Lockdown sees the black market thrive

The Covid-19 lockdown has not only seen a spike in the sale of illegal booze and cigarettes, but counterfeit face masks, counterfeit personal protective equipment, and supposed Covid-19 treatment drugs and goods have also flourished on the black market.

According to the Transnational Alliance to Combat Illicit Trade (Tacit), authorities in the US, UK, China, Germany, Uganda, France, India, Indonesia, Vietnam and elsewhere are taking action and have already begun seizing fake and falsified medical products.

The alliance has warned that these are expected to increase as more illicit products enter the market, with countries warned to be on the lookout for fake, falsified and substandard medical products and medicines.

According to the alliance, counterfeit, substandard healthcare and consumer products that are in exceptionally high demand because of the pandemic and the consequential lockdowns include surgical masks, hydro-alcoholic gels, testing kits, thermometers, gloves, sanitizers and engineering monitors to measure body heat temperatures, and treatment options currently explored such as Hydroxychloroquine and Azithromycin.

The alliance has warned that ineffective, fraudulent products undermined public health and efforts to stem the pandemic.

“In the hands of citizens, infected patients and healthcare professionals, these illicit products heighten risk to exposure and create a false sense of security that accelerates the spread to others.

“Falsified versions of treatment options (such as Hydroxychloroquine and Azithromycin) will harm or kill already vulnerable patients,” the alliance warned in its report.

With their illegal activities severely curtailed, Cape Flats gangs have also moved in to take advantage of the demand caused by desperation as a result of the alcohol and cigarette ban.

The City of Cape Town’s member of mayoral committee (MMC) for Safety and Security, JP Smith, on Wednesday told a panel discussion that at least 44 liquor stores have been looted since the ban and those that have moved their goods have been set alight.

“We are finding a lot of illicit trade and goods, with more than a million illicit cigarettes seized in a week and have intercepted delivery trucks transporting illicit goods… The Cape Flats gangs have seen their operations disrupted and have quickly switched to seize the opportunity provided by the desperation,” he said.

Tax Justice South Africa founder, Yusuf Abramjee, said criminals were running amok and laughing all the way to the bank while government lost millions a day in alcohol and cigarette tax.

He said illicit seized goods also found their way back to the black market due to crooked police officers cashing in on the demand.

“You have more than 11 million smokers battling and struggling to find cigarettes and criminals are cashing in, openly trading on social media,” Abramjee said.

Tebello Luthuli, managing director of Business Against Crime, said the impact of illicit trade during the Covid-19 crisis was that government lost R135 million in alcohol and cigarette excise tax a day.

“Government should at least open up export of the banned products if it cannot allow local consumption,” she said.

– siphom@citizen.co.za

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