AIIWE Contribution Models
The AIIWE contribution model has evolved during the transition from CSS to Beagle Watch to ensure that the enhanced set of security services contracted under the Service Level Agreement with Beagle Watch is sustainable.
The new set of enhanced security services together with the traditional armed response service carries a total cost of approximately R1814 per household per month (this number may vary depending on additional services requested by residents).
Residents are presented with 2 payment options:
Option 1
R1814 to Beagle Watch
Option 2
R942 to Beagle Watch
R872 to AIIWE
Option 2 splits out the public space component contribution through AIIWE, and although it may seem to be burdensome to carve up the security cost of each household, there are distinct benefits to doing so, as follows:
THE AIIWE CONTRIBUTION PROVIDES 2 DISTINCT BENEFITS TO RESIDENTS:
RETURN POWER TO THE COMMUNITY
By channeling the collective contributions through AIIWE, it is able to harness the power of the collective voice of residents under the Service Level Agreement (SLA) concluded with Beagle Watch. AIIWE can exert a significant influence and demand real accountability from its security service provider for the benefit of the whole community.
AIIWE is able to enforce compliance and punish non-compliance of the service levels agreed in the SLA by withholding contributions made to it or imposing financial penalties on Beagle Watch for public space security.
SECTION 18A TAX RELIEF
As a Public Benefit Organisation, AIIWE is able to issue Section 18A tax certificates to contributing members. This allows contributors to deduct from their taxable income for contributions made to AIIWE.
For a monthly contribution of R872. to AIIWE, residents at the marginal tax rate of 45% would have an effective reduction of R4,320 per year in their security bill. An added bonus benefit offered by AIIWE, while at the same time ensuring the best possible security for the neighbourhood.
For queries: Please mail us at info@aiiwe.co.za
FAQs Relating to AIIWE Payment
AIIWE makes payments to the security services provider (currently Beagle Watch) in terms of the SLA. AIIWE’s financial obligations are clearly set out in the SLA, based on the detailed itemized costings of each and every one of the security services discussed above.
All AIIWE contributors are accounted for monthly and audited annually, and are available to review by all AIIWE contributors.
AIIWE’s own monthly running costs amount to approximately [R25,000], which covers all administrative and related costs, plus audit fees for the company.
No AIIWE committee member or any related person receives any benefits whatsoever from the company.
As mentioned above, AIIWE and Beagle Watch calculated a total cost per household for a comprehensive security solution, which includes a public space security component. Residents may choose to contribute the public space security amount to AIIWE. If they choose NOT to contribute to AIIWE, the payment reverts to Beagle Watch. Households electing to contribute the public space payment to AIIWE have an effective discount of up to 20% arising form the tax relief made possible by the AIIWE tax deduction.
AIIWE therefore encourages ALL residents to make the election to contribute the public space security component to AIIWE, as it strengthens our collective bargaining power as a community with our current security service provider, Beagle Watch.
The AIIWE solution was designed in collaboration with people who have spent their entire lives in senior positions in the police and security services sectors. It was their unqualified advice that a security solution should NEVER be fragmented.
Security services, resources and solutions take time to set up and implement, and have significant capital costs. They cannot just be switched on and off at a whim. The fact that Beagle Watch has a significant portion of AIIWE suburbs residents as customers is a GOOD thing – they have a significant business interest to look after, and a lot to lose if they do not deliver. They therefore have every incentive to constantly dedicate more and better resources to protect their business in our suburbs, and in so-doing ensuring the best community security. Add to this the power of a formal contract agreement holding them to account, and we have a highly motivated, well resourced and dedicated single service provider.
Now consider the alternative. Of the various other service providers in our neighbourhood, which company has a committed basket of services DEDICATED to our areas? How do we as residents hold any of these companies to account? They have materially less resources, personnel and equipment in our suburbs, and none of them have been prepared to put in place resources and services without a SIGNIFICANT upfront payment (Currently, there is an effort to enter our suburb by a competitor security company that is demanding an upfront payment of R8 million to launch in the AIIWE area, and then to charge the same cost to residents as is currently charged under the Beagle Watch/AIIWE solution). This is in stark contrast to CSS who put all the money in THEMSELVES upfront, and then Beagle Watch who deployed ALL the additional resources without ANY upfront payments.
It is therefore NOT AIIWE’s intention to be anti-competitive – we are merely in a symbiotic relationship with a service provider who is prepared to make material financial commitments to our residents, which translate in to the best possible basket of security services currently on offer. No other service provider has come close to making the same commitment. The security service SLA has a total 3-year term (2 years remaining), at the end of which AIIWE is able to review it and consider alternative options such that exist at the time, with our sole objective remaining the constant improvement of public space security services for our suburbs.