KZN Economic Development issues alert on fraudulent inspectors targeting shop owners
The Department of Economic Development, Tourism and Environmental Affairs is warning of criminal conduct by individuals who are going to businesses claiming to be inspectors from the department.
It said it has learnt that foreign nationals who operate spaza shops have been extorted by this group.
The department said in a statement it “has noted with grave concern reports of illegal business inspections carried out in the KwaDukuza Local Municipality and other parts of the province by individuals fraudulently claiming to represent the Department.
“These unauthorised inspections were allegedly conducted under the guise of promoting compliance and enforcement for businesses, with the perpetrators using the Department’s name and falsely citing endorsement from senior officials. This group is also accused of soliciting money from vulnerable spaza shop operators, many of whom are foreign nationals.
“Investigations have revealed that a private company, trading under the name My Spaza Asiphephe, is behind these operations. This company had previously approached the Department seeking formal collaboration to undertake inspections — a request that was formally declined. The Department does not and will not outsource regulatory or enforcement responsibilities to any private entities,” it said.
MEC for Economic Development, Tourism and Environmental Affairs, Reverend Musa Zondi, strongly condemned the actions, stating:
“We view these actions as criminal and deeply unethical. These individuals have impersonated government officials, committed acts of extortion, and undermined the integrity of our Department and the legitimate enforcement work we do through the Integrated Compliance and Regulatory Forum (ICOREF). We are working closely with SAPS to ensure that those responsible are held accountable.”
The Department stated that:
- All business inspections are conducted by authorised municipal officials and EDTEA staff.
- No third-party individuals or private companies are permitted to carry out enforcement inspections on behalf of the Department.
- Any individual or entity found impersonating the government or conducting illegal inspections will be investigated and prosecuted.
EDTEA urges all businesses, especially in the informal sector, to remain vigilant and report any suspicious inspection activities to the Department’s toll-free number at 0800 701 701 or via email at Fraud.Corruption@kznedtea.gov.za.