The Lüderitz Crayfish Festival Trust (LCFT) issued a press statement to address and clarify what it termed misinformation and confusion surrounding the administration and funding of the 2025 Lüderitz Crayfish Festival (LCF). The Board of Trustees for LCFT called on stakeholders, including the Lüderitz Town Council (LTC) to act in good faith and put the community first. “We remain open to constructive dialogue after the festival concludes. Until then we ask all political actors to refrain from further public misrepresentation and to support the smooth and peaceful delivery of the event.”
Quota funds
The LCFT explained that a fishing quota was allocated in 2023 by the Ministry of Fisheries and Marine Resources, exclusively for the hosting of the annual festival. “In accordance with the established procedure, the funds derived from this quota were channeled through the LTC and regrettably have to date not been released to the LCFT.” The LCFT said that the LTC initially requested that audited financial statements and an accountability report be submitted for the 2023 festival. “When we complied, the council questioned the legitimacy of the Fisheries Minister to issue a quota via council to the LCFT. The minister wrote a letter to council in which he unequivocally clarified the intended recipient of the funds and its purpose.”
Impasse
According to the LCFT, the council ignored the minister's directive without offering any clear legal basis for withholding the funds citing that it (Council) had sought a legal opinion on the matter. The LCFT says a lack of transparency and indefinite delays has put the LCF in a difficult financial position. “A meeting was called with the LTC three weeks ago and LCFT urged the council to separate ongoing administrative concerns from the immediate need to deliver a successful and inclusive Crayfish Festival for the community of Lüderitz. The understanding was that the festival would proceed and any remaining issues would be discussed two weeks after the conclusion of the event. Unfortunately, no resolution was passed because key councillors boycotted the following council meeting.” This has left the matter unresolved and the LCFT without access to designated funds. “Despite this we made alternative financial arrangements through credit facilities with financial institutions and private sector partners to ensure the festival goes ahead.”
Sabotage
The LCFT said that it was disheartening to note that while some councillors including the mayor of the harbour town, Phillipus Balhao, publicly promoted the festival, they are simultaneously part of the governing body that is withholding funds required for its successful execution. “This contradiction undermines the integrity of the event and raises questions about the motives behind such actions. We are particularly concerned that some officials may be attending to divert LCF funds to unrelated initiatives tied to the Mayoral Trust projects which is clearly outside the purpose defined by the Ministry of Fisheries and Marine Resources.” The LCFT said it views any such attempt to divert the funds from its intended purpose as a violation of the directive from the ministry and regards actions to delay or disrupt the LCF during its planning stages as sabotage. “These actions are driven by political expediency rather than community interest. The LCF is a regional, national and cultural event that belongs to the people of Lüderitz. It is a platform to celebrate our heritage, boost our economy and provide opportunities for small businesses and local artists.”
Ministerial intervention
The former Minister of Fisheries and Marine Resource Derek Klazen in a letter (copy seen by this publication) addressed to Balhao dated 4 April 2024 acknowledged that the LTC receives an annual hake quota for the exclusive use of the LCF. “As you may respectfully further be aware, the LCF Committee has since assumed a justistic personality under the form and style of LCFT, with its Deed of Trust number 07/2014 under the trusteeship of selected key individuals representing various interested parties including council representation. With this letter, I implore you to facilitate the placing of the funds under the direct care of the LCFT by transferring the necessary funds to enable the fund to do its preparatory work,” Klazen wrote.
In response
In a letter (seen by this publication) written to Klazen on the issue of the releasing of quota usage funds for the LCFT in 2024 and in response to the letter dated 04 April 2024 by the former minister, Balhao acknowledged that the LTF receives an annual fishing quota allocation. “I however fail to understand how, where, when, by whom, and under which authority, funds derived from the sales of the annual fishing quota and belonging to the Lüderitz Town Council is transferred into the hands of a private trust who ‘purportedly’ represents ‘key individuals’ representing various interested parties. I fail to understand how, where, when, by whom, and under which authority an agreement could have been reached between the Lüderitz Town Council and the Lüderitz Crayfish Trust for this private trust to take charge and responsibility of millions of Namibia dollars annually, failing to follow the procurement procedures set out in the Local Authorities Act No. 23 of 1992,” he wrote.
Balhao also told the minister that it was most disturbing that the Lüderitz Crayfish Trust failed to financially account to the Lüderitz Town Council for the funds annually transferred into its trust account. “The quota allocation and existing trust are inherited from the previous council and to safeguard this council from any irregular and unlawful conduct. I will present your letter to the current LTC to review this issue through a competent court to establish what is legal and not legal,” he stated.
Quota funds
The LCFT explained that a fishing quota was allocated in 2023 by the Ministry of Fisheries and Marine Resources, exclusively for the hosting of the annual festival. “In accordance with the established procedure, the funds derived from this quota were channeled through the LTC and regrettably have to date not been released to the LCFT.” The LCFT said that the LTC initially requested that audited financial statements and an accountability report be submitted for the 2023 festival. “When we complied, the council questioned the legitimacy of the Fisheries Minister to issue a quota via council to the LCFT. The minister wrote a letter to council in which he unequivocally clarified the intended recipient of the funds and its purpose.”
Impasse
According to the LCFT, the council ignored the minister's directive without offering any clear legal basis for withholding the funds citing that it (Council) had sought a legal opinion on the matter. The LCFT says a lack of transparency and indefinite delays has put the LCF in a difficult financial position. “A meeting was called with the LTC three weeks ago and LCFT urged the council to separate ongoing administrative concerns from the immediate need to deliver a successful and inclusive Crayfish Festival for the community of Lüderitz. The understanding was that the festival would proceed and any remaining issues would be discussed two weeks after the conclusion of the event. Unfortunately, no resolution was passed because key councillors boycotted the following council meeting.” This has left the matter unresolved and the LCFT without access to designated funds. “Despite this we made alternative financial arrangements through credit facilities with financial institutions and private sector partners to ensure the festival goes ahead.”
Sabotage
The LCFT said that it was disheartening to note that while some councillors including the mayor of the harbour town, Phillipus Balhao, publicly promoted the festival, they are simultaneously part of the governing body that is withholding funds required for its successful execution. “This contradiction undermines the integrity of the event and raises questions about the motives behind such actions. We are particularly concerned that some officials may be attending to divert LCF funds to unrelated initiatives tied to the Mayoral Trust projects which is clearly outside the purpose defined by the Ministry of Fisheries and Marine Resources.” The LCFT said it views any such attempt to divert the funds from its intended purpose as a violation of the directive from the ministry and regards actions to delay or disrupt the LCF during its planning stages as sabotage. “These actions are driven by political expediency rather than community interest. The LCF is a regional, national and cultural event that belongs to the people of Lüderitz. It is a platform to celebrate our heritage, boost our economy and provide opportunities for small businesses and local artists.”
Ministerial intervention
The former Minister of Fisheries and Marine Resource Derek Klazen in a letter (copy seen by this publication) addressed to Balhao dated 4 April 2024 acknowledged that the LTC receives an annual hake quota for the exclusive use of the LCF. “As you may respectfully further be aware, the LCF Committee has since assumed a justistic personality under the form and style of LCFT, with its Deed of Trust number 07/2014 under the trusteeship of selected key individuals representing various interested parties including council representation. With this letter, I implore you to facilitate the placing of the funds under the direct care of the LCFT by transferring the necessary funds to enable the fund to do its preparatory work,” Klazen wrote.
In response
In a letter (seen by this publication) written to Klazen on the issue of the releasing of quota usage funds for the LCFT in 2024 and in response to the letter dated 04 April 2024 by the former minister, Balhao acknowledged that the LTF receives an annual fishing quota allocation. “I however fail to understand how, where, when, by whom, and under which authority, funds derived from the sales of the annual fishing quota and belonging to the Lüderitz Town Council is transferred into the hands of a private trust who ‘purportedly’ represents ‘key individuals’ representing various interested parties. I fail to understand how, where, when, by whom, and under which authority an agreement could have been reached between the Lüderitz Town Council and the Lüderitz Crayfish Trust for this private trust to take charge and responsibility of millions of Namibia dollars annually, failing to follow the procurement procedures set out in the Local Authorities Act No. 23 of 1992,” he wrote.
Balhao also told the minister that it was most disturbing that the Lüderitz Crayfish Trust failed to financially account to the Lüderitz Town Council for the funds annually transferred into its trust account. “The quota allocation and existing trust are inherited from the previous council and to safeguard this council from any irregular and unlawful conduct. I will present your letter to the current LTC to review this issue through a competent court to establish what is legal and not legal,” he stated.
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