Government is looking to fund social projects and rural economic development plans such as aquaculture

Govt fishing quotas to be auctioned

FISHERIES minister Albert Kawana says the government will start auctioning off its fishing quotas formerly allocated to Fishcor to generate revenue for the state. This is the first time the quota for governmental objectives will be auctioned.

Kawana told The Namibian last week the motive behind auctioning off the quota for governmental objectives was the need to fund social projects and rural economic development plans such as aquaculture. 

Kawana said the auction will ensure the government collects enough revenue and enhances transparency in the allocation of government quotas as opposed to the old approach. 

This quota – for governmental objectives – was introduced by former fisheries minister Bernhard Esau in 2014 under the guise of “sustaining employment and investments in the fishing sector''.

It has been largely executed by the National Fishing Corporation (Fishcor) with the blessing of the former minister (Esau), from 2014 to 2019. 

During this period, Esau issued Fishcor quotas of more than 360 000 metric tonnes of horse mackerel valued at about N$900 million.

These quotas and many others allocated by Esau are at the heart of what is now known as the Fishrot scandal, a well-orchestrated corruption scheme which has so far led to the arrest of Esau and his six associates, including former justice minister Sacky Shanghala.

Esau and Shanghala amended the Marine Resources Act in 2015 to validate giving horse mackerel quotas to Fishcor under the guise of governmental objectives. 

The exact amendment stated “the state is entitled to utilise or harvest marine resources to advance any social-economic, cultural or other governmental objectives in the public interest, through an entity or person designated by the minister, on direction from Cabinet”.

Part of the quotas allocated to Fishcor by Esau were taken from other companies such as Namsov Fishing Enterprises to favour briefcase companies.

This resulted in massive job losses in the fishing sector.

The briefcase companies, which were awarded quotas, turned out to be a scheme through which politicians and some of their business cronies benefited.

Other government quotas have been previously allocated to veterans, groups of individuals termed previously advantaged, and various trusts. 

However, the returns from these allocations have never been quantified. 

There has also been a veil of secrecy in terms of how the quota for governmental objectives allocated to Fishcor has been utilised over the years. 

Current Fishcor board chairperson Bennett Kangumu told The Namibian last month although they have execution authority over these quotas on behalf of the fisheries ministry, Fishcor has not been recording the proceeds from these quotas on their financial statements.

Author: Nhgiinomenwa Erastus and Sakeus IIkela / The Namibian | Read full story here

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