Fishcor begs for Govt bailout

The National Fishing Corporation of Namibia (Fishcor) has asked the government for a financial bailout, expressing fears that its operations could be crippled by a lack of money.

The company, which could struggle to pay salary increases and bonuses, is blaming questionable transactions committed by the Fishrot accused for its financial woes.

Fishcor’s acting general manager for finance, Risto Daniel, wrote a letter to Titus Ndove, the executive director of finance and public enterprises, on 25 October.

In the letter, which The Namibian has seen, Daniel outlines the company’s challenges and the projects it has undertaken to improve its financial position.

One of the challenges the company is faced with is financial sustainability linked to legal disputes between the company and its former partners, Africa Selection Fishing Namibia (ASF), owned by businessman Adriaan Louw, and Copemar.

Fishcor was in a joint venture with ASF and established the Fishrot-linked company Seaflower Pelagic Processing (SPP) for the harvesting and marketing of 50 000 tonnes of a wet-landed horse mackerel quota over a period of 15 years.

Fishcor, which has a 40% share in SPP, has been fighting to terminate this agreement since 2020 due to its alleged ties to irregularities.

The case is ongoing in the High Court.

Another agreement Fishcor is trying to rid itself of is one with Spanish partners Copemar in Seacope Freezer Fishing (Pty) Ltd, a subsidiary of Seaflower Whitefish (part of the Fishcor group of companies), established in 2004.

Fishcor has a 51% share in Seacope, and Copemar a 49% share.

Daniel said the legal fees for these cases have proven costly for Fishcor, with monthly expenditure exceeding N$500 000.

“They are eating into our much-needed cash, and as we may all know, lawyers need their accounts paid up before they continue to consult,” he said.

ANOTHER POISONED CHALICE

Another project is the non-incorporated joint operation in partnership with Mabasen Fishing for the harvesting of a 17 000 tonne horse mackerel quota.

Daniel said this agreement has encountered difficulties due to bureaucratic constraints within the fishing vessel licensing system, resulting in a significant cash shortfall.

“This arrangement in the form of vessel charter landing, marketing and sales, had the potential to bring in an estimated amount of N$36 million within six months, starting in July and running until December,” he said.

Other challenges the company is faced with include a dilapidated factory structure, costly maintenance outdated freezing systems and vessels.

Daniel said the company has run into serious cash-flow trouble and is unable to service major creditors, such as vessel maintenance contractors, factory maintenance accounts, municipal accounts, packaging material accounts, vessel fuel accounts and port services accounts.

These, he said, require immediate short-term funds to ensure the uninterrupted continuity of the company’s operations.

According to Daniel, funds are required for the factory maintenance necessary to obtain Namibian Standards Institution (NSI) certification.

“. . . in time for the restart of the new fishing season on 6 November . . . finance the short-term union demands for salary increments to avoid any potential industrial action, and the issuance of a certificate of unresolved dispute. Any of these may cripple the company financially,” he said.

The company has also established a joint venture between Seaflower Whitefish and Merlus Fishing, called Seamer, for the harvesting of hake.

Daniel said the company has already received a substantial portion of expected quota usage fees.

The projected profit share for this venture stands at over NS30 million, payable by 31 December.

The company’s chief executive, Clive Gawanab, has confirmed that it has requested the payment of the shortfall received earlier in the year to cater for ballooning legal and operational needs.

“The financial sustainability will be informed by interim operational turnaround strategies and an integrated strategic business plan, which is under advanced construction [sic],” he said.

Gawanab did, however, not specify what the required amount is.

The Namibian last month reported that the company has been struggling to service its liabilities with financial institutions.

The deputy minister of fisheries and marine resources, Sylvia Makgone, told the parliament the company has failed to pay its quota levies and fees, which are running into the millions.

She said the ministry does not intend to write off the company’s debts, but would devise friendlier debt-collecting avenues, including offering Fishcor flexible repayment options.

OPPOSING A BAILOUT

Former minister of fisheries and marine resources Helmuth Angula says Fishcor has been allocated a substantial fishing quota, which should enable it to sustain itself without relying on government subsidies.

He says other players in the industry are managing to survive with much smaller quotas and without government assistance.

“I don’t think any sensible, reasonable government would give them any cash . . . and I don’t think the government is going to give them, because once you get fish, that quarter they can sell or catch themselves, they will get cash and solve their problems,” Angula says.

Landless People’s Movement (LPM) second in command Henny Seibeb has proposed that the government prioritise paying the company’s service providers directly and not Fishcor.

The LPM has in recent days been a strong critic of Fishcor as the company continues to operate without any repercussions – even after it has failed to pay its quota levies and fees.

Seibeb says Fishcor has not shown any strong case.

“This company has already robbed this nation, and now it is asking for more money. We don’t trust Fishcor. They don’t deserve a bailout. The minister must change the board and bring in people with good track records,” he says.

Seibeb further proposes that the board should consist of international experts to rescue the company.

Social activitist Michael Amushelelo says Fishcor is on the brink of collapse due to poor management and incompetent leadership.

He calls on the public to demand more accountability and transparency.

“What bothers me about a company such as Fishcor . . . is it makes you wonder what level of incompetence should one be at in order not to be able to fulfil your mandate as a company,” he says.

Ministry of Finance and Public Enterprises spokesperson Johnathan Swartz yesterday promised that the ministry would provide comment today.