The all-powerful tobacco industry has been implicated in underhand tactics that led to the destruction of a revenue service that was working in the interests of the common good. The mess left behind at the South African Revenue Service (SARS) has meant that it has been more difficult to collect taxes, which in turn has undermined the country’s economy. As ace corruption-buster Johann van Loggerenberg, a former policeman and SARS investigator who was among the victims of these dirty tricks, says: companies like British American Tobacco (BAT) and others owe South Africa an explanation. But, instead of being accountable or transparent and responding to allegations in the public domain, big tobacco has quietly closed – and effectively “shut up” – its industry organisation. In this podcast, Tobacco Wars author Van Loggerenberg chats to BizNews founder Alec Hogg about how the big boys of tobacco have swept skullduggery under the carpet. – Jackie Cameron
Steinhoff and Tongaat Hulett bosses have been the focus of much media attention and public anger in connection with their roles in financial irregularities and corporate governance contraventions – yet big tobacco company bosses, accused of huge damage to the economy, are hiding in the shadows.
This disappointing state of affairs is discussed in this BizNews podcast. Johann van Loggerenberg, author of Tobacco Wars, which unpacks dirty dealings involving tobacco companies and tax authorities, talks to BizNews editor-in-chief Alec Hogg about the way these big businesses have ducked out of answering tricky questions.
In a nutshell, instead of responding to allegations, big tobacco companies have quietly closed their large and once-powerful body, the Tobacco Institute of Southern Africa (Tisa).
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All that is left of Tisa is a short statement on a static website page. Tisa says: “It is to wind up its operations. Its members have taken a decision to redeploy their resources to fulfil their individual strategic objectives.
“Going forward, TISA members will continue to work on issues of individual and shared concern, most notably fighting the illicit trade in tobacco, a task which they believe to be in the national interest.”
But former Tisa members don’t clarify how they will fight the scourge of the illegal cigarette market in South Africa, which by Tisa’s own admission “is a multi-billion Rand industry which cost the South African taxpayer more than R8bn in lost taxes last year alone, and more than R40bn since 2010”.
Tisa is the “big boys club”, says Van Loggerenberg, who has criticised Tisa-linked individuals of “undue influence” over law-enforcers and the intelligence services.
There are also allegations of the abuse of the power of Tisa, which “represents three-quarters of the tobacco industry”, to gain competitive advantage.
Tisa is shutting down without responding to, or refuting, allegations contained in the Tobacco Wars book, notes Van Loggerenberg.
Tisa would speak off-the-record, but not on the record, says the author. The exchanges were “dissatisfactory” and their behaviour leaves a “bad taste”, Van Loggerenberg tells Hogg.
The organisation represents very big multi-nationals and there’s a responsibility that comes with that – and they owe the public an explanation, is the message.
What Tisa should have done, says Van Loggerenberg, is tell what really happened as its parting gift to South Africa.
When it announced it was winding down “it was spectacularly unspectacular” and “leaves a lot of questions”, he continues.
“We look at failures in governance in Steinhoff and Tongaat Hulett matter – all these multinationals have taken serious knocks. I do think we should, as the public, expect a lot more from companies like BAT .
Tisa has always claimed to be hugely successful, yet it inexplicably closed down. Its actions are “the equivalent of a shop making a huge turnover and profit, deciding over December to shut down. It just doesn’t make sense”.
TISA to be wound up, members to continue building on solid foundation laid
Here’s the Tisa statement – and the only information left on its website:
The Tobacco Institute of Southern Africa has announced that it is to wind up its operations. Its members have taken a decision to redeploy their resources to fulfil their individual strategic objectives.
Going forward, TISA members will continue to work on issues of individual and shared concern, most notably fighting the illicit trade in tobacco, a task which they believe to be in the national interest.
The illegal cigarette market in South Africa is a multi-billion Rand industry which cost the South African taxpayer more than R8 billion in lost taxes last year alone, and more than R40 billion since 2010.
TISA Chairman, Francois van der Merwe says: “TISA has, over the years, achieved significant successes for the legal industry, representing the interests of all members, across the full value chain of tobacco. A solid foundation has been laid and it is now time for individual members to build on the groundwork laid by TISA.”
“TISA thanks all stakeholders, Government as a whole, civil society, the media and many more for their partnerships and support over the years. It has been an honour to represent an industry that contributes so much to the socio-economic wellbeing of South Africa. We are very proud of the work we have done and wish the members much success as they continue in their efforts to ensure a sustainable future for tobacco in South Africa.”
For any queries in the future, kindly contact tobacco companies directly.
