Crackdown brings 53 illegal cases to court
MILK PRODUCERS have taken on smuggling syndicates and importers bending the rules in a bid to save the South African industry - and seem to be winning.
Just over two years ago the situation was so bad that the average medium-sized milk producer was losing annual sales of around R52000 due to illegal imports and tariff dodgers, according to Joe Hanekom, managing director of Agri Inspec Services.
Agri Inspec was formed by the Milk Producers Organisation (MPO) after 1994 figures showed that illegal and fraudulent milk product imports accounted for about 10% of South African sales.
A crackdown begun four years ago by the non-profit organisation has seen 53 cases of illegal importing brought before the courts.
Of these, 51 resulted in convictions and two are still being heard. Hanekom says the bulk of the imports were being brought in by four large companies.
Together they owe the receiver around R88-million in unpaid VAT and R400-million in tariffs.
A single Durban agent is facing 18 charges of fraud involving some R12-million in unpaid tariffs.
At its height the smuggling operation was so profitable that one syndicate was caught at the same border post three times in six months.
Each time they "happily" paid the fine and went back into business.
It was then that a policy decision was taken to institute criminal proceedings.
"Fines weren't working because they were making too much money."
In addition to smuggling there was widespread abuse of loopholes in the regulations, says Hanekom.
High-quality cheddar, for example, was being imported as whey.
Agri Inspec has worked with a number of government departments to counter the problem.
The farmers have also proved themselves to be world-class producers.
Declared imports have dropped from a high of over 38000 tons in 1997 to an estimated 12000 tons last year.
"And last year we found no illegal
imports," he told a meeting of farmers in
Port Elizabeth recently.
South African farmers are now successfully exporting milk products.
Agri Inspec's services are now being employed by a number of other producer bodies and government departments.
These include organisations representing red meat producers, poultry farmers, sugar and edible oils.
"We have also been approached by the departments of health and agriculture to render services to them."
While a number of Acts regarding foodstuffs fall under the Department of Health, it has no inspectors at any port apart from Cape Town, he says.
"It therefore cannot monitor the health aspects of food imports."
Hanekom says Agri Inspec is not a detective agency or police unit, but rather a "forensic investigation" company.
It also works with government departments to refine the law.
BY ED RICHARDSON
