HAWKERS and small businesses could be sentenced to up to 10 years in jail if the Licensing of Businesses bill becomes law.
Any business found operating without a licence could be charged under the proposed law, recently published in the Government Gazette by the Department of Trade and Industry (DTI).
All businesses, including informal traders like freelance operations, spaza shops and hair parlours would be required to have a licence if the bill is passed.
The South African Institute of Race Relations (SAIRR) has criticised the bill, saying that instead of promoting the right to freedom of trade it would have the opposite effect.
The SAIRR’s head of special research Dr Anthea Jeffery said the penalties were too strict.
“These are extraordinary penalties even to consider laying down for people whose sole offence might be to sell a few home-grown vegetables on the side of the road,” she said.
“That it can be considered an offence at all is ridiculous,” Jeffery added.
The bill obliges all businesses in the country to register with and obtain a licence to operate from its local municipality, which would then be tasked as a “licensing authority”.
If any business owner is unable to produce a licence on demand, he or she would be liable to a fine and/or imprisonment up to 10 years.
The Daily Dispatch spoke to hawkers in the East London CBD last week, many of whom were angered by the heavy penalties suggested by the bill.
Nokanene Blom, who sells fruit, sweets and singles cigarettes , said the idea of a 10-year jail sentence for hawking was “ridiculous”.
“We are trying to put food on the table. I have five children at home to feed, and both my husband and I are unemployed.
“This is not a decent job, but I do it for my family. The idea that we could be fined or arrested by doing this is really unfair,” Blom said.
Madinga Nompumelelo, 63, runs a larger stand of grapes, bananas, bell peppers and chillies, which she sells for R10 for a packet.
She said she was tired of such behaviour from the government, to the point that she would vote for the DA in 2014.
“What does the government really want us to do?” she asked. “We were told to do things ourselves, and we are doing exactly that, but then we are threatened with arrest? ”
Jeffery said the bill would only serve to legalise harassment of informal traders.
“The practical impact is easy to foresee. Already informal traders complain of harassment and extortion by policemen seeking brides.
“The bill will vastly increase the impetus to extortion by giving many more people the power to engage in it and by holding over the heads of informal traders the threat of a 10- year prison term,” Jeffery said.
Outgoing president of the National African Federated Congress of Commerce and Industry (Nafcoc) Lawrence Mavundla said the return of a blanket licensing system would be “apartheid under another name”. —
Informal traders may be jailed
Any business found operating without a licence could be charged under the proposed law, recently published in the Government Gazette by the Department of Trade and Industry (DTI).
All businesses, including informal traders like freelance operations, spaza shops and hair parlours would be required to have a licence if the bill is passed.
The South African Institute of Race Relations (SAIRR) has criticised the bill, saying that instead of promoting the right to freedom of trade it would have the opposite effect.
The SAIRR’s head of special research Dr Anthea Jeffery said the penalties were too strict.
“These are extraordinary penalties even to consider laying down for people whose sole offence might be to sell a few home-grown vegetables on the side of the road,” she said.
“That it can be considered an offence at all is ridiculous,” Jeffery added.
The bill obliges all businesses in the country to register with and obtain a licence to operate from its local municipality, which would then be tasked as a “licensing authority”.
If any business owner is unable to produce a licence on demand, he or she would be liable to a fine and/or imprisonment up to 10 years.
The Daily Dispatch spoke to hawkers in the East London CBD last week, many of whom were angered by the heavy penalties suggested by the bill.
Nokanene Blom, who sells fruit, sweets and singles cigarettes , said the idea of a 10-year jail sentence for hawking was “ridiculous”.
“We are trying to put food on the table. I have five children at home to feed, and both my husband and I are unemployed.
“This is not a decent job, but I do it for my family. The idea that we could be fined or arrested by doing this is really unfair,” Blom said.
Madinga Nompumelelo, 63, runs a larger stand of grapes, bananas, bell peppers and chillies, which she sells for R10 for a packet.
She said she was tired of such behaviour from the government, to the point that she would vote for the DA in 2014.
“What does the government really want us to do?” she asked. “We were told to do things ourselves, and we are doing exactly that, but then we are threatened with arrest? ”
Jeffery said the bill would only serve to legalise harassment of informal traders.
“The practical impact is easy to foresee. Already informal traders complain of harassment and extortion by policemen seeking brides.
“The bill will vastly increase the impetus to extortion by giving many more people the power to engage in it and by holding over the heads of informal traders the threat of a 10- year prison term,” Jeffery said.
Outgoing president of the National African Federated Congress of Commerce and Industry (Nafcoc) Lawrence Mavundla said the return of a blanket licensing system would be “apartheid under another name”. —
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