Today, I will undertake more unannounced visits and raids as part of efforts aimed at protecting consumers against food price during this period. I will be in the Phoenix area and Port Shepstone.
In particular, we are stepping up efforts to protect our economy against fraudsters and international criminal syndicates who are operating in this province.
Over the past three days, inspectors from the department’s Consumer Protection Unit and Business Regulations - working with Department of Labour Employment, Crime Intelligence, Durban Metro Police, Immigration Unit of the Home Affairs and SAPS arrested more than 66 undocumented foreign nationals for a series. These includes carrying firearms without a license.
Of particular concern is yesterday’s raid in the Durban Central District in which counterfeit goods were confiscated with more than R100 000 cash. The counterfeit products seized includes fake medication such as Grandpa, condoms and cigarettes.
Clearly, there is a very professional and sophisticated big racket using what could appear as a legitimate business. Police alone cannot be expected to win this battle.
As reported by the South African Revenue Services recently, these syndicates exploit differential taxes of highly-taxed goods such as cigarettes, alcohol and petroleum.
They sometimes choose not to declare their goods or they bribe officials or they transport their goods through illegal and unmonitored routes.
The syndicates are also involved in fraudulent transactions involving under-declarations of imported goods. They are known to double-invoice for the purpose of using undervalued invoices for declarations.
KZN’s economy is vulnerable as we have the busiest ports and located in the eastern seaboard of our country. We also share borders with SADC - Mozambique, Botswana and Swaziland
While we push for economic integration through free trade, it is unfortunate that the international criminal networks are also planning to sustain their illegal businesses which are crippling our economy.
Reports suggests that the criminal groups have gained unlimited access to various trans-national networks using sophisticated technology.
There are lucrative criminal enterprises operating in Africa, Europe and Asia who have been, for many years trading in endangered species such as rhino horns, Ivory, abalone, copper, precious wood, precious stones and precious metals. We want to put this to an end for the sake of the people of this province and our economy.
Critically, our fight to ensure the achieving quality healthcare for all is compromised by the smuggling of counterfeit medicines through our borders. This is one of the biggest threats facing this province and the country as a whole.
Organized syndicates are supplying unsuspecting consumers with counterfeit, expired and non-regulated drugs. The syndicates run unregistered clinics and pharmacies and are also involved in exports and imports.
Access to quality health care and essential medicines is needed to reduce disease and death, and enhance quality of life. Medicines are only beneficial when they are safe, of high quality, and properly distributed by qualified health professionals.
Although government in SA and many governments in the SADC region have made certain drugs available free of charge, these are stolen and sold at exorbitant prices on the open market or in neighboring countries with different pricing policies.
According to the World Health Organisation about US$ 4.1 trillion is spent globally on health services every year, with US$ 750 billion spent in the pharmaceutical market. 10 to 25% of public procurement spending (including on pharmaceuticals) is lost to corrupt practices.
In developed countries, fraud and abuse in health care has been estimated to cost individual governments as much as US$ 23 billion per year. WHO further states that countries with a higher incidence of corruption have higher child mortality rates.
Criminals have also flooded major cities across the province and the country with fake cosmetics disguised as popular brands, including skin-care products, nail polish, make-up and hair products. These products which have negative health effects are manufactured in backyard and sold at cheap prices.
The music recording industry, the movie industry and the whole entertainment sector have also been severely affected by counterfeit and cross border crime.
Pirated digital DVD and CDs are sold by street vendors and small shop owners. There is a highly organized syndicate which is involved in this racket.
A typical network would include producers of the DVDs and CDs in South Africa, smugglers who transport the goods from South Africa to other countries. There are facilitators at the borders posts and suppliers and marketers in destined countries.
Post CIOVID-19 period, everything will be done to protect our economy. As the department, we will ensure that our inspectors and law enforcement agencies are trained in order to identify counterfeit goods.
More resources will be allocated to ensure that that there is a greater awareness-raising among law enforcement agencies because even with good laws, there is very little that can be achieved in the absence of proper information.
A team of experienced officials from the department are on standby to investigate complaints regarding excessive pricing and violation of Business Regulations. Contact details are as follows:-
Email: Consumer.Complaints @kznedtea.gov.za
Whatsup:: 082 458 0706 or 082 374 6660
Enquiries:
Ndabezinhle Sibiya – 082 375 4742
Nathi Olifant - 060 970 5113
