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Sekunjalo's marine deal makes waves
The Department of Agriculture, Forestry and Fisheries is under fire for awarding a R1bn tender to maintain eight state-owned research and patrol vessels, to a consortium that earns about half its turnover from fishing.
The department said yesterday it had not yet conducted a due diligence on the consortium, led by Sekunjalo Investments, a black economic empowerment firm.
A senior fishing industry source said giving a fishing company influence over the country's patrol fleet was a case of "the wolf guarding the hen house".
Sekunjalo, which submitted four separate bids for the five-year contract, earns about half of its turnover from its marine fishing subsidiary, Premier Fishing.
Smit Amandla Marine, the black-empowered shipping company that has managed the fleet since 2005, said yesterday it had requested information on the deal from the department. "We've asked a series of questions and are awaiting a response," spokeswoman Clare Gomes said. Smit Amandla heard only indirectly about the award after the bid announcement, she said.
A conflict
The department said the contract would improve profitability and broad-based participation in SA's maritime sector.
"There is a conflict," said Shaheen Moolla, the government's former head of fisheries management. "The vessels include research and patrol vessels and Sekunjalo is the holding company of Premier Fishing."
The fleet is responsible for scientific surveys, anti-poaching patrols, and inspections of fishing trawlers for illegal activities.
A spokesman for agriculture, minister Tina Joemat-Pettersson said yesterday that all such tenders were handled by the department. "There is no need for the minister to sign anything - it is signed by the director-general," Selby Bokaba said. "The minister has no role to play whatsoever."
Department spokesman Hein Wyngaard had said earlier that the department and Sekunjalo would put "measures in place" to ensure there was no conflict of interest. He confirmed yesterday that the department had not yet conducted a due diligence on the Sekunjalo consortium.
Sekunjalo group CEO Khalid Abdulla said yesterday two bids were submitted by Sekunjalo Industrial Holdings: one on its own and another as part of the consortium. Two other bids were submitted by Premier Fishing in the same manner, he said. Mr Abdulla said both bidding teams made full disclosures and presentations.
Source: Business Day via I-Net Bridge
Source: I-Net Bridge
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