By Guy Rogers Environment & Tourism Editor - The Herald Online

THE Master of the Mthatha High Court has been asked to investigate allegations that money has been misappropriated from a community trust at the centre of an R80-million European Union-funded government eco-tourism initiative on the Pondoland coast.

The trust was established to represent the communities around the Mtentu estuary, a protected waterway on the northern boundary of the Mkambati Nature Reserve, to represent the community on the initiative.

Dr Duncan Hay, the chairman of the Mtentu Estuary Management Forum, a multiparty group formed to ensure that the estuary retains its capacity to underpin the initiative, said yesterday a report on a High Court probe of the trust was expected shortly.

Hay said the probe sprang in turn from a financial report commissioned in January by the EU, whose programme to establish sustainable ecotourism in Pondoland ran from 2000 to 2005. “The report indicated gross financial mismanagement on the part of the Accoda trust, and the possible misappropriation of funds.

“A portion of the funds in question were paid to Accoda by Ufudu Fly Fishing Experience as part of the department-sanctioned catch-and-release fly fishing operation at Mtentu.”

Hay said the matter had arisen again at a forum meeting in February at Mtentu. “There were on-going allegations by local Mtentu community members that funds administered by Accoda were not reaching them.

“Following that meeting and these on-going allegations, the department of environmental affairs and tourism represented by Dr Naomi Mdzeke and Dr Neil Malan agreed that the master of the High Court should be approached and be asked to investigate the various allegations.

“The master is doing that and a report is expected shortly.”

Ufudu director Ben Pretorius said the company had operated for seven three-month summer seasons on Mtentu in terms of an exemption granted by the department‘s marine and coastal management directorate, before withdrawing this year.

Ufudu initiated the venture as a partnership emphasising benefits to the local community and various environmental parameters like catch and release of fish, a no-fish zone and a research and data collection component.

The Accoda trust had been formed to represent the community from the Mzamba River mouth to the east down to Mtentu, but Ufudu‘s understanding had been that the Mtentu community would get a proportionally larger share of revenue generated by the operation, he said.

“With four to five guests a day, we injected R140 000 to R150 000 into the community a year in each threemonth season, with R60 000 to R70 000 going to the trust to distribute to the community and the remainder, in terms of an agreement with the trust, going towards gratuities and wages for local employees.”

Pretorius said he had written a financial report each year detailing this situation for MCM and Accoda, but had grown increasingly concerned at the lack of documentation from the trust showing how the money was being distributed.

“Among other reasons, we wanted these reports to show to our tourists – who would have been happy to pay more if they could see how it was being spent. But they were never available, and the whole thing became vague.”

He said the company‘s concerns had been heightened over the past three years by deputations from the Mtentu community claiming they were not receiving their share of the money.

“Then we saw the EU report and once a formal probe became apparent we withdrew to allow it to run its course.” Pretorius said his understanding was that the Master of the High Court had been requested to investigate the matter.

MCM spokesman Carol Moses said, however, that she was not aware of an agreement reached at the February meeting of the estuary forum that the department would approach the court in this regard.

She said the directorate was investigating – “but only to ascertain who requested the Master of the High Court to do so”.

She said the department would only be interested in the trust in terms of its connection to the Mtentu fly fishing venture, and if any conditions had been broken.

Asked if this included the condition that the community would benefit financially from funds generated, she said the directorate would be checking the conditions, and to see “if any complaints” had been received.But no one is taking money. We have given the money to community structures, football clubs, schools, traditional dancers and headmen and set aside some to help us organise Accoda meetings.”

He said it was true that Accoda chairman Madiba Qunya and his brother Basheen were employed by Australian Mineral Resources‘ BEE partner XolCo, who have proposed mining the Pondoland dunes for titanium.

But the Save the Wild Coast Campaign allegation that the trust was deliberately undermining eco-tourism to allow mining to gain ground was not true, he said.

Posted on June 5th, 2006
Filed under: Newspaper and Media