Crackdown on sellers of dangerous counterfeit goods

Pakistani immigrants are harming the local economy and endangering public health. Picture: Itumeleng English/African News Agency (ANA)

Pakistani immigrants are harming the local economy and endangering public health. Picture: Itumeleng English/African News Agency (ANA)

Published Sep 2, 2024

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Pakistani immigrants are harming the local economy and endangering public health. In recent years, South Africa has experienced an increase in the availability of counterfeit products, which range from food to common consumer goods. These goods frequently make their way into the hands of unknowing consumers, in black poor communities, creating major health hazards and economic issues.

In South Africa, most Pakistani nationals have been involved in activities that contravene local laws, such as operating businesses without proper licences, engaging in illegal trade (including counterfeit goods), or violating immigration regulations.

It is a universal standard that when you open a spaza shop or any other business, you must obtain a licence from the local government, however according to the South African government most of the shops owned by the Pakistan nationals in South Africa are not licensed.

South African law seeks to strike a balance between the need for foreign investment and talents and the protection and promotion of domestic employment and economic development. As a result, international business owners must traverse a regulatory structure that ensures their operations benefit the South African economy while adhering to fair and equitable standards.

One distressing event that shed light on unlawfully operated shops by Pakistan nationals in South African communities occurred in Soweto, a Joburg township, where children died after consuming biscuits allegedly acquired from a Pakistani national-owned store. The specific cause of the deaths is being investigated, but the episode has highlighted the hazards of counterfeit and poor products. Beyond this example, more children have died in the same province after allegedly consuming goods from these informal shops run by Pakistani nationals.

In response to the series of concerning deaths, authorities in South Africa have been working to crack down on the sale of counterfeit goods, but the issue persists, particularly in informal markets. They have raided warehouses where Pakistan nationals were discovered creating their own counterfeit products in conditions that do not even meet health regulatory standards. Law officials have discovered expired products, counterfeit goods and established that some of the owners were violating the immigration law.

The spread of counterfeit goods endangers public health while also undermining the local economy. Legitimate firms, small and medium-sized businesses (SMEs), suffer when low-quality knock-offs flood the market. This disturbs fair competition and may result in employment losses, worsening the country's economic inequities. The loss of money as a result of counterfeit products has an influence on the government's capacity to pay for important services such as health care and education. This leads to a vicious cycle in which the most disadvantaged groups are disproportionately impacted.

The availability of counterfeit goods undercuts legitimate businesses, particularly small and medium-sized organisations. These businesses struggle to compete with the low pricing of counterfeit products, which are frequently manufactured without regard for quality standards or regulatory restrictions. Counterfeit items can have catastrophic results, as evidenced by the Soweto tragedy in which children died after eating poisoned biscuits.

Reports of Pakistani nationals being involved in human trafficking networks, either as victims or perpetrators, presents significant issues to host countries in terms of law enforcement and human rights protection.

Some of the human trafficking incidents are reported by the media. An article published by “The South African”, March 2021 titled: “Pakistani man arrested in South Africa for alleged human trafficking” – discusses the arrest of a Pakistani national involved in a human trafficking syndicate operating in South Africa.

Pakistan is home to several militant groups that have been designated as terrorist organisations by the UN, the US, and other countries. The 2011 killing of Osama bin Laden in Abbottabad, Pakistan, by US Navy SEALs was a pivotal event that intensified the association of Pakistan with global terrorism.

Several news stories have detailed situations in which Pakistani nationals were arrested in South Africa for possessing or using fraudulent documents, such as phony passports or work visas. These cases add to the larger concerns about illegal immigration and identity fraud.

South Africa has faced significant challenges related to illegal immigration and identity fraud, with several cases involving Pakistani nationals at the centre of these issues. In April 2022, South African authorities arrested a group of Pakistani nationals for possessing fake passports and work permits. In early 2023, a Pakistani national was apprehended at OR Tambo International Airport for attempting to enter the country with a counterfeit visa. The individual had allegedly paid a substantial amount to a smuggling network that provided the fake documentation.

The Star

siyabonga.sithole@inl.co.za