The Organisation Undoing Tax Abuse (OUTA) has asked Parliament’s Portfolio Committee on Transport to use its oversight authority to improve governance at the South African Maritime Safety Authority (Samsa).

OUTA wants to ensure that the newly elected MPs and portfolio committee are aware of the issues at Samsa which have still not been addressed since Samsa last met with the previous committee in July 2023, and new developments since then. Although a new board was appointed for Samsa in September 2023, OUTA is concerned that there are still serious governance concerns.

These are the major concerns raised by OUTA:

• Samsa has been without a permanent CEO for eight years now, since 2016;

• There are serious questions over the fitness for office of Samsa COO Sobantu Tilayi, who was suspended for more than two years pending an internal inquiry and disciplinary hearing. The internal inquiry, carried out by Morar Incorporated, recommended that he be fired and the   disciplinary hearing  found him guilty of two serious charges, but in October last year Samsa announced his reinstatement. 

• However, in January 2024, the question of Tilayi’s suitability for the position arose again when the Pretoria High Court found (see here) that he had illegally attempted to dictate to a business, SA Marine Fuels (SAMF), who its BEE partner and shareholder should be, as a condition of Samsa approval for offshore bunkering (refueling ships at sea).

• Samsa now faces a civil claim of about R44 million arising from the dispute with SAMF which, if it loses, means taxpayers will effectively pay this.

In June 2023, Samsa and a representative of the Department of Transport appeared before the portfolio committee after OUTA wrote to the committee (see here) regarding irregularities identified at the entity.

“OUTA is very concerned that the governance issues at Samsa do not appear to be being addressed. We call on the portfolio committee to prioritise this issue and call Samsa to account,” says Rudie Heyneke, Senior Project Manager at OUTA.

In recent months, the Samsa governance issues have become more pressing.

Due to the ongoing conflict in Gaza and related attacks on shipping in the Red Sea, more ships are using the route around the Cape instead of through the Suez Canal, resulting in significantly more traffic along the South African coastline. This means it is even more essential for Samsa to operate optimally.

Samsa’s primary mandate is to ensure safety of life and property at sea, to prevent and combat pollution from ships and to promote South Africa’s maritime interests. Without proper leadership and the lack of oversight, concerns are increasing about the country’s maritime safety and the ongoing internal problems at Samsa.

At a meeting between Samsa and industry stakeholders in April 2024, Tau Morwe, a Samsa board member who has been Acting CEO since October 2023,  quoted the SAMF v Samsa court judgment and said that Samsa should focus on its mandate as described in the Samsa Act and not get involved with the business operations of bunkering companies. 

OUTA wholeheartedly supports this. “We believe that Samsa should concentrate on the safety of life and property at sea, protect our marine life from pollution and promote our marine interests worldwide,” says Heyneke.

OUTA has also shared its letter to the portfolio committee with the Auditor-General of South Africa, with a request to do an in-depth audit on Samsa, especially looking at irregular spending, and to hold officials and board members personally accountable for irregular, fruitless and wasteful expenditure. 

The letter was also shared with the Samsa board, the Acting CEO and the newly appointed Minister of Transport Barbara Creecy and Deputy Minister Mkhuleko Hlengwa. 

“We want the portfolio committee to use its powers of oversight to urgently address all the concerns at Samsa to ensure that it will once again become a prominent role player in the international maritime sector with good governance practices.  Furthermore, we want the Minister to be informed about the issues faced by Samsa, and to take action against Samsa officials who neglect their duties and who are responsible for wasting taxpayers’ money,” says Heyneke. 

South Africa cannot afford Samsa to fail. Reports show that bunkering operations in South Africa are down 38% from Q1 in 2023 to Q1 in 2024. Vessels are being moved out of South Africa and jobs are being lost. This is a massive blow to the maritime industry and the economy of the country.

More information

Soundclips with comment by Advocate Stefanie Fick, OUTA Executive Director, are here (English) and here (Afrikaans).