Jobs Up in Smoke: Gauteng and DA lock horns over British American Tobacco closure
The Gauteng provincial government has dismissed claims by the Democratic Alliance (DA) linking the planned closure of British American Tobacco South Africa’s (BATSA) Heidelberg facility to Premier Panyaza Lesufi, calling the allegations disingenuous and politically opportunistic.
Provincial government spokesperson Elijah Mhlanga said the DA’s statement attempts to shift blame for what he described as a complex national crisis onto the Gauteng government.
“The statement is a disingenuous and politically opportunistic attempt to blame Premier Panyaza Lesufi and the Gauteng Provincial Government for a complex, national crisis, while the DA itself is a partner in national governance structures failing to address the root causes,” Mhlanga said.
He said the DA’s accusations were factually misleading and exposed hypocrisy in the party’s policy positions and political responsibilities.
“Attempts to portray the illicit cigarette trade as a provincial failure are not only misguided, but intellectually dishonest,” he said.
Mhlanga said responsibility for combating illicit tobacco trade rests with the national government.
“As the DA well knows, the responsibility for combating this scourge rests unequivocally with the national government, which holds the constitutional mandate, enforcement authority and regulatory levers required to address it effectively,” he said.
The response follows comments by DA Gauteng spokesperson for economic development Mike Moriarty MPL, who said the party welcomed BATSA’s commitment to reinvest in the Gauteng economy if illicit tobacco production fell below 25%.
Moriarty said Premier Lesufi needed to enforce laws to curb illicit tobacco trade.
“Premier Lesufi’s failure to clamp down on crime, including illicit trade in tobacco, has led to BATSA taking the decision to close its manufacturing plant in Heidelberg. This will leave 230 families without a breadwinner,” Moriarty said.
He said Lesufi frequently spoke about job creation in the province, but the reality showed otherwise.
“The irony is that Lesufi and his MEC, Lebogang Maile, brag about how their Vaal Special Economic Zone will bring new jobs. But this SEZ is adjacent to BATSA’s manufacturing plant and now, instead of an increase in jobs, there is a decrease,” he said.
Moriarty said the Vaal SEZ was plagued by leadership instability and lacked a clear strategy.
“The SEZ is incapable of producing meaningful plans to create jobs and drive economic growth. This SEZ was meant to feed into the BATSA manufacturing plant, as the two properties are next to each other. This has not happened,” he said.
He added that job creation required investment and that the government needed to ensure crime was under control, along with reliable water and electricity supplies.
“Due to the provincial government’s failure to ensure the right conditions exist, a company like BATSA has decided to manufacture its products outside the country,” Moriarty said.
He called on Lesufi and Maile to stop relying on propaganda and take tangible steps to address crime and service delivery failures.
In response, Mhlanga said illicit trade and smuggling were addressed through a national enforcement framework, involving the South African Revenue Service (SARS), the Hawks, the National Prosecuting Authority (NPA) and the South African Police Service (SAPS).
“SARS manages border control, enforcement and track-and-trace systems. The Hawks investigate organised criminal syndicates, the NPA oversees prosecutions, and SAPS leads major seizures through national units,” he said.
Mhlanga said that the DA was a partner in the Government of National Unity at national level.
“Instead of finger-pointing at the province, the DA should answer what its national representatives are doing to strengthen SARS, empower the Hawks and ensure the NPA successfully prosecutes kingpins,” he said.
He said illicit cigarettes entered through national ports of entry and were produced by networks operating across provincial borders.
“The DA chooses to ignore this reality for cheap political point-scoring,” he said.
Mhlanga said Gauteng had been actively supporting enforcement efforts through the SAPS Provincial Counterfeit Unit, working with other agencies, brand protection groups and private security companies.
“Operations are conducted weekly across all five districts. Recent raids in Dragon City, Carletonville, Roodepoort and Vereeniging have resulted in the seizure of millions of rands’ worth of counterfeit and illicit goods, including tobacco products,” he said.
He accused the DA of omitting these facts while promoting a narrative of provincial inaction.
“The most disappointing part of the DA’s statement is its hypocrisy on law enforcement,” Mhlanga said, noting the party’s opposition to expanding provincial law enforcement capacity, including the introduction of Gauteng Traffic Wardens.
“Opposing initiatives that enhance the province’s ability to maintain order and safety while blaming the province for not doing enough on crime is contradictory and self-serving,” he said.
Mhlanga said the provincial government was concerned about potential job losses at BATSA and remained committed to engaging employers and stakeholders.
“The solution requires a consolidated approach, not divisive and blame-shifting politicking,” he said.
“The provincial government will continue to work within its mandate, in cooperation with national agencies, to fight illicit trade, protect legitimate businesses and save jobs.”
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