SanLei Premium Trout, cited as Africa’s largest trout farm, contributed R5,000 to a community fund, falling short of its responsibility to support local communities per its license requirements. The Catchment Resilience Fund initiative has reportedly failed, further complicating conditions for local farmers facing soil erosion and climate issues. Regulatory oversight by the Lesotho Highlands Development Authority highlights gaps in accountability and fund management for local benefit.
SanLei Premium Trout, claiming to be Africa’s largest trout farm, has contributed a mere R5,000 to the community fund in the Katse Dam area of the Lesotho Highlands, despite its operational claims. Required by the Lesotho Highlands Development Authority to demonstrate community benefits for its licensing, the initiative known as the Catchment Resilience Fund has reportedly failed within a year, impacting local farmers negatively due to environmental changes.
The trout farm, located on Katse Dam in the Lesotho mountains, states it has invested in community projects amid challenges like overgrazing and soil erosion. Nonetheless, the R5,000 contribution made in 2018 was not allocated to environmental projects. SanLei, managed by South Africa’s Mergence Asset Managers, is partially owned by Lesotho’s Public Officers’ Defined Contribution Pension Fund, emphasizing a minimal financial commitment to local welfare.
SanLei’s CEO, Dewald Fourie, indicated that trout production is at 1,000 tons annually, targeted to double by 2030. However, local farmer compensation for land loss due to dam construction has been inconsistent, with many suffering soil degradation and loss of resources. Mergence’s 2023 report highlighted the CaRe Fund’s goal to motivate local farmers to manage the rangeland better, but failures tarnished its execution, with reports of misallocation of funds for office constructions rather than community initiatives.
The community initiatives failed to adequately restore the rangeland, and villagers like ‘Malieketso Ramokoatsi expressed disappointment over the management of funds. Complaints noted signs of vandalism and a lack of support for necessary training programs. Although SanLei officials claimed contributions to the rangeland program, the project was primarily supported by USAID, which canceled its involvement in 2018, leading to a project collapse.
The Lesotho Highlands Development Authority, responsible for regulatory oversight, instructed SanLei to revive the community fund. Despite inquiries made to LHDA and requests for responses from company representatives regarding compliance, no substantial feedback has been provided. Local residents claim that environmental conditions have deteriorated since the dam’s creation, with changes such as increased hailstorm frequency contributing to crop failures and exacerbating food insecurity.
The situation surrounding SanLei Premium Trout illustrates the complexities of corporate-community relations in resource management. A mere R5,000 contribution amidst substantial claims of community support exposes inadequate accountability mechanisms in place. As environmental conditions worsen for local farmers, the pressing need for genuine partnerships and effective fund management to support impacted communities cannot be overstated. The decline of the Catchment Resilience Fund emphasizes the need for tangible engagement and real benefits to local stakeholders, ensuring sustainable development practices in the region.
Original Source: groundup.org.za
