KBL ASKS COURT TO SET ASIDE ALCOHOL BAN

. warns of  harsh economic  impact on  the  200,000 livelihoods in  the  alcohol value chain

Following the recent alcohol sales ban  by the Government and after careful consideration of circumstances, we would like to inform you that Kgalagadi Breweries (Pty) Ltd (KBL) filed an urgent  application in the High Court of Botswana on 6th July 2021  asking the court to set aside the decision by the Government of the Republic of Botswana to impose an indefinite wholesale ban on the sale of alcohol in the country.

While we would have  preferred a different approach, this action has become necessary as a result of the devastating cumulative effect the alcohol bans have  had  on KBL, the alcohol industry and its extensive value chain.

Confirming the court action, KBL Corporate Affairs Head,  Masegonyana Madisa, warned that  the  latest  ban  on  alcohol  sales  would  have   dire  consequences not  only  on  its operations but on the entire alcohol value chain in Botswana. It would also exacerbate the illicit alcohol trade  and  criminality in the country and  the consumption of unregulated and  unsafe products, leading to financial contributions by way of taxation being diverted away from the fiscus.

Madisa confirmed that in its application dated 6 July 2021,  KBL is asking the High Court to review the President’s decision to impose the ban by setting it aside, while also seeking orders declaring that the imposition of a complete ban  on the sale of alcohol be deemed unlawful and  improper. The company believes that the Government’s wholesale alcohol ban  is improper and  not based on clear and  objective evidence demonstrating a causal connection between the wholesale ban on alcohol and the reduction of positive Covid-19 cases.

Madisa disclosed that  the  alcohol value chain directly and  indirectly employs approximately 50,000  people and  supports approximately 200,000 livelihoods, stressing that the latest alcohol ban further endangers the lives of Batswana.

He added that while KBL continues to support reasonable and  proportionate emergency safety measures that respect the rule of law, the brewer  views the latest ban as unlawful as it will devastate livelihoods throughout Botswana, from retailers, to transporters, distributors, and  KBL itself, as Botswana’s leading  brewer  and  distributor of beer,  who had been hard hit by the numerous bans effected since 2020. “The latest ban compounds the  matter  as KBL has, once  again, ceased trade,  yet its fixed costs and  obligations to employees and suppliers, also remain unchanged,” Madisa said.

KBL had placed most of its employees on unpaid leave during the previous ban and might be  forced to do this again should the latest ban  persist for an  extended period. Madisa explains, “Because they cannot work, they cannot earn  a living. This threatens their livelihoods and indeed, violates a myriad of their constitutional rights,” including the rights to dignity and privacy.

We acknowledge that there  have  been isolated incidents of gathering where  there  was consumption of alcohol by some, but the  entire sector should not be  disadvantaged for the  irresponsible  behaviour  of a few  individuals.  The  company calls  on  the  police  and other authorities to step up their respective measures to ensure compliance and  the rule of law in all incidents of abusive and unlawful consumption.

KBL wholeheartedly  agrees  that  the  health  and  safety  of the  population  must remain Government’s overriding priority but believes this objective can be pursued through more proportionate measures that allow the industry and  its extensive value chain to continue to trade  in a restricted manner, and  will continue to support all reasonable measures, as demonstrated through  past initiatives.