Germany's ongoing migrant crisis has not only strained public resources but has also given rise to a booming private security industry. With the government spending around €50 billion annually on refugee support, a substantial portion of this budget is allocated to security services that ensure the safety of asylum seekers and refugees in state-funded accommodations. As the demand for security grows, companies like Teamflex Solutions are securing lucrative contracts, highlighting a complex relationship between crisis management and profit. This article explores how the refugee situation has transformed into a significant financial opportunity for the private security sector.
RE: As Germany grapples with the financial strain of the ongoing migrant crisis, one sector is profiting immensely: private security companies.
With the country spending approximately €50 billion annually on the accommodation and social benefits of asylum seekers and war refugees, Berlin alone is paying nearly €1 billion a year. A significant portion of this goes to security firms tasked with maintaining order in refugee shelters, revealing a lucrative, fast-growing industry.
An investigation by Berliner Zeitung uncovered staggering figures. In 2023, Berlin paid a record €94 million or €232,000 per day to security companies safeguarding 117 refugee accommodations across the city. Among the top earners is Teamflex Solutions which secured contracts to guard refugees at Berlin’s former Tegel Airport.
With security firms earning nearly €100 million in Berlin alone, it can be assumed that private security firms are earning hundreds of millions across Germany for policing migrant accommodations.
According to the newspaper, the State of Office for Refugee Affairs (LAF) had already paid out €71 million to security firms by the end of September this year, showing how the refugee crisis is proving to be a money-making machine for some.
To meet the personnel requirements of around 330 security staff per day and night, Teamflex had to engage multiple subcontractors. The company continues to hire, offering pay rates of €14.25 per hour with standard surcharges for evening, weekend, and public holiday work.
The company refused to speak to the Berlin-based newspaper when approached for comment.
According to the Federal Association of the Security Industry (BDSW), sales in the security industry sector grew by 7.6 percent in 2022, increasing from €10.3 billion to around €11.1 billion. In 2023, total revenue jumped to €13.4 billion, and the number of employees rose to 280,000.
BDSW spokeswoman Silke Zöller expressed concern over the trend, noting that “refugee accommodation has developed into a money machine, especially when we talk about public contracts.”
A deeper dive into the rapidly increasing number of sub-contractor security firms jumping on the bandwagon shone a light on the major issues with recruitment and allegations of fraud.
To work in the position, prospective employees must complete a 40-hour training course that proves they are competent at undertaking simple and semi-skilled tasks. There is no exam at the end of the course.
In order to be recruited to higher roles with greater responsibilities, employees must pass an expertise test set by the Chamber of Commerce and Industry, which has around a 50 percent pass rate. The majority of those who fail are understood to have poor German language skills, suggesting that the job attracts those of a migrant background to guard illegal migrants in state-funded facilities.
The German newspaper also reported that many who pass are often questioned on the job due to their lack of knowledge, with further investigations finding that several applicants possessed the same registration number, suggesting a high number of fraudulent exam entries.
Zöller warned that the industry was out of control and security within the sector itself was lax due to the rapid rise in demand, noting that since the 2015 migrant crisis, “there are now an extremely large number of sub- and sub-sub-companies,” and they all need employees.
The financial impact of the migrant crisis on Germany is profound, as evidenced by the massive spending on accommodation and social benefits for refugees. The private security sector has emerged as a key beneficiary, with companies capitalizing on the need for safety in crowded shelters. The growth of this industry reflects broader societal concerns about migration and public safety, as well as the increasing reliance on private firms to fulfill government responsibilities. Moreover, issues such as recruitment challenges and allegations of fraud within the security industry raise questions about oversight and accountability.
