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How attractive is Botswana to foreign investors?

President Mokgweetsi Masisi in a desperate measure to turn around the fortunes of Botswana’s economy and create jobs has been trotting the globe in a bid to convince investors to come and set-up businesses in Botswana. While Masisi’s gesture is fundamental in re-energizing the economy which has been sluggish since the 2008 economic down turn, there are underlying factors that may thwart his ambitions, writes ALFRED MASOKOLA.

The latest Global Competitiveness Report ranks Botswana 90th most competitive economy out of 140 countries, far much worse off than it ranked in 2009, where it was number 56 in the world. In the latest Doing Business Report, Botswana is ranked 86 out of 190 countries far much worse than it did in 2006, when it was ranked 40th in the world.

These two reports — The Global Competitiveness Report  and Doing Business Report, published by the World Economic Forum and World Bank respectively, are the best indicators that Botswana can use to see how it is faring when compared to its competitors and why investors may choose other countries over Botswana.

In 2018, the World Economic Forum introduced a new methodology emphasizing the role of human capital, innovation, resilience and agility, as not only drivers but also defining features of economic success in the 4th Industrial Revolution. As a result, the GCI scale changed to 1 to 100 from 1 to 7, with higher average score meaning higher degree of competitiveness. The report is made up of 98 variables organised into twelve pillars with the most important including: institutions; infrastructure; ICT adoption; macroeconomic stability; health; skills; product market; labour market; financial system; market size; business dynamism; and innovation capability.

The Global Competitiveness Report also looks into the private sector’s capacity to generate and adopt new technologies and new ways to organise work, through a culture that embraces change, risk, new business models, and administrative rules that allow firms to enter and exit the market easily. The report recognises that an agile and dynamic private sector increases productivity by taking business risks, testing new ideas and creating innovative products and services.

In an environment characterized by frequent disruption and redefinition of businesses and sectors, successful economic systems are resilient to technological shocks and are able to constantly re-invent themselves. With the business dynamism and innovation capability recognised a key indicator in the 4th industrial revolution, Botswana is not among leaders in this respect and it there are emerging countries such as Kenya and Rwanda, who despite ranking inferior to Botswana in overall rankings, have entered the space with much needed agility.

Botswana Innovation Hub (BIH) Director of Marketing and Partnerships, Tshepo Tsheko contended last week at Botswana International Trade Centre (BITC) media engagement session that Botswana should build capacities in the ICT to attract tech giants to set-up in Botswana.
He said failure to do so would not make Botswana an attractive place to do business in as ICT is the driver of business for government and other organisations, noting that countries like Kenya and Rwanda are doing what Botswana had the opportunity to do in its economy.

“Botswana should make a decision on what we want to invest in. Investors will not do it for us, they are looking for market,” he said. “We want to be known for something in ICT and innovation, and we still have the opportunity to decide.” Tsheko said, what we say we are to the world does not matter, what matters is what people from other countries experience the moment they set their foot in the country. 

He said currently there is credibility gap in ICT and innovation efforts in Botswana, because the local market is apprehensive which has resulted in local digital solutions not being taken. Tsheko expressed confidence that Botswana has necessary skills in ICT to solve challenges facing the country.

WHY HAS BOTSWANA LAGGED BEHIND IN ICT AND INNOVATION?

Although Botswana performs better than most countries in the Sub-Saharan Africa, with South Africa, Mauritius and Seychelles ranking ahead — there is a compelling need to invest in ICT and innovation in Botswana, according to the The Global Competitiveness Report.
Soon after being sworn in parliament in 2016, Bogolo Kenewendo, then a backbencher highlighted that Botswana’s snail progress was hindering the country from transforming its economy. 

“Like I said in parliament during my contribution, businesses and investors do not care that we are a landlocked country, they are looking for a place where they can easily do business hassle free and reap the best rewards,”Kenewendo told WeekendPost then. Kenewendo observed that Botswana lacks agility and is moving at a snail pace, hence other countries such as Rwanda are able to perform better. In the past 10 years Rwanda economy grew at 7.2 percent on average, and also attracted foreign investment of 4.2 percent of its GDP over the same period, according to the Global Competitiveness Report.

In the same period, Botswana’s economy only experienced an average of 3.6 percent growth and attracted 2.8 percent in FDI. . “Some of them came here to benchmark in Botswana, then went back to implement because they have agility. The world is moving faster, so we need to be agile,” she said. Today, Kenewendo is the custodian of Botswana’s business environment as the Minister of Investment, Trade and Industry, a position she assumed after Masisi became president in April last year.

After taking over the reins, the youthful legislator admitted that that a lot has to be done in business reforms. She has since embarked on policy and regulatory reforms at her ministry to improve the business land scape in Botswana in order to improve the doing business rankings. Chief among the reforms were the adoption of the 2014 Doing Business Roadmap and Action Plan, whose objective is to reduce the cost of doing business in Botswana as well as create an environment where business is not hindered by unnecessary regulation and bureaucracy.

Last year parliament passed amendments to both companies and the registration of Business Names Acts as well as introduction of new pieces of legislation that allows for re-registration of both the existing companies and business names, paving way for the implementation of the Online Business Registration System (OBRS). The system is expected to be launched during the first quarter of 2019 and is expected to bring with it benefits such as improve data integrity, reduced turnaround times, less paperwork and improved overall efficiency.

WHAT IS THE STATUS OF BOTSWANA’S INFRASTRUCTURE?

Botswana is ranked 108 in infrastructure pillar in the Global Competitiveness Report. The infrastructure pillar looks at the quality and extension of transport infrastructure (road, rail, water and air) and utility infrastructure. This is so because the report indicate that better-connected geographic areas have generally been more prosperous. Well-developed infrastructure lowers transportation and transaction costs, and facilitates the movement of goods and people and the transfer of information within a country and across borders. It also ensures access to power and water—both necessary conditions for modern economic activity.

In 2017, Head of South African Development Community (SADC) Public Private Partnership (PPP) Network, Kogan Pillay warned that Botswana and Africa will go into recession in the next 10 years if the country does not adequately invest in its infrastructural needs. Pillay, who has vast experience in the implementation of PPPs and has previously worked for the South African government, is of the view that Africa’s big investors will shun the continent because of lack of infrastructure necessary for doing business.

“World Bank has warned about this happening,” he said at a workshop organised by Ministry of Finance and Economic Management. “Africa would not attract FDI (Foreign Direct Investment) because nobody would want to do business in a country which does not have infrastructure. It makes doing business difficult,” Pillay stated. According to Pillay, Africa needs US$ 90 billion to fund its infrastructural needs but it only has US$45 million availed for such.

It is believed that Botswana’s infrastructural needs can be resolved by developing an effective PPPs framework. Pillay believes that Botswana is not ready for PPPs until it develops a legal frame work which will guide investment and implementation of PPPs. “What Botswana has now is a policy, but you need to put it into law like other countries including South Africa,” he said. Pillay said PPPs are long term concessions to the private sector and should be done in a prudent manner to avoid forcing the country into bad commitment.

RESTORING INVESTOR CONFIDENCE

Botswana’s Foreign Direct Investment (FDI) ambitions have been met with counterproductive policies in the past decade which has led to frustrations and dent on Botswana as investment destination. In 2016, then BITC CEO, Letsebe Sejoe made shocking revelations that foreign investors are still finding it hard to pick Botswana as an ultimate place to do business because of the complications associated with running businesses in the country.

Sejoe then told the Parliamentary Committee on Statutory Bodies and Enterprises that Botswana is entirely opposite to what it has the world perceiving it as. Sejoe listed Permits and VISAs as the biggest challenge facing investors as he noted that delays in issuing the two frustrates inventors who end up going to other countries such as Rwanda, which has built a more conducive environment for investors.

The issue of permits and VISAs were reportedly handled by the Directorate on Intelligence Security (DIS), which has unlimited discretion on who is accepted or rejected. The parliament committee also heard that there was no turnaround time agreed on, and that the premises and VISAs can be rejected without explanation. Sejoe, who has since left the BITC then advised that part of solving the problem is to create a legal framework or policy which will guide certain procedures needed to facilitate business for companies lured by BITC to do business in Botswana.

He said while they have relationships with different stakeholders over facilitating the ease of doing business for foreign investors in Botswana, such partnerships are not binding and sometimes some institutions just ignore a request because they are not compelled by the law to do so. For instance, in countries like Mauritius they have what they call silent means approval. If a permit is supposed to be processed within 24 hours and there is no response after that time, the applicant has the right to go ahead because lack of response shows no objection,” he said.

Sejoe said Botswana should do the same, and design laws which promote business and protects investors if it is to continue being attractive to foreign investors.  “Government does not appreciate the enormous impact the foreign direct investment can make in the country’s economy. We have this attitude of treating everyone the same,” he said. “There is also lack of appreciation of frustration experienced by these investors,” Sejoe added.

Sejoe said not only are new investors facing problems of permits, but that foreign owned companies, some which have employed hundreds of citizens are facing the same problem when they want to renew their permits. “Botswana is not an open economy like we say we are to the world. There are people who have been doing business in Botswana for over 30 years and government rejected their application for citizenship over the period and all of a sudden they were told to go,” he said.

“Investors are cagey on this. Some who are already doing business in Botswana are sceptical about expanding their business because their future in Botswana is uncertain. Investors need certainty and some level of predictability,” he further advised. Sejoe narrated that some companies with operational businesses in Botswana but with their directors residing outside Botswana have had their directors’ VISAs rejected when they wanted to attend a business meeting in Botswana; he said this recount proved that Botswana is a difficult environment to do business in. Masisi has however admitted to this problem and has moved swiftly to act, the first step being to relief Director General of DIS Colonel Isaack Kgosi and further promising to embrace the policy of open economy. 

WHICH COUNTRIES ARE FARING BETTER IN SUB-SAHARAN AFRICA?


Mauritius ranks 49th globally. With a score of 63.7 out of 100 it achieves the best performance in Sub-Saharan Africa, in line with 2017. Mauritius’s leading position in the region is reflected in a GDP growth consistently above 3 percent since 2006, and above 4 percent over the past three years.

The competitiveness performance of Mauritius is relatively strong in eight of 12 GCI pillars, where it ranks 67th or higher. Among these eight pillars Mauritius has achieved its best score on the Product market pillar (65.6, 19th), thanks to a high degree of openness (6th) and a non-distortive fiscal policy (62.6, 16th). In addition, Mauritius is characterized by strong business dynamism (66.5, 35th) and sustained by lean administrative requirements (83.2) that enable companies to open and close with relative ease.

Finally, Mauritius has achieved a strong performance on the Institutions pillar (38th, 62.9), second only to Rwanda in the region. This is a considerable competitive advantage in SubSaharan Africa, where 65 percent of economies score below 50. On the other hand, the pillars where Mauritius delivers a weaker performance are those related to human capital: the Labour market (58.3, 74th), Skills (61.0, 74th) and Health (77.7, 83rd) pillars.

In particular, Mauritius is penalised by high redundancy costs (73.6 weeks of salary, 136th) and limited participation in the various levels of the educational system (6.8 mean years of schooling, 106th). South Africa ranks 67th globally—with a score of 60.8—and attains the second spot in Sub-Saharan Africa. Among its strengths, South Africa is home to a large market size (68.4), good infrastructure (68.6) and a well-developed financial system (82.1, 18th). More specifically, South Africa’s financial sector offers a Chapter 2: Regional and Country Analysis 36 | The Global Competitiveness Report 2018 relatively balanced access to various sources of finance, including credit (100.0, 11th), venture capital (33.0, 63rd), equity (100.0, 2nd) and insurance (100.0, 3rd).

 In addition, South Africa’s innovation capability is relatively advanced (44.3, 46th), although limited by insufficient research and development (37.5). Among its weaknesses, South Africa’s performances on the Health pillar (43.2, 125th) and Security (43.7, 132nd) sub-pillar are among the worst in the world. Driven by high incidence of communicable diseases and high rate of homicides (34 per hundred population, 135th), these factors are major challenges for the economic and human development of the country. Low ICT adoption (46.1, 85th) is another important restraint on South Africa’s competitiveness.

Only 54 percent of the adult population has access to the internet, and only 70 out of 100 people have subscribed to mobile-broadband services (66th). Similarly, the digital skills (116th) and critical thinking skills (78th) of the current workforce are inadequate for the progress of a successful economy in the Fourth Industrial Revolution.

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BDP unfazed by threat of united opposition 

30th November 2021
BDP unfazed

Botswana Democratic Party (BDP) leadership has indicated that the party is not worried about the Memorandum of Understanding (MoU) signed by opposition parties to support each other in the upcoming bye-elections.

Umbrella for Democratic Change (UDC), which comprise three opposition parties; Botswana National Front (BNF), Botswana People’s Party (BPP) and Botswana Congress Party (BCP), recently agreed terms with other opposition entities; Botswana Patriotic Front (BPF) and the Alliance for Progressives (AP).

The duo of AP — a splinter part of Botswana Movement for Democracy (BMD) — and BPF — a splinter of the BDP— did not contest under the ambit of UDC in the 2019 general election. The two parties have a combined four seats in parliament and a combined popular vote of 74 000 from the 2019 general election.

The signing of the MoU on bye-election is seen as a giant step by the opposition to consolidate their efforts against the BDP in the 2024 general election.

Unveiling the 11 candidates that will represent the party in the bye-elections billed for 18 December 2021, BDP Chairman Slumber Tsogwane stated that the cooperation of opposition parties to gang against the ruling party is not a new development in Botswana and that BDP has always emerged top in the face of such collaboration.

Tsogwane indicated that, as per reports, opposition parties had challenges relating to the allocation of wards, which were only resolved after the intervention of the leader of UDC, Advocate Duma Boko.

“We are not frightened by opposition cooperation. It is not happening for the first time. We have tasted it before. They tried in 2019, and it did not work,” Tsogwane said buoyantly.  “We still want to face them as a united block in 2024 because BDP is a giant that can only be tried by a united opposition.”

Tsogwane’s sentiments were shared by party secretary-general Mpho Balopi, who also believe that opposition cooperation is a non-starter. He said, in 2019, BDP increased its popular vote, despite BCP having joined the ranks after not partaking in the 2014 general elections. “They believed that based on 2014 numbers, the BCP joining UDC will give them power, but that was not the case,” Balopi said.

BDP increased its popular vote from 46.4 percent in the 2014 general elections to 52.6 percent in the 2019 general election. The 2014 general election was BDP’sBDP’s worst in history, with the party garnering a popular vote below 50 percent for the first time since independence. BDP also increased its seat by one in the last general elections. Meanwhile, the opposition garnered 19 seats in 2019 compared to 20 in the 2014 general election.

“They [opposition parties] have been doing so since 2011 after the formation of Botswana Movement for Democracy in 2010. It is not a question of what are we going to do as the BDP. It is about what we have done in the past,” said Balopi. Balopi, who first became party secretary-general in 2011, led the BDP to the 2014 and 2019 general elections.

Last weekend, BDP held primaries in seven wards to choose candidates to represent the party in the 18 December bye-election. Meanwhile, four wards agreed to settle for compromise candidates.

The wards are going for elections on 18 December are the following; Nkgange North Ward (Nkange), Tamasane Ward (Mmadinare), Khwee Ward (Boteti East), Tumasera-Seleka Ward (Sefhare-Ramokgonami), Ga-Molopo Ward (Goodhope-Mabule), Lorolwane Ward (Mmathethe-Molapowabojang), Moshupa East Ward, (Moshupa-Manyana), Boseja South Ward (Mochudi East), Metsimotlhabe Ward (Gabane-Mmankgodi), MotokweTsetseng Ward (Takatokwane), Lentsweletau West (Lentsweletau-Mmopane).

Following the conclusion of the MoU agreement, BNF has been allocated six wards to contest. The wards are Boseja South, Khwee, Lorolwane, Moshupa East, Motokwe and Ga-Molopo. The BNF will, however, hold primary elections in Khwee while other wards settle for compromise candidates.

BCP will contest in Tumasera-Seleka Ward, Nkange North Ward and Metsimotlhabe Ward. An agreement has been reached that Metsimotlhabe Ward, despite being allocated to BCP, will field an AP candidate to warm up opposition unity talks for the 2024 general election. AP has also been awarded Lentsweletau East Ward.

Meanwhile, the new kid in the bloc, BPF, has managed to get Tamasane Ward in Mmadinare. It was also given Lorolwane Ward on paper, but it has decided to field a BNF candidate at the ward.

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Inside Private Security companies firearms proposal to Gov’t

30th November 2021
Private Security Company

A proposal by the private security companies operating in the cash business for firearm licensing, sent to government for consideration, has called on government to speedily consider licensing private security companies operating in the cash business as a panacea to the prevailing cash heists.

The companies say they do not seen why they cannot be armed because all the countries surrounding Botswana within the SADC region have a provision for armed private security. This, they say, has been the case for many years with South Africa, Namibia, Lesotho, Zambia, and Angola all having this security measure in place and in many cases, for the last three decades.

“In all of these countries, the law provides that private security companies are entitled to use firearms subject to conditions under the law. For instance, in Angola private security personnel may only use firearms provided they have undergone competency training and are also required by law to keep registry and tracking of the licenced firearms. In many of these countries, armed private security does not only include for cash operations (including cash in transit) but extends to both the alarm response and to man-guarding services (a case in point being Namibia and South Africa),” reads the proposal.

The proposal further says this situation is further exacerbated by the fact that the Botswana currency is generally stronger than all other currencies in the region making it an attraction to would-be criminals. “Additionally the fact that this currency can be exchanged in any of the countries bordering it with relative ease, makes it an even more attractive avenue,” reads the proposal.

The estimated size of the cash in transit business, according to the companies, is estimated at over BWP 120m annually with over 160 daily delivery and collections between clients, the Central bank and the security company’s cash centres and automated teller machines (ATM’s). 

There are currently five security companies providing the CIT services in Botswana. Despite operating in the same security threat environment, and in many instances transporting high value consignments as the Government transfers, private security companies say they do not have the same armed escorts accorded to government consignments like cash and diamonds, as they are not licenced to carry firearms by law. 

“With the advent of increased security threats (as evidenced by the number of attempted and successful heists), these businesses require the same level of security in the form of having licenced firearms in order to provide their own armed escorts to ensure that there is sufficient cover and provide a deterrent to would-be criminals. The current arrangement of using Police escorts for private security, while effective as the Police are armed and acts as a deterrent, is not sustainable both in terms of resourcing and cost,”

Explaining how government handles own cash transfers, the companies says the government enlists armed Police escorts when moving high value consignments, in particular when transferring cash from and to the Central Bank due to the high risk associated with this movement. 

“This acts as a deterrent to ensure that there are no attacks on these consignments. This has proven to be an effective deterrent as criminals, knowing that the Police are armed, do not attempt to attack these transfers and to date there has not been a case reported on these despite the number of years this service has been in place,” stressed the companies in the proposal.

The companies dismissed claims that the licensing may in some ways be misused saying the government through the Arms and ammunition board has always conducted raffle draws for both shotgun and rifles for members of the public in order to access firearms licences. This, they say, has been ongoing for many years but there have not been serious incidents of misuse. 

“This provides a view that where there are proper control mechanisms in the issuance of firearm licences, public safety can still be guaranteed,” they observed.

Recommendations by Private Security Companies

Private security companies with Cash businesses request to be allowed to have licenced firearms in order to establish and run their own escort services. This is the only service to access firearms to mitigate the current risk. This will be subject to, amongst other requirements.

Strict criteria to be formulated in relation to the training of the officers who will use the firearms including continuous retraining at specified intervals. Firearms register to be developed with tracking capability and auditable by the authorities at all times. Firearms are retired by the officers at the end of duty on a daily basis and issued the following working day.

There will be a requirement for psychological evaluation for officers to be issued with firearms including ongoing evaluations at various intervals. The cash businesses will need to demonstrate the number of firearm licences required in line with the size of their cash businesses; approval to be based on proportionality to the required escort service and satisfaction 

The need for firearm licencing is further demonstrated by the nature of the business in that private clients invest in security companies for safe custody and transfer of their cash assets hence the security companies require to be effectively prepared to match these requirements and expectations that comes with this.

The companies proposed two models to be adopted, the first being for the provision for arming tactical teams that will provide escorts for the cash businesses. These teams will be in-house and the company is the one being licenced. The second is the provision for arming CIT crews (driver and crew man) across the cash business 

The companies further warned that this has to be taken seriously because the Cash In Transit service is critical to the daily functioning of the money economy by ensuring that cash circulation is optimally maintained. 

Major clients such as banks and retailers, they said, depend on this service for successfully running their businesses. “For these clients, same day value in money transfers is crucial as customer demands are increasingly high to be able to withdraw and deposit money at ATM’s without disruption and in the case of retailers deposits made are required for working capital on a daily basis. Disruption in the provision of the service, as is the case where the security of the service is affected due to armed robberies, results in the disruption to the functioning of these sectors and the associated losses incurred,” they concluded.

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How Ministry Local Gov’t lost control of P3.3 billion for orphans 

30th November 2021
Molale

The Auditor General’s report for 2019/2020 shows how hundreds of orphans could not benefit from an account holding billions of Pula because officials at the Department of Social Protection under the Ministry of Local Government and Rural Development slept on the job. 

Also robbed of the opportunity to benefit from the programme were vulnerable children.

The report reveals that the Department had outsourced beneficiary payments to Botswana Post, Sandulela Telecom Botswana and Smartswitch Botswana (Pty Ltd). Each service provider was engaged to effect payments for specific elements of the beneficiary packages. The Department disbursed a total of P3.3 billion from 2016/2017 to 2019/2020.

“However, the Department had lost control of the key financial operations to the service providers, who had breached the terms of the Memorandum of Agreement (MoA) on numerous occasions,” the report says.

The report says that a Memorandum of Understanding between the department and service providers requires engaged companies to ‘consolidate, verify and return all unclaimed payments to Client, together with a list of beneficiaries who did not claim such payments’. Such information must be submitted after every three (3) months for reconciliation.

“However, the service providers on numerous occasions contravened the terms of the agreement, as they took a substantial amount of time beyond the stipulated period to return unclaimed monies. Instances were noted where Sandulela took unduly long, even up to 21 months to submit returns to the Government,” the report says,

The report states that Sandulela held an average of P6.2 million in unclaimed cash allowances during this period, thereby denying the Government the opportunity to invest the monies elsewhere and earn interest.

Regarding the MoA, the report says that Botswana Post and Sandulela Telecom were required to open separate bank accounts to be used ‘solely for the social benefits cash allowances in the Agreement and the interest accrued in that account shall be reimbursed to the Client’. The agreement also provided that the service provider may keep the monthly unclaimed cash component for a period not exceeding three months with interest accrued thereon.

In line with their obligations, says the report, the Department credited Botswana Post and Sandulela Telecom with P2.3 billion and P371 million, respectively, for social welfare grants payroll for 2016/2017 to 2019/2020. Some of the beneficiaries did not collect their cash allowances monthly, and these had accumulated to P66 million for Botswana Post and P9 million for Sandulela Telecommunication Botswana.

“Based on the above observations, the Government could have earned interest on the unclaimed cash allowances if they had been returned as prescribed. As such, the service providers did not fully abide by the terms of the agreement,” the report says.

The report found that the agency fees for each invoice were based on the number of beneficiaries paid in a period multiplied by the rate prevailing at a specific location. It was observed that the Client did not receive reconciliation reports showing paid and unpaid allowances in time to update the Social Benefit and Reconciliation System (SOBERS) application system.

“Therefore, the credibility of the amount as calculated in the invoice could not be reasonably assured. The P47 million and P142 million agency fees paid to Sandulela and Botswana Post respectively for a period of 4 years may not be reflective of the number of beneficiaries paid,” the report says.

Retarding the Beneficiary Management Process, the report shows that the beneficiary registration system had some deficiencies, which resulted in delays in updating the monthly payroll with newly approved beneficiaries. Some beneficiaries had to wait for up to 5 years before they could receive the cash allowance, consequently defeating the programme’s key objectives.

“A total of 2 270 social grant beneficiaries who passed on from as far back as 1997/1998 were removed from the payroll in 2017/2018 and 2018/2019, which meant that some of them had remained active in the payroll for more than 20 years after their death. The Department had deposited their share of cash allowances amounting to over P17 million with the service providers, and there was no evidence of interest paid to the Client on this amount,” the report says.

In addition, the report says, cash allowance for 50 beneficiaries was claimed even though they were deceased. The audit could not rule out the misappropriation of P185 545 in payments to non-existent beneficiaries.

In terms of the Child in Need of Care (CNC) and the Community Home Based Care (CHBC) programmes, the report says, children require a special diet prescribed by a paediatrician to be enrolled. For that reason, the food parcels should include the prescribed food items only. According to the report, this proved to be easy to manipulate since the Smartswitch card did not have any restrictions established specifically for CNC.

“The Department of Social Protection (DSP) is in partnership with 9 NGOs, whose main aim is to protect the orphans and vulnerable children. The implementation of the programme includes key activities assigned to the District Councils,” says the report.

Therefore, the report says that the exchange of crucial information reports between the two parties is vital for the Client to be up-to-date with the operations to execute their mandate. The oversight role was therefore considered ineffective due to the following:

The NGOs did not provide quarterly narrative reports, financial reports and annual audited financial statements to account for transactions on their operations, which was in breach of the MoA. The Botswana National Plan of Action for Orphans and Vulnerable Children for 2010-2016 requires DSP to establish an independent body to provide oversight comprising development partners; however, this had not been done.

The DSP did not establish the Monitoring and Evaluation Committee as required by the National Monitoring & Evaluation Framework, whose mandate was inter-alia to ensure that Local Authorities effectively account for funds disbursed to them and establish whether they had been utilized for the intended purposes.

As a result, the report says the “Department had lost control of and had abdicated their responsibility and accountability for funds approximating P806 million disbursed between 2016/2017 and 2019/2020 to the NGOs and Local Authorities.”

It says that while the objectives of different classes of social grants may have been met, it is nevertheless of paramount importance that all the prescribed criteria in all the authorities are complied with for sound management of the programme.

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