Staff Reporter
At least 460 shops across the Free State province have been raided by the Department of Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA) over the past few weeks as authorities seek to ensure the businesses are operating within the law.
The exercise, led by MEC Makalo Mohale, has been to at least 69 towns and several operators were forced to close as they failed to comply with various regulations while others were arrested for being in the country illegally.
Over the past two days, the blitz — supported by officials from Home Affairs, the South African Police Service, Mangaung Metro and the Free State Gambling, Liquor and Tourism Authority — focused on Botshabelo and Thaba Nchu townships.
“Botshabelo and Thaba Nchu . . . were under partial lockdown in the past two days,” said a statement issued by the department on Tuesday.
The department expressed concern over some foreign nationals illegally running businesses in the townships saying they seemed to be breaking the country’s laws with impunity.
“The biggest challenge remains foreign-owned shops which seem to violate every available piece of legislation in their quest to exploit poor people in the townships.
“One backroom factory in W Section in Botshabelo was found illegally brewing cold drinks labeled as Coca-Cola.
“The biggest concern is that some of these illegal activities happen with full knowledge of residents,” said the statement.
Meanwhile, as part of a drive to revitalise the township economy, Mohale has assisted a stokvel at Phiritona in Heilbron to establish their own wholesale based in the community.
“(We) will assist these people . . . in ensuring that the economy in their locality improves and is managed by local enterprises,” he said.
The wholesale is expected to supply at least 182 spaza shops owned by locals in Phiritona.
The model, according to DESTEA, is a blueprint for responsible and progressive revitalisation of the township economy, faced with the danger of being choked by foreign and multinational businesses.
“We are a department of economic development. Part of our job is to ensure that there is economic justice,” said Mohale.
“There are a number of challenges . . . on top of the list are illegal activities that are taking place in our communities with regards to business transactions.”
The province’s consumer court is expected to develop a Free State Bill that will address the unfair business practices conducted by foreign-run shops.
Once ready, the Bill will be sent to the State Law Advisory Services for congruence and conformity before it is put out for public hearings.