Economic development MEC blames KZN’s location for illicit booze problem

KwaZulu-Natal economic development, tourism and environmental affairs MEC Siboniso Duma believes the province’s location, surrounded by neighbouring countries and home to a busy port, makes it vulnerable to the illicit alcohol trade.

Duma said counterfeit alcohol was imported through Mozambique, Swaziland and Lesotho, and sold at below-market prices.

Duma and the provincial liquor authority visited a counterfeit alcohol manufacturing warehouse in Verulam, north of Durban, after fake alcohol worth more than R5m was discovered on Friday.

On Thursday, Durban police arrested a 64-year-old man at a warehouse where illicit alcohol was allegedly being produced.

He faces charges of operating an illegal micro-distillery, unlawful possession of ethanol and contravening the Liquor Act. 

Police arrested the man after receiving information about a group of people allegedly manufacturing illicit alcohol at a warehouse in Ottawa, Verulam. 

When police visited the warehouse, they found several drums containing ethanol. 

The owner failed to account for why he had so much ethanol. Police arrested the man and seized 12,000l of ethanol with an estimated value of R1m.

Duma welcomed the arrest and said inspectors from the provincial liquor authority had been trained in intelligence gathering and were dismantling a fake alcohol manufacturing cartel.

He said inspectors were working with prosecutors to ensure successful prosecution. 

“The suspect appeared in court and our inspectors are working with police to ensure further investigations. More information and evidence are being gathered. The ethanol ... was bought from Swaziland and declared as in-transit ethanol, which is not meant for sale in SA.

“Empty 750ml bottles of Smirnoff and Red L vodka, together with the bottle caps, were also found on the premises. This is for possible filling with illicit alcohol manufactured on the premises. We remain worried about potential job losses and the health risks posed to unsuspecting consumers,” said Duma.

He said based on the intelligence gathered, the owner of the ethanol was allegedly a “ruthless kingpin who is supplying a syndicate behind the manufacturing of fake alcohol products”.

Duma said that months ago the SA Revenue Service had said that the syndicates exploited differential taxes on highly taxed goods such as alcohol, cigarettes, and petroleum.

“We are vulnerable because we have the busiest ports and we are along borders with Mozambique, Swaziland and Lesotho. At times, counterfeit alcohol is imported and sold at below-market prices. We wish to assure more than 8,000 liquor licence holders across the province that we are strengthening our efforts aimed at protecting their businesses,” he said. 

The department said months ago, when they raided another fake manufacturing factory in Westmead, that they had indicated the liquor industry extended beyond direct sales. 

Sectors like tourism, hospitality and entertainment were heavily reliant on a thriving liquor market, he said. 

Duma said township taverns, which accounted for 80%-90% of township alcohol sales and 43% of all alcohol sales in the country, were estimated to be worth between R40bn and R60bn.

“Counterfeit alcohol can cause permanent blindness. Other health risks include nausea, vomiting, abdominal pain, drowsiness and dizziness.”

Duma warned that drinking counterfeit alcohol could also lead to kidney and liver problems, and in severe cases it could induce a coma.

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