Rebuilding takes longer than destroying – Fishcor CEO

When Alex Gawanab was appointed as Fishcor chief executive officer in January 2022, he inherited a company crippled by the fallout from the Fishrot scandal.

The Lüderitz-based state-owned fishing company was battling financial losses, low staff morale, leadership vacancies and damaged public confidence.

Gawanab said many friends and family members questioned why he had accepted the position.

"I enjoy challenges. Throughout my career I have set myself transformation goals, and Fishcor presented one of the biggest challenges," he said.

Priorities - One of his first priorities was rebuilding the executive management team.

“When I arrived, there was no head of finance, no head of operations and no legal executive. Recruiting competent and ethical people was essential because weak governance was one of the factors that contributed to the company's decline," he said.

The recruitment process took several years and has allowed senior management responsibilities to be shared more effectively.

Another immediate challenge was labour relations.

Only a month after his appointment, employees embarked on a two-week strike following an unresolved labour dispute.

"The strike cost the company about N$14 million at a time when Fishcor was already operating at a loss. Once it was resolved, we introduced a 90-day recovery plan focusing on the company's most urgent priorities," Gawanab said.

He said rebuilding trust among employees was equally important.

"I wanted staff to understand that we were rebuilding the company together. Cultural change is just as important as financial recovery."

According to Gawanab, restoring Fishcor's reputation remains a long-term process.

"Rebuilding takes much longer than destroying. We have made progress, but limited financial resources continue to constrain our recovery."

Tackling issues – He said obtaining funding for capital projects had been difficult, with government support arriving mainly through fishing quota allocations.

Fishcor also lacked a comprehensive strategic business plan when he took office.

Developing a credible long-term strategy proved difficult because of the cost of appointing specialist consultants.

Through the Ministry of Fisheries and Marine Resources, Fishcor was eventually able to appoint consultants to prepare a five-year integrated strategic business plan.

"The strategy has been completed and submitted to the minister. We are now finalising the implementation and funding plans."

Another major obstacle has been bringing the company's audited financial statements up to date.

Fishcor had outstanding audited financial statements dating back to 2020, partly because of audit verification challenges and changes in ministerial leadership.

Gawanab said previous auditors had resigned, making it difficult to appoint a replacement because of the company's damaged reputation.

"We eventually appointed new auditors. The audits are under way and we hope to have all outstanding financial statements completed by the end of July or mid-August."

He said the board was also working to improve compliance with the Public Enterprises Governance Act.

"We recognise where we fall short and are steadily addressing those areas."

Steadying the ship – Gawanab believes Fishcor will be in a much stronger position by the end of the year.

"Once the funding plan and audited financial statements are complete, we will be able to engage financial institutions for both capital and operational funding."

Historical liabilities continue to weigh heavily on the company.

According to Gawanab, Fishcor continues to incur substantial legal costs while defending litigation linked to contracts entered into before the current management took office.

"These cases require experienced legal teams, and the costs place additional pressure on our operating budget."

He also cited ageing infrastructure as another major challenge.

"The vessels require extensive maintenance, while the factory refrigeration system also needs significant upgrading. These are expensive projects, but we have plans to manage the associated risks."

Forming new partnerships – Fishcor is also seeking strategic commercial partnerships.

"We are looking for partners who want to build the business with us, not simply benefit from fishing quotas. Every partnership must provide value for both parties."

Calls for Fishcor to change its name have also been rejected for now.

"A new name alone will not solve the underlying problems. Our priority is to rebuild the business first. Rebranding can come later."

Social responsibility – Alongside its commercial recovery, Fishcor has expanded its corporate social investment programme.

The company supports the Annual Lüderitz Crayfish Festival, the Ongwediva Annual Trade Fair, the Diamond Festival and the Keetmanshoop Agricultural and Industrial Expo.

It also provides ongoing support to old age homes, vulnerable children and school hostels.

Gawanab said Fishcor initially supported seven community projects, but that number has since grown to 29, mainly in the ǁKharas Region, with additional projects in the Hardap and Omaheke regions.

"In Omaheke we support a community gardening project that also teaches schoolchildren agricultural skills. We also provide drought relief assistance in all 14 regions through the Office of the Prime Minister."