Gauteng MEC for Economic Development, Vuyiswa Ramokgopa, has released the Gauteng Liquor Board (GLB) Committee of Inquiry Report.
The report has been submitted to Gauteng Legislature’s Portfolio Committee on Economic Development and was made available to the MEC after she assumed office last month.
“Following a thorough review of its findings and recommendations, the MEC has taken the decision to release the report publicly in the interest of transparency, accountability, and restoring public confidence in government institutions,” the department said in a statement.
The report lays bare the challenges at the GLB, including collusion between owners and inspectors.
“The report presents a thorough diagnostic report of the GLB and highlights various governance challenges including but not limited to; irregular issuing and renewal of liquor licenses, weak enforcement mechanisms, poor record-keeping, allegations of corruption, maladministration and collusion involving inspectors, officials, and unregulated consultants and other regulatory weaknesses.
“This has an adverse impact on the ability of the Gauteng Liquor Board to perform its mandate effectively,” the statement read.
Of further concern is the “proliferation of liquor outlets operating unlawfully in close proximity to schools, places of worship, children’s recreational facilities, and residential communities” – in contravention of the Gauteng Liquor Act.
“This points to a strain on enforcement capacity within the Gauteng Liquor Board, where fewer than 20 inspectors are responsible for monitoring more than 33 000 licensed outlets across Gauteng, alongside an estimated 200 000 illegal outlets operating outside the regulatory framework,” the statement read.
Some of the recommendations in the report include:
- Strengthening compliance monitoring and enforcement operations;
- Reviewing suspicious and unlawfully issued licenses;
- Strengthening consequence management mechanisms;
- Digitising and modernising licensing systems;
- Strengthening coordination with municipalities, SAPS, and Metro Police; and
- Enhancing oversight over inspectors and officials involved in licensing and compliance processes.
“In terms of the Gauteng Liquor Act (2003) and the executive authority vested in the MEC, the Department has a responsibility to ensure lawful administration, effective oversight, compliance enforcement, and the protection of communities affected by harmful and unlawful liquor trading activities.
“The MEC further notes that while the liquor industry remains a significant contributor to the provincial economy, weak governance and regulatory failures have prevented government and communities from fully benefiting from the sector.
“The Department will be taking swift action to strengthen compliance, improve revenue management, and ensure the industry contributes meaningfully towards economic transformation and the funding of social development programmes,” the statement said. – SAnews.gov.za
