KBL sues: High Court told 200,000 livelihoods at risk
Mbongeni Mguni | Tuesday July 6, 2021 18:55
Government banned alcohol trade on June 28 after the Health Services director, Malebogo Kebabonye argued that non-compliant consumption was leading to misbehaviour that threatened COVID-19’s spread.
KBL, which leads an industry that lost P880 million due to suspensions last year, filed papers at the High Court earlier today seeking to overturn government’s decision.
“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,” the company said.
KBL corporate affairs head, Masegonyana Madisa, said the ban would also exacerbate the illicit alcohol trade and criminality in the country as well as the consumption of unregulated and unsafe products, while leading to financial contributions by way of taxation being diverted away from the fiscus.
“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,” he said.
“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 said 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 was last year forced to put workers on unpaid leave, cut salaries across the board and also stop payments to suppliers as a result of the alcohol bans.
The brewer is 49.9% owned by Sechaba Holdings Limited, which in turn is about 19% owned by the Botswana Development Corporation, government’s investment agency aimed at economic diversification. The Botswana Public Officers Pension Fund, the main retirement fund for civil servants, owns about 25% equity in Sechaba.
“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,” Madisa said.
“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.”
It was unclear at Press time if government, through the Attorney General, had filed opposing papers to KBL’s suit.