The Tax Justice South Africa (TJSA) has once again called for urgent, more aggressive measures to be taken in the fight against rampant illicit cigarette trade in the country.
This comes after multiple massive busts in some parts of the country, including the recent one at the Beitbridge Port of Entry on January 18, leading to the arrest of a 44-year-old foreign national as the fight against cross-border smuggling and the seizing illicit cigarettes worth over R14 million intensified.
IOL reported this week that provincial spokesperson, Brigadier Hlulani Mashaba said the suspect, driving a white truck with a tanker trailer, claimed the vehicle was empty.
But police, unconvinced by his story, directed the truck to the commercial ramp zone for inspection.
In another recent bust, during a high-stakes operation by the Vala Umgodi Task Team in Limpopo, led to the arrest of a 33-year-old Ethiopian national allegedly involved in illicit cigarette smuggling and money laundering.
The breakthrough came after officers uncovered a stash of cash and a trail of illegal activity in Waterval, Vhembe District, on January 15.
In another case in June 2023, the Customs Division of the South African Revenue Service (SARS) destroyed more than R40 million worth of illicit and smuggled cigarettes at the Beitbridge border post.
With many other arrests preceding these recent two, Yusuf Abramjee, the founder of TJSA, said the scale of South Africa’s illicit cigarette trade has reached unprecedented levels.
“Despite revelations of Gold Leaf Tobacco Corporation’s (GLTC) alleged involvement in multibillion-rand tax evasion and money-laundering, their brands - including Remington Gold - continue to dominate the South African tobacco market.
“The latest seizure at the Beitbridge port of entry highlights the alarming persistence of the illicit cigarette trade and the urgent need for new, innovative measures to combat this growing crisis.
“These smuggling operations are robbing South Africa of billions of rand in tax revenue each year, undermining our economy and depriving our people of vital services,” he said.
According to Abramjee, the ‘Al Jazeera Gold Mafia’ documentary revealed Zimbabwe-based Gold Leaf Tobacco Company (GLTC) is a key player in South Africa’s illicit cigarette trade.
It has been reported that an estimated two in every three cigarettes sold in South Africa today are illicit, with the total loss in tax revenue exceeding R27 billion annually.
“It is deeply concerning that, even after Gold Leaf's exposure, not a single arrest has been made and their brands remain widespread across South Africa,” Abramjee said.
He said this was due to many systematic issues and failure by the government to regulate the industry and stomp out criminal enterprises.
“This is a glaring example of how systemic weaknesses in enforcement and regulation allow criminal enterprises to flourish.
“We can’t keep hoping for change if we simply adopt ‘business as usual’. The government must take immediate action and implement stronger enforcement at border posts, more stringent monitoring of tobacco industry supply chains and urgent enforcement of the rules allowing the South African Revenue Service (SARS) to install CCTV cameras in all tobacco factories.
“The fight against illicit tobacco is a fight for the future of South Africa’s economy and the well-being of its people. We cannot afford to wait a single day longer before bringing to justice the mega-rich kingpins who are crippling our country,” he said.
In April last year, BAT South Africa (BATSA) said it was forced to scale down its direct retail product distribution and delivery operations, as its sales volumes continued to decline due to the heightened illicit trade in a blow to local jobs.
During a 2024 joint operation between SARS and the SAPS, SARS commissioner, Edward Kieswetter, promised to make use of a range of information to clamp down on the illicit trade, which he said involved the bordering farming communities, including those who were using their properties and vehicles in collusion with these syndicates.
“We will use all information gathered by enforcement agencies to follow up, and prosecute where necessary, those who are involved in these syndicated crimes. We will continue to carry out our enforcement work without fear, favour or prejudice to protect local industries and promote economic development,” Kieswetter had said.