FITA terminates the membership of Gold Leaf as reports circulate about fraudulent tobacco ban sales

Business: FITA terminates the membership of Gold Leaf as reports circulate about fraudulent tobacco ban sales

Last updated on September 11th, 2021 at 08:22 am

The Fair-Trade Independent Tobacco Association stated on Wednesday it had expelled the Gold Leaf Tobacco Company from its ranks with instant effect.

FITA chairman Sinenhlanhla Mnguni tested that Gold Leaf’s membership had been terminated, however did no longer right away provide reasons.

The move comes two months after the stop of South Africa’s contentious Covid-19 ban on tobacco income which saw accusations from opponents and researchers that Gold Leaf used to be offering the thriving black market.

Zimbabwean-owned Gold Leaf produces the cheaper so-called “value” brands RG, Voyager, Chicago and Savannah.

It hit back at FITA’s announcement with a assertion claiming the departure had in truth been its choice.

FITA grew to be a household identify in the course of the ban on tobacco sales after turning into the first group inside the industry to take the authorities to court docket in a bid to overturn the ban.

It failed in the North Gauteng High Court but received go away to appeal to the Supreme Court of Appeal.

The crew argued that the litigation used to be in the public activity as it tested the extent of the government’s powers at some point of South Africa’s country wide nation of catastrophe which remains in region in response to the global pandemic.

However, FITA withdrew the appeal after the ban was once lifted.

As income resumed, South Africa’s biggest cigarette producer British American Tobacco complained that its manufacturers had been usurped by using those made through FITA participants together with Gold Leaf due to the fact the corporations had breached the prohibition.

It claimed Gold Leaf had illicitly offered 10 million cigarettes a day for the duration of the ban.

The declare was once largely based totally on research carried out through the Research Unit on the Economics of Excisable Products primarily based at the University of Cape Town.

FITA said at the time it did now not deny that its manufacturers have been “in the market” however said BAT SA used to be trying to deflect attention from its own illicit activities.