Fronting in fish quotas
Black economic empowerment companies in the fishing industry are demanding that they get higher quotas in a sector that has failed to transform itself in line with the rest of South Africa, according to Business Report.
The report says that many holders of fishing rights have had to sell their allocations because they don't have the funds to use them or to catch the fish that they are allowed to catch.
To add to the problems, the Department of Agriculture, Forestry and Fisheries has acknowledged that there is widespread "fronting" in the fishing industry and investigations are underway at St Helena Bay and Jeffrey's Bay.
Black fishing operations say that a lack of funds - and few opportunities to raise funds - mean that the quotas have to either be sold or relinquished. Lynweth Bhana, owner of Bhana Coastal Fishing says that BEE groups have to sell the quotas or engage in fronting because they are "financially dependent on bigger firms with deeper pockets."
Read the full article on www.iol.co.za.
