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MPs reject P 900 million suspicious tender

Members of Parliament (MPs) on Thursday reigned supreme when they rejected a supplementary budget proposal brought before parliament by Minister of Finance and Economic Development, Kenneth Matambo in order to finance the suspicious P900 million North-South Carrier II tender.

In a rare development, amid political unrest in the ruling party, a number of legislators from the Botswana Democratic Party (BDP) joined ranks with the opposition benches to reject the supplementary budget. After a spirited debate, coupled with ruling party caucuses at intervals, 26 MPs voted against the supplementary, with 24 voting in favour.

The North- South Carrier II Project which was not part of the current National Development Plan 11 was conjured recently by cabinet, with the several sources claiming that the tender was tailor made for a company that would later help fund BDP’s general elections campaign. The BDP has rejected this outright in a statement released a fortnight ago. The BDP recently made it public knowledge that the party is broke and that it will raise funds in order to finance its bid to retain state power. The party has pledged to go back to its members for finances.

The tender, which was initially valued at P700 million was later altered to P900 million before being awarded to Khato Civils. It has emerged from Finance and Estimates Committee, chaired by Member of Parliament for Francistown West, Ignatius Moswaane that the project did not have a budget, and that it was not conceptualised by the ministry as per procedure.

 “The project had no urgency because it was going to be covered by the NS2 (North South Carrier 2). It is alleged that the Office of the President then became the sponsor of the project then put pressure on the Permanent Secretary to embark on the project,” the committee noted in its recommendations.

According to Report on Supplementary Estimates of Expenditure from the Consolidated and Development Funds from the Finance and Estimates Committee Financial Paper No. 1 of 2019/2020, the Minister should have motivated for the inclusion of the project into the NDP 11 first through the midterm review.

The report also indicate that with the commissioning of the Pump Station 4.1 to increase the water volumes, further pumping and injections of Masama water into NSC1 will have not been possible. What came out clearly was that, with Pump Station 4.1 in action, Masama would need a separate pipeline if it is to be pumped, the committee resolved. The report also rebuffs the involvement of the Directorate of Intelligence and Security Service (DIS) in projects’ and contractors. It indicates that the DIS issued directives to the Ministry which led to the cancellation of one of the NSC11 tenders.

“What the Ministry out to have done was to have given the contractor an opportunity to advance its justification to proceed with the works instead of cancelling the contract immediately,” said the report. The committee is of the view that the NSC 11 projects would have been at an advanced stage had it not been for the involvement of DIS. According to Moswaane’s report Water Utilities Corporation Management Tender Committee had flaunted the Procurement procedures by evaluating and awarding a tender without first securing the project funding.

“The procedure is that you first secure the budget because the process of tendering is expensive and one should not incur such costs or commit government without assurance that the project will proceed or be funded,’’ the report said. The WUC Management Tender Committee evaluated the tender in June 2018, and Khato Civils was deemed the lowest cost priced amongst the 3 bidders which had proceeded to this stage at a contract price of P781 555, 356. 90.

This price was above the initial project budget of P750 000 000 by P31, 555, 356.90 (4.2%). The Management tender Committee awarded the tender to Khato Civils pending contracting. “This process was procedural as the Presidential Directive was also clear in who should undertake the pre- tender and pre- contracting process. It has not been adequately explained why the Ministry needs P900 000 000 for the project that was awarded at an escalated value of P781 555, 356. (From an original budget project of P 750 000 000)”.

On awarding the tender to Khato Civils, the bidder was further advised of the condition of the award as relating to the fixed prices and non-escalation of costs as per the approved bid. Cabinet members were reportedly divided over the awarding of the project but they were overruled and the matter was put to bed by authorising the award of the tender to Khato Civils at P900 million.

Moswaane on Thursday told parliament that he was aware, and that he had information indicating that the tender had already been awarded. This was despite the fact that Minister of Finance and Economic Management, Kenneth Matambo claimed that the tender was yet to be awarded, according to his knowledge. The awarding of the tender is also linked with the departure of Chief Executive Officer (CEO), of WUC, Mmetla Masire weeks ago after he reportedly disapproved the purchasing of the pipes directly from China.

Masire was reportedly adamant that the pipes can be sourced readily available in Botswana and South Africa, instead of being procured in China, sources said. It is said that procurement of pipes went on even though the budget was not approved by the ministry because other stakeholders we not on board when the decision was made. Sources indicate that some funds which were allocated to refurbish Lobatse Water Reticulation Infrastructure were diverted to seal the deal between the Ministry and Khato Civils.

The tender entails refurbishing the North South Carrier 1 (NSC-1) Pump Stations PS 1.1 (Tender WUC013 of 2017) and PS 2.1(Tender WUC013 of 2017) to enhance efficiency. The main objective is to upgrade and refurbish the Pump stations in order to provide required water outputs to BPT1A1 and BPT2A1, respectively. This scope of works cover general requirements for assessment, supply, delivery and installation of Mechanical, Civil, Electrical, Control Equipment, Instrumentation Equipment, Actuators, Associated Accessories, and documentation (drawings and manuals).

Khato Civils / NTR Technology Holdings JV (KCNTRJV) having demonstrated in their tender proposals that they have the technical, financial and managerial skills to complete the Contracts successfully was appointed on an EPC basis by the Water Utilities Corporation (WUC) of Botswana on 16 February 2018 for the refurbishment of Pump Stations PS1.1 and PS2.1 located on the North- South Carrier 1 pipeline. The Contracts valued at BWP 101, 767,567. 33 and BWP 93, 451, 640. 26 are running simultaneous and must be completed within 15 months ending on 12th August 2019.

Pump station PS1.1 is situated at Letsibogo dam, while Pump Station PS2.1 is situated approximately 32.6km downstream from Letsibogo dam, at Moralane, together with Break Pressure Tank 1 (BPT1A1). Both pump stations are currently running with Constant Speed Drive Pumps. One of the activities embedded in the upgrade and refurbishment of the two pump stations is to change from Constant Speed Drive Pumps (Roto- Starter) to Variable Speed Drive (VSD) Pumps. For correct and accurate VSD pump selection, good understanding of the condition of the current NSC-1 pipeline system, working in synergy with the two pump stations is required.

This project covers all equipment in the Pump Stations, including modification of the suction and delivery pipe work and construction of a building to house Variable Speed drive units. The second requirement is for the Scheme SCADA upgrade, engineering and configuration to cater for all changes which have been effected at the pump station to allow for monitoring, control, data acquisition and automation in order to enhance operational efficiency of the scheme.

What MPs said

NDABA GAOLATHE

P900million is a tremendous quantum of resource so even in our debates we should not be scanty because no one has given us cost benefit analysis. I have no basis of approving these projects. There are litigations issues in other projects so there is a possibility there could be hidden information on this one. We have a DIS institution which I have always categorised as rogue because of the way our government is structured.  We need to have oversight institutions not interference and between the two I will prefer listening to an oversight authority. I will not support the P900 million projects.

SLUMBER TSOGWANE

No one has ever said that the people do not need water, they do and we need to provide them with that as a resource. So as MPs our task here is to release the funds not to be tender adjudicators. If you want to be a tender adjudicator you can go and leave this house, here our job is to pass laws. Let’s release the funds then if anything the relevant authorities will assess the tendering process. Like it or not we will pass this so that our people get the water they so need.

POLSON MAJAGA

Our people in Nata-Gweta, Kutamogoree, Molepolole and Palapye need water and we should provide that to them. But my main concern is the P900 million. To me this is very high and we should not be spending so much while there are other needs that the voters need. Some of these things we know them, we have been sub-contractors before and right now we cannot justify how we arrived at this amount because it is very simple. Personally I approve the project for Batswana across the nation to be availed water but I do not approve the amount needed for the project.

KEFENTSE MZWINILA

We need to draw water for Batswana. We spend between P300K and P400K on water bowsing daily in all the 18 constituencies. We want to increase quality of water supply and we are not going to be cancelling the National South Carrier 2. We have a delay on Mmamashia plant and we are trying to find a new solution on this issue because water demand is growing.  

IGNITIOUS MOSWAANE

Khato Civils has been awarded the tender despite the minister dismissing that fact. I can even avail minutes of that meeting when the tender was awarded because it is said it was a presidential order. So the minister is misleading this house when he says the tender is yet to be awarded. So I stand by the committee (estimates) recommendations. The minister should also tell this house that Water Utilities is not supposed to award tenders as per the PPADB Act. But PPADB officials have told us that Water Utilities has refused to furnish them with a vetting letter since 2016. So this project with this huge amount should not be allowed to pass.

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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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