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Colombia: Private security industry regulation shelved, spotlight shines on businessman under suspicion

By  |  June 20, 2016
Colombia: Private security industry regulation shelved, spotlight shines on businessman under suspicion

Colombia’s Minister for Trade, Industry and Tourism, María Claudia Lacouture, joined Superintendent Pablo Felipe Robledo, head of the country’s competition regulator, in successfully resisting a law initiative that sought to tighten regulation of private security and surveillance contractors. Both government bodies soundly opposed the measure, airing their objections with substantial portions of the proposed reform.

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    The reform was finally shelved by congress, after considering the effects of the reform. Concerns were raised over a possible upheaval of the private security sector, and parts of the law that could be an incentive for impunity. The three articles most criticized were arts. 4, 11 and 85, which deals with collusion and market dominance.

    The discussion over the last point brought new vigor to accusations over an alleged ‘private security cartel’, currently being investigated by the General Attorney. The cartel is allegedly led by Arturo Moreno Ojeda, a businessman known in Colombia as the “Private Security Tsar”.

    Moreno was identified as the presumed leader of a cartel in 2011, when financial research groups came forward to the country’s competition authorities over several security companies, which had presented competing bids for government contracts, which hared one or more major shareholders and, therefore, limited the true scope of competition in the sector. Moreno today faces a federal investigation, alongside 23 people also implicated in this unfair competition scenario.

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