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Property owners risk prosecution for renting premises to illegal traders

───   KEKELETSO MOSEBETSI 07:12 Sat, 06 Jun 2026

Property owners risk prosecution for renting premises to illegal traders | News Article
National Service Delivery Forum leader in Mangaung, Potso Motoko appearing before the petition committee in the Free State legislature. Photo: Facebook

Landlords who rent out their properties to businesses selling unlicensed goods or operating illegally could face criminal charges alongside business owners.

This warning was issued by Free State MEC for economic development and tourism Ketso Makume during a petition committee meeting held at the 41 Charlotte Maxeke Street Southern Plaza building in Bloemfontein on Wednesday (3/6).

The meeting heard submissions from various community organisations, including the National Service Delivery Forum Versus Mangaung. Its leader, Potso Motoko, appeared before members of the Free State Legislature to raise concerns affecting communities in Mangaung and to follow up on petitions previously submitted to various government departments and the Mangaung Metro.

Challenges

Motoko highlighted challenges faced by local entrepreneurs seeking to register businesses and access funding opportunities. He said many applicants struggle to use online application systems, while others feel they are not adequately considered for financial support. 

He also questioned how funding is allocated to support small businesses and raised concerns about undocumented foreign nationals operating businesses in the metro.

Responding to the concerns, Makume said the department had introduced new systems aimed at improving transparency and accountability in funding applications. 

“If you say you’ve got a tuckshop, if you say you’ve got a salon, if you say you’ve got any kind of business that has qualified. We even do a physical visit to the salon so that we are able to know that this business that is going to be funded exists. 

“The other things are in the system of the department, and I have been open about them because the system is new; even some officials are resisting and don’t like it because it's still new, they still want the old one.”

The Free State MEC for economic development and tourism, Ketso Makume, during a petition committee meeting. Photo: Facebook 

Makume said the same system would also be introduced for applicants seeking funding for events.

Addressing concerns about illicit trade, the MEC stressed combating the sale of illegal products requires cooperation between several government departments and law enforcement agencies.

“It needs collaborative efforts from various departments to close these illicit product warehouses. The issue of closing shops is our responsibility, together with the police. Our responsibility is also to look at the permits; do they have a certificate to operate, do they have municipal permits, and are they registered with Sars for tax purposes? 

“All those things, if they are not being found in that kind of business, we then request the police to close the shop with immediate effect,” he added.

Makume further warned that property owners who knowingly rent out their yards, premises, or business licences to foreign nationals operating unlawfully could also be held accountable.

He said regulations do not only target the business owner but also the owner of the property where illegal activities are taking place.

The MEC cautioned that if inspectors find businesses selling goods outside the scope of their licences or operating without the necessary permits, those businesses could be shut down immediately.

He also warned residents who have converted RDP houses into business premises without obtaining the required rezoning approval from municipalities would face enforcement action.

Makume emphasised that government, law enforcement agencies, and communities must work together to ensure compliance with business regulations and to create a fair and lawful trading environment for all entrepreneurs.

OFM News/Kekeletso Mosebetsi dg

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