Liquor traders in Gauteng are feeling the effects of an increase in licence fees as well as a backlog in obtaining the licences.
A member of the provincial legislature recently highlighted additional administrative burdens in the industry and in the economic development portfolio.
The Gauteng Liquor Board (GLB) has since elaborated on the nature of the complaints, with the Gauteng Liquor Traders Council (GLTC) offering a possible solution.
Lapsing licences
As well as fee increase, the GLB recently announced that liquor licences would be automatically cancelled should their holders allow them to lapse.
Should the licences lapse, the holders will be forced to reapply, with the cut-off being 1 April.
Licence holders will still have a final grace window, with relevant penalties liable for renewals submitted before a 30 and 60-day deadline.
“This measure aims to strengthen compliance and promote accountability within the liquor industry in Gauteng,” the GLB stated.
GLB Chief Director Crezelda Venter explained the cancelling of lapsed licences was permissible under sections 99 and 100 of the Gauteng Liquor Act and urged traders to comply.
“The GLB has a revenue management policy that was recently reviewed in terms of the Gauteng Liquor Act.
“Licence holders have a period of two months to renew their lapsed licences. After that period, they will be required to submit a new application,” Venter told The Citizen.
Audit of applications
DA shadow economic development MEC Mike Moriarty stated last week that the rush to comply was causing a bottleneck.
“The GLB has a severe backlog in issuing licences and renewals that will lead to job losses. It is also an opportunity for corruption to take place,” said Moriarty.
He added that when coupled with a recent fee hike, the number of unlicensed outlets may increase.
“While many liquor businesses may shut down, others will choose to trade illegally, leading to more unemployment and social risks from illicit traders,” Moriarty explained.
Regarding the licensing backlog, Venter said an audit showed the slow process was caused by the traders themselves.
“The audit found that most of the submitted files were defective in nature, meaning they were incomplete as they would generally have outstanding documents that are vital to ensuring the board is able to make a decision on the application.
“The applicants would’ve been communicated with to submit the outstanding documents. However they would not comply, thus causing the backlog,” said Venter.
She added that all applications were unique and often required verification from Home Affairs, increasing the turnaround time.
New GLB offices
The GLB last year moved to a temporary “overcrowded” premises in Germiston, with Venter stating that an office under the provincial economic development department was being prepared.
“The building is currently undergoing maintenance, however, once that’s complete, the public will be notified of the new address for GLB head office and the Johannesburg regional office,” confirmed Venter.
Another gripe from Moriarty was a commission of inquiry (COI) report into corruption within the GLB, accusing economic development MEC Lebogang Maile of stalling its release.
“The DA has submitted a Promotion of Access to Information Act (PAIA) application to compel MEC Maile to release the findings,” said Moriarty.
Venter clarified, stating, “The MEC plans to release the COI report once it’s finalised. The details will also be shared in due course.”
Shebeen permit scheme
Current liquor licensing fees can cost up to R6 000 per year for small traders and over R10Â 000 for clubs or micro-manufacturers.
GLTC spokesperson Jongikhaya Kraai pointed out that fees had doubled in recent years, but the GLB was still turning the screw.
“The liquor board has got a collection issue. They are pushing the responsibility to liquor traders by raising the prices.
“The liquor traders will have to show they are responsible, but will also shift that cost to their customers,” he told The Citizen.
Kraai suggested an existing scheme could assist with licence revenue collection.
He explained that a shebeen permit scheme was established roughly 10 years ago to assist informal traders with legalising their operations.
Kraai said an estimated 15Â 000 of these legitimate permit holders had not been upgraded to full tavern licence status, going against the original objective of the plan.
“Our advice was please can the liquor board go back to rolling out those shebeen licences subject to sections 24 and 25 of the Act.
“We feel that then the liquor board will reach their collection target, other than raising their fees for a space that is saturated,” Kraai concluded.
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