Court sides with shebeens

Saint Madlala of the SA Liquor Traders Association (SALTA) says: "One of the main aims of the new provincial liquor law is to level the playing field by facilitating the entry of unlicensed liquor traders such as shebeeners into the formal business environment.

"Since the beginning of this year, Gauteng shebeeners have been issued permits allowing them to trade in beer only but with restrictions on pack size and quantity."

Working together with the SA Liquor Brand-owners Association (SALBA) - which represents the vast majority of South Africa's liquor wholesale distributors, excluding SAB - SALTA challenged the constitutionality of the clause in the Pretoria Supreme Court.

The Court declared the clause unconstitutional and ordered the Gauteng Liquor Board to issue shebeen permits 'without any conditions relating to type and quantity of liquor to be sold' with immediate effect.

"Now that the Court has set aside this restriction, all Gauteng shebeeners will be allowed to trade in a free and fair manner," says Madlala.

Riaan Kruger, CEO of SALBA, says: "We are delighted with this court ruling. This will encourage more shebeeners to register for permits and to play a more meaningful role in a better regulated system."

The Gauteng liquor authorities have admitted that the new Act contains serious flaws and are currently conducting a review process.