Fishcor in battle for survival

ADRIFT in a sea of red ink, faced with a crippling go-slow strike for the past four months, as well as an ageing fishing fleet that has spent more time in the dry-dock than at sea for the past two years, the State-owned Fishcor company at Luederitz appears to be sailing close to the rocks.

The situation is grim despite CEO Ronnie Coppin’s efforts to turn the company around. A four-day investigation into Fishcor, the holding company of Seaflower Whitefish and Seaflower Lobster (as well as other new joint-venture vehicles), brought to light a state of affairs that will possibly not see the close to 70-year-old company survive beyond the next two years in its present form.Coppin took over Fishcor in November 2001, and appeared to have placed his bets on his political connections to ward off more labour unrest, while selling off the last of Seaflower Lobster’s fixed assets to finance a new N$40 million whitefish factory.These assets include the old Seaflower head office and the attached boatyard (sold for N$7 million to NamPort), as well as the massive cold stores, dating back to the days when Luederitz saw annual quotas for lobster catches of 15 000 tons or more.Nowadays, their lobster arm has a quota of 88 tons (but could only land 38 tons of that last year); the total lobster quota for the country was some 450 tons last year.But the plan to sell the boatyard, on which all the smaller lobster quota holders depend for services and processing of their catch, has sent a shiver of fear through this small fishing and diamond-diving community.Locals are now calling for presidential intervention.In interviews with dozens of current and former Seaflower employees, a complex picture emerged of a company apparently wracked by internal politics, much of laid at the door of Coppin’s allegedly authoritarian management style.’MASTER PLAN’ Pertinent questions were also asked about Coppin’s ‘Master Plan’ to build a new plant over the next three years for some N$40 million.With the cold store being offered (with no takers yet) at N$6,5 million and the head office at the boat yard at N$7 million, it is hard to see how he would finance this expansion.Instead of upgrading the factory, which was given a health warning by South African Bureau of Standards (SABS) inspectors during their last audit, critics say, Coppin built a new cold store and maintenance facility (at a cost of N$7,3 million) instead.His appointment of Calvin Williams from Walvis Bay raised hackles further.Since the appointment of Coppin, a former fitter-and-turner whose renowned talkativeness appears to have won him the hot seat at Fishcor, financial matters have deteriorated.While intrinsically unfair, a comparison between the previous CEO (Black) and Coppin’s 2003-2004 results is instructive, nevertheless.Working with the Icelandic outfit SAF as joint-venture partners, the group reported for the 2000-2001 financial year a net income of N$45,532 million after tax, with revenues up by N$42 million from N$85 million to N$127 million.The directors’ report stated that Seaflower Whitefish had landed and processed 1 000 metric tons more wet fish than the previous year.AGGRAVATING FACTORS Under Coppin, external problems such as a strong local currency, old equipment and under-sized hake catches all contributed to the poor bottom line.For the 2004-2005 financial year, the group turned in a loss before tax of N$23,053 million (previous year: Loss of N$26,139 million), with revenues down from N$79 million to N$41,1 million.Coppin however pointed to the buy-out of the Icelandic shareholders (eventual cost: about N$80 million, of which Coppin said N$60 million was “retained losses”), maintaining that “they were stealing us blind” in a very restrictive shareholding where the minority group (the Icelanders) had the majority vote.Instead, Coppin, a former shore manager at Spanish long-line outfit Corvima at Walvis Bay, appeared to prefer the company of his previous bosses, selling 10 per cent shareholding to Copemar subsidiary Marfrio S.A.In an interview, Coppin also indicated that a BEE partner was being contemplated (listed as Halifax Pty in company documents).With the Spanish buying up nearly 70 per cent of all Namibian hake (which makes up nearly 50 per cent of hake sold by Spain), Coppin is convinced that Seaflower’s 49 per cent joint marketing venture with Copemar/Marfrio, viz.Seacope, will deliver the results.According to workers, the company’s fleet is in the poorest condition ever.They blame Coppin’s cost-cutting measures.Seaflower Whitefish’s two wet-fish trawlers, the MFV Omahamba and MFV Hilmatindur, spent most of August at the quay side (at a cost of N$1 000 a day).The 34-year-old Hilmatindur returned after only a few days at sea, having broken her main winch again; two weeks ago, SWC had only landed about 22 per cent of their annual quota.AGEING TRAWLERS The biggest problem is the two ageing trawlers: Last year, the MFV Hilmatindur was also out of commission for more than six months while her main engine was replaced at a cost of N$3 million at Walvis Bay.Mechanics said while the engine was being installed under Williams’ supervision, they bent the mountings, causing more delays in a job that was not supposed to take more than one month.The other, slightly newer trawler also spent five months under repairs and “resulted in an enormous loss of fishing time”, the company directors noted in their 2004-2005 annual financial report.Questions were also asked about Coppin’s apparent write-off of N$500 000 on a N$1,4 million bill for repairs done to the MFV Nalita Sea, owned by another local businessman, Jose Calaca.The fact that Coppin bought Calaca’s E320 Mercedes Benz (Coppin said he took out a loan of N$156 000 from FNB for this) added fuel to the fire.But Coppin said Calaca’s bill was re-adjusted by N$500 000 after an independent shipwright was called in to arbitrate the disputed bill last year; Seaflower now intended taking Calaca to court to pay the balance, Coppin said during a three-and-a-half hour interview.LABOUR PROBLEMS Fishcor’s biggest problem, however, remains a crippling go-slow strike at its factory, declared in the wake of failed wage negotiations in May.Since then, countless tons of fish have rotted and had to be turned into fishmeal; small catches also made it impossible to show a profit at the factory.Coppin’s stand-off with the Namibia Seamen and Allied Workers Union, which previously represented the majority of workers, saw factory manager Raymond Hummel locked in his office by workers refusing to work night shifts.Instead, Coppin appears to have placed his bets on political protection.After suspending two popular managers, Store Manager Phylicia Hercules and HR Manager Francis Kawana, Coppin commissioned a “climate study” report from Sackey Aipinge’s Preferred Labour Solutions CC.Sources, who all wished to remain anonymous, said the “study” took less than four days and cost N$120 000 after an apparent double payment.Coppin declined to discuss the fee for Aipinge.Coppin publicly joined the ruling Swapo Party and has appointed the town’s Mayor, George Shimaneni, as the company’s Liaison Officer.This entails free company housing, a company car as well as a company cellphone, but workers alleged that Shimameni rarely showed his face at the offices.Coppin defends his decision to appoint Shimameni, a former tour guide, as the best thing he has ever done for Fishcor: Shimameni was critical in Fishcor’s lobbying for larger fishing quotas.Several of these and other questions were asked of Coppin by Judge Elia Shikongo, Chairman of the board, who compiled a report on the affairs of the company that Coppin allegedly rejected as lacking in a legitimate mandate.Judge Shikongo’s report, compiled with other director Anna Huuange, noted that “the CEO did not address all questions posed” to him.* John Grobler is a freelance journalist; 081 240 1587A four-day investigation into Fishcor, the holding company of Seaflower Whitefish and Seaflower Lobster (as well as other new joint-venture vehicles), brought to light a state of affairs that will possibly not see the close to 70-year-old company survive beyond the next two years in its present form.Coppin took over Fishcor in November 2001, and appeared to have placed his bets on his political connections to ward off more labour unrest, while selling off the last of Seaflower Lobster’s fixed assets to finance a new N$40 million whitefish factory.These assets include the old Seaflower head office and the attached boatyard (sold for N$7 million to NamPort), as well as the massive cold stores, dating back to the days when Luederitz saw annual quotas for lobster catches of 15 000 tons or more.Nowadays, their lobster arm has a quota of 88 tons (but could only land 38 tons of that last year); the total lobster quota for the country was some 450 tons last year.But the plan to sell the boatyard, on which all the smaller lobster quota holders depend for services and processing of their catch, has sent a shiver of fear through this small fishing and diamond-diving community.Locals are now calling for presidential intervention.In interviews with dozens of current and former Seaflower employees, a complex picture emerged of a company apparently wracked by internal politics, much of laid at the door of Coppin’s allegedly authoritarian management style.’MASTER PLAN’ Pertinent questions were also asked about Coppin’s ‘Master Plan’ to build a new plant over the next three years for some N$40 million.With the cold store being offered (with no takers yet) at N$6,5 million and the head office at the boat yard at N$7 million, it is hard to see how he would finance this expansion.Instead of upgrading the factory, which was given a health warning by South African Bureau of Standards (SABS) inspectors during their last audit, critics say, Coppin built a new cold store and maintenance facility (at a cost of N$7,3 million) instead.His appointment of Calvin Williams from Walvis Bay raised hackles further.Since the appointment of Coppin, a former fitter-and-turner whose renowned talkativeness appears to have won him the hot seat at Fishcor, financial matters have deteriorated.While intrinsically unfair, a comparison between the previous CEO (Black) and Coppin’s 2003-2004 results is instructive, nevertheless.Working with the Icelandic outfit SAF as joint-venture partners, the group reported for the 2000-2001 financial year a net income of N$45,532 million after tax, with revenues up by N$42 million from N$85 million to N$127 million.The directors’ report stated that Seaflower Whitefish had landed and processed 1 000 metric tons more wet fish than the previous year.AGGRAVATING FACTORS Under Coppin, external problems such as a strong local currency, old equipment and under-sized hake catches all contributed to the poor bottom line.For the 2004-2005 financial year, the group turned in a loss before tax of N$23,053 million (previous year: Loss of N$26,139 million), with revenues down from N$79 million to N$41,1 million.Coppin however pointed to the buy-out of the Icelandic shareholders (eventual cost: about N$80 million, of which Coppin said N$60 million was “retained losses”), maintaining that “they were stealing us blind” in a very restrictive shareholding where the minority group (the Icelanders) had the majority vote.Instead, Coppin, a former shore manager at Spanish long-line outfit Corvima at Walvis Bay, appeared to prefer the company of his previous bosses, selling 10 per cent shareholding to Copemar subsidiary Marfrio S.A.In an interview, Coppin also indicated that a BEE partner was being contemplated (listed as Halifax Pty in company documents).With the Spanish buying up nearly 70 per cent of all Namibian hake (which makes up nearly 50 per cent of hake sold by Spain), Coppin is convinced that Seaflower’s 49 per cent joint marketing venture with Copemar/Marfrio, viz.Seacope, will deliver the results.According to workers, the company’s fleet is in the poorest condition ever.They blame Coppin’s cost-cutting measures.Seaflower Whitefish’s two wet-fish trawlers, the MFV Omahamba and MFV Hilmatindur, spent most of August at the quay side (at a cost of N$1 000 a day).The 34-year-old Hilmatindur returned after only a few days at sea, having broken her main winch again; two weeks ago, SWC had only landed about 22 per cent of their annual quota.AGEING TRAWLERS The biggest problem is the two ageing trawlers: Last year, the MFV Hilmatindur was also out of commission for more than six months while her main engine was replaced at a cost of N$3 million at Walvis Bay.Mechanics said while the engine was being installed under Williams’ supervision, they bent the mountings, causing more delays in a job that was not supposed to take more than one month.The other, slightly newer trawler also spent five months under repairs and “resulted in an enormous loss of fishing time”, the company directors noted in their 2004-2005 annual financial report.Questions were also asked about Coppin’s apparent write-off of N$500 000 on a N$1,4 million bill for repairs done to the MFV Nalita Sea, owned by another local businessman, Jose Calaca.The fact that Coppin bought Calaca’s E320 Mercedes Benz (Coppin said he took out a loan of N$156 000 from FNB for this) added fuel to the fire.But Coppin said Calaca’s bill was re-adjusted by N$500 000 after an independent shipwright was called in to arbitrate the disputed bill last year; Seaflower now intended taking Calaca to court to pay the balance, Coppin said during a three-and-a-half hour interview.LABOUR PROBLEMS Fishcor’s biggest problem, however, remains a crippling go-slow strike at its factory, declared in the wake of failed wage negotiations in May.Since then, countless tons of fish have rotted and had to be turned into fishmeal; small catches also made it impossible to show a profit at the factory.Coppin’s stand-off with the Namibia Seamen and Allied Workers Union, which previously represented the majority of workers, saw factory manager Raymond Hummel locked in his office by workers refusing to work night shifts.Instead, Coppin appears to have placed his bets on political protection.After suspending two popular managers, Store Manager Phylicia Hercules and HR Manager Francis Kawana, Coppin commissioned a “climate study” report from Sackey Aipinge’s Preferred Labour Solutions CC.Sources, who all wished to remain anonymous, said the “study” took less than four days and cost N$120 000 after an apparent double payment.Coppin declined to discuss the fee for Aipinge.Coppin publicly joined the ruling Swapo Party and has appointed the town’s Mayor, George Shimaneni, as the company’s Liaison Officer.This entails free company housing, a company car as well as a company cellphone, but workers alleged that Shimameni rarely showed his face at the offices.Coppin defends his decision to appoint Shimameni, a former tour guide, as the best thing he has ever done for Fishcor: Shimameni was critical in Fishcor’s lobbying for larger fishing quotas.Several of these and other questions were asked of Coppin by Judge Elia Shikongo, Chairman of the board, who compiled a report on the affairs of the company that Coppin allegedly rejected as lacking in a legitimate mandate.Judge Shikongo’s report, compiled with other director Anna Huuange, noted that “the CEO did not address all questions posed” to him.* John Grobler is a freelance journalist; 081 240 1587