Fishing rights allocation process under spotlight
Bid calls for suitable service providers to render a forensic audit of applicants
THE DEPARTMENT of Environment, Forestry and Fisheries (Deff) has advertised a bid calling for suitable service providers to render a forensic audit of applicants for the 2015/16 Fishing Rights Allocation Process (Frap2015/16) and to conduct ad hoc forensic investigations for Frap2020/21.
The Deff’s spokesperson, Albi Modise, said yesterday that the bid closed on November 23.
“Expressions of interests are currently being considered. A suitable service provider will be appointed in January 2021, and it is expected that the appointed service provider will perform extensive forensic audit functions on right holder’s information submitted during Frap2015/16 in order to address the allegations received by the department of various right holders having provided falsified information for Frap2015/16. The service provider will also conduct ad hoc investigations on Frap2020/21 applications,” said Modise.
Last month, the Broad-based Black Economic Empowerment (B-BBEE) Commission found that African Tuna Traders, Umbhalo Trading and Homotsego Trading had contravened the B-BBEE Act, and has referred its findings to the Deff for consideration.
This was after an investigation revealed that the credentials of black employees were presented as black shareholders for the purposes of obtaining the fishing rights with which African Tuna Traders trades, with no participation or economic interest for the employees.
Section 13A of the B-BBEE Act permits organs of State to cancel a contract or authorisation awarded on account of false information relating to B-BBEE status.
The complainant was Phephe Elias Khekhe, who was employed as a driver of Africa Tuna Traders from 2001 until his employment was terminated in 2010.
He was also appointed a director of Umbhalo Trading and Homotsego Trading, entities created by his employer, effective from August 1, 2004, and on April 14, 2010, and November 24, 2014, respectively.
The B-BBEE Commission said that in practice, all three entities were operated by members of African Tuna Traders, Jonathan Ronald van Breda and Christopher Fergus Hamel, each of whom had a 50 percent member’s interest, without the participation of and/or economic interest to black people who were presented as shareholders.
This week, the Deff confirmed to Business Report that it had received the referral from the B-BBEE Commission on this matter.
Modise said Deff was in consultation with the B-BBEE Commission to solicit more information and all the relevant documentation concerning the complaint, the investigation and the findings.
“In compliance with administrative justice, once all the information has been provided and the Department is satisfied, the right holders will be engaged in terms of section 28 of the Marine Living Resources Act, (Act No 18 of 1998) to show cause as to why their fishing rights, licences and/or permits should not be revoked, suspended, cancelled, altered or reduced, as the case may be,” said Modise.
The Deff said that over the past five years, there were anecdotal reports in the fishing industry that had not been verified of historically disadvantaged individuals being used to front for non-transformed entities.