KwaZulu-Natal economic development, tourism and environmental affairs MEC Siboniso Duma believes the province is vulnerable to the illicit alcohol trade due to its geographic location of being surrounded by bordering countries and home to a busy port.
Duma said at times counterfeit alcohol is imported through Mozambique, Swaziland, and Lesotho and is 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 12,000 litres of ethanol with an estimated value of R1m.
Duma welcomed the arrest and said inspectors from the provincial liquor authority have been trained in intelligence gathering and are dismantling a fake alcohol manufacturing cartel.
He said inspectors are 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 is being gathered. The ethanol, packaged drums, was bought from Swaziland and declared as in-transit ethanol, which is not meant for sale in South Africa.
“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 is allegedly a “ruthless kingpin who is supplying a syndicate behind the manufacturing of fake alcohol products”.
Duma said months ago they were informed by the South African Revenue Services that the syndicates exploit 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, they indicated the liquor industry extends beyond direct sales.
Sectors like tourism, hospitality and entertainment are heavily reliant on a thriving liquor market, he said.
Duma said township taverns, which account for 80% to 90% of township alcohol sales and 43% of all alcohol sales in the country, are 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 can also lead to kidney and liver problems, and in severe cases it can induce a coma.
TimesLIVE
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