After battling for a month to get answers out of the Department of Forestry, Fisheries and Environment about the mysterious South African-registered trawler, Elke M, the department capitulated and provided concerning information about the vessel.
The Star investigations started after a whistle-blower disclosed that unlawful BBEEE fronting was rife in the local fishing industry and that the department was turning a blind eye.
It was further disclosed that Spanish fishing giant Iberconsa was behind the fronting. Despite claiming on their website that they fish extensively in South African waters, the department assured our investigating journalists that Iberconsa had no fishing rights in South African waters.
We investigated further and found that Iberconsa was claiming on their international website that the Elke M was part of their fleet trawling our waters for fish. We also established that Elke M was registered to a local entity, Lwandlekazi Fishing.
We wanted to know from the department which entities had indicated to it in the recently awarded Fishing Rights Allocation Process (Frap) tender that they intended to use the Elke M, should they be awarded licences.
For a month the department remained mum but has now disclosed that 8 companies submitted tenders indicating that they would use the Elke M: Mayibuye Fishing, Biz Africa 1504, Westshore Fishing, Atlantis Seafood, Khanyisile Fishing, African Community Fishing, Chetty’s Fisheries and Pakamani Fishing.
As if this did not raise a red flag, the department allocated licenses and rights to Mayibuye Fishing, Biz Africa 1504, Khanyisile Fishing and Atlantis Seafood.
An insider at the department said that the relevant people in the department knew the Elke M wouldn’t be able to catch the allocated amounts if it operated 24 hours a day, 365 days a year.
“They still awarded multimillion-rand licences to the companies, and they know that there is a big stink. They just get the licences and simply on-sell it at a massive profit to another company. That is the game, and the department just goes along with it.”
The department defended the fact that they had awarded the companies associated with the Elke M the rights. The department said the successful companies could transfer or sell their rights to other entities “subject to terms and conditions”.
“It is simple, Elke M is used by numerous companies as their trawler of choice and when the companies get the allocation, it is on-sold or used by the big boys,” the insider said.
Iberconsa is claiming they use Elke M locally and the department say they have no rights.
“BBEEE fronting at its worst,” the source said. “The floodgates of litigation will open the moment the unsuccessful bidders can have access to the department’s score sheets.”
The department has, to date, not supplied The Star with the score sheets. This is an ongoing investigation.