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A groundbreaking process to ensure that the allocation of fishing rights across 22 commercial fishing sectors is credible and equitable will unfold on Monday morning at 8h00 at the Sea Point Offices of the Department of Environmental Affairs and Tourism (DEAT).

The government is preparing to allocate medium-term fishing rights worth an estimated R10 billion over four years. The allocation process will set new standards for government and will be a realistic attempt by Minister Valli Moosa to introduce stability and black economic empowerment to the South African fishing industry.

The allocation of commercial fishing rights has long been plagued by allegations of corruption, nepotism and racism. The widespread selling of fishing rights or the holding of so-called "paper quotas" was common practise over the last decade and black-fronted companies have capitalised on face-value transformation. In order to address these issues effectively the department has set in place a process that will independently and professionally verify each prospective commercial fishing company's application prior to an equally innovative adjudication process.

On Monday, this process will enter the active phase when fishing companies will be able to submit their applications for rights at the Sea Point offices of the Department. An independent verification process will be activated simultaneously. The verification process will ensure the factual correctness of submitted applications in order to effectively do away with front companies, corruption and nepotism. Highly sophisticated computer software will be a key feature of the verification process that will be independently managed by Deloitte and Touche in consortium with Sithole AB & T Chartered Accountants who were appointed through an open tender process. The responsibility of these two companies, acting as the Rights Verification Unit, (RVU) can be summarised as follows:

* Collection and receipt of all applications received by post, delivered by courier or hand delivered at the receiving centre (Sea Point Offices of the Department);
* Electronic capture of each application;
* Generation of reports required by the Minister;
* Ensuring the safeguarding of all applications for the duration of the verification process;
* Performance of appropriate verification checks on the information submitted .

The RVU will provide the Minister with a comprehensive picture of the companies and individuals that have applied for rights. The verification process will enable the Department to gain access to vital information that will assist it in the adjudication of applications. This will ensure more digestible and relevant information than ever before and will enable the Department to ensure a more credible allocation process,

Shortly after applications close on September 13, the RVU will be in a position to determine exactly how many applications have been received in each of the 22 commercial fishing sectors, the number of prospective new entrants and the degree to which a sector has transformed, plus a host of related information.

Following the rights verification process, another process of adjudication will commence. This is the responsibility of the Minister and his delegated officials.

FACTS & FIGURES

* For the first time in South Africa, fishing rights across 22 commercial fishing sectors are to be allocated for a medium-term period of four years, with rights in the mariculture and fish processing sectors being allocated for 15 years.

* The landed value of the fish and shellfish that is to be allocated over the four-year period by the Department is estimated to be in the region of R10 billion.

* South African fishing companies land fish and shellfish with an estimated value of R2.5 billion per year. Landed value does not include the value of fisheries products that are processed and packaged and sold both locally and overseas.

* It is estimated that the South African fishing industry provides direct employment for about 26 000 people.

* Although fishing accounts for only a small percentage of the South African GDP, it is a vitally important industry in coastal regions.

* The Department anticipates that the current contribution of fisheries to the South African economy will grow with the opening of experimental fisheries, increased catches in certain fisheries sectors and the rationalisation of foreign fishing fleets which will pave the way for greater participation by South African fishing companies in sectors such as tuna. The growth of fisheries such as horse mackerel will be underpinned by improved scientific research in these sectors.

* The allocation of medium-term fishing rights is expected to introduce stability to an industry that has been wracked by uncertainty owing to the Government's initiative to transform the almost entirely white-owned industry by creating opportunities for black-owned businesses that were prevented from gaining access to marine resources prior to 1994.

* Applications for fishing rights across 22 commercial fishing sectors opened on 27 July 2001.

* Applicants have been given six weeks to complete and submit their application forms.

* By 22 August 14 700 application forms had been issued from 27 centres around the coast.

* Applications close at 12h00 on 13 September 2001.

* The number of the public help line for updated information about the fishing rights allocation process is 086 010 2277.

Contact: Onkgopotse JJ Tabane at 082 465 6166

Issued by: Ministry of Environmental Affairs and Tourism, 24 August 2001