Ray Smuts
WHAT Cape Town requires as a matter of urgency is an angel of mercy with a fat cheque book - and bank balance to match - after last week's disquieting news that the insurers of the huge sunken ore carrier Treasure may not be able to pay the estimated
R60 million owing after the 1 000-ton oil spill from the vessel in June.
It is what maritime attorney Gavin Fitzmaurice describes as an all fall down scenario as there would then really be nothing left but a rusting hulk on the ocean bed five miles off Melkbosstrand.
In a dramatic announcement, Michael Edmund, lawyer for Sanccob, said the Treasure's insurers, Jonathan Jones, had gone into what is known as run off, meaning claims against them would only be paid if funds were available.
He pointed out that in the event of the Lloyds-underwritten insurance company being unable to honour its commitments, a central (Lloyds) fund would settle valid claims only as a last resort..
Edmund said several large claims had been lodged with the insurers for hull damage to Treasure and that members of the syndicate making up the company had gone into a policy dispute. Assurances had been given that claims would be processed but in spite of advance payments from the insurers the situation ahead looked bleak.
The laundry bill for 20 000 oil-soaked penguins currently stands at R4,5 million but estimates put the final tally as high as
R13 million.
Sanccob manager Estelle van der Merwe said creditors were already knocking at the door and that payment was therefore a priority.
Disappointment has been expressed that Treasure's claims are taking so long to be settled but it should be borne in mind that that insurance payments from the 1994 Apollo Sea and 1996 Cordigliera oil spills took five years and more than three years respectively to settle.
Some of the costs related to the Treasure disaster thus far are:
l Salvage operation to remove oil from the wreck - R20 million
l Sanccob's estimated final cost - R13 million
l Sanccob's oil penguin
rescue - R4,5 million
l Western Cape Nature Conservation costs for translocation of 20 000 cleaned penguins -
R8 million
l Portnet costs for cleaning Table Harbour - R2 million
l Running costs for Kuswag vessels and aircraft -
R2 million
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