News24 | Govt launches task team to tackle counterfeit booze as cases raise health concerns

A 2022 report suggested that the macro-manufacturing of bogus alchohol surged globally in the post-Covid-19 period.

• The Department of Trade, Industry and Competition has quietly set up a departmental task team to investigate the macro-manufacturing of counterfeit alchohol.
• The task team comprises the National Regulator for Compulsory Specifications, South African Bureau of Standards and the International Trade Administration Commission of South Africa.
• A 2022 report suggested that the macro-manufacturing of bogus alchohol surged globally in the post-Covid-19 period as criminal networks hijacked the market. 

The Department of Trade, Industry and Competition (DTIC) has set up a task team with several of its entities to curb the spread of counterfeit alcohol, following growing concerns about consumers being exposed to fake liquor and the health risks linked to it.

The move comes after recent incidents, including a police raid on a retail store in Vanderbijlpark where fake alcohol was seized, highlighting the scale of illicit trade in the sector.

According to research by the Organisation for Economic Cooperation and Development, published in 2022, illicit alcohol accounted for around 25% of global alcohol consumption in 2018, with a disproportionate impact being felt in lower-income countries.

The increase occurred during the post-Covid-19 period when criminal networks took over the market, according to the report.

Macro-manufacturers have to register with the National Liquor Authority, according to the law.

Following the police raid on the Vanderbijlpark liquor store, News24 asked the department what steps it had taken to curb the proliferation of counterfeit alcohol.

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Spokesperson for the DTIC, Bongani Lukhele, told News24 the department had established a task team to deal with the problem.

The department had quietly established the task team in October last year. Lukhele said the team comprises the DTIC’s entities, including the National Regulator for Compulsory Specifications, SABS, and the International Trade Administration Commission of SA.

This arose out of “concern [of] the proliferation of illicit trade in general, especially with illicit liquor”.

“The surge in illicit liquor is not only a cost to tax revenue, but more so to health,” Lukhele said.

The health risk emanates from illegal manufacturing processes.

“The department has recognised that a wider response is required and has constituted a task team comprising government, [with] departmental entities and industry to lead a focused approach to address illicit trade in liquor.

“The department is looking into this matter. Processes are under way given the significance of this issue.”

Lukhele added that the issue of retail stores were the mandate of provinces.

He said the department was responsible for the macro-manufacturing and distribution of liquor and therefore the DTIC wasn’t privy to statistics relating to the number of stores that sell fake alchohol.

He added that the SA Revenue Service (SARS) and the police could be consulted “for any information they may have as they play a role in this work to address illicit trade”.