregularities in the conduct of tenders for public contracts, lack of professionalism and quality of services, unresolved and accumulated problems from past periods, and last but not least, the large share of the shadow economy. Further efforts are needed both from the state and from the sector itself to eliminate illegal practices and to improve the professionalism and overall market position of companies, the quality of services provided, and the wages and working conditions of security guards. Now, 20 years later, NAFOTS continues to be an open system, allowing for the expansion of lines of activity and the admission of new members, in pursuit of the strategic objective of creating a powerful and consolidated structure with an important place in the country's security system and defending the rights and interests of its members.

Where is Bulgaria located on the European map of security services?

The private security business in the more developed European countries has long surpassed the traditional services offered in Bulgaria, such as personal security, object security with security systems, collection, etc. The competences of established companies in the industry include conducting private investigations, fighting various types of fraud, assistance and protection against computer and other technological crimes. In other words, private security companies are replacing some government services far beyond the confines of specific security work. The boundaries of these activities are of course also determined by the specific legislation in different countries. In Bulgaria, there are still serious deficits in the educational and professional structure of PSА companies, so that we can also go beyond the so-called traditional security services and be entrusted with other specific activities that are legally supported. Last but not least, I would like to emphasize that, while in terms of the number of security guards we are in the 'golden mean' of Europe, in terms of pay our situation is deplorable. The average salary in the security industry in Europe is between EUR 1 000 and EUR 1 500. However, this is achieved on the basis of cooperation between state institutions and private security companies.

What is the staffing level?

In general, the security sector is experiencing an acute shortage of personnel. There are several factors influencing this worrying trend, but the main ones are two - the requirement in the Law on PSA that security guards must have a minimum of secondary education, and the other equally important factor is the relatively low pay, despite the sector being the largest employer in the service sector. Against the backdrop of low pay are the requirements for specific competencies that employees in the security industry must possess, mainly related to risk assessment and risk-taking, resilience to stress and tension, self-control, use of weapons, personal motivation and attention to detail, compliance with rules and procedures.

16 security companies are members of NAFOTS. How do you find common ground with them? What is it that unites you?

A key commitment of NAFOTS is to coordinate, represent and protect the economic interests of the Association's members and the industry as a whole before central and regional government authorities. The voice of NAFOTS has become stronger and stronger over the years on issues of better regulation of public procurement in the sector, measures to shrink the shadow sector and various criminal practices that harm fair competition, as well as to review the contradictions in the provisions of the Labour Code and the Law on PSA, among others. These are the issues that make us find common ground and seek unity.

What advice would you give to an entrepreneur who is facing the dilemma which company to hire for the security of his premises? What should he not compromise with?

In the market of security services, customers are looking for professional protection, but not all of them are fully aware of the threats and risks to their safety or to their business. The task of the private security company is to create such a protective barrier that is as difficult as possible to overcome. The concept of safety of the specific object is important, who and how will react in the conditions of a non-standard situation, what interaction and other adequate measures are provided. Public reputation is also an important factor. Referrals are a completely competitive resource that the leadership of any self-respecting security firm increases and validates. Customers should be more interested in the reliability, sustainability and volume of services offered and less in the long history of the company. The financial side must be taken into account, but it should not become an obstacle to making the right decision.

Your forecast for the development of the sector in the coming years?

As technology and security tools evolve, we will see more and more private security activity. Despite my personal positive expectations for the development of the security business, the fact regarding our concerns related to the uncertain economic environment and labor shortage should not be overlooked.

Date: 02.09.2022

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