SanLei Premium Trout’s Contribution to Local Communities Under Scrutiny

SanLei Premium Trout, Africa’s largest trout farm, contributed only R5,000 to a community fund while seeking its license from the Lesotho Highlands Development Authority. The Catchment Resilience Fund, intended to support local beneficiaries, has collapsed, with local farmers indicating environmental conditions have worsened due to the dam’s impact. Discrepancies regarding financial contributions and limited project oversight underscore the need for better accountability and community involvement.
SanLei Premium Trout, claiming to be Africa’s largest trout farm, provided merely R5,000 to the community fund in the Katse Dam catchment area while applying for its operating license. The intended initiative, the Catchment Resilience Fund (CaRe Fund), aimed to support local communities but has reportedly collapsed within just a year. Local farmers express that environmental conditions have significantly deteriorated due to changes instigated by the dam’s construction.
Despite asserting its investment in community projects, SanLei’s contributions to the CaRe Fund were minimal and inadequately utilized for environmental restoration. The firm is owned by Mergence Asset Managers, with major backing from regional pension funds. The company reported an annual trout production of 1,000 tons, expecting to double this by 2030. However, the creation of the dams has adversely affected local communities, leading to overgrazing and erosion issues.
Mergence’s 2023 report outlined the fund’s intention to remedy the degraded rangeland management by the Khokhoba farmers but highlighted failures in its execution. Plans to restrict grazing were not properly developed, and funds were diverted for unintended purposes, such as establishing a village chief’s office instead of environmental management support. Moreover, local input revealed vandalism of any management resources, further discouraging community engagement.
Relebohile Ntoi, SanLei’s compliance officer, claimed additional contributions to the project, although discrepancies arose regarding the actual amounts disbursed. SanLei’s lack of proactive management in the fund’s initiatives has been emphasized by community leaders, who noted that external funding for climate change projects is essential, as was the case with USAID’s previous support now withdrawn.
The Lesotho Highlands Development Authority oversees environmental integrity in the dam area, requiring aquaculture license applicants to demonstrate community benefits. Unanswered inquiries regarding SanLei’s obligations and accountability indicate a lack of transparency and engagement with local stakeholders. Villagers resonate the struggles brought on by climate change, with altered rainfall patterns adversely affecting agricultural production, ultimately increasing food insecurity within the community.
In summary, the situation surrounding SanLei Premium Trout and the Catchment Resilience Fund illustrates significant shortcomings in corporate accountability and community benefit realization. As the largest trout farm in Africa, the minimal contributions to local welfare alongside the environmental degradation highlight inefficiencies in partnership initiatives. Furthermore, inadequate oversight from local authorities raises concerns over future accountability and sustainable development within affected communities.
Original Source: groundup.org.za