There are currently 150 security companies, employing about 120,000 people offering services such as surveillance and custodial care among other things.
"These kinds of services are mainly sought by businesses and neighborhoods, due to a distrust of the services provided by state security forces.
Security staff are just one facet of the security industry, which includes other products and services such as CCTV systems, surveillance cameras, motion sensors, alarms, life insurance, anti theft barbed wire, security wall construction, armoured vehicles, protective clothing, weapons and defensive localisation systems", published Prensalibre.com
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A total of 120,000 private security guards perform security duties in Guatemala, five times the total number of police officers.
The NGO Public Safety Instance Monitoring and Support, which monitors the country's security policies, is concerned by the situation.
Veronica Godoy, delegate of the NGO, said the figures place Guatemala as the country with the greatest disparity between private security guards and state police.
The new law establishes requirements for recruitment and requires companies to provide employee benefits.
It creates the General Department of Private Security Services under the Ministry of Interior, who will be responsible for overseeing the companies.
Sigloxxi.com details the contents of the new law:
Employers indicate that the cost of paying extortion fees on productive or commercial activities, can amount to up to 1% of sales.
S21.com.gt reports that "The country's industrialists have declared taken their concerns to the Minister of the Interior where they reported being victims of extortion and theft and a killing spree that is maintaining a 'climate of anxiety' in the country, said Javier Zepeda, president of the Chamber of Industry (CIG by its initials in Spanish). "
A study conducted in July by the Chamber of Commerce of Honduras shows that extortion has caused the closure 1,600 companies.
Crime that has been affecting the country's economic development, discourages investment and generates job losses, said Mario Bustillo, president of the Chamber of Commerce of Tegucigalpa.