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Why MPs choked P1billion transfer

Minister of Finance and Economic Development, Dr Thapelo Matsheka was on Thursday this week forced to withdraw a request to have P1.1 billion appropriated from the Development Budget to fund shortfalls in Government’s re-current budget owing to unbudgeted increment of public service salaries.

The withdrawal followed a fierce resistance from opposition benches, with the Umbrella for Democratic Change (UDC) threatening to take the matter to court for interdiction. The UDC collectively believed that appropriating money from the development fund to augment shortfalls in the recurrent budget would be at variance with the Public Finance Management Act. The request was tabled on Wednesday before parliament, but consequent to UDC resistance, the matter was referred to the General Assembly [comprising all MPs] which met on Thursday morning for further discussion.

According to Dr Matsheka, at the General Assembly, it was concluded, through the guidance of Attorney General that the request to reallocate funds from the Development Fund to finance projected shortfall in the recurrent budget, as result of the salary adjustments approved after the 2019/2020 budget was concluded, was legal.

 “The opinion from the Attorney General proffered this morning [Thursday] at the General Assembly was that, indeed, the request by my Ministry was legal in terms of the supreme law of this country, which is the Constitution,” Matsheka told parliament when withdrawing the request. Dr Matsheka eventually agreed to withdraw the request in favour of a more agreeable approach.

It has emerged that while Public Finance Management Act forbids what the Minister of Finance proposed before parliament, the ruling party tried to find their way through the constitution, as they believed it is the “supreme law”, enough to relegate the Public Finance Management Act to a mere provision. However, the UDC court action threats were alive, and BDP feared the matter could enter the public domain and cause a stir should the opposition MPs challenge it in court.

WeekendPost also established that, a number of BDP legislators also opposed the request. One MP who opposed the motion from the floor on Wednesday, in presence of President Mokgweetsi Masisi, was Reggie Reatile, the Jwaneng-Mabutsane representative. Prior to reaching parliament, the request was first put before the Finance and Estimates Committee, Chaired by Kanye North lawmaker, Thapelo Letsholo.

Despite the Committee raising concerns with the request, it gave the proposal thumbs up. The committee comprises of Letsholo, Tshekedi Khama (Serowe West), Ignatius Moswaane (Francistown West), Tumisang Healy (Gaborone Central), Wynter Mmolotsi (Francistown South), Dr Kesetegile Gobotswang (Sefhare-Ramokgonami), Liakat Kablay (Letlhakeng-Lephephe), and Oarabile Regoeng (Molepolole North).

The Committee indicated its concern “over diversion of funds allocated to the development projects to finance the recurrent budget.” During his proposal, Dr Matsheka contented that the shortfall in the recurrent budget was an emergence, while the opposition were of the view that the decision to increase salaries in the absence of funds was for political expediency.

“Presidential Directive CAB.1/99 stipulates that only Supplementary Budget requests that arose from emergencies or were not foreseen qualify under this dispensation. Government took a decision to award salary and allowances increases to public servants after the budget process for financial year 2019/2020 was concluded,” Matsheka argued.

INCREMENT OF PUBLIC SERVANT SALARIES WAS NOT BUDGETED FOR  

During the past few months, Government made several commitments, including salary increment for two consecutive financial years as well as adjustment of salaries for public servants within security forces; namely Botswana Defence Force (BDF), Botswana Police Service (BPS) and Botswana Prisons Service (BPS).

A total of four ministries namely: Presidential Affairs, Governance and Public Administration; Basic Education; Local Government and Rural Development; and Defence, Justice and Security, had submitted Supplementary Budget requests to be funded from the Consolidated Fund. The Ministry of Presidential Affairs, Governance and Public Administration requested an additional funds amounting to P12,447,940. The request was to cater for the shortfall arising from adjustment of salaries for public officers for financial year 2019/2020 under the Directorate on Intelligence and Security (DIS).

The salary adjustments of 10 percent, 6 percent and 4 percent, for salary scales A and B; C and D; and E and above, respectively, were announced by Government in March 2019, after the budget for 2019/2020 financial year had been concluded. The salary adjustments were implemented with effect from 1st April, 2019.

The Ministry of Basic Education required a total supplementary funding of P71,234,580. Of this amount, a sum of P60,869,290 was needed to augment the shortfall under the Basic Salary and Allowances accounts at Headquarters, the Department of Out of School Education and Training and the Department of Teaching Service Management. The salaries and allowances accounts need additional funding following Government’s decision to award salary adjustments of 10 percent, 6 percent and 4 percent for various salary 8 grades effective from April 2019.

The remainder of P10,365,290 was intended to cover the shortfall in the Temporary Teachers account of the Department of Secondary Education. The Ministry of Local Government and Rural Development requested additional funding of P260,014,920 comprising P122,517,050 for Revenue Support Grant (RSG) to Councils and P137,497,870 for Social Protection Allowances. Under the RSG, the shortage is caused by increases to staff salaries, allowances and pension contributions, which were affected by the 10 percent, 6 percent and 4 percent salary adjustments.

Councillors’ salaries, termination allowances and other allowances have been increased by various amounts whilst the Ward/Village/Umbrella Development Committees’ allowances were increased by P50 per beneficiary per month. In regard to social protection allowances namely; Destitute Allowance, Disability Allowance and Old Age Pension Scheme, the increases were P50 per beneficiary per month for the first two (2) allowances and P100 per beneficiary per month for Old Age Pension Scheme.

The increases were also announced after the budget for 2019/2020 had been concluded. The Ministry of Defence, Justice and Security requires a total sum of P757,402,760 for Basic Salary and Allowances for three of its departments. These are Botswana Defence Force at P248,353,120; Botswana Police Service at P430,508,030; and Prisons and Rehabilitation for P78,541,610. The additional provision was intended to cover the shortfall caused by the 10 percent, 6 percent and 4 percent salary adjustments, which took effect on 1 st April 2019.

SEVERAL PROJECTS FACED SACRIFICE

In order to mitigate against the crisis, cabinet tried to sacrifice certain projects, which were perceived to be not on time. “Given the increasingly constrained fiscal space, my Ministry has assessed and identified areas of possible savings from slow spending projects funded under the Development Fund to finance the Consolidated Fund Supplementary Estimates requests. “I am proposing reallocations from the 2019/2020 Development Budget of the Ministry of Land Management, Water and Sanitation Services (MLWS).

“In this connection the sum of P1,101,100,200 comprising P800,000,000; P200,000,000 and P101,100,200 from the Water Supply Pipelines; Water Supply and Sanitation Networks; and the Land Development projects respectively, is proposed for reallocation. “These are slow spending projects that are still left with sizeable unspent balances. This proposed reallocation will not have any adverse effect on the annual 10 budgets of the projects concerned nor on the Total Estimated Cost,” Matsheka told parliament.

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Jackdish Shah loses interest in BDP

17th May 2022
Jackdish

As the preparations for the Botswana Democratic Party (BDP) congress are about to kick off, reports on the ground suggest that the party’s Deputy Treasurer Jackdish Shah will not defend the position in August as he contemplates relocation.

According to sources, the businessman who joined the BDP Central Committee in 2015 at the 36th Congress held in Mmadinare is ready to leave the party’s politburo. It is said he long made up his mind not to defend the position last year. A prominent businessman, Shah, when he won the position to assist Satar Dada in 2015 was expected to improve the party’s financial vibrancy. By then the party was under the leadership of Ian Khama.

According to close sources, Shah long decided not to contest because he has fallen out of favour with the party leadership. It is said he took the decision after some prominent businessmen who are BDP members and part of football syndicate decided to push him out and they used their proximity to President Mokgweetsi Masisi to badmouth him hence the decision.

“The fight at the Botswana Football Association (BFA) and Botswana Football League (BFL) has left him alone in the desert and some faces there used their close access to the President to isolate him,” said a source. Media reports say, Shah does not see eye to eye with BFA President MacLean Letshwiti who is also Masisi’s buddy hence the decision.

BFL Chairman Nicholas Zackhem is said to be not in good terms with Shah, who at one point Chaired the then Botswana Premier League (BPL). “He is seriously considering quitting because of what is unfolding at the team (Township Rollers) which is slowly not making financial gains and might be relegated and he wants to sell while it is still worth the investment,” said a highly placed source.

Shah is a renowned businessman who runs internet providing company Zebra net, H &G, game farm in Kasane, cattle farm in Ghanzi region and lot of properties in Gaborone. He also has two hotels in USA, his advisors have given him thumbs up on the possible decision of relocating provided he does not sell some of the investments that are doing well.

Asked about whether he will be contesting Shah could not confirm nor deny the reports. It is said for now it is too early as a public decision will have to be taken after the national council meeting and prior to the national congress. “As a BDP Central Committee member he cannot make that announcement now,” a BDP source said.

BDP is expected to assemble for the National Council during the July holidays while the National Congress is billed for August. It is then that the party will elect a new CC members. The last time BDP held elective congress was at Kang in 2019. The party is yet to issue writ.

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Govt ignores own agreements to improve public service

17th May 2022
Govt

The government has failed to implement some commitments and agreements that it had entered into with unions to improve conditions of public servants.

Three years after the government and public made commitments aimed at improving conditions of work and services it has emerged that the government has ignored and failed to implement all commitments on conditions of service emanating from the 2019 round of negotiations.

In its position paper that saw public service salaries being increased by 5%, the government the government has also signalled its intention to renege on some of the commitments it had made.
“Government aspires to look into all outstanding issues contained in the Labour Agreement signed between the Employer and recognised Trade Union on the 27th August 2019 and that it be reviewed, revised and delinked by both Parties with a view to agree on those whose implementation that can be realistically executed during the financial years 2022/23, 2023/24 and 2024/25 respectively,” the government said.

Furthermore, in addition to reviewing, revising and de-linking of the outstanding issues contained in the Collective Labour Agreement alluded to above and taking on a progressive proposal, government desires to review revise, develop and implement human resource policies as listed below during the financial year 2022/23,2023/24,2024/25

They include selection and appointment policy, learning and development policy, transfer guidelines, conditions of service, permanent and pensionable, temporary and part time, Foreign Service, expatriate and disciplinary procedures.

In their proposal paper, the unions which had proposed an 11 percent salary increase but eventually settled for 5% percent indicated that the government has not, and without explanation, acted on some of the key commitments from the 2019/2020 and 2021/22 round of negotiations.  The essential elements of these commitments include among others the remuneration Policy for the Public Service.

The paper states that a Remuneration Policy will be developed to inform decision making on remuneration in the Public Service. It is envisaged that consultations between the government and relevant key stakeholders on the policy was to start on 1st September 2019, and the development of the policy should be concluded by 30th June 2020.

The public sector unions said the Remuneration Policy is yet to be developed. The Cooperating Unions suggested that the process should commence without delay and that it should be as participatory as it was originally conceived. Another agreement relate to Medical Aid Contribution for employees on salary Grades A and B.

The employer contribution towards medical aid for employees on salary Grades A and B will be increased from 50% to 80% for the Standard Option of the Botswana Public
“Officers’ Medical Aid Scheme effective 1st October 2019; the cooperating unions insist that, in fulfilling this commitment, there should be no discrimination between those on the high benefit and those on the medium benefit plan,” the unions proposal paper says.

Another agreement involves the standardisation of gratuities across the Public Service. “Gratuities for all employees on fixed term contracts of 12 months but not exceeding 5 years, including former Industrial class employees be standardized at 30% across the Public Service in order to remove the existing inequalities and secure long-term financial security for Public Service Employees at lower grades with immediate effect,” the paper states.

The other agreement signed by the public sector unions and the government was the development of fan-shaped Salary Structure. The paper says the Public Service will adopt a best practice fan-shaped and overlapping structure, with modification to suit the Botswana context. The Parties (government and unions) to this agreement will jointly agree on the ranges of salary grades to allow for employees’ progression without a promotion to the available position on the next management level.

“The fan-shaped structure is envisaged to be in place by 1st June 2020, to enable factoring into the budgetary cycle for the financial year 2021/22,” the unions’ proposal paper states. It says the following steps are critical, capacity building of key stakeholders (September – December 2019), commission remuneration market survey (3 months from September to November 2019), design of the fan-shaped structure (2 to 3 months from January to March2020) and consultations with all key stakeholders (March to April 2020).

The unions and government had also signed an agreement on performance management and development: A rigorous performance management and reward system based on a 5-point rating system will be adopted as an integral part of the operationalization of the new Remuneration System.

Performance Management and Development (PMD) will be used to reward workers based on performance. The review of the Performance Management System was to be undertaken in order to close the gaps identified by PEMANDU and other previous reports on PMS between 1st September 2019 and 30th June 2020 as follows; internal process to update and revise the current Performance Management System by January 2020.

A job evaluation exercise in the Public Service will also be undertaken to among others establish internal equity, and will also cover the grading of all supervisory positions within the Public Service.
Another agreement included overtime Management. The Directorate of Public Service Management (DPSM) was to facilitate the conclusion of consultations on management of overtime, including consideration of the Overtime Management Task Team’s report on the same by 30th November 2019.

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Health Expert rejects ‘death rates’ links to low population growth

17th May 2022
Health-Expert

A public health expert, Dr Edward Maganu who is also the former Permanent Secretary in the Ministry of Health has said that unlike many who are expressing shock at the population census growth decline results, he is not, because the 2022 results represents his expectations.

He rushed to dismiss the position by Statistics Botswana in which thy partly attributes the low growth rates to mortality rates for the past ten years. “I don’t think there is any undercounting. I also don’t think death rates have much to do with it since the excessive deaths from HIV/AIDS have been controlled by ARVs and our life expectancy isn’t lower than it was in the 1990s,” he said in an interview with this publication post the release of the results.

Preliminary results released by Statistics Botswana this week indicated that Botswana’s population is now estimated to be 2,346,179 – a figure that the state owned data agency expressed worry over saying it’s below their projected growth. The general decline in the population growth rate is attributed to ‘fertility’ and ‘mortality’ rates that the country registered on the past ten years since the last census in 2011.

Maganu explained that with an enlightened or educated society and the country’s total fertility rate, there was no way the country’s population census was going to match the previous growth rates.
“The results of the census make sense and is exactly what I expected. Our Total Fertility Rate ( the average number of children born to a woman) is now around 2.

This is what happens as society develops and educates its women. The enlightened women don’t want to bear many children, they want to work and earn a living, have free time, and give their few children good care. So, there is no under- counting. Census procedures are standard so that results are comparable between countries.

That is why the UN is involved through UNFPA, the UN Agency responsible for population matters,” said Maganu who is also the former adviser to the World Health Organisation. Maganu ruled out undercounting concerns, “I see a lot of Batswana are worried about the census results. Above is what I have always stated.”

Given the disadvantages that accompany low population for countries, some have suggested that perhaps a time has come for the government to consider population growth policies or incentives, suggestions Maganu deems ineffective.

“It has never worked anywhere. The number of children born to a woman are a very private decision of the woman and the husband in an enlightened society. And as I indicated, the more the women of a society get educated, the higher the tendency to have fewer children. All developed countries have a problem of zero population growth or even negative growth.

The replacement level is regarded as 2 children per woman; once the fertility level falls below that, then the population stops growing. That’s why developed countries are depending so much on immigration,” he said.

According to him, a lot of developing countries that are educating their women are heading there, including ourselves-Botswana. “Countries that have had a policy of encouraging women to have more children have failed dismally. A good example is some countries of Eastern Europe (Romania is a good example) that wanted to grow their populations by rewarding women who had more children. It didn’t work. The number of children is a very private matter,” said Maganu

For those who may be worried about the impact of problems associated with low growth rate, Maganu said: “The challenge is to develop society so that it can take care of its dependency ratio, the children and the aged. In developed countries the ratio of people over 60 years is now more than 20%, ours is still less than 10%.”

The preliminary results show that Mogoditshane with (88,098) is now the biggest village in the country with Maun coming second (85,293) and Molepolole at third position with 74,719. Population growth is associated with many economic advantages because more people leads to greater human capital, higher economic growth, economies of scale, the efficiency of higher population density and the improved demographic structure of society, among many others.

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