An elderly man was arrested after a multi-disciplinary operation resulted in the discovery of illicit alcohol worth millions in a warehouse in Verulam.
Government Business leader and Economic Development, Tourism and Environmental Affairs MEC Siboniso Duma said that on Thursday, their entity, the KZN Liquor Authority, working with law enforcement agencies and the Department of Agriculture and Rural Development uncovered a counterfeit alcohol manufacturing warehouse in Verulam.
“This ethanol, packaged in drums, was bought from Swaziland and is declared as in-transit ethanol, which is not meant for sale in South Africa,” Duma said.
“Empty 750-ml bottles of Smirnoff and Red L vodka, together with their bottle caps, were also found on the premises. This is for possible filling with illicit alcohol manufactured on the premises.
“The estimated amount of fake alcohol manufactured from the illicit products is more than R5 million,” Duma continued.
“Based on the intelligence gathered, the owner of the ethanol is a ruthless kingpin who is supplying a syndicate behind the manufacturing of fake alcohol products.”
Duma said that fake alcohol costs the South African government over R11.3 billion in lost tax revenue.
“As we stated in the past, we remain worried about potential job losses and the health risks posed to unsuspecting consumers,” Duma said.
He said that months ago, they were informed by the South African Revenue Services that these syndicates exploit differential taxes on highly taxed goods like 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, counterfeited alcohol is imported and sold at below-market prices.”
Duma assured more than 8,000 liquor license holders across the province that they are strengthening our efforts aimed at protecting their businesses.
He said that months ago when they raided another fake manufacturing factory in Westmead, they indicated that the liquor industry extends beyond direct sales. Sectors like tourism, hospitality, and entertainment are heavily reliant on a thriving liquor market.
He also said that township taverns, which account for a whopping 80 to 90 percent 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 said.
Drinking fake alcohol can also cause kidney and liver problems and sometimes coma, he added.
Initially, eThekwini District SAPS spokesperson Captain Carmen Rhynes said that on Thursday, March 7, the eThekwini District SAPS office received information from the KZN Liquor and Agriculture boards of a group of people manufacturing illicit alcohol from a warehouse in the Ottawa area in Verulam.
Rhynes said that the Economic Infrastructure Task Team (EITT) immediately created a joint operation with the KZN Liquor and Agriculture boards and mobilised members to tactically swoop on the illegal distillery.
She said the team identified the warehouse in the Ottawa area which appeared as a creative shop fitting service.
“During the operation members found several drums containing ethanol chemicals, on questioning the owner of the warehouse, he failed to account for it,” Rhynes said.
“The suspect, a male aged 64 years old, was arrested and a total of 12 000 litres of Ethanol chemicals was seized, with an estimated value of one million rand.”
Rhynes said the man was arrested for operating an illegal micro-distillery, unlawful possession of ethanol and Contravention of the Liquor Act.
EThekwini District Commissioner, Major General Makhosazana Victoria Kheswa commended the good teamwork in removing dangerous substances used to make illegal alcohol, which could harm potential consumers.
Kheswa also emphasised that alcohol should only be purchased from a legalised bottle store to ensure consumer safety.
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