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in News

BATSA accused of terrorist funding, ciggie smuggling

by Noluthando Ngcakani
1st March 2021
Government's decision to ban the sale of tobacco products has come under renewed fire. Not only did the ban cost the country millions in excise taxes, it has allowed the illicit trade to run rampant, says British American Tobacco. Photo: Supplied/Food For Mzansi

Minister Enoch Godongwana says the country lost R40 billion to the illegal trading of cigarettes and alcohol. Photo: Supplied/Food For Mzansi

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The Fair Trade Independent Tobacco Association says it is “unsurprised” by BATSA’s deflection following its implication in an alleged organised crime syndicate that was fuelling corruption and cigarette smuggling in Mali.

Last week, the organised crime and corruption reporting project OCCRP revealed British American Tobacco and Imperial Brands allegedly dominated the global “Grey Market”. Together, they alleged Jihadist ties fuelling the pockets of terrorists in the African country.

Mali imported more than 3 million kg of cigarettes from SA annually in both 2016 and 2017, around 95% of the country’s cigarette imports. An ex-BAT official said the only cigarettes Mali imports from SA are BAT’s Dunhill cigarettes, a point confirmed in an earlier BAT document.

— FITA (@fita_sa) March 1, 2021

This revelation, however, sparked calls from FITA and the South African Tobacco Organisation (SATO), who called for an investigation into the illegal trade in cigarettes on the continent.

Meanwhile BATSA on Monday said that it supports a commission of inquiry into the illegal cigarette trade in South Africa.

Batsa’s general manager, Johnny Moloto. Photo: Batsa
British American Tobacco South Africa’s general manager, Johnny Moloto. Photo: Batsa

According to BATSA general manager Johnny Moloto, both FITA and SATO represent brands including Remington Gold, “that are likely to found on sale illegally in the country.”

“The FITA/SATO coalition say they want an investigation. So, let’s have one,” said Moloto.

“This is an issue of utmost national importance that is taking huge sums out of the pockets of South Africans and putting it in to the pockets of criminals every single day.  It deserves a fully resourced investigation or Commission of Inquiry with real powers.”

‘Unsurprising and calculated’

In a response to queries brought forward by Food For Mzansi, FITA chairperson, Sinenhlanla Mnguni says that it was “unsurprising and calculated” that BATSA would deflect attention from serious allegations levied against it.

Fair-trade indepent tobacco association (FITA) chairperson, Sinenhlanhla Mnguni. Photo: Supplied

Should BATSA bring forward evidence of the associations implication in cigarette smuggling rings, Mnguni said “they are more than welcome to approach law enforcement agencies.”

He added, “To simply brush-off a report implicating your organisation in smuggling, corruption, the indirect funding of terrorism and the drug trade smacks of arrogance of the highest degree.

Mnguni further questioned why BATSA had gone through great lengths to avoid accountability in the matter. “Perhaps they can share the findings of that independent investigation given their eagerness to play open cards.

“While the multinational feels it can call the shots when it comes to some given their financial muscle, we will never dance to their tune.

Every year truckloads of cigarettes are distributed in regions of Mali controlled by armed militias.

In this investigation, we reveal how oversupplying Mali with smokes is a key corporate strategy for at least one #BigTobacco company. https://t.co/jSfKDDCzHy

— Organized Crime and Corruption Reporting Project (@OCCRP) February 28, 2021

Mnguni maintains, “Our members are all compliant with the tax laws of this country and have at all times been co-operative with SARS in as far its efforts in implementing measures to curb non-compliance in the industry along the value chain.

“We continue to urge them to find their conscience and account for the allegations levelled against them much in the same manner FITA members have accounted for past transgressions.”

ALSO READ: Tobacco smugglers ‘dancing in streets’

Noluthando Ngcakani

With roots in the Northern Cape, this Kimberley Diamond has had a passion for telling human interest stories since she could speak her first words. A foodie by heart, she began her journalistic career as an intern at the SABC where she discovered her love for telling agricultural, community and nature related stories. Not a stranger to a challenge Ngcakani will go above and beyond to tell your truth.

Tags: BatsaBritish American TobaccoFitaIllicit CigarettesJohnny MolotoSinenhlanhla Mnguni
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