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Settlement deadline for quota auction extended

Settlement deadline for quota auction extended

Niël Terblanché

OPTIMISM about the N$627 936 827 as the potential revenue from the auction of the Namibian Government’s share of the annual Total Allowable Catch is waning after the deadline for the final settlement of bids on portions of has been extended with two days.


The Chief Public Relations Officer of the Ministry of Finance, Tonateni Shidhudhu, confirmed that the deadline for settlement of bids has been moved from 31 August to the 2 September in order to enable bidders to finalise payment.


Shidhudhu stated that should companies who were allocated lots with successful bids miss the settlement deadline on Wednesday that their allocation will be awarded to the next best bidder.


Settlement deadline quota auction extended potential revenue Namibian Government share annual Total Allowable


“Any missed payment of the allocation will be awarded to the next bidder in line and the entity that fails to pay will not be allowed to partake in other quota auctions for the next five years,” he said.


Shidhudhu said that some of the bidders have indicated that they are still preparing payments which necessitated the extension of the deadline.


Some bidders paid up to N$25 000 per tonne of hake and more than N$19 000 per tonne for horse mackerel and the lots were allocated accordingly.


Meanwhile, it understood from the local fishing industry that the exorbitant prices paid per tonne are because some of the bidders were under the impression that they were buying processed products. Some of the bidders did not realise that they would still have to catch and process the lots they bought.


The price at which some of the lots were sold during the auction is far above what local processors would be able to sell their product.


One of the bidders was officially informed that his bid of N$13 750 per metric tonne for 3 000 metric tonnes of horse mackerel was successful. The bidder was further informed that he must make a payment of N$11 250 000 before the 2 September 2020 deadline.


A quick calculation from the statement issued by the Ericah Shafudah, the Ministry of Finance’s Executive Director, however, reveals that the bidder should in fact pay N$41 250 000 for the 3 000 tonnes of horse mackerel into the Treasury’s Bank of Namibia account.


At the conclusion of the auction, the Minister of Finance, Ipumbi Shiimi, announced that the treasury has potentially raised N$627 936 827 in revenue from bidders.


Shiimi, said that the auction far exceeded the N$315 366 400 which would have been the revenue if the quota was sold at reserve prices.


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