Capitalising on the ferry business.
Butana Komphela, the controversial chairperson of Parliament’s sports committee, is the key empowerment shareholder in a new Robben Island ferry currently making its way from Naples in Italy to Cape Town.
The vessel, named the Adriatic Princess, was bought second-hand for R26-million by an obscure Bloemfontein firm in which Komphela holds an interest.
It is set for delivery even as the manufacturers of a brand new R22-million vessel, which began service on the Robben Island route recently, prepare legal action to recover what they say are outstanding payments from the Robben Island Museum (RIM).
The planned delivery from Italy, which has been kept secret until now, was confirmed by a manager at the island who has been involved in the process. But he declined to provide any details, referring queries to Marc Scholtz, marketing director at the company supplying the vessel, Mmamolanewane Accommodation Holdings.
The company has just one listed director, Johan van Heerden, but Scholtz says the company has 67% empowerment ownership, with Komphela holding a substantial interest.
Komphela did not immediately respond to requests for comment, but the companies register and his parliamentary declaration of interests support Scholtz’s statement.
In the 2007 register of members’ interests, Komphela disclosed a 9% shareholding in Upstream Global, which he said had a nominal value of R9-million. That company not only operates out of the same office as Mmamolanewane, but also shares a telephone number, staff and several shareholders.
Until July last year Komphela was a director of the Central SA Convention Venue, which is also closely associated with directors and shareholders of both Upstream and Mmamolanewane.
Scholtz said: ”Buying this R26-million ferry fits into our business plans to get people to use Bloemfontein and Cape Town as business destinations.
”We are not boat people, but we do know about business. It made sense to tender for supplying the second ferry to Robben Island because we can then use the ferry to create two streams of income, one for ferrying passengers to the island during the day and a second for taking people on sunset-parties and cruises in the evenings.
”The board members of our company wanted to link Bloemfontein and Cape Town — Bloemfontein as a convention destination and then — Cape Town for some leisure activity — One ferry is simply not enough for the demand and often businesses can’t make bookings to go to the island.”
The ferry, he added, is luxurious and equipped with a full bar and kitchen. ”It’s almost like the Spur with people sitting around a table rather than on chairs like inside an aeroplane [which is the case on] the current ferry.”
As the Mail & Guardian reported last week, the existing ferry, which has been in service for less than two months, is also at the centre of controversy. Forensic consultants have alleged that Robben Island management were grossly negligent in their handling of the acquisition process, failed to extract penalties for late delivery and overpaid.
Farocean Marine, which built the existing vessel, has now briefed Cape Town law firm Fairbridges to prepare legal action to force RIM to pay up, according to two people familiar with the process.
It is not clear exactly how much the company believes it is owed, but an insider told the M&G it was approximately one-third of the total purchase price or roughly R7-million.
One legal strategy under serious consideration at Farocean, the M&G understands, is a bid to attach the ferry. This would once again disrupt the operations of RIM, which has been plagued for two years by interruptions caused by the controversy surrounding the ferry contract.
A third ferry — a luxury powerboat for the use of VIP guests — has been ordered from Original Boats, a company spearheaded by Johannesburg businessman Thabane Zulu and advised by yachting legend John Martin.
While the new boat is being built, the company is supplying Robben Island with the 17m Obsession leased from insurance entrepreneur Mike Daly.
Bruce Tedder, who was a partner in the original Robben Island Ferry Company, however, questions the operating logic and financial viability of the new vessels.
”It made sense for the island to buy its own ferry, and take control of that revenue stream. The operation is very profitable if it is properly managed, because there is no competition,” he said.
But it made more sense to have two 150-seater vessels rather than 300 seaters, he argued. ”That arrangement is much more flexible, and allows for maintenance, and adequate capacity,” he said.
”I can’t see how the VIP ferry can make any money,” Tedder said.
”A new 15m to 18m powerboat will cost between R15-million and R20-million, even secondhand it would be about R8-million.
”To make it worthwhile you would have to net at least R2-million a year, which is impossible. They should just make an arrangement to have a suitable vessel and skipper on standby.”
Langa surprised ‘to be out of a job’
The suspended chief executive of the Robben Island Museum (RIM), Paul Langa, said this week that he arrived back from holiday to find ”that I’m out of a job; that I’m regarded as a criminal and that the Mail & Guardian published really devastating information about me”.
”I’ve not been told by the board that I’m under investigation. I will seek legal advice to find out what to do now,” Langa said.
Carl Niehaus, deputy chair of the Robben Island board, however, confirmed that the top three managers of the island have been served with disciplinary hearing notices.
He said the matter will be dealt with internally and did not rule out criminal prosecution. ”Further actions could be taken, but at this stage it’s only against those three people,” Niehaus said.
The three are Langa, Denmark Tungwana, the chief operating officer, and Nash Masekwameng, chief finance officer.
”The board regards these issues revealed in the forensic report very seriously because they have a direct impact on the profile of this World Heritage Site and the thousands of visitors who come to the island. We have to ensure that the history and legacy of the island is properly respected. This is very serious indeed,” Niehaus said.
Marc Scholtz of Mmamolane-wane Accommodation Holdings which is supplying the vessel currently en route to Robben Island, said the company was ”very concerned” about the reports of financial irregularities at the island. ”We have requested a meeting with new managers. Luckily we’ve only had dealings with the supply chain manager,” he said.
Vincent Shai, the manager in question, is one of the people accused of mismanagement in the forensic report. In a letter to RIM council chair Naledi Tsiki, Minister of Arts and Culture Pallo Jordan recommended that action be taken against middle managers accused of mismanagement. — Nic Dawes and Pearlie Joubert