South Africans were issued a stern warning by the government against aiding foreign nationals in fraudulently meeting the requirements for registering small businesses and spaza shops, as such actions are illegal.
This comes after President Cyril Ramaphosa issued a 21-day deadline on Friday for these small businesses to be registered following a rise in reported cases of food-borne illnesses and deaths across the country.
Speaking during a ministers briefing on Thursday regarding government interventions over food-borne illnesses and illicit trade, Minister of Justice and Constitutional Development, Thembi Simelane, emphasised that the law allows every shop owner who is a legitimate trader and meets the legal requirements to own a business in the Republic to register a business and trade.
Simelane said in the processing of applications for registration, the government will take all necessary steps to ensure that all relevant legal requirements governing business operations within the country are strictly adhered to.
“We are concerned about surfacing allegations that suggest that some South Africans are assisting illegal foreign nationals to fraudulently comply with the requirements for registration.This is clear fronting, and we would like to warn everyone who is involved in this illegal activity to stop.”
The Minister said that the Immigration Act prohibits any person from aiding, abetting, assisting, or enabling an illegal foreigner to obtain a licence on his or her behalf to conduct any business or profession.
Simelane further stated that landlords are obliged by law to ensure that those who rent their premises to conduct businesses comply with the provisions of the Immigration Act and the standard by-laws regulating local business in the municipalities in which they operate.
She noted that stories are circulating on social media and other communication platforms about government officials who are allegedly involved in fraudulent and corrupt activities in the registration process of small businesses and spaza shops.
“The law enforcement agencies will clamp down heavily on extortionists who want to use this process to enrich themselves. Members of the public are urged to report any suspected corrupt activities through the National Anti-Corruption Hotline 0800 701 701.”
The Minister appealed to the members of the public not to disturb the process of registration by blocking certain shop owners from participating in the process, which includes conducting unlawful inspections by members of the public and other unauthorised bodies.
She said lawful joint inspections are ongoing across the country, led by multi-disciplinary teams comprising experts and officials from various government departments, state bodies, and law enforcement agencies.
Simelane said these inspections include the food value chain right from manufacturing, wholesale, and transport, to the retail sector to monitor and enforce norms and standards for food safety.
Examples of findings include:
- Between 8-20 November 2024, the Counterfeit, Contraband and Illicit Goods Operations have seized various items such as illicit pharmaceutical products and clothing, among other items, to the value of R4.9 million in the Western Cape and Gauteng provinces.
- The unit has also seized cash to the value of R417,000 and imposed fines for various contraventions to the tune of R6,000.
- In KZN, law enforcement has uncovered three warehouses containing counterfeit food, clothing, pesticides, and large amounts of expired food and pesticides imported for sale in the country, estimated to a value of R800 million.
- In the Northern Cape alone, over 26 spaza shops have been closed due to several reasons, including non-compliance, operating without valid licences, and poor hygiene practices.
The Minister said an immediate concern is the delay in the release of the laboratory test results. “In this regard, an amount of R15 million has been allocated towards rapid testing of suspected contaminated food products as part of efforts to improve the turnaround time of laboratory test results.”