Auditor General (AG), Pulane Letebele is a man really concerned by the way monies in 25 government special funds are being used. He observes that the money is spent recklessly on un-intended purposes ultimately leading to the abuse of reserves which could have supported the intended ailments.
Among the list of the abused Funds is the National Electrification Fund (NEF) of 2010 which has not been reconciled as per the order of the Auditor General from the previous year. In the year under review, the failure to submit the accounts within the prescribed time limits had persisted. “I consider this state of affairs highly unsatisfactory as it denies the Public Accounts Committee (PAC) the opportunity to examine the audited accounts of the Fund on a timely basis, in accordance with the requirements of the Standing Orders of the National Assembly,” the concerned Auditor General laments.
Section 12 of the Fund, according to Letebele, provides that the accounts of the Fund shall within 3 months after the end of the financial year, be audited by an independent auditor appointed by the Fund Management Committee; and further that not later than six months after the close of the financial year, those accounts shall be submitted to the AG office- this never happened.
For the third year running, the Auditor General says accounts of the National Petroleum Fund (NPF) have not been submitted to his office, as the appointed auditor. “The Department of Energy Affairs, by letter dated September 2018, said they were in the process of finalizing the financial statements for the year ended 31 March 2018, and that they hoped to complete by October 2018. At the time of writing this report, the accounts had still not been submitted,” AG said. NPF made headlines last year when P250 million was taken from the fund for a parallel activities, even up to now the monies are yet to be fully paid back.
Tobacco and Tobacco Products Fund (TTPF) is another Fund used in a similar fashion and this concerns Letebele, who has since confronted the relevant authorities on the matter. The major points raised in the management letter related to; “The use of Fund money on the treatment of ailments which were unrelated to the purposes of the Fund, such as medical charges for oncology, neurology, cardiology and fractures.”
Further to the issue, the Permanent Secretary in the Ministry of Health and Wellness, Ruth Maphorisa has been asked about the delays in the appointment of the Tobacco and Tobacco Products Levy Implementation Committee during the period under review. The Committee is responsible for overseeing the administration and management of the Fund.
In the year under review the major expenditure for the National Disaster Relief Fund (NDRF) was for the purchase of tents to the value of P5 234 780. Out of this amount, supporting documents for transactions to the tune of P2 326 700 could not be produced for verification purposes. “Consequently, this expenditure is unvouched,” the Auditor General said.
“The over-arching findings related to lack of proper accounting and accounting records, resulting in poor monitoring of the issues of these items. There was no system of follow up on tents issued to beneficiaries which would ensure the retrieval into stock of tents that were no longer required. Proper management of these requisites would suggest that purchases at any time should take account of the existing items in stock available for use”.
The Road Traffic Fines Fund (RTFF) of 2009 with specific purpose of purchasing and maintaining traffic-offence-detecting devices and for complementing law enforcement measures of curbing road traffic offences is also giving the Auditor General sleepless nights. In the year under review the fines collected totaled P95 621 813.
A heavy portion of these funds in the reserve have been applied to the general purposes of the Police Service beyond those contemplated in the Fund Order. “As I have repeatedly commented in the past, in my view, the Fund has become an additional or alternative source of funding for the recurrent expenditures of the Botswana Police Service. A number of vehicles were purchased from the Fund for the Transport and Telecommunications Branch, instead of using P32 057 580 appropriated for this purpose in the recurrent expenditure estimates, out of which only P1 387 301 had been used,” observes Letebele.
Public Debt Service Fund (PDSF) had accumulated P2 231 596 465 representing the value of investments made from the Fund. P900 566 097 as loans was made to the BCL liquidator, which could not be verified by reference to the loan agreement spelling out the terms of the loans. Botswana Meat Commission (BMC) also got a loan amounting to P354 000 000 from the fund. “In the case of loans made from the public revenues, Government has issued a directive that they be converted to equity, because of the Commission’s continued liquidity constraints”.
Botswana Development Corporation has also gotten a share of P189 500 000 which was not clearly stated in the statement. “The loan amount to the Corporation for the construction of the GICC project is P189 500 000, and not P89 500 000 as reflected in the Statement” highlights the AG. Consequently, the AG says the statement shows an outstanding balance of P58 039 319 as at 31 March 2018, instead of P158 131 191 as per the loan repayment schedule as on that date.
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.
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.
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.