‘Transactional adviser’ said to have acted unlawfully

Allegedly securing R10 million commission

APPEALS advisory team chairperson for the West Coast rock lobster rights allocation process, Shaheen Moolla, acted unlawfully when participating as a “transactional adviser” in the sale of member interest in order to secure a commission in the sum of R10 million.

This is according a report by a law firm appointed by the Department of Agriculture, Fisheries and Forestry (DAFF) to probe alleged corruption.

B Xulu and partners incorporated attorneys were approached by the department to prepare an opinion on the report titled “The investigation into the facilitation of the sale of fishing rights of Horse Mackerel fishery and related matters” or the “whistle-blower leaked report” last year.

The law firm looked into several allegations tabled against Moolla, who the Hawks questioned when they raided the fisheries offices at the Foreshore last year.

The report makes three key allegations against Moolla:

That he acted unlawfully by acting in the capacity of a “transactional adviser in the sale of member interest in a company called Fincorp CC, to the whistle-blower and in doing so looked to secure a commission in the sum of R10 million, payable in tranches.”

Application to the FRAP 2015/16 for horse mackerel and hake inshore trawling, under the auspices of Global Pact Trading, were paid for by Moolla.

That Moolla would be responsible for granting permits to Exquisite Seafood Processors to conduct experimental harvesting of East Coast rock lobster in the Eastern Cape and KwaZulu-Natal. He further secured a section 13 permit to conduct small-scale commercial harvesting of 340 tons of East Coast rock lobster.

“It is our opinion that the department will need to take immediate action to limit their exposure to the allegations made by the leaked report. The integrity of the department and the fishing allocations process is brought into question and it is crucial that the deputy director-general takes the recommended actions to ensure that the matter is dealt with in an expedient manner,” the report states.

It suggested that the applications made by Moolla in the name of Global Pact Trading be suspended, as the basis would be the conflict of interest presented by Moolla and the non-compliance of the general policy.

The allegations against Moolla were further substantiated by a DAFF official in a sworn affidavit to the police.

The official said they and DAFF’s lawyers had been referred to investigate and verify the allegations of the leaked report.

He said his role was to verify banking details belonging to CB Africa (Pty) Ltd and electronic payments made to the marine living resource fund on behalf of Global Pact Trading.

“As no registration details for CB Africa could be obtained, I ran the verification using CB Africa and CB Africa (Pty) Ltd and the company registration number for (Moolla’s law firm) Feike Marine and regulatory law advisers. The verification for the account returned as true,” said the affidavit.

Also, he found that a proof of payment made to the marine living resource fund on February 25, 2016 had the depositor’s name removed, but held to the light, it revealed the name “Mr MS Moolla”.

The whistle-blower leaked the information about Moolla’s alleged misconduct to the offices of the deputy director-general Siphokazi Ndudane, according to B Xulu’s report.

Approached for comment yesterday, Ndudane said she could not comment on the matter because she had been placed on suspension for the past three months.

“I can confirm that I did not appoint B Xulu and Partners, and the facts on these are well documented, even on the court papers of case currently under way,” she said.

The ministry’s spokesperson Khaye Nkwanyana said the department had not received or seen any of these reports.

“The issues around Moolla and his suitability were inconsequential, as he has never violated anything during this process before as to compromise it.

“The biggest challenge here is certain officials within Fisheries, who are part of this creation of a storm within the teacup because of their interests. We know them, and some of them are bound to be charged.

“This issue of Moolla is making a fuss about nothing,” he said.

Moolla said: “The report I believe you have is patently false, and a production of a group within DAFF who have been unable to produce lobster appeal results that they were paid to

It is investigated as an inquiry for now, but upon finality it will be converted to a possible case docket PHILANI NKWALASE Hawks spokesperson

deliver on.

“Although I have not seen this report, I am told that the person who alleges wrongdoing on my part was an unsuccessful applicant for various fishing rights, despite apparently paying various people bribes.”

Moolla said there was a difference between his position as chair of the appeals advisory team and legal adviser to the delegated authority, which he was not.

The Hawks said the matter was at an advanced stage, although not yet finalised.

Hawks spokesperson Philani Nkwalase said: “We would rather not say who the person/s of interest are in the matter, as there are no criminal charges laid against anyone at this stage. It is investigated as an inquiry for now, but upon finality it will be converted to a possible case docket once we can identify all criminal elements.”