FISHING RIGHTS ALLOCATION PROCESS FRAP 2013 2015 CONTEXT

FISHING RIGHTS ALLOCATION PROCESS (FRAP) 2013 & 2015

CONTEXT AND BACKGROUND § Before the promulgation of the Marine Living Resource Act (MLRA, 18 of 1998), the Department of 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. 2

CONTEXT AND BACKGROUND Cont… § Also Fishing rights were allocated to 8 commercial fishing sectors, namely Kwa. Zulu. 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 3

FRAP 2013 REMEDIAL ACTIONS & 2015 FRAP WAYFORWARD q Subsequent to FRAP 2013, Emang Basadi Legal and Forensic Services (Emang Basadi) was appointed to conduct a review and assessment of the following: Ø 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 Ø To make recommendations as to what further capacity and resources are required to effectively and successfully complete the fishing rights allocation processes. Ø This presentation has incorporated mainly the recommendations by Emang Basadi and translated these into an operational plan for corrective measure for FRAP 2013 and way forward for FRAP 2015. 4

SUMMARRY OF THE FINDINGS FRAP 2013 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 5

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 R 20 million currently availed for the rights allocation is insufficient. 6

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) 7

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 6 A (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. 8

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

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

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 -18 mnths. 11

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 R 45 million, current deficit of R 16 million. 12

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

EXECUTIVE COMMITTEE a. Mandate ▪ Ministerial or Political Mandate b. TOR ▪ ▪ ▪ 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 c. Composition ▪ ▪ ▪ To be appointed by the Minister Chaired by the DDG: FM OMINISTER; ODG, ODDG: FM, CDs: MRM, FOS, OCFO 14

PROJECT TEAM a. Mandate ▪ ▪ ▪ 2015 FRAP: Successful implementation of the 3 ft Plan, with few or no appeals SSF Policy: Successful implementation of the 3 ft Plan Source funds b. TOR ▪ ▪ Report to the Executive Committee Meet once a week, bring all relevant role-players together during meetings Make recommendations Submit weekly progress report c. Composition ▪ ▪ 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 15

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

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

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

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

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

OPERATIONAL PLAN ON THE FISHING RIGHTS ALLOCATION PROCESS (FRAP 2015) 1/2/2015 – 29/2/2016 Annual target 1/2/0115 Targets – 29/2/2016 Activities Allocate fishing rights in 9 fishing sectors (Hake Inshore Trawl, Patagonian Toothfish, Horse Mackerel, West Coast Rock Lobster nearshore, West Coast Rock Lobster offshore, Seaweed, KZN Sardine Beach Seine, Large Pelagics, Netfish) and Fish Processing Establishments (FPE). Request permission to review sector specific policies Review/revise 9 sector specific policies (Hake Inshore Trawl, Patagonian Toothfish, Horse Mackerel, West Coast Rock Lobster nearshore, West Coast Rock Lobster offshore, Seaweed, KZN Sardine Beach Seine, Large Pelagics and Netfishing sectors). Appoint Task Team to review sector specific policies Hold internal consultative meetings Translate draft policies into coastal languages ( Afrikaans, isi. Xhosa and isi. Zulu) Publish draft policies for public comments Dependency deliverable/ Allocated Time budget Start date role players DDG: FM; CD: MRM; CD: FR&D; CD: MCS; D: Supply Chain Management; D: Financial Management; D: Stakeholder Engagement; Legal Support; D: Communications; D: ICT; Fishing Industry; General Public; Government Printers; Service Provider Hold external consultative meetings Develop application forms Appoint Task Team to develop DDG: FM; CD: MRM; and schedules for 9 fishing application forms CD: FR&D; CD: MCS; sectors (Hake Inshore Trawl, D: Supply Chain Patagonian Toothfish, Horse Hold internal consultative meetings Management; D: Mackerel, West Coast Rock Financial Publish draft application forms for Lobster nearshore, West Management; D: public comments Coast Rock Lobster offshore, Stakeholder Seaweed, KZN Sardine Beach Hold external consultative meetings Engagement; D: Seine, Large Pelagics, Fisheries Legal Netfish) and Fish Processing Support; D: Establishments (FPE). Communications; D: ICT; Fishing Industry; General Public; Government Printers; Service Provider End date Responsible Unit (s) person (s) 01/02/2015 31/05/2015 D: OHSFM D: IFM S Pheeha D Fredericks 21

OPERATIONAL PLAN ON THE FISHING RIGHTS ALLOCATION PROCESS (FRAP 2015) 1/2/2015 – 29/2/2016 Cont. … Annual target 1/2/0115 Targets – 29/2/2016 Activities Appoint Service Provider to Request approval to appoint a Service Provider assist with FRAP 2015 and assess human resource Conclude Terms of Reference capital (To. R) Conduct bid process Dependency deliverable/ role players DDG: FM; CD: MRM; D: Supply Chain Management; D: Fisheries Legal Support; Allocated Start date budget End date Responsible Unit (s) person (s) 01/02/2015 31/05/2015 CD: MRM Siphokazi Ndudane Sign a SLA with the appointed service provider Finalise the sector specific Collate and incorporate policies and application forms. comments on draft policies and application forms. Finalise application forms and sector policies Translate final policies into coastal languages (Afrikaans, isi. Xhosa and isi. Zulu) Publish final policies and application forms Announce distribution and submission centres and call for applications DDG: FM; CD: MRM; CD: FR&D; CD: MCS; D: Supply Chain Management; D: Financial Management; D: Stakeholder Engagement; D: Fisheries Legal Support; D: Communications; D: ICT; Fishing Industry; General Public; Government Printers; Service Provider 1/06/2015 30/09/2015 D: OHSFM S Pheeha D: IFM D Fredericks 22

OPERATIONAL PLAN ON THE FISHING RIGHTS ALLOCATION PROCESS (FRAP 2015) 1/2/2015 – 29/2/2016 Cont. … Annual target 1/2/0115 Targets – 29/2/2016 Activities Receipt of application forms • Collect completed for fishing rights in 9 fishing application forms from all sectors (Hake Inshore Trawl, distribution centers Patagonian Toothfish, Horse Mackerel, West Coast Rock • Capture and audit data Lobster nearshore, West Coast Rock Lobster offshore, Seaweed, KZN Sardine Beach Seine, Large Pelagics, Netfish) and Fish Processing Establishments (FPE). Dependency deliverable/ Allocated Start date budget role players DDG: FM; CD: MRM; CD: FR&D; CD: MCS; D: Supply Chain Management; D: Financial Management; D: Stakeholder Engagement; D: Fisheries Legal Support; D: Communications; D: ICT; Fishing Industry; General Public; Government Printers; Service Provider End date Responsible Unit (s) person (s) 01/10/2015 30/11/2015 D: OHSFM D: IFM S Pheeha D Fredericks 23

OPERATIONAL PLAN ON THE FISHING RIGHTS ALLOCATION PROCESS (FRAP 2015) 1/2/2015 – 29/2/2016 Annual target 1/2/0115 Targets – 29/2/2016 Activities Dependency deliverable/role players Allocated Start date budget Allocate fishing rights in 9 fishing sectors (Hake Inshore Trawl, Patagonian Toothfish, Horse Mackerel, West Coast Rock Lobster nearshore, West Coast Rock Lobster offshore, Seaweed, KZN Sardine Beach Seine, Large Pelagics, Netfish) and Fish Processing Establishments (FPE). Assess and make decisions on DDG: FM; CD: MRM; the submitted applications D: Communications; D: Fisheries Legal Publish provisional successful Support; Service list Provider Receipt appeals in 9 fishing sectors (Hake Inshore Trawl, Patagonian Toothfish, Horse Mackerel, West Coast Rock Lobster nearshore, West Coast Rock Lobster offshore, Seaweed, KZN Sardine Beach Seine, Large Pelagics, Netfish) and Fish Processing Establishments (FPE). Announce distribution and submission centres and call for appeals End date Responsible Unit (s) person (s) 1/12/2015 29/02/2016 CD: MRM DDG: FM S Ndudane KCM Mannya Consider objections Communicate final outcomes of decisions Capture and audit data Ministry; DDG: FM; D: Fisheries Legal Support; Service Provider 1/03/2016 30/06/2016 DDG: FM Minister M Mannya Minister Assess and make decisions on the appeals Communicate final outcomes of decisions 24

THANK YOU 25