FISHING RIGHTS ALLOCATION PROCESS (FRAP) 2013 & 2015

1. FISHING RIGHTS ALLOCATION PROCESS (FRAP) 2013 & 2015

2. CONTEXT AND BACKGROUND Before the promulgation of the Marine Living Resource Act (MLRA, 18 of 1998), the Departmentof Agriculture, Forestry and Fisheries (Branch: Fisheries Management) granted fishing “quotas” under the Sea Fisheries Act. Currently, Section 18 of the Act now provides for the allocation of fishing “rights”. The legal nature of the “right” allocated under the Act is similar to the “quota” allocated under the Sea Fisheries Act. The “rights” allocated under the Act are not property rights but is in the nature of a statutory permission to fish for a certain period of time. The fishing sectors that are now due for the allocation of fishing rights were allocated rights between ten and fifteen years.

3. CONTEXT AND BACKGROUND Cont… Also Fishing rights were allocated to 8 commercial fishing sectors, namely KwaZulu-Natal Prawn Trawl, Demersal Shark, Squid, Tuna Pole-line, Hake Handline, Traditional Linefish, White Mussels and Oysters in 2013 (FRAP 2013) However, this process was the subject to controversy with allegations and perceptions of irregularities, manipulation, unlawful or arbitrary decision making and un-procedural conduct. Over and above, the South African Traditional Linefishers Association brought an urgent application to set aside the allocation of Rights in the Traditional Linefish Sector As a result the previous Minister set aside the FRAP 2013 and instituted an audit by Harris, Nupen and Molebatsi Attorneys in February 2014 The findings of this audit were then sent by department to the State Attorney for an opinion

4. FRAP 2013 REMEDIAL ACTIONS & 2015 FRAP WAYFORWARD Subsequent to FRAP 2013, Emang Basadi Legal and Forensic Services (Emang Basadi) was appointed to conduct a review and assessment of the following: • Capacity and work processes in the department, including line and support functions, business processes, and external support required to ensure that the department is prepared and has the necessary capacity to commence and finalise the fishing rights allocation processes (FRAP 2013 corrective actions and FRAP 2015/2016)*; and • To make recommendations as to what further capacity and resources are required to effectively and successfully complete the fishing rights allocation processes. • This presentation has incorporated mainly the recommendations by Emang Basadi and translated these into an operational plan for corrective measure for FRAP2013 and way forward for FRAP 2015.

5. SUMMARRY OF THE FINDINGS FRAP2013 The findings and observations made on FRAP 2013 can be summarised as follows: • Political apathy and/or lack of direction and/or leadership from the national government • Clarity of policies (direction/ and alignment to national policies e.g transformation) • The governance structure for FRAP (e.g ensuring independency by department’s officials in granting of rights and dealing with appeals) • Numerous operational gaps including lack of proper planning, lack or insufficient good business processes

6. SUMMARRY OF THE FINDINGS • Main reasons provided for the lack of preparedness were amongst other the following: • The General Policy and Sector Specific Policies have not been reviewed. The review of policies is highly depended on the decision by Executive Authority on issues such as transformation targets per sector, consultation on the application &grant of right fees, etc. . • Job Freeze or Abolishment of posts; • Inadequate Information Technology System (ITS) to process the Rights Allocations and/or permits. • The R20 million currently availed for the rights allocation is insufficient.

7. SUMMARY OF RECOMMENDATIONS Many recommendations were made in the Harris Report, and Emang Basadi concurred and validated most of them. Since the setting aside of FRAP 2013, the Department has not dealt with the appeals or the review of the allocations themselves. Emang Basadi recommended that the Minister should Appoint an Independent Appeals Board led by a Senior Attorney/ Advocate to deal with the backlog of FRAP 2013 and avail information in terms of PAIA and PAJA. The FRAP 2013 policies will need to be reviewed and implement the Settle Agreement in terms of the Line Fish case (SACLA)

8. FRAP 2015 & PROCESSES The fishing sectors that are now due for the allocation of fishing rights were allocated rights between ten and fifteen years. These fishing rights in some of the fishing sectors will now expire between 28 February -31 December 2015. In preparation for the Fishing Rights Allocation process, the Department will embark on a Policy Review and Public Participation Process which will result in the publication of 9 Fisheries Sector Specific Policies. To successfully deliver the credible Fishing Rights Allocation process, the recommendation by Emang Basadi was that the Minister should in terms of section 18 6A (a) of the MLRA exempt current right holders in order to extend their rights for a period of 12 months while the department put in place credible processes for allocations.

9. FRAP 2015: SLOGAN • a. VISSION • b. MISSION • To deliver on our promises • To be on time/target • To take care of our staff • The team is committed to render a professional rights allocation that is transparent and credible with few/or no appeals and no successful litigations

10. FRAP 2015 : CRITICAL SUCCESS FACTORS • a. Mandate • b. CRITICAL FACTORS • Adequate Human Resources • Political support/ good governance • Robust ITS systems • Robust legal advice and processes • Finance capital • 2015 FRAP: Successful implementation of the 3ft Plan, with few/ or no appeals and no successful litigation

11. ADEQUATE HUMAN RESOURCES • Though Fishing Rights Allocation Process is the Fisheries Branch mandate, however it is the Chief Directorate: Marine Resources Management core function. • FRAP contributes significantly to the revenue of the Branch: Fisheries. • CD: MRM is expected to commit dedicated officials for the successful implementation of FRAP who will ‘vacate’ their daily duties in order to fully focus on the successful implementation of FRAP. • This will add burden on certain officials which will have to ensure that service delivery is not crippled. • Currently, CD: MRM has 4 abolished positions, 7 frozen positions and 1 position which will soon be vacant by the end of March 2015. • As a result of these, already service delivery has been seriously hampered upon, thus has created delays in issuing of permits to the fishing industry which has caused a high rate of complaints from the fishing companies. • It is critical that the Human Capacity issue be given an urgent attention • Over and above to FRAP, the Implementation Plan of the Small-Scale Fisheries Policy will run concurrently and it is envisaged that 40 contract workers (interns previously with the Department) will be required for a period of 12-18mnths.

12. FINANCIAL RESOURCES • The Department recognizes that financial resources are critical for the success delivery of FRAP. • The budget for FRAP 2015/16 will be utilised to pay for services that may be rendered by the Service Provider to the Department. • The budget will be utilised to develop and improve systems that are credible for rights allocations. • The funds are needed for processes such as gazetting, legal services, vetting, public consultations, printing (application forms and sector policies in 4 coastal languages), distribution and receipting of application forms, manning of the FRAP call centre and general communication. • These duties will fall outside the normal 8 working hours (including weekends) and it is envisaged that overtime may exceed 30% limit of employees basic salary and in order to meet the tight deadlines it is envisaged that overtime will be necessary. • The estimated budget based on the Project Plan is R45 million, current deficit of R16 million.

13. FRAP 2015: DELIVERY STRUCTURE EXECUTIVE AUTHORITY Appeals Committee Secretariat DG/Rep CFO/Rep DDG: Corporate Services CDs: MRM, FOS Secretariat EXECUTIVE COMMITTEE DDG: FM, Chair CD: MRM, Chair CDs: FM; CD: CD: Coops &Enterprise Dev Ds: FLS, Comms, SE Secretariat PROJECT TEAM/STEERING COMMITEE Project Co-ordinator 3 1 2 4 6 5 ITS Logistics & Customer Care Policies & Application Forms Budget Legal Experts Verification Team Leader: J Bezuidehout Leader: TBC Leader: D Fredericks Leader: M De Wet Leader: TBC Leader: C Liebenberg Leader: S Pheeha Leader: W Fisher MRM OCFO FMs: MRM Scientist: FRD MRM IT FMs: MRM Scientist: FRD MRM OCFO Qualified Lawyers/State Attorney Sec. Secretary: A Ntsabe Secretary: H Yon Secretary: TBC Secretary: TBC Secretary: N Nkeme Secretary: TBC

14. EXECUTIVE COMMITTEE • a. Mandate • b. TOR • c. Composition • Ministerial or Political Mandate • Report to the DG/Minister • Meet once a month • Has authority to make decisions • Will use reports and data (prepared by Secretary, OC) to make decisions • Submit monthly progress report • To be appointed by the Minister • Chaired by the DDG: FM • OMINISTER; ODG, ODDG: FM, CDs: MRM, FOS, OCFO

15. PROJECT TEAM • a. Mandate • b. TOR • c. Composition • 2015 FRAP: Successful implementation of the 3ft Plan, with few or no appeals • SSF Policy: Successful implementation of the 3ft Plan • Source funds • Report to the Executive Committee • Meet once a week, bring all relevant role-players together during meetings • Make recommendations • Submit weekly progress report • To be appointed by the DDG: FM • Chaired by the CD: MRM • ODDG: FM, CD: MRM’s Ds & FMs, Branch’s SMS Members (1/dir) • Co-opt others as needed, e.g., CD: Policy Development & Planning

16. POLICIES AND APPLICATION FORMS • a. Mandate • b. TOR • c. Composition • Review, draft and finalise sector policies • Review, draft and finalise application forms • Chaired: D Fredericks • Scribe: H Yon • MRM’s FMs, FRD, ODDG, SCM, FLS, SE, Comms • 2015 FRAP: Successful implementation of the 3ft Plan, with clear policies and aligned application forms

17. INFORMATION TECHNOLOGY SYSTEMS • a. Mandate • b. TOR • c. Composition • Development of FRAP System • Data capturing • E-permitting • EDMS • 2015 FRAP: Successful implementation of the 3ft Plan, with robust reliable ITS • Chaired: M De Wet • Scribe: TBC • D: ICT, Service Provider, MRM, SCM, ODDG

18. LOGISTICS AND CUSTOMER CARE • a. Mandate • b. TOR • c. Composition • 2015 FRAP: Successful implementation of the 3ft Plan, with best customer service • Mapping of all the possible consultation venues • Dispatching of materials and officials • Manning of FRAP Call Center • Travelling and accommodation arrangements • Chaired: J Bezuidehout • Scribe: A Ntsabe • MRM, SCM, Stakeholder Engagement, Comms

19. BUDGET • a. Mandate • b. TOR • c. Composition • Ensure availability of funds • Allocate budget for all activities • Monitor & Report expenditure • Chaired: W Fisher • Scribe: TBC • MRM, Finance, SCM, ODDG • 2015 FRAP: Successful implementation of the 3ft Plan, with transparent budget spending = greater accountability

20. LEGAL EXPERTS • a. Mandate • b. TOR • c. Composition • 2015 FRAP: Successful implementation of the 3ft Plan, providing best robust legal support • Vetting and legal advice throughout • Chaired: C Liebenberg • Scribe: TBC • MRM, Qualified Lawyers, ODDG

21. OPERATIONAL PLAN ON THE FISHING RIGHTS ALLOCATION PROCESS (FRAP 2015) 1/2/2015 – 29/2/2016

22. OPERATIONAL PLAN ON THE FISHING RIGHTS ALLOCATION PROCESS (FRAP 2015) 1/2/2015 – 29/2/2016 Cont.…

23. OPERATIONAL PLAN ON THE FISHING RIGHTS ALLOCATION PROCESS (FRAP 2015) 1/2/2015 – 29/2/2016 Cont.…

24. OPERATIONAL PLAN ON THE FISHING RIGHTS ALLOCATION PROCESS (FRAP 2015) 1/2/2015 – 29/2/2016

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