Fisheries softens tone on Smit Amandla

THE DEPARTMENT of Agriculture, Forestry and Fisheries (DAFF) yesterday toned down a statement accusing black empowerment shipping company Smit Amandla Marine of involvement in corruption relating to the marine patrol and research tender which it held for 17 years, before controversially losing it in March.

The department’s acting director-general, Sipho Ntombela, could not explain why the language had been significantly toned down, from an accusatory government release on Monday to yesterday’s media briefing report of a string of irregularities.

The latter document indicated that if there was any wrongdoing it was likely to have been the work of senior departmental officials, working in collusion with Smit Amandla.

At a special briefing on a preliminary Ernst & Young forensic report, which was not released at the briefing, Ntombela was also pressed on why Smit Amandla had not been asked for input.

He explained that a preliminary investigation only provided indications that there was “something wrong” with the R1.6 billion tender to manage and maintain South Africa’s marine research and patrol ships, used to help determine the total allowable fishing catches.

Further investigations would be carried out by “the relevant authorities that… advance “for services not yet rendered”. This confirmed “the high level of complicity of officials in the fisheries branch” of the department.

“The evidence indicates that the state was defrauded to the extent of [about] R1.6bn, which includes invoices of duplicate payments, and invoices without tax or VAT. Invoices worth up to R600m have recently been uncovered, hidden away from the investigators.”

Yesterday’s statement reported that the SAPS had provided the investigation with 492 documents which they had “lifted” from the Marine Living Resources Fund, of which a total of 474 related to invoices amounting to over R1.5bn, and 18 related to credit notes amounting to almost R10m for the period February 2006 to March 2012. It then indicated various administrative anomalies.

DA fisheries spokesman Pieter van Dalen said it was inappropriate for the department to present a preliminary report. “They have had the report for a month already because the minister quoted from that report. In a preliminary report nobody has a chance to test any evidence… it is totally irregular to do so. The ministry has placed Ernst & Young in a very bad light by releasing snippets from this report prematurely.”’

Ernst & Young spokesman Fathima Naidoo said she could not comment as the matter was governed by “client confidentiality”.