Minister Moosa today announced that the Cabinet has approved an additional 10 million as bridging finance to cover the cost of the clean up operation of the oil spill after the sinking of the Treasure in June this year. This amount will also be utilised by SAMSA and the Department of Environmental Affairs and Tourism to cover any short fall unlikely to be covered by the insurance.

The sinking of the Treasure in Table Bay in the early hours of June 23rd resulted in oil pollution of the bay, the harbour, and the surrounding shorelines including those of the Atlantic seaboard, Robben and Dassen Islands. The slick also impacted on some 20,000 penguins which has resulted in a massive rehabilitation programme coordinated by SANCCOB and Cape Nature Conservation but with the assistance of numerous other organisations. The overall clean up has been coordinated by the Department of Environmental Affairs and Tourism, but, as per the DEAT’s Coastal Contingency Plans, the Local Authorities have also been involved in the shoreline clean-up efforts.

The total estimated costs of the oil recovery, penguin rehabilitation and shoreline clean-up activities are R 51 million. As of the 4th September, claims of some R 26 million have already been submitted to the insurers, of which R 24 million has either been paid out, or approved for payment. There is also every indication that the insurers will eventually pay the full costs, provided that the claims are reasonable, and that they do not exceed the limit of liability. Until such time as all claims have been submitted, the insurers can only make payments of up to 75% of claims. A need for bridging finance to assist key players was noted as critical and prompted the Minister to approach Cabinet for assistance.

Speaking at the Robben Island Beach Clean Up organized for the DEAT [ MCM] staff to celebrate National Marine Week, Minister Moosa commended the Staff for their ‘sterling role in cleaning up the shoreline ". The restoration of the sandy beaches, completed within a month of the sinking of the treasure was a near miracle and made the work of saving the penguin population worth the while of all involved". The clean-up including areas on Robben and Dassen Islands, as well as Mouille Point, Clifton, Llandudno and Sandy Bay. Steam cleaning of the contaminated rocks has also been completed in most areas.

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1] The DEAT Co-ordinated and participated in the following operation:

• Securing of the vessel, plugging of oil leaks.
• Recovery of the oil on board
• Recovery of oil on the water using the "Albatross"
• Dispersal of slick by means of two Kuswag vessels;
• Overflights by the Kuswag 7;
• Removal and disposal of oil from beaches;
• Steamcleaning of contaminated rocks
• Collection, transport and treatment of 20,000 oil-covered penguins
• Capture and transport of clean penguins to Port Elizabeth to remove them from the threat of oiling.

2] . Over All Financial implications

• The final total cost of the above operation is estimated at R 51 million, of which approximately R 23 million is attributable to the salvage side of the operation. SANCCOB is anticipating final costs of some R 10 million rand, with the balance coming from Portnet, and the various authorities ( DEAT, provincial and local).

• As of the 4th September, claims of some R 26 million have already been submitted to the insurers, and some R 24 million has either been paid out, or approved for payment.

• Despite the fact that the original underwriters (JL Jones) have gone into runoff, their former financial backer - Markel - have given assurances that they will honour their financial responsibilities. Claims are now being handled through the claims office at Lloyds, and, in view of the payments that have been made in the last two weeks, there is every indication that the insurers will eventually pay the full costs, provided that the claims are reasonable, and that they do not exceed the limit of liability.

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