ALI MPHAKI
T HE GAUTENG MEC for economic development has accused retailers such as Pick n Pay and Spar of squeezing out small traders in the townships and undermining government efforts to ensure black entrepreneurs prosper in the liquor industry.
Qedani Mahlangu warned at a media briefing yesterday that large liquor retailers were going “full steam” to establish their dominance in townships such as Soweto, in the process squeezing out small traders.
Flanked by senior members of her department, including newly appointed Gauteng Liquor Board chairman advocate Bally Chuene, Mahlangu said her department was very concerned that the liquor industry was being monopolised by a few retailers.
“We will not grant them a licence to operate in the townships unless they have a black person as their franchisee,” she said.
“And even after that, we are going to apply stringent conditions to ensure that the black franchisee is not removed a few months later, with the franchise reverting to the same company,” said Mahlangu.
Fronting would result in loss of the licence, she warned.
Mahlangu said the department would be meeting the management of various shopping centres operating in the townships to discuss BEE.
Manufacturers could not continue distributing and retailing at the same time indefinitely.
“You cannot be everything. This new economy requires new entrants,” she said.
Mahlangu noted that the liquor licence renewal season for 2011/2012 would start on December 1.
She advised Gauteng liquor licence holders whose licences had been converted to check the date stamp on their licences and renew them on or before that date.
Those whose licences were not stamped should approach the Gauteng Liquor Board head office, she said.
The department would dispatch mobile services throughout the province to help with licences.
The department had received 2 450 applications since the new Gauteng Liquor Board’s appointment on June 20. Of these, 1 314 had been considered.
Pick n Pay spokeswoman Tamra Veley said the company disagreed with Mahlangu.
“Out of the nine Pick n Pay stores in Soweto, three of these have liquor outlets. The four major grocery groups including Pick n Pay, own less than 10 percent of the total liquor (off-sales).”
Spar Group liquor manager Marc Robinson said they considered themselves a small company and that it was not their intention to squeeze out the small guys.
He said Spar was struggling to find the right local entrepreneurs who wanted to go into the supermarket business in the townships.
Mahlangu said the department was concerned that certain lawyers were charging exorbitant fees to help with licences, with the fees ranging from R10 000 to R50 000 for a licence that cost about R2 500. He believed that fixing the system would eliminate these middlemen and reduce the cost of doing business.
The president of the SA Liquor Traders Association, Saint Madlala, could not be reached for comment.