The Portfolio Committee on Health met on Wednesday and heard presentations from the South African Revenue Services (SARS) and the South African Police Services (SAPS) on the challenges posed by the flow of illicit cigarettes across South Africa’s borders.
The presentations highlighted the involvement of criminal syndicates in the illicit tobacco trade. Members of the committee expressed concern that the current low penalties imposed on offenders are insufficient to prevent or deter illegal activities, allowing criminal conduct to persist. The committee emphasised that stricter enforcement mechanisms and harsh penalties need to be implemented, as this will help curtail the growing trade.
A key point of discussion was the corruption within licencing bodies for clearing and forwarding agents. Members were concerned that a substantial proportion of these businesses are foreign-owned and may be operating outside the law. The committee called for enhanced scrutiny and stricter controls to ensure that licences are granted only to compliant and legitimate operators, thereby fostering a more transparent and accountable environment.
The committee discussed in detail the effectiveness of existing legislation in combating illicit trade. Members questioned whether the Tobacco Bill currently being processed by the committee will provide sufficient enforcement powers to address the complexities of the situation. Some committee members proposed that an enforcement impact analysis be conducted to assess the implications of new laws before they are enacted, ensuring that any bill passed into law will be enforceable.
The presentations revealed the need for increased resources within SAPS and SARS. Both entities indicated that the lack of personnel and funding has severely hampered their ability to effectively combat illicit trade. Members of the committee noted their concern about the current number of officers dedicated to enforcement and highlighted the necessity of additional training and staffing to reinforce these efforts.
The acting committee Chairperson, Ms Tembalam Xego, said the decision to invite SARS and SAPS was informed by issues raised during public consultations on the Tobacco Bill, particularly regarding concerning challenges related to illicit trade and the non-enforcement of existing regulations. Ms Xego said the engagement is not intended to be a once-off encounter; rather, it marks the beginning of an ongoing dialogue that will enable the committee to engage with the relevant authorities directly involved in addressing the illicit trade of tobacco.
On the issue of plain packaging, “I want to clarify that the proposed regulations do not entail the elimination of brand names. The focus is on removing the bright colours that attract consumers, especially young people, to these products. Brand names will remain visible, but the emphasis is on presenting the products in a less appealing manner to discourage use,” said Ms Xego.
The committee acknowledged the need for enhanced interdepartmental collaboration. It is essential for the relevant government departments, including Health, Justice and Home Affairs, to work together effectively to address the challenges posed by illicit trade.
In her concluding remarks, Ms Xego said “You highlighted the partnerships between your departments, however it is essential to also include the justice system in these discussions. Given the complex interdependencies, consideration must be given to the roles of the Department of Transport and the Department of Correctional Services within the broader strategy. As Members of Parliament, our primary responsibility is to safeguard the public interest, and we must ensure that all relevant stakeholders are included in this effort.”
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