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IOL News
16 hours ago
- IOL News
Calls for crackdown on counterfeit goods as South Africa's illicit trade crisis escalates
Gauteng police recently acted on a tip-off, leading to the closure of an illegal alcohol manufacturing facility in Jeppestown. Image: Gauteng SAPS/X The escalating crisis of counterfeit goods in South Africa has intensified calls for urgent measures to combat organised crime, following a series of high-profile arrests linked to illicit alcohol trade syndicates. Recent statistics reveal a staggering 55% increase in illegal alcohol volumes since 2017, prompting officials and activists alike to classify the situation as a national crisis. Last month IOL reported that the Drinks Federation of South Africa (DF-SA) reported that the volume of counterfeit alcohol in the country reached 773,000 hectolitres in 2024. This surge has coincided with several police operations aimed at dismantling the networks behind these illegal products after Gauteng police, on Monday, acting on a tip-off conducted a raid in the city centre which led to the closure of an illegal alcohol manufacturing facility in Jeppestown. During this operation, authorities uncovered millions of rands worth of counterfeit alcohol, including fake whiskey, vodka, and gin, as well as counterfeit labels and packaging worth R3.5 million. Colonel Dimakatso Nevhuhulwi of the Gauteng police confirmed that six suspects were arrested, including a man who presented a dubious liquor license from Mpumalanga. "Upon arrival at the said premises, the team was met by a man who claimed to be the owner of the business and further produced a liquor license which was for a Mpumalanga-based establishment. Following a search of the property, the team discovered the manufacturing and production of whiskey, vodka, and gin, including the reprint of counterfeit labels and packaging," stated Nevhuhulwi. At the weekend, police in Bloemfontein in the Free State confirmed the arrest of six foreign nationals after confiscating counterfeit goods valued at more than R19 million during raids in the CBD. Reacting to the raids in the Free State, National police spokesperson, Amanda Van Wyk, revealed that the search and seizure warrants were executed in accordance with the Customs and Excise Act at targeted shops. The arrests in Bloemfontein and Johannesburg were preceded by the arrest of a 31-year-old man who was arrested last week for allegedly manufacturing and illegally distributing counterfeit alcohol at his home in Klaarwater, Mariannhill, west of Durban. During the raid, KZN police confiscated counterfeit vodka with a street value of R250,000, which was found being manufactured at the site. At the time, police spokesperson Captain Carmen Rhynes indicated that members of the provincial organised crime, the provincial drugs and firearm unit, and the provincial counterfeit goods unit were instrumental in the arrest. "Members of the Provincial Organised Crime Unit (Narcotics), assisted by the Provincial Drug and Firearm Unit and the Provincial Counterfeit Goods Unit, acted on intelligence-driven information regarding the manufacturing and illegal distribution of counterfeit alcohol, specifically vodka, in the Klaarwater area in Mariannhill, Durban. They executed a search warrant at the identified premises and a suspect of 31 years of age was found on site and placed immediately under arrest for the contravention of the Liquor Act and the Counterfeit Goods Act," Rhymes said. Reacting to the latest incidents of illicit proliferation of counterfeit booze, anti-crime activist Yusuf Abramjee revealed that SARS estimates the proliferation of illegal alcohol costs the country's economy over R11 billion in lost annual excise tax revenue. "The illicit alcohol trade is completely unregulated, and apart from the massive revenue losses, this leads to numerous social issues. People are being sold dodgy alcohol that potentially contains fatal ingredients. It isn't regulated, and criminals don't care what they're selling as long as they make a profit. Meanwhile, criminals are stealing the taxes that are meant to pay for vital services such as schools, hospitals, and housing," Abramjee stated. Abramjee has attributed the increase to a lack of stringent law enforcement efforts within and across SA borders, which he said contributes directly to the flows of illicit goods on the back of the recent COVID-19 pandemic which destroyed various industries. "The main problem is the lack of adequate enforcement by authorities and a growing lack of faith in the rule of law. Between 2016 and 2019, just R26 million worth of alcohol was seized by SARS. Since then, the sales bans imposed during the COVID-19 pandemic have entrenched illicit networks. The SA Liquor Board Association (SALBA) estimates that more than one in five bottles sold in SA is illicit. The problem is even worse in the tobacco industry, as illicit cigarettes are even easier to distribute and trade illegally," he added.
The South African
18 hours ago
- The South African
Police bust counterfeit liquor operation in Johannesburg
An illegal distillery producing counterfeit liquor has been shut down in Jeppe, Johannesburg, following a police raid that uncovered fake liquor worth more than R3.5 million. Authorities confirmed the seizure during a joint operation led by the Gauteng Highway Patrol, the Provincial Organised Crime Unit, and the Johannesburg Metro Police Department's K9 Unit. Acting on intelligence, officers stormed the premises and found an elaborate setup for producing fake whiskey, vodka, and gin. The operation began when officers encountered a man claiming to be the owner. He presented a liquor license registered to a business based in Mpumalanga, which raised red flags. 'Following a search of the property, the team discovered the manufacturing and production of whiskey, vodka and gin, including the reprint of counterfeit labels and packaging,' said police spokesperson Dimakatso Nevhuhulwi. Authorities discovered large volumes of counterfeit liquor stock and sophisticated equipment used to mimic well-known liquor brands. According to police, the estimated R3.5 million in seized goods includes potential tax losses due to unpaid excise duties. Police arrested six individuals at the scene, including the man who claimed ownership and five others believed to be employees of the illegal operation. They are charged with fraud, manufacturing counterfeit liquor, and tax evasion. 'The South African Revenue Service (SARS) Customs division and Directorate of Priority Crime Investigations (DPCI) were called to take over the scene and investigations,' Nevhuhulwi confirmed. The suspects are expected to appear in court soon and face formal charges. Meanwhile, the police have warned consumers to be cautious about the source of alcoholic products, especially as counterfeit liquor poses health and safety risks. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The South African
2 days ago
- Politics
- The South African
Fezile Mkhize crowns Lavigne Swann as successor
In a momentous event, Fezile Mkhize of South Africa officially crowned Lavigne Swann of France as his successor. The ceremony marked the end of an era and the beginning of a promising new chapter. The event drew a diverse crowd of dignitaries, supporters, and media from across the globe. Fezile Mkhize, known for his dynamic leadership and commitment to progress, handed over the mantle with great pride, according to Conan Daily. 'It is with immense honour that I pass this responsibility to Lavigne,' Mkhize said. 'His vision and dedication will undoubtedly steer us towards a brighter future.' Lavigne Swann, who has made significant strides in his career, expressed deep gratitude and determination. The speeches highlighted the importance of international collaboration and showcased South Africa's growing influence on the global stage. For the South African audience, this transition signals a continued commitment to innovation and unity. Fezile Mkhize's tenure saw numerous initiatives that boosted local economies and enhanced social development. His successor promises to uphold these values while bringing fresh ideas to the table. The event also featured a fundraising segment, where attendees contributed generously. The total amount raised reached approximately R3.5 million (South African Rand), aimed at supporting community projects and youth empowerment programmes. As the evening concluded, the atmosphere was charged with optimism. Many attendees expressed confidence in Swann's leadership. This historic handover honours South Africa's legacy but also strengthens its ties with France and the wider international community. It is a moment that South Africans will remember with pride and hope for years to come. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
20-06-2025
- Business
- IOL News
Sars enforcement: the new era of tax compliance in South Africa
Tax Discover how the South African Revenue Service has transformed into a powerful enforcement agency with Project AmaBillions, and learn how to navigate the new landscape of tax compliance to protect your finances. The South African Revenue Service (Sars) is no longer the passive revenue service many South Africans remember. With the injection of R3.5 billion from the national budget and the ominous launch of 'Project AmaBillions,' Sars has entered its most aggressive phase of enforcement in years and is quickly turning into one of the most sophisticated, assertive, and unrelenting revenue authorities in the world. Welcome to the new high-stakes era of tax compliance, which marks the end of the era of any perceived leniency. It is now the time of relentless enforcement. If you've received a surprise assessment or an additional tax bill, doing nothing could be financially and legally disastrous. Sars has flipped the switch: compliance or consequences South Africa's budget is strained, and Sars has one clear mandate: collect at all costs. The days of informal engagement are over. Today, Sars is functioning as a well-resourced enforcement agency, driven by targets and backed by increasingly automated systems that flag non-compliance in real-time. Their legal tools of collection include: - Final demands; - Civil judgments; - Third-party appointments are issued directly to your bank without having to inform you; - Garnishee orders issued directly to your employer; - Instructing the Sheriff to collect; - Asset seizures; and - Criminal prosecution. If you disagree with an assessment, silence is surrender. Unless formally and timeously disputed, Sars will pursue recovery. And they don't knock, they act. From garnishee orders to default judgments, Sars is now executing collections swiftly and with minimal notice. Once the machine is in motion, it becomes significantly harder and more expensive to reverse. There's a process, but it's not forgiving Yes, there is a dispute process. And yes, it exists to protect taxpayers, but only if used strategically and correctly. You have 80 business days from the date of assessment to object. Miss this window, and you must beg Sars to condone your lateness, and they're under no obligation to say yes. Even if the assessment is wrong, Sars is entitled to collect unless and until a dispute is lodged and the debt is suspended. Without this, enforcement proceeds. Your bank accounts, salary, or even those who owe you may be targeted. Sars has shown no hesitation in using every legal mechanism at its disposal, and you must thus use every legal mechanism at your disposal to protect your interests. Disputes must be strategic - this is a legal battlefield This is not the time for 'DIY' tax disputes. In the enforcement era, objections need to be drafted like legal pleadings, not complaints. Sars doesn't respond to emotion; it responds to evidence, statute, and precision. A skilled tax attorney can mean the difference between a successful objection and irreversible enforcement. This is especially critical when multiple years are at stake or where Sars alleges serious non-disclosures. Sars Commissioner Kieswetter has made their philosophy clear: compliance will be facilitated; non-compliance will be punished. The playing field may be fair, but it is also ruthless to those who don't act timeously. Every single day counts, and delay is dangerous In today's enforcement climate, an assessment is not a suggestion; it's a trigger. It signals the start of Sars' collection clock. If you don't respond with speed and legal force, you may find your finances, assets, and reputation under siege. Every day you delay, Sars gains ground. An assessment isn't an invitation to negotiate. It's a legal action, and if you fail to act swiftly and strategically, Sars will act for you through your bank, your employer, or the courts. Dispute on time. Dispute strategically. Or prepare for the full force of Sars enforcement. Act now, those who wait, lose. * Daniels is the head of tax controversy and dispute resolution at Tax Consulting SA. PERSONAL FINANCE
The South African
18-06-2025
- Sport
- The South African
Bobby to meet with Kaizer Chiefs' R3 million flop
Kaizer Chiefs are set to part ways with midfielder Mduduzi Mdantsane after just two years. The 30-year-old joined the Soweto giants in June 2023 for a reported transfer fee of R3.5 million from Cape Town City but failed to settle. He made 13 league appearances for Amakhosi during the 2023/24 season; however, he failed to make a single appearance for the club last year. Mdantsane was subsequently loaned out to Richards Bay FC in January this year, but only featured three times. It is believed that Chiefs are looking to seal the midfielder's fate in the coming days. According to KickOff , the former Cape Town City star is set to meet with Amakhosi Football Manager Bobby Motaung over his future. 'They are still finalising a few things before Kaizer Chiefs announce his departure. The club is set to meet the player before the end of this week to shake hands and do a proper farewell,' a source told the publication. Kaizer Chiefs have released four players this past week as part of their efforts to revamp the team for next season. The players released are Edmilson Dove, Sabelo Radebe, Njabulo Blom, and Ranga Chivaviro. On Tuesday, Amakhosi announced that the Mozambican defender, Edmilson Dove, is no longer contracted to the team after three years with the club. 'Kaizer Chiefs and defender Edmilson Dove will part ways when his contract expires at the end of June,' the club said in a statement. Amakhosi are set to jet off to the Netherlands for their pre-season training. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
