Smit Amandla now faces probe

Department seeks investigation of graft in 2005 patrol tender

THE DEPARTMENT of Agriculture, Forestry and Fisheries has turned the tables on Smit Amandla Marine, which holds the tender to patrol South Africa’s marine resources, by asking the police to investigate whether the company could be charged with corruption.

The tender has been a source of controversy since the R800 million contract for the next five years was awarded to Sekunjalo in November last year. Smit Amandla, which had bid to continue to administer and operate the marine patrol vessels that police South Africa’s fishing resources, took Sekunjalo to court.

The department’s directorgeneral, Langa Zita, told Business Report last night that it was unclear exactly how the process would unfold, but he expected that the police would establish whether charges of corruption could be laid before a court.

In a statement released to Business Report saying corruption charges would be laid against “Smit Pentow Marine” – the predecessor of Smit Amandla – the director-general said: “I, Langa Zita, directorgeneral of the Department of Agriculture, Forestry and Fisheries, having heard the statement made by my minister, Ms Tina Joemat-pettersson, in the portfolio committee yesterday (Tuesday) and her statement subsequently reported in… Business Report, including various comments made as to the alleged questionable nature of some of the activities, would like to lay charges of corruption against the company, Smit Pentow Marine.”

While Smit Amandla spokeswoman Clare Gomes would not comment, it is understood that the company has welcomed the investigation.

Zita said he would like the authorities to investigate the conditions under which the tender with the then department of environmental affairs and tourism was extended in 2005, “ostensibly without a due process and open tender process”.

He said last night: “I just believe there are grounds for investigation.”

This was in line with what Joemat-pettersson told the portfolio committee on agriculture, forestry and fisheries: that no open tender process had been conducted at the time.

Zita said he was particularly interested in how “this extension was predicated on them having a black economic empowerment (BEE) partner”. Somehow the relationship with Smit Pentow Marine and its BEE partner, Dudula, had come to an end, he said.

There now needed to be an investigation as to whether there was corruption in the way African Maritime Investment Holdings was brought in by Dutch parent Smit Internationale to take this BEE stake when the local firm changed its name to Smit Amandla.

Ironically, Smit Amandla has argued that the adjudication process of the tender won by Sekunjalo, which was conducted by the department, had been flawed. It also argued that Sekunjalo had a conflict of interest as one of its subsidiaries, as well as one of the bidding companies for the tender last year, was a fishing company – Premier Fishing.

Amid the legal action, the department withdrew Sekunjalo’s preferred bidder status apparently on the grounds that it was uncertain about the adjudication procedures. Now the department has turned the matter on its head, indicating that Smit Pentow Marine (which no longer exists) had also entered the market with a fishing company on board.

Smit Amandla questioned in its legal case how Sekunjalo could act as a policing agent of fishing resources while having a fishing subsidiary company.

Smit Amandla had alleged in affidavits to the high court that Sekunjalo aimed to poach Smit Amandla’s staff to run eight research and patrol vessels, including the Sarah Baartman, the Victoria Mkhize, the Lilian Ngoyi and the Ruth First.

When Sekunjalo lost its preferred bidder status last month, it was first thought that Smit Amandla would have an extension of its contract, which ends on March 31. It is now understood that Smit Amandla will not be reappointed, even for an interim period.