Linda Ensor
2 September 2008
Cape Town — The Marine Living Resources Fund has pulled itself back from the brink of insolvency and plans to use its newfound financial health as a basis for a more intensive anti-poaching campaign along the coastline.
The fund posted a deficit of more than R65m in 2005-06 and did not have sufficient resources to patrol the coastline as often as it should have done.
Cutting back on operations allowed it to generate an accumulated surplus of R29m by end-March.
The fund finances the programme for managing the development and sustainable use of SA's marine and coastal resources. This includes the allocation of fishing rights based on research into the total catch allowed each year for each fish type.
It derived its income of R300m last year from the government, levies on fish products, licences, permits etc, and the sale of confiscated assets and fish products such as abalone, which netted R39m last year.
The fund planned to double the number of days at sea, environmental affairs and tourism director-general Nosipho Jezile said at a media briefing in Parliament yesterday. The briefing was to mark the success of the fund's turnaround strategy and the fact that it received an unqualified audit report for the first time in its history.
The fund reached its nadir in 2006 when it was plagued by cash-flow problems, a lack of capacity and poor management.
Environmental Affairs and Tourism Minister Marthinus van Schalkwyk said the turnaround and unqualified audit report, with no emphasis of matter, was achieved two years ahead of schedule.
The fund was now on a firm financial footing, which was a priority, even though this had required cutting back on operational activities.
"The improved financial position means that there are now more sea days available for compliance vessels and research," Van Schalkwyk said. The fund plans to increase the number of sea days from 110 to about 240.
He said discussions were under way over the future of the fund. His own view was that the fund should cease to be a public entity and be brought back into the department to ensure better control and day-to-day management. In previous years, the auditor-general raised concerns about a lack of internal controls, inadequate accounting and fixed-asset systems, insufficient debtor and income controls, lack of data and non-compliance with the Public Finance Management Act.
A total of 22 qualifications were attached to the disclaimed 2005- 06 annual report.
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See, it can be done without a bailout. Congrats for not going in that direction,shows character.