South African retail giant denies involvement in illegal operation

Retail giant SPAR has denied any involvement after a multidisciplinary operation in the City of Tshwane uncovered a recycling site allegedly engaged in the illegal production of plastic carrier bags.

The operation, led by MMC for Corporate and Shared Services Kholofelo Morodi, targeted illegal construction, health and safety violations, and illicit manufacturing activities across the capital.

One of the facilities inspected was Gatwick Trading Etyl Ltd, located in the Pretoria West Industrial area, which authorities say has been involved in the unlawful production of plastic bags for major retailers.

“This is what we are facing in our city. Such lawlessness will not be tolerated. What could be a thriving area for economic growth has instead been overtaken by illegal activities,” Morodi said.

“This building is not only being occupied unlawfully but is also operating an unauthorised plastic bag production facility,” she added.

Officials on site discovered a production line manufacturing plastic bags branded for retailer SPAR.

According to Morodi, law enforcement officers detained a group of illegal foreign nationals from Malawi and Ethiopia who were found operating machinery inside the unauthorised facility.

The suspects were taken into custody as part of an ongoing investigation into an alleged counterfeit distribution network. Electricity supply to the building was also disconnected.

“The Bad Buildings Committee remains steadfast in supporting the City’s vision: creating a prosperous Capital City. Our goal is to reclaim and revitalise the inner-city precinct,” Morodi said.

“We aim to build a Tshwane that every resident can be proud of while economically empowering our people.”

“The future of Tshwane does not condone the exploitation of the vulnerable in unsafe buildings, nor the theft of services by businesses that refuse to pay their fair share,” she added.

SPAR responds

In response to queries from Newsday, the SPAR Group said it was aware of a video circulating on social media that shows SPAR-branded plastic carrier bags being produced in an informal and unregulated environment.

“We would like to state unequivocally that the facility depicted in the video is not an authorised supplier to The SPAR Group,” the company said.

SPAR said it takes responsible sourcing, regulatory compliance and environmental stewardship seriously, and that all SPAR-branded plastic carrier bags are produced exclusively through an approved and tightly controlled supply chain.

The retailer said it currently has four approved manufacturers of SPAR-branded plastic carrier bags.

All of which are vetted by its packaging and sustainability divisions, audited by SATAS, and required to comply with SPAR’s national plastic carrier bag specification, relevant environmental regulations, and SARS requirements, it said.

SPAR said it was not previously aware of the production site shown in the video and suspects the bags depicted are an unauthorised or counterfeit use of its trademark.

“SPAR is treating this matter with the utmost seriousness,” the group said.

It added that it is investigating the origin of the bags, working with its legal team to protect its intellectual property and engaging relevant stakeholders to address any unlawful manufacturing activity.

The company reiterated that it does not condone unsafe, unethical or non-compliant manufacturing practices and remains committed to responsible sourcing, supplier accountability and regulatory compliance across its supply chain.

Images of the site

Photo: Supplied/Kholofelo Morodi
Screenshots: Kholofelo Morodi
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