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Viewing cable 09KABUL463, New Regulations for Private Security Companies are
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09KABUL463 | 2009-03-02 11:09 | 2011-08-24 01:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Kabul |
VZCZCXRO6552
OO RUEHDBU RUEHIK RUEHPOD RUEHPW RUEHYG
DE RUEHBUL #0463/01 0611109
ZNR UUUUU ZZH
O 021109Z MAR 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7567
INFO RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
UNCLAS SECTION 01 OF 03 KABUL 000463
DEPT FOR SCA/FO, SCA/RA, SCA/A, AND L
DEPT PASS AID/ANE
CENTCOM FOR CSTC-A
SENSITIVE
SIPDIS
E.O. 12958 N/A
TAGS: PGOV ASEC EIND EAID AF
SUBJECT: New Regulations for Private Security Companies are
Problematic
REF: Kabul 00106
¶1. (SBU) Summary: The Government of Afghanistan (GoIRA) has issued
new private security company (PSC) regulations that, if enforced,
could jeopardize the ability of the USG, the U.S. military, and the
international community to operate in Afghanistan. Under the new
regulations, PSCs are limited to 500 weapons-carrying employees.
Companies with larger numbers of armed personnel can receive
permanent licenses and fulfill and extend current contracts but
cannot sign new contracts until their numbers of armed staff drop to
500 or less. Clients seeking protective services - including the
USG - could be required to either hire a smaller (and generally less
reliable) PSC or use the Ministry of Interior's (MoI) new protective
force, which is not yet viable. In addition, the licensing fees are
excessive, discriminatory, and possibly in violation of bilateral
agreements. We have proposed bilateral consultations to resolve
these issues as soon as possible and request the Department's
guidance on the legal implications of the proposed fees. (See
paragraph 6 for guidance request.)
NEW REGULATIONS COMPROMISE SECURITY, ARE DISCRIMINATORY, AND MAY
VIOLATE BILATERAL AGREEMENTS
¶2. (SBU) On February 2, the Afghan cabinet agreed to license the 39
private security companies that had completed their applications by
the May 2008 deadline. The cabinet also approved a set of
regulations governing PSC operations and a schedule of fees. The
Embassy had encouraged the GoIRA to finalize the registration and
regulations to ensure the bona fides of PSCs operating in
Afghanistan and to give legal protections to legitimate companies.
(The uncertain legal status of PSCs left them vulnerable to
arbitrary searches and seizures, which by January had escalated to
dangerous levels. See reftel.) Here are the key elements of the
regulations:
Personnel Cap
-------------
In general, PSCs may employ no more than 500 armed personnel.
Companies exceeding that number may receive permanent licenses but
may not increase their current armed staffing level. They may
fulfill and extend current contracts, provided this does not entail
increasing armed staff, but may not sign new contracts until the
number of armed staff drops to 500 or below. When clients seek new
business from a PSC with more than 500 armed staff, the PSC may
either "pass a contract" to a PSC with fewer than 500 staff or guide
the prospective client to fee-based security services to be offered
by MOI's nascent "Public Guard Force," which is not subject to the
500-man cap.
Fees
----
Afghan PSC International PSC
License (annual) USD 60,000 USD 120,000
Weapons registration USD 150 USD 250
(annual, per weapon)
Vehicles USD 400 USD 600
(annual, per vehicle)
Other fees are to be determined for ballistics testing, biometric
testing, and for vehicles with tinted windows.
¶3. (SBU) In their current form, these regulations are seriously
flawed and would hinder the ability of the USG and U.S. military -
and other international actors - from carrying out core activities,
including assistance programs that benefit the GoIRA. The
employment cap limits the freedom to select the private security
provider that best meets U.S. quality standards for force protection
and timeliness of service provision. The MoI's Public Guard Force
is still in its infancy and is not ready to meet demand for quality
protective services. The MOI's Public Guard Force is unlikely to be
vetted to the degree that the USG can reliably entrust them to
provide protective security to USG agents and contractors. Without
sufficient numbers of vetted, well-trained and disciplined security
personnel, many programs could be forced to stop work.
¶4. (SBU) The differential fees charged to foreign and Afghan PSCs
are discriminatory and at best weakly associated with any service
provided by the GoIRA. They appear primarily aimed at revenue
generation - a cost that would ultimately be passed on to the USG.
In addition to revenue generation, the regulations seem to have the
protectionist aim of forcing business toward a state-owned security
company that potentially will not meet the minimum standards
required to provide USG protective services. Preliminary
examination suggests that the fees violate bilateral agreements
KABUL 00000463 002 OF 003
governing DOD assistance and possibly INL's as well. The USAID
Legal Advisor at Post together with the USAID Office of General
Counsel reviewed the USAID Strategic Objective Grant Agreements with
the GoIRA and determined that there is no wording specifically
exempting contractors from professional licensing fees (or fees
generally). Therefore, the only agreement-based recourse may be to
argue that the fees above a certain level effectively constitute a
tax either directly or indirectly since the fees cannot be justified
as reasonable based on specific services rendered.
THE WAY FORWARD
¶5. (SBU) We have informed the GoIRA of our concerns and have
requested consultations as soon as possible. The text of the
Charge's letter of February 26 to Interior Minister Atmar is copied
in para 7 below. We intend to oppose the fees and the personnel cap
as onerous, unreasonable, and incompatible with our security
requirements. We will seek agreement with the GoIRA on ways to
implement the PSC regulations that meet our mutual needs. We will
cite bilateral agreements where useful, since the fees are an
unreasonable amount and therefore effectively a tax. U.S. companies
active in Afghanistan -- both PSCs and others that hire them - have
raised concrns about the regulations and broadly support the
Mission's course described here.
GUIDANCE REQUEST
¶6. (U) We request the Department's legal guidance on whether the
proposed fees for licensing of the PSCs and their weapons and
vehicles violate existing bilateral agreements with the Department
of Defense, USAID, and INL. We anticipate bilateral talks will
begin within the next 10 days and request the Department's advice as
soon as possible.
¶7. (SBU) Text of Charge Dell's February 26 letter to Interior
Minister Atmar follows:
His Excellency
Mohammad Hanif Atmar
Minister of Interior Affairs
Islamic Republic of Afghanistan
Dear Minister Atmar,
I am writing in regard to the Cabinet decision of February 2, 2009,
concerning licensing of private security contractors (PSCs) and the
related regulations you have issued.
As you know, the U.S. government has long sought greater clarity in
the regulatory nvironment in which PSCs operate. In that respect,
we welcome the Cabinet's decision to allow the permanent licensing
of 39 PSCs, several of which provide vital security services to the
U.S. Mission, the U.S. military, and U.S.-funded assistance
projects. At the same time, the content of some of the regulations
presents serious difficulties for the safe and effective
continuation of the activities for which these companies provide
security.
For example, the bar on future growth of armed staff of PSCs that
currently employ more than 500 armed staf represents a severe
constraint on these firs' ability to provide security according to
te quality standards U.S. government and military clients require.
U.S. government clients cannot contract with any security firm whose
guards have not met acceptable vetting processes, experience
requirements, and training levels. The bar would therefore
constrain our ability to secure the U.S. Mission and to implement
numerous assistance programs that benefit the government of
Afghanistan, including programs now being planned to provide
election security. The attached list includes just a few examples
of projects now being competed that would entail significant staff
increases for the successful contractors. Implementation of the
Cabinet decision and regulations would make it impossible to execute
these and other projects.
In addition, the various fees to be charged to permanently licensed
PSCs appear excessive, discriminatory, and at best weakly related to
the provision of any service to them. Such fees certainly violate
the principle that foreign assistance funding should only be used
for the purposes for which it was intended, and may well violate one
or more bilateral agreements granting exemption from taxes and/or
fees to U.S. assistance programs.
In view of these concerns, I would like to propose that our
governments commence bilateral consultations with the aim of
agreeing on ways to implement the new PSC regulations that meet our
KABUL 00000463 003 OF 003
mutual interest in both a sound regulatory framework for PSC
operations and effective continuation of the various programs PSC
services make possible. If you support this proposal, the U.S.
Mission will designate experts to consult with their Afghan
counterparts at your side's earliest convenience.
The U.S. goal in such consultations would be to reach agreement with
your government on mutually acceptable terms for permanent licensing
as soon as possible. Pending such agreement, I understand that the
PSCs approved to receive permanent licenses retain valid temporary
licenses that should allow them to continue to conduct their
business without hindrance. Depending on the progress of our
consultations, extension of the temporary licenses may be necessary.
Given that the fees mandated by the regulations should be a topic
for our consultations, I would respectfully request that your
government suspend the assessment of fees on PSCs with which the
U.S. government and military contract, pending the outcome of those
consultations.
Thank you for your consideration of this proposal. I look forward
to hearing from you.
Sincerely,
Ambassador Christopher W. Dell
Charg d'affaires a.i.
Attachment: Pending project contracts
cc: Mr. Mohammad Masoom Stanekzai, Advisor to the President
DELL