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Thupeyo Muleya
Beitbridge Bureau
Security agents in South Africa have intercepted another large illicit consignment of Zimbabwean cigarettes worth R1,4 million being smuggled through Botswana.
On Monday, two people were arrested in the Mokopane area in Limpopo province while transporting similar contraband in a Mercedes Benz sports utility vehicle.
Another foreigner was arrested at the Groblersbrug border post between South Africa and Botswana with thousands of cigarettes worth R1,4 million on Sunday.
Limpopo police spokesperson, Colonel Malesela Ledwaba said the police were on the ground and in control.
“One of the suspects was arrested while the other one fled at Groblersbrug Port of entry on Sunday after they were found with two trucks fully loaded with illicit cigarettes worth over R1,4 million,” he said.
“According to the information received, two suspects were at the border of Groblersbrug waiting to enter South Africa from Botswana when members on duty became suspicious and conducted a search on the two trucks.
“They ultimately found these cigarettes fully loaded in the trucks. It is not exactly clear as to where the cigarettes were headed to.”
He said one of the suspects fled on foot after sensing danger while his accomplice is expected to appear at the Phalala Magistrates Court facing charges of smuggling of cigarettes.
Limpopo provincial commander, Lieutenant General Thembi Hadebe applauded the officers for being alert and showing commitment to duty.
In the Mokopane case that occurred on Monday, police said members of their Flying Squad were on routine patrol duties when they reacted to the information that led to the arrest of two suspects.
The team members received a tip-off about a Silver Mercedes Benz transporting illicit cigarettes driving from Polokwane along R101 road and while on patrol, a vehicle fitting the description was seen in Mokopane along Thabo Mbeki Drive.
The police officers signalled the driver to stop but he resisted resulting in a chase.
During the chase, the driver of Mercedes Benz vehicle lost control and hit the wall and stopped.
The two suspects were subsequently cornered and arrested for being in possession of illicit cigarettes.
The smuggling of cigarettes from Zimbabwe into South Africa through illegal crossing points along the Limpopo River is rife. It is understood that 30 percent of cigarettes in South Africa are smuggled from Zimbabwe, with the cheaper Zimbabwean brands the favourites, since this increases the gap between smuggled and legal cigarettes.
Ideally a box of cartons of cigarettes is bought for US$120 from Zimbabwean producers, which includes the Zimbabwean retail excise duty, and sold for between US$250 and US$300 to the syndicates who then smuggle them into South Africa where the sell for anything above R15 000.
Those that illegally transport the commodity across borders are paid between R100 and R300 per box of cartons and in most cases this is done under the cover of darkness.
The smuggling is lucrative because of the huge gap in excise duties on tobacco, and thus on retail prices, between Zimbabwe and South Africa. The gap is so large that smugglers can legitimately buy cigarettes wholesale or retail in Zimbabwe, and paying the compulsory Zimbabwean duty when they do, and pay the transport and smuggling charges to South Africa, sell the cigarettes at a discount to the price of the legal cigarettes and still make a decent profit.
Last month, a 45-year-old Zimbabwean man was jailed for an effective five years in South Africa for smuggling a contraband of cigarettes worth over R300 000.
Oliver Mupanga was convicted and sentenced to direct imprisonment for possession of illicit cigarettes and entering South Africa without a valid passport at the Senwabarwana Regional Court.
South Africa’s tax watchdog, Tax-Justice SA founder, Mr Yusuf Abramjee recently called for border authorities between Zimbabwe and South Africa to double their efforts in fighting the smuggling of tobacco and related products between the two countries.
He said criminal syndicates were tightening their grip on South Africa’s cigarette trade and only drastic, emergency action can halt them looting billions of rand in vital state revenue.
Mr Abramjee said the latest study by independent market research giant Ipsos showed that shops in South Africa were still being flooded with illicit cigarettes despite much-publicised actions by the South African Revenue Service (SARS).
He said Ipsos found that illicit cigarettes are being sold in up to four out of five stores in hotspot provinces.
A pack of 20 cigarettes, he said can be bought for as little as R7, less than one third of the minimum taxes legally due on them.
Online Reporter