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

2.  Fishing rights were allocated in 8 commercial fishing sectors, namely KwaZulu-Natal Prawn Trawl, Demersal Shark, Squid, Tuna Pole-line, Hake Handline, Traditional Linefish, White Mussels and Oysters in December 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. In addition, 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 instituted an audit by Harris, Nupen and Molebatsi Attorneys in February 2014.  The findings of this audit were then sent by the Department to the State Attorney for a Senior Counsel opinion (Budlender and Bawa of 10 December 2014). 2 CONTEXT AND BACKGROUND

3.  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 many of the recommendations made by Harris, Budlender and Emang Basadi and translated these into an operational plan for corrective measure for FRAP 2013 and way forward for FRAP 2015. 3 FRAP 2013 REMEDIAL ACTIONS & 2015 FRAP WAYFORWARD

4.  The Harris and Budlender recommendations agree that the problems and defects of the FRAP 2013 process can be dealt with via the Minister’s wide appeal powers, with the exception of the linefish sector, which is the subject of a court case by the South African Commercial Linefish Association (SACLA).  As per the recommendations, the Minister has appointed an independent 3 person Appeals Advisory Panel.  A call was made for the lodging of supplementary appeals, which was extended to 31 July 2015  The Department made the 2013 score sheets available for public inspection along the coast and on the departmental website (excluding linefish).  The Department made the 2013 FRAP application forms and score sheets of other appellants available for public inspection (excluding linefish).  The 2013 appeals (excluding linefish) and the supplementary appeals are in the process of being analysed and evaluated. 4 FRAP 2013 and APPEALS

5. Fishing rights in 10 sectors are due to expire at various times during 2015. These rights in these 10 sectors have been extended to 28 February 2016 when rights will be re-allocated on 29 February 2016. These sectors are:  Abalone  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 In addition, rights will also be allocated to Fish Processing Establishments (FPEs). 5 FRAP 2015

6. FRAP DELIVERY STRUCTURE 6 Incorporating the recommendations of the Harris and Emang Basadi Report, the Department has set up a delivery structure (see organogram) that comprises of three separate and independent levels:  An Executive Committee  FRAP Project Team  7 Technical Teams Each level has a Terms of Reference and dedicated secretarial support to ensure a thorough record of decisions and recommendations (weakness of FRAP 2013) The Department has contracted additional capacity by recalling the previous year’s interns and reinstating certain abolished posts Officials have been appointed in writing; their responsibilities have been included in the Performance Agreements and Workplans and all have signed Confidentiality Agreements and Conflict of Interest Declarations. Dedicated legal support has been created through the appointment of three attorneys (via the office of the State Attorney).

7. FRAP 2015: DELIVERY STRUCTURE (2) 7 12 4 CD: FOS Chair EXECUTIVE COMMITTEE CDs: MRM & FM; Ds: FLS, Comms, SCM Technical Team Leaders Secretariat FRAP PROJECT TEAM DG/Rep; CD: OS; CFO DDG: FM DDG: Corporate Services Ministry; CD:LS Secretariat; DG/DDG: FM, Chair Policies & Application Forms Leader: T Tanci MRM FRD Secretary: 3 7 Project Co-ordinator EXECUTIVE AUTHORITY: MINISTER 5 & 2 Senior Counsel Appeals Advisory Committee Secretariat ITS Leader: M De Wet IT Service Pr Secretary: Logistics & Stakeholder Engagement Leader: Q Mketsu Secretary: TBC: Multid. Leader: W Rooifontein MRM OCFO Secretary: Financial Management Legal Experts Leader: B Josephs Secretary: 6 Verification Team Leader: S Pheeha Secretary: TBC: Multid. SSF-Plan Leader: C Smith TBC Secretary: DELEGATED AUTHORITY: DG

8. FRAP PROGRESS An independent and anonymous FRAP Tip-off line has been set up and is operational. As per the recommendations of the Harris Report, this Tip-off line will be functional throughout the FRAP 2015 and Appeal process and will run until August 2016. This toll free number is 0800 203 785. A FRAP Call Centre and Help Desk is operational and will function throughout the FRAP 2015/16 process. As per the recommendations of the Harris Report, the Department has gazetted the 10 Sector-specific Policies and the Policy on Fish Processing Establishments for public comment. These draft policies have incorporated the recommendations on access to a suitable vessel; exclusionary and balancing criteria; new entrants; and transformation targets, amongst others. In addition, the Department has also published the Grant of Right fees and Application fees for public comment (criticism of FRAP 2013). The Policies, Fees and Application Form were gazetted on 12 June 2015 and the public comment period will run until 14 August 2015. Public Consultation meetings have been conducted in 54 centres around the country from 7 July – 4 August 2015. 8

9. PROCESS STEPS 1. Internal policy review 2. Publication of draft s (12 June 2015) 3. Public consultation (07 July -12 August 2015) 4. Finalisation of policies (13 August – 4 September 2015) 5. Call for applications (7 September - 9 October 2015) 6. Receipting of applications (9 Nov - 4 Dec 2015) 7. Announcement of results (29 February 2016) 8. Announcement and lodging of appeals (1 March-15 April 2016) 9. Publication of appeal decisions (31 August 2016) 9

10. THANK YOU 10