A crackdown by the Hawks on counterfeit designer clothing has reignited calls for tougher laws against fake goods after investigators raided a company allegedly selling counterfeit Madiba shirts worth about R150,000 in KuGompo City and Mthatha.
The Hawks’ Serious Commercial Crime Investigation unit swooped on three retail outlets after receiving a complaint from Presidential Shirts, the owner of the registered trademark, which suspected counterfeit garments bearing its protected brand were being sold.
A 55-year-old company director is expected to appear in court facing 68 counts of allegedly contravening the Counterfeit Goods Act.
Hawks Eastern Cape spokesperson Warrant Officer Ndimphiwe Mhlakuvana said the investigation began after Presidential Shirts alerted the commercial crime unit to suspected counterfeit products being sold at outlets in Vincent and Berea in KuGompo City, and Mthatha.
Working with representatives of the trademark owner, investigators conducted controlled test purchases before experts confirmed the garments were counterfeit reproductions.
“Subsequent search-and-seizure operations resulted in the confiscation of 64 counterfeit Presidential Shirts, comprising 16 counterfeit shirts seized from the Vincent Park outlet, 27 counterfeit shirts seized from the Pearce Street outlet, and 21 counterfeit shirts seized from the Mthatha branch.
“The counterfeit merchandise has an estimated commercial value of approximately R150,000,” Mhlakuvana said.
He said the Hawks could not yet identify the suspect, company or retail outlets because the matter was now before court.
The original “Madiba shirts” were made famous by former president Nelson Mandela and are still popular among political leaders, including President Cyril Ramaphosa, his deputy, Paul Mashatile, Bosa’s Mmusi Maimane, Eastern Cape premier Oscar Mabuyane and his Gauteng counterpart, Panyaza Lesufi.
Some of the shirts cost more than R11,000 each.
Presidential Shirts Group chief executive Robert Sim welcomed the raids but said counterfeit clothing remained a major threat to legitimate businesses and jobs, and that the existing laws did not do enough to deter offenders.
“It is an absolute attack on jobs and on the people working in our factories,” Sim said.
“We employ about 100 people, and counterfeit is a direct attack on their livelihoods.”
He said counterfeiters were increasingly infiltrating legitimate retail outlets while selling fake products at the same prices as genuine garments.
“These companies are not selling at R200 or R300.
“They’re selling at exactly the same price as us, so they’re passing themselves off as the real deal.”
Sim said pursuing counterfeiters was cripplingly expensive for medium-sized businesses.
“We’ve facilitated raids in the Eastern Cape, one in Johannesburg and two in Pretoria, and every raid costs us about R100,000.
“We have to employ private investigators, buy the shirts, fly people around the country and pay for accommodation.
“If you’re a multinational company you can absorb those costs, but for a medium-sized company it’s an absolute fortune.”
He said Presidential Shirts spent between six and nine months developing a new garment before it reached the market.
“It takes us months to design the garment, develop the fabric and manufacture it.
“Within six weeks of launching it, counterfeit versions are already being sold.
“It is an attack on legitimate businesses and it is very demoralising.”
Eastern Cape fashion designers said the raids highlighted the need to strengthen the Counterfeit Goods Act.
Irhayi founder Zipho Rapiya said counterfeiters were damaging local brands by copying designs and selling inferior products at cheaper prices.
“For a small brand like mine, counterfeiting means lost revenue, confused customers and slower growth because counterfeiters always sell the design cheaper,” she said.
She said many small designers could not afford to trademark every design they produced.
“It’s really tough because we come up with designs and then, in less than six months, someone has produced thousands of copies and sells them at a fraction of the price.
“It’s also hard to sue people who have far more money than you because they have better lawyers.”
Rapiya said customers often unknowingly bought fake versions of her products before approaching her to repair poor-quality garments.
“You’ll find people bringing me something that looks like my design and asking me to fix it. That’s a punch in the stomach.”
Last year, renowned designer and founder of luxury brand MaXhosa Africa, Laduma Ngxokolo, penned a letter to President Cyril Ramaphosa asking for tougher laws to curb counterfeiting.
Attorney Sharon Mongalo said counterfeit goods remained a serious commercial crime that extended far beyond intellectual property theft.
“Counterfeit goods affect far more than brand owners.
“They reduce tax revenue, place legitimate businesses at an unfair disadvantage, threaten jobs and, in industries such as medicines, vehicle parts and electrical products, can create real risks to public health and safety.”
She said the Counterfeit Goods Act gave authorities powers to seize fake goods, but enforcement remained the biggest challenge.
“More resources are needed to strengthen border control, improve co-operation between law enforcement agencies and rights holders, and address the growing sale of counterfeit goods through online and social media platforms.
“Counterfeit trade is also widely recognised as being linked to organised criminal activity.”
Economist Dr Asanda Fotoyi said counterfeit products undermined legitimate businesses and economic growth.
“Sales are important for business sustainability and job creation.
“Ultimately, counterfeit goods negatively impact the economy because they diminish the economic activity of legitimate brands,” he said.
Buffalo City Metro spokesperson Luzuko Buku warned businesses dealing in counterfeit goods that they risked losing their trading licences.
“We are making a stand against those businesses because this can lead to the revocation of their trading licence.
“Counterfeit goods affect our textile industry and our economy.
“They also create environmental problems because many of these products do not last and end up in landfill sites.”
Sim and Rapiya welcomed the Hawks’ action but both said stronger legislation was needed to reduce the financial burden placed on businesses forced to police counterfeiters themselves.
Daily Dispatch
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