Boko must pay P12 million to fly
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After untidy skirmishes between the Botswana Unified Revenue Services (BURS) and the Umbrella for Democratic Change (UDC) over the ‘illegal’ flying of aircrafts over Botswana skies by the leader of the main opposition party, the former has availed a checklist of temporary admission of aircraft into the Botswana skies to the party’s lawyers.
After two of the aircrafts he was using for electioneering were grounded by the BURS and his pilots interrogated and later fined P50 000 by the tax collector, UDC President Duma Boko has taken steps to distill the process. The aircrafts were landed to Boko by Waleed Helicopter Services (PTY) Ltd. Boko recently instructed the UDC, Bayford and Associates to ask for a requisite BURS checklist for purposes of temporary importation into Botswana of aircraft intended for use in election campaign.
Dick Bayford, the UDC lawyer held a meeting with BURS officials on the 8th of May 2019 attended by attorney, Aobakwe Monamo and BURS General Manager, Investigations, Compliance and Enforcement Department, Mr Kanone B Molapo. The purpose of the meeting was to push BURS officials to share a checklist with the UDC for purposes of temporarily importing aircraft for election campaign.
“We explained to your Mr Molapo that our clients are desirous of importing into the country on temporary basis a fixed wing aircraft and helicopter for election campaign purposes and none other. That upon expiry of the period of their use in Botswana, as would be advised in due course, same would be re-exported,” reads Bayford’ memo dated 9th May 2019 to BURS. Bayford further notes that “Mr Molapo has not availed us a templated checklist of the requirements sought, but has drawn our attention to relevant provisions in both the Customs Act, 2018 and the Value Added Tax Act which are applicable.”
For the avoidance of doubt and to distill a common understanding on the said provisions and the advice rendered by Mr Molapo, Bayford took liberty to share his interpretation of the two Acts in relation to temporary importation of aircrafts for purposes of an election campaign.
In terms of Section 184(1) BURS shall grant a temporary admission procedure where it is possible to ensure the identification of imported goods at the time of re-export. “In our respectful view, usage of the word “shall” denotes that once the condition precedent is met (ie assurance as to identification) it is mandatory upon BURS to grant a temporary admission procedure,” writes Bayford.
The UDC lawyer also notes that Mr Molapo had drawn their attention to section 185(1) of the Act which provides that BURS may clear goods for temporary admission without a standard customs declaration if it is satisfied that goods will be subsequently re-exported.
“Our instructions are that the aircraft intended for temporary admission would be subsequently re-exported. They will be kept at all material time, save when they are in use, at an officially designated customs airport in Botswana until exportation and by reason of this fact, their subsequent re-exportation is assured. Therefore we pray that they be exempted from standard customs declaration,” says Bayford.
When addressing Section 189 of the Act which deals with temporary admission with conditional relief, Bayford notes that the Customs Act, “means of transport” may be placed under temporary admission procedure with conditional relief of import duties and taxes. “As the above provision is not mandatory, but consider upon yourselves a discretion, Mr Molapo advised that clients could make a proposal on imposition of conditional relief of import duties and taxes.”
UDC, through its lawyers proposed that their aircrafts, as and when they arrive in Botswana, be placed under temporary admission procedure with conditional relief of import duties and taxes. “We respectfully submit that such an exercise of discretion would in the circumstances be apposite considering the fact that same are not to be used for any commercial purposes, but as a facility for advancing the democratic process of electioneering guaranteed under the national constitution,” explained Bayford in his letter to BURS.
Section 196 of the Customs Act indicates that the customs office may require that a means of transport for commercial use that is registered abroad be subject to a customs document and adequate guarantee. The UDC has pleaded with the BURS to apply its discretion as per the law and exempt from the provisions.
In itsv response BURS has noted that section 184 authorizes it to allows “a temporary admission procedure where it is possible to ensure the identification of imported goods at the time of re-export” or where “in view of the nature of the goods or nature of the operations to be carried out, the absence of identification measures is not likely to lead to abuse of the procedure.” The BURS through Mr Molapo notes that “BURS may clear goods for temporary admission without a standard customs declaration if it is satisfied that the goods will be subsequently re-exported.”
Molapo further observes that if temporarily admitted goods are not the subject of a carnet, BURS may require the submission of a guarantee if it is satisfied that the goods will subsequently be re-exported. “Under section 189 (1) of the Act, goods, including means of transport “may be placed under the temporary admission procedure with conditional relief of import duties and taxes.” The essence of the provision is that there will be relief from, or suspension of, the otherwise chargeable duties/taxes on the affected goods/means of transport. However BURS is given latitude to impose such conditions as it deems fit to safeguard the suspended taxes. Such condition may be the guarantee requirement introduced by section 186 of the Act,” Molapo explained to UDC lawyers.
Molapo has advised UDC that they are required to submit a guarantee worth 12% of the market value of the aircraft and upon satisfying this condition the aircraft would be temporarily admitted for a period of not more than three months. “In case of conformance to all the stipulated condition, on exportation of the goods the undertaking for the payment of the otherwise payable taxes shall be discharged; in case of failure to export within the pre-stated timeframe or violation of any of the imposed conditions, then the hitherto suspended Value Added Tax (VAT) become payable, and reckoned from the date of first importation,” further explains Molapo.
The BURS General Manager also explained that the recipient of the services rendered by the owners of the aircraft (Waleed Helicopter Services Pty Ltd) should account for the VAT payable. On the full checklist, the UDC must provide a declaration concerning the aircraft; its itinerary; the goods onboard; any passengers and crew on board; the destination of such passengers’ crew and goods; and any stores on board; valuation of the aircraft. Finally the UDC must pay a temporary deposit equivalent to applicable duties and taxes.
So far Boko has used a 2017 Augusta A109SP which is valued at US$ 5 950 000 which translates to about P50 million of which 12% translates to P6 million. But depending on their age, other models could come at a bit lower prices of just under P20 million which would require the UDC to fork out about P2 million as guarantee to the BURS and further ensure that there is no violation of the preset conditions for the temporary admission of the aircraft or face penalties including paying all tax payable.
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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries
Botswana Telecommunications Corporation Limited (BTC) has announced that its 3rd Francistown Marathon will be held on Saturday 20th April 2024 at Obed Itani Chilume Stadium in Francistown. The BTC Francistown Marathon is officially recognised by World Athletics and a Comrades Marathon Qualifier will offer race categories ranging from 42.2km, 21.1 km, 10km, 5km fun run, 5km peace run for children and has introduced a 5km and 10km categories for wheelchairs athletics.
BTC also used this opportunity to announce beneficiaries who received donations from proceeds made from the 2nd BTC Francistown Marathon that was held on April 23rd 203. BTC donated a play area, plastic chairs and wooden tables for pupils worth a total of thirty eight thousand, one hundred and three pula, fifty thebe each (P38, 103.50) to Monarch Primary School, Tatitown Primary School, Mahube Primary School and Gulubane Primary School. Ditladi and Boikhutso clinics each received a donation of benches, television sets and 10, 000 litre water tanks worth thirty seven thousan, eight hundred and ninety eight pula (P 37, 898.00). Additionally, BTC also donated seventy thousand pula (P70,000.00) to their marathon technical partner, Francistown Athletics Club (FAC) which will be used for daily operations as well as to purchase equipment for the club.
The BTC Francistown Marathon aligns seamlessly with BTC’s corporate social investment programme, administered through the BTC Foundation. This programme is a testament to BTC’s dedication to community development, focusing on key areas such as health promotion. The marathon, now in its third year, not only promotes a healthy lifestyle but also channels all proceeds to carefully chosen charities as part of BTC’s commitment to impactful and sustainable projects.
Speaking at the launch, the BTC Managing Director Mr Anthony Masunga stated that the marathon underscores BTC’s commitment to community upliftment and corporate social investment. He stated that “the annual event which has been in existence since 2016, having taken a break due to the covid and other logistical issues, is instrumental to the economic upliftment of the city of Francistown”. He congratulated all the beneficiaries for having been nominated to receive the donations, adding that “the donation of proceeds from the 2023 marathon aims to highlight BTC’s commitment and heart for Batswana and our continued impact in the different industries”.
He further stated that through this marathon, “we demonstrate our steadfast commitment to having a good influence on our communities, this event is a manifestation of our dedication to promoting education and a healthier, more active society”. He concluded by stating that “BTC looks forward to another successful marathon that will leave a lasting positive influence on the greater Francistown community and the country at large” he said.
Giving welcome remarks, the Councillor for Donga, Honourable Morulaganyi Mothowabarwa stated that “he is ecstatic that BTC is collaborating with the City of Francistown on yet another installment of the Marathon”. He continued to offer his support to BTC to enable this marathon to continue over the coming years, stating that the “CSI element is a welcome development that helps empower our communities”, he said.
The 3rd BTC Francistown Marathon is officially open for registrations and athletes may use the following platforms to register and pay; through Smega by dialling *173# and choosing opton 5, then choose Option 3 for the Francistown marathon, at any BTC store or by visiting the BTC website and clicking on the BTC Francistown Marathon and choosing the relevant options.
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Letsholo lauds President Masisi’s digitization in fight against corruption
Thapelo Letsholo, Member of Parliament for Kanye North, delivered a moving speech at the United Nations International Anti-Corruption Day commemoration, praising President Dr. Mokgweetsi Eric Keabetswe Masisi’s digitalization initiative in the fight against corruption. Letsholo highlighted the importance of embracing digitalization in governance as a crucial step in curbing corrupt practices.
According to Letsholo, the implementation of digital systems in government services can significantly reduce direct interactions between citizens and officials, which often serve as fertile grounds for corruption. By minimizing these opportunities for illicit activities, the efficiency and transparency of public services can be enhanced. Letsholo pointed to Estonia’s success in digital governance as an example, where public services have become more transparent, accessible, and efficient.
The MP commended President Masisi’s commitment to digitalization and E-Governance, emphasizing that it aligns with global anti-corruption standards. He called for full support and active participation from all sectors to ensure the success of this initiative.
Letsholo also stressed the importance of improving detection methods and refining whistleblower laws to effectively combat corruption. He highlighted the unseen and unspoken facets of corruption as its lifelines, emphasizing the need for robust detection mechanisms and a system that encourages and protects whistleblowers.
Addressing the societal role in fighting corruption, Letsholo focused on the crucial role of everyday citizens and civil servants who often witness corrupt practices firsthand. He acknowledged the existing reluctance to report corruption due to the perceived risks of repercussions. To change this narrative, Letsholo advocated for creating an environment where staying silent is deemed more detrimental than speaking out. He called for a cultural shift where the potential benefits of exposing corruption outweigh the risks, ensuring that whistleblowers are protected and feel secure in coming forward.
Letsholo called for collective responsibility and action in creating a system that not only detects and reports corruption but also supports those who stand against it. He expressed hope that under President Masisi’s digitalization initiatives, the future of governance in Botswana will be characterized by integrity, transparency, and accountability. Letsholo’s speech resonated with the sentiments of hope and determination that permeated the commemoration, emphasizing the need for unity in the fight against corruption.
In summary, Letsholo lauded President Masisi’s digitalization initiative in the fight against corruption, highlighting its potential to curb corrupt practices, enhance efficiency and transparency in public services, and align with global anti-corruption standards. He emphasized the importance of improving detection methods, refining whistleblower laws, and creating an environment where speaking out against corruption is encouraged and protected. Letsholo called for collective responsibility and action in creating a future characterized by integrity, transparency, and accountability in governance.
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FaR property assets value clock P1.47 billion
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.