The auditing arm of the Environment Ministry says commercial fishermen have received $112 million in subsidized fuel for their boats in seven years — and have used it for fishing in protected areas and other illegal activities.

The auditors called for elimination of the subsidy, although their boss, Environment Minister Rene Castro, was not prepared to go that far. But he harshly criticized INCOPESCA, the government fishing agency, for not keeping closer watch.

Commercial fishermen get a break on gasoline and diesel that NO other fuel purchasers except bus lines can enjoy. But the Ministry says that not only do commercial fishermen use it for illegal fishing but other illicit activities including transport of narcotics.

In the last few decades, protected areas have been enlarged but the local Coast Guard has too few resources to trap international poachers, let alone the large number of smaller vessels used by native fishermen.

Recope, the national refinery, lets them have tax-free fuel, a savings of 20-30%. In the years since 2008, fuel consumption under the tax break has increased from 26.6 million liters to 36.3 million.

INCOPESCA president Luis Dobles rejected the Ministry auditors, claiming they were parroting environmentalists. “The Environmental Ministry doesn’t have any jurisdiction,” he said. (INCOPESCA is under the Agriculture Ministry.)

The report of the auditors was scathing, however, accusing INCOPESCA of turning a blind eye toward illegal fishing. The report said that between 2010 and 2011, there were 142 cases of fishing violations off Cocos Island protected area — and no arrests.

“We’ve sent this report to the Administration,” said Castro, “because we believe the sum ($112 million) is large enough to merit a periodic review, to correct incentives and improve resources for this sector.”

Not only Castro refused to support eliminating the subsidies but Minister of Agriculture Gloria Abraham agreed, saying, “The spirit behind… the fuel subsidy, that of backing fishermen, remains in force.”

But she acknowledged that wrongdoers should be punished and promised to review INCOPESCA and its supervisory procedures.

But Dobles was having none of this and called the idea of eliminating the subsidy an “aberration.”

Commentary: One can easily see from this interchange where the battle lines are drawn: fishermen and their “union,” INCOPESCA, and environmentalists and the public. Instead of serving the nation, INCOPESCA has served only the extremely narrow slice of the economy it works with.

Unless the Agriculture Ministry forces INCOPESCA, there will be no change in their winking at violations as they have for decades.