Gauteng Economic Development MEC Vuyiswa Ramokgopa has released the province’s Liquor Board Committee of Inquiry Report, which exposes serious governance failures, including irregularities in the issuing and renewal of liquor licences and broader administrative breakdowns.
The report, described as a thorough diagnostic of the Gauteng Liquor Board, highlights systemic issues affecting regulatory oversight. Ramokgopa noted that challenges in the liquor industry are widely acknowledged by operators, including the proliferation of an estimated 200,000 illegal liquor outlets across communities, which poses major enforcement problems.
The board, operating under the Gauteng Liquor Act of 2003, is responsible for regulatory oversight, licensing, ensuring the economic sustainability of the industry, and protecting communities from the social harms of alcohol. Its core function centres on licensing outlets, restaurants, and entertainment venues where alcohol is sold or consumed.
Ramokgopa acknowledged that governance at the board has faced significant erosion, a phenomenon the report terms “deregulation by stealth.” This refers to the gradual decline in regulatory capacity and administrative capabilities. The inquiry found that consultants have effectively established a parallel licensing structure, drafting applications, manipulating files, and orchestrating approvals, often in collusion with insiders.
“Over time… there are procedural inconsistencies in licensing and in the approval process,” Ramokgopa explained. Applications can take months or even years, creating opportunities for unregulated independent liquor consultants to intervene. While these consultants ostensibly assist applicants navigating a complex and cumbersome process laden with red tape, they have in some cases become part of the problem.
The report also underscores widespread violations of the Liquor Act, which prohibits outlets within 500 metres of schools, churches, and public facilities. Despite this, such licences were routinely issued, with some outlets located in close proximity to playgrounds. Ramokgopa emphasised that these issues contribute to real harm in communities, including sales to underage children, noise pollution, and increased risks of violence, as illustrated by a recent tavern shooting that killed two people and injured four others.
Enforcement remains a critical weakness due to poor coordination between the board, municipalities, and law enforcement. Municipalities often grant business rights to liquor outlets before applications reach the board, making the board the final rather than initial regulatory stop. Ramokgopa cited a recent compliance operation where an unlicensed establishment was issued a non-compliance notice and shut down for the night, but sustained enforcement is difficult without consistent follow-up.
On staffing, the province has around 20 inspectors responsible for close to 33,000 licensed outlets. Despite this, 26,000 inspections were conducted in the last financial year. Ramokgopa stressed the need for improved quality of inspections and better integration with law enforcement to ensure closures and penalties are effective, noting challenges such as quick bail releases for offenders.
Among the key recommendations already being implemented are the automation and digitisation of the licensing process to enhance transparency and speed up approvals. The report also calls for strengthened coordination with municipalities and law enforcement, and a comprehensive audit to review and potentially revoke licences that should never have been granted or were obtained irregularly.
“We don’t want to destroy the liquor economy… there are a lot of people who depend on this economy. We just want them to trade legally,” Ramokgopa said.
The release of the report signals an urgent push to restore regulatory integrity, protect communities, and support legitimate businesses in the sector.