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Have you read the Minister’s speech?

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Have you read the Minister’s speech? That’s the question being most asked this month at maritime functions and it refers to Minister of Transport, Dipuo Peters’ discourse at the South African Maritime Safety Authority’s (SAMSA) AGM at the end of September where she called for “immediate action from the (SAMSA) Board in order to resolve the appalling state of affairs at SAMSA”.

What usually follows the opening question in these chats amongst maritime colleagues are the knowing nods and ensuing discussion on the schism that we all believe to exist between the Department of Transport and its subsidiary body – as if this could be the explanation as to why the minister was so severe in her deliberations.

This leads into a conversation on the three pillars of SAMSA’s mandate and how many seem to believe that it is clear that the Authority has taken to heart the third point: to promote South Africa’s maritime interests as its over-arching purpose – perhaps to the detriment of the first two tenets of its existence which relate to the preservation of life, environment and property at sea.

It is an interesting dilemma for the industry. We’ve lauded the Authority, and particularly its CEO Commander Tsietsi Mokhele, for his foresight and passion to champion the maritime cause. We’ve watched him weave the maritime thread into the government conversation. And, as we begin to see a level of recognition across a number of government departments, we are told take stock of an entity that requires some oversight.

One cannot fain surprise that expenditure on conferences and advertisements ballooned from R12m in 2012 to R54 million in 2013. Most conference organisers and many publications have viewed the Authority as an unofficial Lotto pay-out as they cashed in their rate cards and sponsorship tiers. SAMSA has been visual at most events on the calendar including one hosted by us – the Maritime Industry Awards.

Was this a waste of resources? I dare to say that a little discernment could have been applied, but that some of the television slots highlighting the cadets on the SA Agulhas were well timed and could have contributed to a broader maritime awareness amongst our youth. So too do career and job summits, but a rubber stamp of approval associated with the sponsorship and exhibition stands of just about every maritime exhibition and conference could have been undertaken with some introspection.

What the industry has been waiting for is a follow-up to the successful and refreshingly different South African Maritime Industry Conference (SAMIC). Organised by the Authority, the conference has the ability to knock many conferences off the calendar by providing one unified thought tank for the industry.

Envisioned to fill a gap left by the demise of the National Maritime Conference of the 1990’s organised by industry for industry – SAMIC was well positioned to meet the needs of an industry ready and willing to move forward. It seems a pity, however, that this conference, anticipated to take place before the end of 2014, may now never take its rightful place on the calendar.

But this is not the only reason the minister pegs the Authority to be “in serious trouble”. Citing plummeting cash flows (a 350 percent decline), irregular expenditure (R28.8 million), fruitless and wasteful expenditure (R1.1 million), a total asset decline of 96 percent and the cost escalation associated to the SA Agulhas of 31 percent – Peters did not mince her words when she asked that “immediate actions be taken” to make the entity viable and able to deliver on its legislative mandate.

The SA Agulhas may lie at the heart of many of SAMSA’s reported woes, but most in the industry will agree that the Authority’s sheer determination to create a dedicated training vessel for their cadetship programme should not go unapplauded. It was never going to be an easy or cheap endeavour – something that is clearly realised by the Authority. Their Annual Report highlights the need for projects such as the cadetship programme and the SA Agulhas to be funded externally.

“Projects will therefore be funded only to the extent to which project funding is available and the organisation’s core revenue will not be used. The SA Agulhas and the cadetship projects, which contributed significantly to the deficits will soon no longer be funded by SAMSA,” it states in the report.

But perhaps what is most alarming and does not come across clearly in the visually alluring Annual Report is the “lack of reliability of reported information”. The Annual Report provides performance targets that are generally reported as being met or at least mostly met, but the Auditor General raises concerns that these targets are “not specific, measurable or time bound”.

In addition, what is not evident in the Annual Report, but is highlighted in the Minister’s speech is anomalies of data – or data spike for the fourth quarter of the reported year. For instance the tally of inspections of both local and foreign going vessels catapults rather unrealistically in the fourth quarter – calling into question the validity of what is presented.

Similarly, although a 100 percent target of audited training institutions is reported at year-end, according to the speech, data allegedly reveals that no audits were carried out within the first three quarters of the year.

“The fact that the auditors could not validate the performance results and that the third quarter results of some KPI’s seem to be far apart from the fourth quarter results, call for an objective independent performance audit of the 2013/2014 performance information,” she says.

With much more fodder to chew on in both the Annual Report as well as Minister Peters’ speech, it would be unfair to try and unpack the issues here. And as transport month draws to a close and we mull the pronouncements of Operation Phakisa, perhaps our closing issue of Maritime Review Africa for the year will delve a little deeper into the state of South Africa as a maritime nation on the continent.

If you have anything to say on this topic, we welcome your input both on and off the record.

THE ABOVE ARTICLE APPEARS AS THE EDITOR’S COLUMN IN THE SEPT/OCTOBER ISSUE OF MARITIME REVIEW
You can read the full magazine HERE
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July/August Editorial Comment

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MY EDITOR’S COMMENT FROM THE LATEST ISSUE OF MARITIME REVIEW:

Servest cover designThe recent grounding of the Kiani Satu grabbed media headlines towards the beginning of August. Many of the news reports were to be expected: highlighting details of leaking oil; initial unsuccessful refloating attempts; lack of availability of the patrol vessels as well as comments from concerned environmentalists and citizens. There were those, however, who seemed to use the floundering vessel as a platform to try refloat issues that have long been scuppered by factual evidence. 

Take the media report that focused on comments made by the Chairperson of the Fisheries Portfolio Committee, Lulu Johnson for example.  Mr Johnson chose to lay blame for the lack of readiness of the DAFF patrol vessels at the door of Smit Amandla Marine.

I’ve heard him say it before and he was quoted again saying; “They (Smit Amandla Marine) have got away with murder”.  It is rather a simplistic summation that makes little sense against the almost two-year drama that now surrounds the  cancellation of the vessel management tender; the transfer of the vessels into and then out of the SA Navy – and the current contract which aims to get the vessels operational again.

Documents and reports exist in the public domain clearly disputing this “fact” that Johnson is so determined to  try to qualify. His argument that Smit Amandla Marine handed over a fleet of unseaworthy vessels has even been disputed by the Department of Agriculture, Forestry and Fisheries (DAFF) themselves.

So, Mr Johnson, here are some facts for you to consider. At the time of the vessel handover from Smit, independent third party marine surveyors were contracted to verify the condition and inventories of the vessels. In addition, DAFF was provided with a full risk assessment, which raised a number of concerns the company had.

They specifically emphasised the risks associated with the Africana and DAFF was warned about the consequences of laying the vessels up “inappropriately”. At the time of the handover, the vessels were seaworthy and all statutory certificates were valid.

It would, however, be accurate to note that the vessel is old and that, as admitted by Smit Amandla Marine at the time, she did require some key maintenance work including a main engine overhaul, pipe work, hydraulic and steel work as well as an overhaul of the onboard electronic systems.

That these projects were not carried out is not due to mismanagement by the previous vessel management service provider, but rather due to budgetary constraints of the Department.

Ironically while Mr Johnson was pontificating and accusing the company of murderous actions; the self same company was out at sea in their well-maintained workhorse – the Smit Amandla (previously the John Ross) which is, incidentally, even older than the Africana and still going strong. Called out to the scene of the stricken Kiani Satu under the DOT casualty response contract; the Smit Amandla entered into a Lloyd’s Open Forum (LOF) and shortly thereafter invoked the SCOPIC clause.

What followed was a tremendous effort by authorities, salvors and volunteers to minimise the damage to the coast and to wildlife.

Just over a week later, the vessel was refloated and towed away from the coast.

What Mr Johsnon’s portfolio committee did successfully do was re-awaken media attention to the fact that the DAFF vessels are still not operational. At a joint press conference with Damen in May to announce the contract to affect emergency measures to get the vessels back at sea, Greta Apelgren-Narkedien noted that a period of six months was needed.

Since then the vessel management tender has been announced and the Department has yet to reveal the successful bidder. Factoring in the six months from May – perhaps we can anticipate that this announcement will come sooner rather than later to ensure that the vessels have a new home to go to when eventually certified seaworthy.

Given the controversy that dogged the previous announcement, however, there must certainly be a great deal of pressure for DAFF to get it right with no room for litigation.

The media, the current bidders and the Fisheries Portfolio Committee will be waiting to scrutinise the results.

For Shaheen Moolla, however, the portfolio committee does not have the teeth of a true watchdog – and he seems to describe them as a tame puppy when it comes to their oversight duties. You can read his concerns in this regard on page 8 of this issue.

Perhaps that’s why he has taken it upon himself to act in the capacity of the barking dog next door as he aims to make his neighbours  aware that DAFF’s house is not in order.

We said it last issue, and I’ll say it again: the last few months of this year will vindicate either DAFF or their detractors as deadlines and timelines begin to catch up with them.

Let us know what you think!

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