Security firm fined over breaches

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A major security firm has been fined £95,000 for employing unlicensed guards, including criminals.

Securiplan Plc was reluctant to pay a £190 licence for each guard despite "continuously expressed concerns" from the Security Industry Authority (SIA).

The SIA found the firm's clients were told unless they contributed to the cost "it was not going to happen".

Southwark Crown Court heard the firm's actions had tarnished its reputation and cost it £36m in lost contracts.

One customer, Sainsbury's, accused Securiplan in a letter of behaving in a "shambolic manner" and "misleading" its team, and warned it was "reviewing" its contract.

Richard Whittam, QC, prosecuting, said SIA investigators found that of the 18 guards named in 19 sample breaches the company admitted, 11 were eventually licensed.

It was a poor performance and as best as can be assessed by the SIA it was the worst performance in the industry Richard Whittam, QC

"The applications of the other seven were refused on the basis of criminal convictions previously recorded against them," he said.

The disclosure follows this week's decision by Michael Smith to step down as SIA chief.

Six of the offences committed by Securiplan between March and September 2006 involved Sainsbury's.

Boots, Tesco,WH Smith, Experian, Arla Foods Plc and Romec Ltd were also affected.

Judge Geoffrey Rivlin, QC, said the company, based in Hillingdon, Middlesex, was a "major, very successful and profitable" concern.

"It was, in the months leading up to the offences... made fully aware of its responsibilities not to deploy unlicensed guards.

"Despite urgings and warnings and knowing perfectly well this was against the law, in a period of approximately five months... it deployed many unlicensed operators working a total of some 7,000 man hours."

It needs to be seen in the context that the organisation that brought this (prosecution) is itself having huge difficulties with organising Andrew Mitchell, QC

The judge also made it clear there were "substantial" mitigating factors.

There had clearly been "not insignificant problems" with the licensing system, all Securiplan's guards had been fully trained, and the company had suffered a multi-million pound hole in its balance sheet.

The company agreed at an earlier court hearing to pay £550,000 prosecution costs and was fined £5,000 for each offence.

Referring to the resignation of SIA chief Andrew Mitchell, QC, defending, urged the court to take into account the body's own problems.

"It needs to be seen in the context that the organisation that brought this (prosecution) is itself having huge difficulties with organising."

He went on to insist Securiplan's failure to comply with the law "had not been deliberate".

Mr Mitchell added Securiplan was now "fully compliant" with the legislation and was working to "rebuild its reputation".