{"id":40077115,"date":"2019-09-12T00:00:00","date_gmt":"2019-09-11T18:30:00","guid":{"rendered":"http:\/\/china-dialogue-ocean-staging.darkbluehq.com\/uncategorized\/10050-investigation-illegal-fishing-in-ghana-pt-1\/"},"modified":"2022-02-10T23:01:17","modified_gmt":"2022-02-10T17:31:17","slug":"10050-investigation-illegal-fishing-in-ghana-pt-1","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/ocean\/10050-investigation-illegal-fishing-in-ghana-pt-1\/","title":{"rendered":"Investigation ties foreign-owned trawlers to illegal fishing in Ghana"},"content":{"rendered":"<h2><strong>About this investigation<\/strong><\/h2>\n<ul>\n<li><em>This in-depth probe into the Meng Xin fleet of vessels operating in the territorial waters of Ghana was launched after several reports of fisheries infractions;<\/em><\/li>\n<li><em>Meng Xin vessels have committed at least eight fisheries-related offences, including illegally transferring catches at sea in a lucrative but illegal practice known as \u201csaiko\u201d;<\/em><\/li>\n<li><em>Ghanaian law forbids joint foreign ventures in fisheries, but although these vessels are registered to Ghanaian companies, investigation shows the ultimate beneficial owner of at least 17 of them to be the Chinese company Dalian Mengxin Ocean Fisheries;<\/em><\/li>\n<li><em>The investigation examines a transnational network that operates with little public scrutiny, at huge ecological and socioeconomic cost to artisanal fishing communities.<\/em><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>As women fish sellers sit on their stools in the bustling port of Elmina in Ghana, large steel basins between their legs and elegantly knotted turbans on their heads, some stare into the distance, towards a horizon that was once filled with more opportunity than it is now.<em><br \/>\n<\/em><\/p>\n<p>From time to time a fish seller bangs loudly on their steel, impatient for the day\u2019s catch to be offloaded from the wooden canoes. It is a noise heard all along Africa\u2019s former Gold Coast, a chorus that bemoans the shortage of fish in seas that have supported past generations of small-scale, traditional fishermen.<\/p>\n<p>If there was once abundance here, it has gone.<\/p>\n<p>West African waters are <a href=\"https:\/\/www.un.org\/africarenewal\/magazine\/may-july-2017\/overfishing-destroying-livelihoods\">some of the most overfished<\/a> in the world, with high levels of illegal and unreported fishing. Foreign-flagged vessels from big fleets, including those of the EU and China, are encroaching on traditional fishing grounds. The socioeconomic and ecological costs for local populations are huge and scientists warn of <a href=\"https:\/\/dialogue.earth\/8182-sierra-leone-takes-steps-to-tackle-overfishing\/\">an imminent collapse<\/a> in West African fish stocks if measures are not taken to curb overfishing.<\/p>\n<div class='cdo-shortcode--image'><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10059 size-article-inline-full\" src=\"https:\/\/dialogue.earth\/content\/uploads\/2019\/09\/Ghana-fihisng_West-Africa-map--1440x738.png\" alt=\"Ghana fihisng in West Africa map\" width=\"1440\" height=\"738\" \/><\/div>\n<p>In Ghana, as many as 100 trawlers are targeting the same fish that artisanal fishermen have been catching for generations. But they\u2019re also targeting juvenile fish, meaning populations cannot recover. In other parts of West Africa, EU vessels are frequently entering artisanal zones to <a href=\"https:\/\/fiskerforum.com\/formal-complaint-to-eu-over-italys-failure-to-act-on-illegal-fishing\/\">illegally catch fish<\/a>, impacting the livelihoods of coastal fishing communities.<\/p>\n<h2><strong>Saiko: a hugely profitable and illegal trade <\/strong><\/h2>\n<p>At Elmina port, one woman stands before a large square slab of mixed frozen fish that she has for sale. This is no ordinary artisanal catch: it has been frozen onboard an industrial vessel and \u201ctransshipped\u201d (illegally transferred at sea) by organised Ghanaian-owned canoe operators, in a practice known as \u201csaiko\u201d.<\/p>\n<div class='block--pullout-stat block--pullout-stat--float cd-shortcode--factbox'>\n                <p class='block--pullout-stat__title'>History of \u201csaiko\u201d<\/p>\n                <div class='block--pullout-stat__content'>\n                    <br \/>\nThe original term was \u201csaite\u201d and dates back to the 1970s when it was used by Japanese fishermen to describe the \u201cbad\/rubbish\u201d fish that their trawlers were discarding. But the locals saw the value of the bycatch and insisted it was \u201csaiko\u201d, meaning \u201cgood\/useful\u201d fish.<\/p>\n<p>\n                <\/div>\n            <\/div>\n<p>\u201cSaiko is illegal by Ghana laws,\u201d explains Kofi Agbogah, director of the Ghanaian fisheries and coastal governance NGO, Hen Mpoano, who goes on to list six sections of Ghanaian law that specifically prohibit transshipment.<\/p>\n<p>Data shows that 23 trawler vessels were sanctioned in 2018 for either saiko or saiko-related offences, including fishing in artisanal fishing zones, fishing and\/or dumping juvenile fish.<\/p>\n<p>\u201cSaiko is having a devastating impact on Ghana\u2019s fish stocks, and the over two million people who rely on fisheries for their livelihoods and food security,\u201d says Environmental Justice Foundation (EJF) executive director, Steve Trent.<\/p>\n<p>Once brought onshore, the slabs of frozen fish, which include overfished species like sardinella but also juvenile fish of other species, are transferred elsewhere, with a small percentage being sold to the local population.<\/p>\n<p>There is no doubt that the illicit trade is hugely profitable.<\/p>\n<p>A <a href=\"https:\/\/dialogue.earth\/8677-saiko-fishing-costs-ghana-tens-of-millions-of-dollars-in-a-single-year\/\">recent investigation<\/a> into saiko by EJF showed that an estimated 100,000 metric tonnes of illegal and unreported catches were made in 2017, with an estimated value of US$41-51 million when sold by trawlers at sea, and $53-81 million when sold at the landing site.<\/p>\n<p>Aboom, a member of the Ghana Industrial Trawlers\u2019 Association at Elmina, said: \u201cIn a day, a maximum of 25 motor-powered canoes land saiko fish. A saiko canoe brings back to shore as much as $6,400-worth of fish for only a day\u2019s trip. I can\u2019t disclose how much we get but we make good money.\u201d<\/p>\n<p>These figures are in stark contrast to small-scale fishermen who struggle to cover their fuel and crew costs.<\/p>\n<p>Both the Ghana fisheries minister, Elizabeth Naa Afoley Quaye, and the president of the Industrial Trawlers Association, Sammy Nii Okai Quaye, have recently <a href=\"https:\/\/www.maritime-executive.com\/article\/ghana-s-fisheries-minister-calls-for-end-of-saiko\">called for<\/a> the eradication of saiko.<\/p>\n<p>However, the influence of domestic and foreign industry lobbying is the biggest obstacle to stopping saiko. In 2019, the <a href=\"http:\/\/documents.worldbank.org\/curated\/en\/866911554409721545\/pdf\/Ghana-Under-the-First-Phase-of-the-West-Africa-Regional-Fisheries-Program-Project.pdf\">World Bank<\/a> highlighted the Ghanaian government\u2019s \u201cweak commitment to reducing the industrial segment\u2019s fishing capacity\u201d. The report stated that the government is \u201chighly influenced by forces within the industrial segment\u201d and raised concerns that foreign-owned vessels being allowed to register in Ghana under beneficial ownership arrangements were not being investigated.<\/p>\n<h2><strong>Hiding behind beneficial owners \u00a0<\/strong><\/h2>\n<p>A number of factors allow saiko to continue, and complex foreign beneficial ownership structures have been highlighted as key.<\/p>\n<p>According to the FAO legal definition, beneficial ownership is an opaque system using local \u201cshell\u201d companies that provide cover for vessel owners, allowing them to escape punishment or financial penalties for illegal fishing.<\/p>\n<p>Ghanaian law bans foreign interests from the industrial fishing sector, so companies use \u201ca variety of mechanisms to conceal the true beneficial owner of the vessel,\u201d says Trent.<\/p>\n<p>\u201cThis includes setting up hire-purchase agreements with Ghanaian [front] companies, or using other corporate arrangements, such as special purpose vehicles for their operations,\u201d adds Trent. The latter is a subsidiary of a company that is protected from the parent company&#8217;s financial risk.<\/p>\n<p>Professor Denis Aheto, a scientist at the fisheries department of the University of Cape Coast, Ghana, explains that \u201cthe Chinese own most of the industrial fleets in the country in connivance with Ghanaians. The law categorically rules out any form of joint ownership between foreigners and Ghanaians, but Ghanaians front for the de facto owners, to give the impression that these businesses are Ghanaian-owned\u201d.<\/p>\n<p>EJF\u2019s most recent figures show that more than 95% of vessels with active licences to fish were captained by Chinese nationals.<\/p>\n<p>Agbogah said that Ghanaian subsidiary companies acquire licences directly from the Ministry of Agriculture \u201cthrough some opaque and phony arrangements\u201d, while the vessels are \u201cmanned by Chinese owners\u201d.<\/p>\n<div class='cdo-shortcode--image'><\/p>\n<p><figure id=\"attachment_10076\" aria-describedby=\"caption-attachment-10076\" style=\"width: 1440px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10076 size-article-inline-full\" src=\"https:\/\/dialogue.earth\/content\/uploads\/2019\/09\/EGGHNY_Ghanian-Navy-sailors-inspect-the-catch-of-a-Chinese-fishing-vessel-1440x959.jpg\" alt=\"Ghanian Navy sailors inspect the catch of a Chinese fishing vessel not dissimilar to Dalian Mengxin\" width=\"1440\" height=\"959\" \/><figcaption id=\"caption-attachment-10076\" class=\"wp-caption-text\">The Ghanian navy inspects the catch of a Chinese fishing vessel off the coast of Ghana (Image: Alamy)<\/figcaption><\/figure><\/p>\n<p><\/div>\n<p>Fishing communities are aware of this too: \u201cNationally, foreigners cannot license a boat, so it is a Ghanaian who is licensing the boat, and they take about 5% or 10%, and the rest goes to the foreign owner,\u201d explains local fishermen Goodman Goodwill.*<\/p>\n<p>Dyhia Belhabib, principal investigator at Ecotrust Canada and one of the world\u2019s leading experts on fish crimes, describes third-party beneficial ownership networks as a global problem \u2013 not one confined to Chinese owners or indeed Ghana. She describes the practice as being \u201ctypical of criminal networks with shell companies, entangled networks, and opaque management layers\u201d.<\/p>\n<h2><strong>Linking saiko fishing to vessels and owners<\/strong><\/h2>\n<p>This investigation was prompted by a series of saiko-related offences by vessels operating in Ghanaian waters, and questions surrounding their true ownership. In February 2019, <a href=\"https:\/\/dialogue.earth\/6273-ghana-undercover-video-reveals-shocking-scale-of-fish-discards\/\">the vessel Meng Xin 29 was caught on camera<\/a> illegally dumping vast amounts of juvenile fish overboard. Then in July, a Ghanaian fishing observer <a href=\"https:\/\/allafrica.com\/stories\/201908070182.html\">went missing<\/a> on board the Meng Xin 15. He has not been found.<\/p>\n<div class='cdo-shortcode--image'><br \/>\n<iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/4C4R3zJoBSY\" width=\"100%\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<p>At least four trawler vessels operating in Ghana \u2013 Meng Xin 2, Meng Xin 5, Meng Xin 16 and Meng Xin 29 \u2013 have been repeatedly sanctioned and fined for illegal fishing activities by the Ghanaian fishery authorities; Meng Xin 5 and Meng Xin 16 specifically for saiko-related offences.<\/p>\n<p>All of these vessels are registered to and managed by Ghanaian companies, including Kenbonad Fisheries Ltd (Meng Xin 15 &amp; 16), Bossgie Limited (Meng Xin 2), Global Marine Consult (Meng Xin 5) and Soweh Sons Enterprises Ltd (Meng Xin 29). The companies are all registered to PO Box addresses, with no street address.<\/p>\n<p>Further investigation confirmed that all of these vessels are in fact owned by a Chinese company, Dalian Mengxin Ocean Fisheries. There are an additional 30 vessels linked to this company, with at least 17 operating in Ghanaian waters, at least five operating in Sierra Leone under a Chinese flag and the rest undisclosed.<\/p>\n<p>The Chinese government\u2019s Ministry of Agriculture and Rural Affairs public data confirms that Dalian Mengxin Ocean Fisheries is the owner of 35 vessels, and also includes the permit renewal date for the vessels featured in this investigation. The ministry\u2019s 2018 offshore fishing vessel overseas inspection and fishing crew work plan also lists the Ghanaian-flagged vessels featured in this investigation.<\/p>\n<p>References to Dalian Mengxin Ocean Fisheries activities in Ghana and Sierra Leone were also found on at least five Chinese online public platforms including Jobui, China import and export yellow pages, Emis, Yjbys and Liepin. The site Yjbys states that \u201c12 offshore fishing vessels were built in 2012\u201d and \u201cwent to the Ghanaian waters of Africa for ocean fishing.\u201d The site <a href=\"https:\/\/www.jobui.com\/company\/11299597\">Jobui<\/a> openly references the fact that \u201cthe company has more than 30 offshore fishing vessels, all operating in Sierra Leone and Ghana in Africa.\u201d<\/p>\n<p>These public references further demonstrate the link between Dalian Mengxin Ocean Fisheries and their vessels operating in Ghana and Sierra Leone, which are contravening the Ghanaian law that prohibits joint foreign ownership ventures.<\/p>\n<h2><strong>Who is Dalian Mengxin Ocean Fisheries?<\/strong><\/h2>\n<p>Evidence shows that half of Dalian Mengxin Ocean Fisheries is owned by two people: Dou Yongmeng and Lin Huimei, who jointly co-own an additional two companies: Dalian Mengyuan Aquatic Products and Dalian Shun Yue Ship Freight.<\/p>\n<p>Along with 100 other selected Chinese companies operating in distant waters, Dalian Mengxin Ocean Fisheries benefits from a special status via a certification scheme which denotes it as an \u201coffshore fishery enterprise of the Ministry of Agriculture\u201d. This gives the company access to subsidies, including for boat building and fuel, as well as tax exemption.<\/p>\n<p>Dalian Mengxin Ocean Fisheries is also known as Dalian Mengxin Yuanyang Fishery, which lists as an associate Dalian Hailufeng Oceanic Fisheries Development, a company that claims on its website to have \u201cconsiderable influence in African countries\u201d, listing Ghana, Ivory Coast, Cameroon, Angola and Nigeria as countries in which the company has \u201cobtained the fishing permits issued by governments\u201d.<\/p>\n<p>The website Emis, which provides information on reported company profits, states that according to the \u201clatest financial summary, Dalian Mengxin Ocean Fisheries reported an increase of 37.36% in net sales revenue in 2017. In 2017, Dalian Mengxin Ocean Fisheries Co Ltd&#8217;s net profit margin increased by 1.26%.\u201d<\/p>\n<h2><strong>Profit and loss<\/strong><\/h2>\n<p>If the saiko business is generating profits \u2013 both for Chinese trawler owners and the local Ghanaian operators \u2013 the reality for the rest of the fishermen in the town of Elmina is bleak. Many are struggling to make money and pay off debts, and see little hope for an improvement in fish populations.<\/p>\n<p>Forty-year-old Kofi Nkrumah, an artisanal fisherman from Elmina, laments that \u201cthere is no business in the sea for me. Things are bad. A fishing expedition costs us US$180-worth of fuel. The cost of food for the crew and others can all total to additional US$150\u201d. Nkrumah indicated that they ply the whole week and only catch what can settle the cost of two days\u2019 fishing.<\/p>\n<p>In comparison, it is estimated that a foreign-owned trawler in Ghanaian waters can land up to 26 tonnes of fish a day, the equivalent of around 400 canoe trips like those undertaken by Nkrumah.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-8716\" src=\"https:\/\/dialogue.earth\/content\/uploads\/2019\/06\/saiko-trawler.png\" alt=\"saiko versus artisanal fishing in ghana, jobs comparison\" width=\"400\" height=\"652\" \/><\/p>\n<p>Nkrumah looks at the shore despairingly, his face weathered by the elements and worry about the future of his traditional trade, passed down through generations. Like many other fishermen in Ghana, he is hugely impacted by the saiko business.<\/p>\n<p>The activities of trawlers in Ghana are \u201cfinancially capacitating fishing crime,\u201d says Belhabib. \u201c[They are] hiding under the rug of local subsidiary practices and disturbing the very cultural fabric of traditional fishing.\u201d<\/p>\n<p>Whatever aspect of the saiko question is considered \u2013 its socioeconomic impact on coastal communities, the robustness of domestic Ghanaian law that strictly prohibits it, or the profits made by foreign-owned companies \u2013 it is clear to see that against a backdrop of near-impunity, saiko has evolved to become the most destructive fishing practice to hit Ghana\u2019s once abundant seas.<\/p>\n<p><strong>Read part two of this investigation, <a href=\"https:\/\/dialogue.earth\/10522-ghana-weak-penalties-let-trawlers-off-the-hook\/\">How Ghana\u2019s weak penalties are letting trawlers off the hook,<\/a> where <\/strong><strong>we examine evidence of infractions committed by trawlers operating in Ghana and Sierra Leone and ask who is profiting from these types of transnational networks. <\/strong><\/p>\n<p>*Some names have been changed<\/p>\n<p>Commissioning\u00a0editor: Jessica Aldred<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Part one shows how an opaque ownership network enables illegal fishing at the expense of local communities<\/p>\n","protected":false},"author":0,"featured_media":40065254,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[50039901],"tags":[527,545,40027748],"hashtags":[],"country":[50040738],"class_list":["post-40077115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ocean","tag-crime","tag-fisheries","tag-overfishing","country-ghana"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO 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