Commercial Abalone Fishery to be Reopened

It is finally official. The abalone fishery will be reopened to commercial fishing in February 2010. This was announced on 6 December 2009 by the Minister of Agriculture, Forestry and Fisheries who will also assume the position of minister in charge of fisheries.

The Minister - Tina-Joemat Petterson - did not however announce what the TAC would be as she is still in the process of consulting officials at MCM. We hope that she will consult extensively with divers and academics at UCT who have undertaken substantial research into the status of the fishery, including the predominance of urchins in the Hangklip region. MCM officials will be able to tell her very little unfortunately as they have not undertaken any substantial ecological, social or economic research since at least 2007. In addition, it was MCM's management team that forced through the closure of fishery despite independent scientific advice which showed that the commercial fishery had little impact on the sustainability of the abalone fishery.

The Minister importantly mentioned that poaching remains the single biggest problem to the future of the abalone sector. She made brief mention of MCM co-opting former ANC and PAC military veterans as officers to combat poaching. It is unclear what role they will precisely play but it is understood that they may form part of a marine compliance unit of sorts.

The Minister will be under significant pressure over the next few weeks to detail her strategy to recover the upper hand over poaching and to save MCM from institutional collapse.

MCM Issues Statement on Abalone Divers' Funds

On 4 December 2009, Marine and Coastal Management issued a statement in response to a newspaper article published by the Cape Times of the same date. The MCM statement reads as follows:

The Marine and Coastal Management would like to respond to misrepresentations in a Cape Times article, Friday, 04 December 2009, by Melanie Gosling titled: “Fishermen short-changed on promised compensation.” Firstly, it is absolutely not true that MCM has “handed R15 million of government relief funds to a shadowy “trust” to distribute the money as compensation to abalone quota holders...” as the Cape Times claim. The Department of Environmental Affairs has paid out R6.8 million in interim relief to 292 of the 302 rights holders (262 individual divers and 40 legal entities in the form of close corporations) whose livelihoods were adversely affected by the suspension of the wild abalone fishery. What she refers to as a “shadowy trust,” is in fact a trust established by the affected permit holders to interact with the Department in the disbursement of the interim relief funds in line with Public Finance Management principles. Secondly, contrary to her claim, fishermen were never meant to receive R52 000 instead of R20 000 that the Department paid out. An agreement signed on the 18th of June 2009, between the South African Abalone Rights Holders Trust and the Department, in terms of relief payment, states that:

1. All 262 abalone divers will be paid a once-off amount of R20 000 each

2. All 40 legal entities (CCs) will be paid a once-off amount of R30 000 each

3. All crew (“bakkie boys”) totaling 604 will be paid a once – off payment of R2000 per person

4. Consideration of an exclusive second payment to the maximum of R10 000 to the divers and crew will be part of a detailed means test thought the Implementing Agent. Gosling further claims that the R52 000 she made up, is “apparently part of R80m given by the Treasury as a “social plan” to help fishing communities affected by the closure of the abalone fishery. National Treasury has never given the Department R80m for a “social plan.”

Although the statement seeks to address the status of the "trust" created which does not have the support of all abalone divers, MCM continues to deceive. Importantly, MCM still refuses to make available the trust deed that established the trust and defines the beneficiaries and who the trustees are and what are their powers and obligations. MCM also fails to address the important allegations surrounding the increasingly apparent unlawful appointment of Anix Consulting. Anix has admitted that it was "given" the contract. The fact that MCM failed to use the press statement to dispel the allegations of corruption, must mean that someone at MCM did indeed "give" Anix Consulting the contract in return for something - that is afterall the how and the why government contracts are "given" and not competed for as required by our state-of-the-art but never implemented anti-graft laws. So the question is who gave the contract and why does MCM top-management continue to duck and dive the issue - are they involved in the given contract as well?

As stated in an earlier article, Feike has attempted to report this matter to the Special Investigations Unit. However, the SIU's "fraud hotline" never gets picked up - at least on the 15 occasions we tried last Friday. We also tried the "President's complaints hotline" - they should establish a complaints hotline for the complaints hotline! We will however continue to try and lodge our complaint and concerns with the SIU.

Is the Social Relief for Abalone Fishers being Pilfered?

In the Cape Times of 4 December 2009 (p3 - "Fishermen short-changed on promised compensation"), journalist Melanie Gosling writes that MCM continues to refuse to account to the public how R80 million allocated by the National Treasury allegedly aimed as "social relief" for the commercial abalone industry is being spent. Gosling also approached Anix Consulting - the consulting firm Feike identified as having mysteriously surfaced at about the same time the divers had their promised payouts reduced from approximately R100 000 to R20 000. Anix Consulting confirms that they were "given a contract with Water and Environmental Affairs". If they were given a contract then they were appointed illegally and heads need to roll at MCM. In addition, Feike intends approaching the Special Investigations Unit regarding the increasingly apparent misappropriation of public funds.

The fact that MCM refuses to answer simple yet important questions about the role played by Anix Consulting, their terms of appointment and what they are being paid and also refuses to account for R80 million in public funds must raise clear concerns about the possibility of corruption, maladministration and mismanagement.

DEAT'S 2008/2009 Compliance and Enforcement Report

On 25 November 2009, the Minister of Environmental Affairs and her department launched the 2008/2009 compliance and enforcement report. As Feike had authored a research paper which concluded (but roundly denied by government officials) that illegal fishing cost the SA economy an estimated R6 billion in 2008 and that Marine and Coastal Management - a branch of the environmental affairs department - was incapable and unwilling to curb illegal fishing, I was particularly interested to understand the department's initiatives and statistics pertaining to illegal fishing.

The entire report of 35 pages fails to mention the words "abalone" or "fish" or "hake" or "shark-fin"... or any matter related to fishing once! In fact the entire "compliance and enforcement report" is really only able to say this about marine and coastal management -

"Marine and Coastal Management (a branch of the Department of Environmental Affairs) recorded the highest number of convictions at 206."

In fact Marine and Coastal Management is mentioned thrice in the entire report. There is no attempt at any analysis or recognition of the challenges and threats posed by illegal fishing and the more general lack of enforcement and compliance in the abalone fishery or the commercial fisheries, generally.

The full report is available on www.deat.gov.za.

INTERNATIONAL SCIENTIFIC REVIEW OF ASSESSMENTS OF THE SOUTH AFRICAN HAKE AND ABALONE RESOURCES

Over Monday 30 November to Friday 4 December 2009, an international panel will be reviewing assessments of the local hake and abalone resources at a workshop being held at the University of Cape Town. The panel comprises Drs A Punt (USA), A Smith (Australia) and G Stefansson (Iceland).

While most sessions will be highly technical, with attendance by invitation only, the following sessions, to be chaired by Dr K Prochazka (MCM), will be open to a general audience:

Monday 30: 9-00 to 10-30 am - Hake

An overview of the approach used to set TACs for the hake fishery since 2007, and of an updated assessment proposed as the basis to revise this approach from 2011 (D Butterworth and R Rademeyer - UCT)

Tuesday 1: 9-00 to 10-30 am - Abalone

An overview of the status of the abalone resource, and a description of the model used to assess this status for Zones A-D (G Maharaj – MCM and E Plaganyi – CSIRO, Australia)

Friday 4: 11-00 am to 12-30 pm – International norms for fishery regulation

International norms for target abundance levels for fish stocks, and controls applied to stocks falling below such levels (Discussion session initiated by presentations by panel members)

Friday 4: Afternoon – Panel Report

Presentation of results of review and consequent recommendations by panel members

2-30 to 3-30 pm: Technical issues

3-45 to 5-00 pm: Broad overview

The broad overview will be presented at a level appropriate for fishery stakeholders and decision makers – there will be opportunity for some questions.

VENUE: Room M304, Mathematics Building, University of Cape Town

Enquiries: 021-650-2340

Mayekiso is removed as head of MCM

On 23 November 2009, Monde Mayekiso who was appointed as head of Marine and Coastal Management in 2005 for a second time in as many decades, was finally "moved to focus on the area of marine science, ecosystem management and climate change within the department". Feike also understands that after months of indecision and embarrassment, South Africa actually will have a minister of fisheries that is actually responsible for fisheries regulation and management. Feike understands that the Minister of Agriculture, Fisheries and Forestry will assume control over fisheries, replacing the Minister of Water and Environmental Affairs who had appeared to exert executive control in this sphere since May 2009.

The fishing industry will undoubtedly breathe a huge collective sigh of relief that Mayekiso has finally been removed as he oversaw the collapse of MCM and its funding arm the Marine Living Resources Fund for a second time. Mayekiso was removed as head of MCM in 1999 by the then Minister of Environmental Affairs, Valli Moosa.

However, although there is relief at his removal, the question at this important time is who will assume the reigns of a vaguely functional MCM? MCM's operational budget is equivalent in rand terms to the 2003/2004 budget. It has a massively oversized administration and personnel costs are excessive. It was recently forced to admit that its compliance strategies with respect to abalone have been a failure and it has no idea how to curb abalone poaching which currently costs the economy in the region of R3 billion annually. Fisheries management is in turmoil burdened with bureaucracy and a leadership that is incapable of supporting the fishing industry during these difficult economic times. Fisheries research is under significant pressure as it has had to reduce scientific surveys and keep research vessels in port.

MCM requires smart and efficient leadership at this juncture. The new DDG will require strong political support to effect the types of changes required to recover MCM and its funds to levels where it can actually provide the services the fishing industry pays for. A 5 step recovery plan should be based on the following:

Step 1: A visionary and knowledgeable leadership is required in significant dollops. MCM has been lacking visionary leadership for far too long hence its perennial crises.

Step 2: Reduce staff numbers in the administration and support sectors. You would probably save about R20 million in staff and office costs. Outsource the administration of permitting, licensing and vessel management to the fishing industry and right holders themselves. MCM need only audit compliance once annually at the end of the season. You would probably save another R10 million in wasted administration costs - not to mention all those trees that would be saved.

Step 3: Regain control over illegal fishing and maladministration in MCM. With respect to illegal fishing, there are two reasons why MCM has failed so entirely here. Firstly, with the commercial and artisinal sectors, MCM has no relationship at all with the right holders. MCM is on record, for example, as stating that all abalone right holders are poachers! Rebuild relations. Secondly, to get control over the illegal trade in abalone, the institutions and systems that existed in 2004 need to be re-established. Overall, MCM must move away from compliance enforcement to monitoring and surveillance with an emphasis on intelligence (!) gathering and partnerships.

An effective compliance strategy will actually cost MCM about R80 million annually as it will lose income from the sale of confiscated abalone. This would explain why MCM had intentionally collapsed compliance in the first place.

Step 4: Funding for fisheries management. If one discounts the R80 million plus that MCM currently relies on from the sale of confiscated abalone to a more sustainable R10 million, then MCM's most significant income earner is from the fishing industry in the form of administration fees and levies. We would recommend a review of the basic funding model and allow the fishing industry a greater oversight and advisory role akin to other international jurisdictions, such as Australia.

Step 5: Rebuild working and effective relations relations with the South African fishing industry.

Here's hoping.

Abalone Divers get R20 000

On 17 October 2009, President Zuma addressed the commercial abalone divers in Hawston, Western Cape, about the future of their commercial fishing rights. After hearing their stories and the failures of Marine and Coastal Management to address abalone poaching and the implementation of the long-promised "social plan", Zuma underook to revert to the right holders with an update about their futures as commercial abalone divers " within a month". The time has now come for that promised update.

What has happened in the interim since Zuma's visit is that abalone divers have received payments of R20 000 each in lieu of the suspension of their fishing rights since February 2008. There remains much unclarity regarding these payments and the manner in which they are being made. There are too may right holders who simply don't have answers to important questions. Firstly, the payment of all funds is being facilitated through a trust that purports to represent all commercial abalone divers. Interviews conducted with a number of Zone E and G right holders appear to contradict this as they did not consent to the establishment of the trust. Secondly, Marine and Coastal Management has delegated all "co-ordination" and direct supervision over the payments and the trust to a Charles Swarts, who is a commercial abalone diver from the Overberg region. It is unclear why only one person has been given such authority by MCM (as opposed to by the divers themselves) especially considering that there are 12 active zonal representatives for each of the 6 abalone fishing zones, A, B, C, D, E and G. Thirdly, divers were initially promised a payment of R90 for every kilogram they were allocated in the 2007/2008 season, which amounted to approximately R52 000 per right holder. It is unclear why this payment has been reduced to R20 000 per right holder and who took this decision. A further related concern is the sudden appearance of the consulting firm Anix Consulting who has been appointed to manage the payment of the funds to the right holders. It is unclear how they were appointed as there is no known tender seeking the appointment of such a service provider. Anix Consulting's status on the Companies & Intellectual Property Registration Office website also states that Anix Consulting is in the process of "deregistration" effective 14 November 2009. Subsequent to Feike's queries on 16 November 2009, this status has now been changed on Cipro to "in Business" effective 17 November 2009.

Feike put the following questions to MCM's Desmond Stevens in a bid to obtain clarity on the various issues raised above:

1. The trust that was established to channel the payments:

• Who are the trustees of the trust?
• How were they appointed and by whom?
• In terms which provisions of which laws are funds being channelled to/via this trust?
• Could you please provide me with a copy of the signed trust deed?

2. The R20 000 payments to abalone divers: It was initially understood that divers would be paid R90/kg or R52 000 (on average). Why are they being paid R20 000 only. Is this the sum total of the “social plan” payment? Please provide details regarding any further payments that may be intended.

3. Why does MCM require right holders only work through a certain Charles Swarts? Who appointed him and from whom does he have a mandate to represent. Could you provide a written copy of the mandate Swarts has?

4. Should MCM in fact not be the focal point of all communication, liaising and responsibility for the management and disbursement of public funds? Please also advise in terms which laws is Swarts and the trust authorised to disburse public funds?

5. The role of Anix Consulting. Could you please detail their role in this matter? Please also advise -

• in terms of which tender/procurement procedure they were appointed?
• what is the value of their contract and who is responsible for paying them?
• who are their members/shareholders and/or directors
• is MCM aware that their current CIPRO status indicates that Anix Consulting is in the process of deregistration?

Desmond Stevens elected to avoid answering any of the questions. He instead advised Feike to contact Charles Swarts. The response is significant as it demonstrates a flagrant disregard for accountability and good and responsive governance concerning the management of public funds and a public resource. Feike has advised Stevens that the information will be formally requested via the Promotion of Access to Information Act and we will also seek the assistance of a Member of Parliament who could force the Minister(s) responsible for fisheries to provide honest and complete answers to Parliament.

Zuma is still expected during the course of this week to update the commercial abalone industry as to whether they will be allowed to commence commercial fishing either in December or January 2010. Feike believes that a viable TAC of 212 tons could be granted to the industry. Any allocation must be coupled to a comprehensive compliance strategy that focusses on reducing the R3 billion in abalone estimated lost annually to poaching.