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Burgess COMMENTARY Peter Burgess | ||
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Original article:
https://www.seafoodsource.com/news/supply-trade/samherji-lays-bare-namibia-operations-chaos-ceo-apologizes-for-fishrot-incident
Samherji lays bare Namibia operational “chaos,” CEO apologizes for Fishrot scandal By Shem Oirere ... June 29, 2021 Samherji has laid bare some of the findings of an internal investigation into previous questionable dealings of its Namibian operations. Samherji was alleged to have paid bribes to Namibian politicians and businessmen to gain unfair advantage and access to Namibian horse mackerel quotas. Namibia is currently pursuing a cash-for-quota corruption case, popularly known as the “Fishrot” scandal, based on allegations made in late 2019 by Johannes Stefánsson, Samherji's former managing director of its Namibian operations. In November 2019, WikiLeaks published more than 30,000 documents obtained from Stefánsson, which the website claims “expose corrupt schemes by the company in Namibia to gain access to rich fishing grounds off the African country’s shores.” Namibian authorities have charged 26 people, including former Namibian Fisheries Minister Bernhard Esau and Justice Minister Sacky Shanghala, with corruption, fraud, and money laundering, which took place between 2014 and 2019. Three current Samherji employees – Ingvar Júlíusson, Egill Helgi Árnason, and Adalsteinn Helgason – are also among those charged, and Namibia has sought their extradition. In response, Iceland Public Prosecution Deputy Director Helgi Magnús Gunnarsson that will not happen, citing a lack of an extradition treaty with Namibia. Samherji Co-CEO Thorsteinn Már Baldvinsson revealed in a 22 June statement and apology the company’s affiliates in Namibia had “a lot of chaos in their operations, including regarding payments for fishing rights.” The fishing rights were allocated by Namibia’s state-owned fisheries company, National Fishing Corporation of Namibia (FISHCOR) between 2014 and 2019. The Akureyri, Iceland-based seafood company said the Norwegian law firm Wikborg Rein, which conducted the investigation, found a former managing director “withdrew significant sums of cash from the companies’ accounts without any or proper explanation.” The cash, Samherji revealed, “was improperly used and the former managing director acknowledged this conduct and apparently various other criminal activities where Samherji companies were used.” Samherji confirmed the company’s affiliates in Namibia carried out fishing activities within the African nation, but based on “catch quotas allocated by the Namibia government to a private company, Namgomar Pesca (Pty) Ltd (Namgomar Namibia).” Namgomar was an entity established by government officials in Namibia and Angola in association with other individuals and who, Samherji found out later through investigation findings by Wikborg Rein, “made the arrangements for Namgomar Namibia to be allocated catch quotas based on a bilateral fisheries agreement between both countries (Namibia and Angola).” But Samherji said it was neither aware who the owners of Namgomar were, nor was the company privy to the “actual ownership structure of Namgomar Namibia.” Although Samherji confirmed its subsidiaries had dealings with Namgomar, its affiliates, the company did not organize “the structure of a bilateral agreement between Namibia and Angola in order to provide them with the improper benefits.” Samherji said the Wikborg Ren findings revealed “part of the payments due to agreements with Fishchor [were] paid into accounts owned by third parties in connection with the so-called Fischor 'government objective' grant project of the government of Namibia.” “Despite instructions from competent Fischor representatives, the investigation revealed that payments for fishing rights allocated to government funding projects were not always supported by invoices or linked to a specific government funding project,” Samherji said. The company cited a trend where “payments for fishing rights, based on Namgomar Namibia's catch quotas, [were] payments to the company Tundavala Invest Ltd listed in Dubai.” “It took the new management a long time to realize and understand the agreements that were made during the time the former managing director ran the operation,” Samherji said. However, with time, the seafood company discovered the anomalies and “it was negotiated that all usage fees for fishing rights paid to Dubai would be stopped and the payments ended in 2017.” Once new management took over at Samherji, “it gradually managed to take control of the operation in Namibia, understand and improve what went wrong, and eventually wind it down.” Samherji said it regrets some of the business practices exposed by the Wikborg Ren investigation were not “stopped much earlier.' 'Unfortunately, they were allowed to go on for far too long,' it said. Baldvinsson said the company “firmly rejects the allegations of bribery but accepts the criticism that in the circumstances, it was necessary to pay more attention to how payments were made, who they were made to and on what basis, who had the authority to give instructions about them, and where they should be received.” He said the company’s board of directors has since adopted “a compliance system that includes extensive and improved governance and compliance rules including a third-party management system with risk-based screening procedures of intermediaries and other third parties.” Samherji’s management says it has since adopted a new strategy that would help protect the company from any questionable activity by individuals at the company. “It is my and Samherji's firm position that no criminal offences were committed in Namibia by companies on our behalf or their employees, apart from the conduct that the former managing director has directly confessed to and acknowledged,” Baldvinsson said. “Nonetheless, as Samherji's top executive, I am responsible for allowing the business practices in Namibia to take place [and] I am very sorry that this happened, and I sincerely apologize to all those involved, both personally and on behalf of the company.” Photo courtesy of Samherji Shem Oirere Shem Oirere Contributing Editor shem@shemoirere.com ------------------------------------------ https://www.seafoodsource.com/news/supply-trade/namibia-wants-three-fishrot-suspects-extradited Namibia wants three “fishrot” suspects extradited By Shem Oirere April 28, 2021 Namibia has started extradition proceedings for three Icelandic nationals suspected of involvement in the multimillion-dollar “fishrot” scandal that has shaken the country’s fishing industry. Namibia Deputy Prosecutor General Ed Marondedze asked judge Christie Liebenberg to adjourn the fishrot case until the three Icelanders – Adalsteinn Helgason, Egill Helgi Árnason, and Ingvar Júlíusson – are extradited to Namibia. The so-called 'Fishrot' scandal, in which more than USD 650 million (EUR 536 million) was flagged as suspicious proceeds, involved Namibia’s state-owned National Fishing Corporation of Namibia (Fishcor) and Icelandic fish processing firm Samherji. Samherji was alleged to have paid bribes to Namibian politicians and businessmen to gain unfair advantage and access to Namibian horse mackerel quotas. Former Samherji Director of Namibian Operations Johannes Stefansson – the whistleblower in the case – previously indicated there could be as many as six current and former employees of the fishing company involved in the scandal, who collectively oversaw the payment of at least NAD 120 million (USD 8.4 million EUR 6.9 million) to Fishcor, which was then diverted to individuals. Other suspects in the scandal include former Namibian Fisheries Minister Bernhardt Martin Esau’s son in-law, Tamson Hatuikulipi, his cousin James Hatuikulipi, businessman Ricardo Gustavo, suspended head of Fishcor Mike Nghipunya, and 11 corporate entities and trusts linked to them. In January 2021, a leaked legal document linked Namibian President Hage Geingob to the fishrot bribery scandal. The president’s name appeared in an affidavit provided in April 2020 to the Namibian Anti-Corruption Commission by lawyer Marén de Klerk, in which he claims to have been approached by Shangala and Hatuikulipi for assistance in setting up “corporate structures to process donations from supporters of the ruling Swapo party, and that they told him the president had mandated the project.” Some of the firms De Klerk helped in setting up were allegedly used as conduits for illicit payments by Samherji to Namibian government officials before the funds were reportedly channeled to fund Geingob’s 2019 presidential campaign that saw him reelected for a second term. Geingob appointed Derek Klazen as the country's new fisheries and marine resources minister in a cabinet reshuffle on 22 April. Klazen becomes the third fisheries minister since the 2019 reelection of Geingob and the resignation of Esau, who stepped down after it emerged that he allegedly received bribes to give preferential treatment to Samherji. Shem Oirere Shem Oirere Contributing Editor shem@shemoirere.com ------------------------------------------ https://www.seafoodsource.com/news/business-finance/samherji-ceo-steps-aside-amid-pending-corruption-investigations Samherji CEO steps aside amid pending corruption investigations By Jason Holland November 14, 2019 Thorsteinn Már Baldvinsson, the CEO of Icelandic fishing and processing company Samherji, has stepped aside and has been replaced with an acting CEO while an internal investigation is launched into alleged wrongdoing at its Namibian subsidiaries. The temporary move, which was agreed to by Baldvinsson and Samherji’s board of directors, was announced in a statement released by Samherji on 14 November, 2019. This followed a previous statement, issued two days earlier, in which Samherji responded to coverage about its operations in Namibia broadcasted by the Icelandic National Broadcasting Service (RUV). “We were very disappointed to learn that Jóhannes Stefánsson, a former managing director of Samherji's operations in Namibia, appears to have been involved in questionable business practices and possibly entangled Samherji in activities that may be illegal,” Baldvinsson said in the statement. Stefánsson was fired from his position in Namibia in 2016 because of mismanagement and unacceptable behavior, and that he has now admitted to engaging in illegal activities while managing Samherji's subsidiaries in Namibia, Baldvinsson added. 'We are deeply shocked that Johannes Stefánsson not only admits being involved in illegal activities, he is now also making allegations against colleagues. This is not how we do business. This is not Samherji,” Baldvinsson said. On 12 November, WikiLeaks published more than 30,000 documents obtained from Stefánsson, which the website claims “expose corrupt schemes by the company in Namibia to gain access to rich fishing grounds off the African country’s shores.” WikiLeaks said the documents, called the “Fishrot Files – Part 1,” dated from 2010 to 2016, show how the company spent millions of dollars in pay-offs to senior Namibian officials and politicians in order to ensure growing and continued access to the country's resources. They also claim to illustrate how the company failed to build promised infrastructure and create jobs in the country, and allege that the company used its international corporate structure to transfer proceeds from the operations straight out of the country. Meanwhile, Samherji’s latest statement confirmed that Björgólfur Jóhannsson has been appointed as the acting CEO of Samherji, effective immediately. Jóhannsson has been the CEO and president of Icelandair Group, chair of Fisheries Iceland (SFF), chair of The Icelandic Employers Association (SA) and CEO of seafood company Icelandic Group. He is to focus on meeting the employees and key stakeholders in the coming days, Samherji’s board chair Eirikur S. Jóhannsson said in a statement. “Samherji employs thousands of people globally. We take this serious step to ensure and demonstrate the complete integrity of the ongoing investigation. At Samherji we are committed to fair and honest business, and we will always strive to act in accordance with applicable laws and regulations” Jóhannsson said. According to the statement, Samherji has not been approached by any authorities so far, but the company will cooperate with any relevant authorities that take interest in its activities in Iceland, in Namibia, or elsewhere. “Samherji plays an important role in the fishing industry worldwide and we have a responsibility towards our people and customers. I am deeply saddened by the circumstances, but I will do my best to safeguard the interest of Samherji and its employees,” Björgólfur Jóhannsson said. The internal investigation is being assisted by the Norwegian and international law firm Wikborg Rein. Samherji has said that until this had been concluded, it will not comment on specific allegations and the company has no further comments at this stage. Image courtesy of Samherji Jason Holland Jason Holland Contributing Editor reporting from London, UK jason@jasonhollandcommunications.com Twitter at @SeafoodGuruSome ------------------------------------------ https://www.seafoodsource.com/news/business-finance/us-acts-on-fishrot-scandal-by-banning-two-namibian-ministers US acts on Fishrot scandal by banning two Namibian ministers By Shem Oirere June 16, 2021 The U.S. State Department announced an entrance ban on former Namibian cabinet ministers implicated in 'Fishrot.' The United States has announced an entrance ban on two former Namibian cabinet ministers implicated in the Fishrot corruption scandal. The so-called 'Fishrot' scandal, in which more than USD 650 million (EUR 536 million) was flagged as suspicious proceeds, involved Namibia’s state-owned National Fishing Corporation of Namibia (Fishcor) and Icelandic fish processing firm Samherji. Samherji was alleged to have paid bribes to Namibian politicians and businessmen to gain unfair advantage and access to Namibian horse mackerel quotas. “We are announcing today the public designation of former Namibian government officials Bernhardt Esau and Sakeus Shanghala, due to their involvement in significant corruption,” U.S. State Department spokesperson Ned Price said in a statement. The U.S. said both Esau, who served as Namibian Minister for Fisheries and Marine Resources, and Shanghala, a former Namibian Minister of Justice, “were involved in corrupt acts that undermined rule of law and the Namibian public’s faith in their government’s democratic institutions and public processes, including by using their political influence and official power for their personal benefit.” The designation, Price said, “renders Esau and Sanghala ineligible for entry into the United States.” Also banned from entry into the U.S. is Esau’s wife, Swamma Esau, and son, Philippus Esau. “This designation reaffirms the U.S. commitment to supporting anticorruption reforms that are key to Namibia’s successful future,” Price said. “The United States continues to stand with all Namibians in support of democracy and the rule of law, and against those who would undermine these principles for personal gain. The department will continue to use authorities like this to promote accountability for corrupt actors in this region and globally.” Meanwhile, Iceland has rejected – yet again – a request by Namibia to extradite three suspects accused of involvement in the Fishrot scandal, according to The Namibian. In February 2021, prosecutors in Namibia charged 26 people, including three current Samherji employees, with racketeering, money laundering, and tax evasion. The employees – Ingvar Júlíusson, Egill Helgi Árnason, and Adalsteinn Helgason – are alleged to have bribed Namibian government officials to unfairly gain access to fishing quotas from 2011 to 2019. The scandal, which has come to be known as Fishrot, first came to light through a release of documents from Samherji’s former managing director of operations in Namibia, Jóhannes Stefánsson, to Wikileaks. Iceland does not have extradition treaty with Namibia, and Iceland Public Prosecution Deputy Director Helgi Magnús Gunnarsson said last week the country does not extradite its citizens. Although Iceland’s Act No. 13 of 1984 allows for extradition of people “suspected of, indicted for, or has been sentenced for a criminal offense in a foreign state,” it also states “Icelandic citizens may not be extradited.” However, Gunnarsson said the three suspects could still be tried in Iceland, subject to Icelandic authorities establishing criminal culpability on their part. In Namibia, other suspects in the fraud case include James Hatuikulipi, Tamson Hatuikulipi, Ricardo Gustavo, and Pius Mwatelulo. The suspects are accused of helping Samherji access Namibian fishing quota in exchange for bribes that ended up in pockets of top officials in government and the ruling party, SWAPO. Additionally, South Africa has confirmed receiving a request from Namibia for the arrest of lawyer Marén de Klerk, who has been accused of facilitating payments of the Fishrot proceeds to Namibian government officials and politicians, according to The Namibian. “We can confirm that a warrant of arrest was issued by the Namibian government [that] was accompanied by an extradition request dated 19 May, 2021,” South African Ministry of Justice spokesperson Chrispin Phiri said. Samherji has previously promised to “take a stronger and more vocal stand publicly” with details on the company’s own findings concerning its operations in Namibia. Samherji discontinued its operations in Namibia at the end of 2019, and the company’s subsidiaries had shut down their Namibian operations by the end of 2020. The company has denied any intentional wrongdoing and said it never intended “for any subsidiary to engage in wrongful activity, including bribery or money laundering, in order to achieve benefits and will rigorously rebut any further allegation to this effect.” Photo courtesy of Sorbis/Shutterstock Shem Oirere Shem Oirere Contributing Editor shem@shemoirere.com ------------------------------------------
Shem Oirere, Contributing Editor shem@shemoirere.com
| The text being discussed is available at | https://www.seafoodsource.com/news/supply-trade/samherji-lays-bare-namibia-operations-chaos-ceo-apologizes-for-fishrot-incident and |