The government has this week moved swiftly to blacklist with immediate effect China Jiangsu International Botswana (Pty) Ltd, a subsidiary of China Jiangsu International over alleged corrupt practices.
However, yesterday (Friday), China Jiangsu approached High Court on urgency asking the court to compel Public Procurement and Assets Disposal Board (PPADB) to review its decision to cancel the two tenders awarded to the Chinese company. The matter is expected to be heard on Monday.Reports indicate that senior government officials in President Mokgweetsi Masisi’s administration are considering giving the work, which is critical, to another Chinese contractor (name known to this publication), subsequently recalling the tenders of China Jiangsu International Botswana.
On 7th February 2019 PPADB wrote to Managing Director China Jiangsu International Botswana with reference to the design and building of a water distribution network, sanitation reticulation, telemetry and scada and associated works in Maun PR 10/1/3/16II. The letter suggested that the board at its meeting held on the 7th February 2019 resolved to withdraw award of the above tender from China Jiangsu International Botswana which was made on the 11th October 2018.
“The reasons for withdrawal of award cannot be disclosed as they are classified,” read the letter. The letter was signed by Acting PPADB Executive Chairperson Elijah Motshedi. In another letter, Water Utilities Corporation (WUC) wrote to the Managing Director of Jiangsu International Botswana (Pty) Ltd with reference to the termination of major villages’ water supply distribution network rehabilitation for Palapye- Tender no WUC 025 (2014).
“We refer to the above contract awarded to the China Jiangsu International Botswana (Pty) Ltd as per the Notification of Award sent to the Company under cover of the Corporation’s letter dated 4th March 2015,” stated the letter. WUC invoked sub- clause 15.5 of the contract which empowers the corporation to terminate the contract it has with Jiangsu International Botswana. Jiangsu was instructed to “immediately cease work on the Contract and commence removing the Contractor’s equipment in terms of sub- clause 16.3 of the General Conditions of Contract.”
“You will be entitled to payment under provisions of sub- clause 19. 6 (a) to (e), and in this regard you are to keep proper records of all costs incurred as contemplated by sub- clause 19. 6 (a) to (e),” said the termination letter. “Please note that this decision is final, and no discussions or correspondence will be entered into regarding the decision to terminate nor the reasons for the termination.” The tender which was awarded on the 25th September 2018 with a project duration of 42 months from the commencement date was valued at P 875, 923, 178. 85.
They were required to provide a performance bond of 10 percent of the contract amount which is (10 percent of P 875, 923, 178.85) P 87, 592, 317. 88 entered into with an approved Botswana Registered banking institution within 28 days calculated from the date of the Letter of Acceptance. The tender was awarded to China Jiangsu International (Pty) Ltd JV together with Unik Construction Engineering.
On Wednesday 13th February 2019, the Ministry of Mineral Resources, Green Technology and Energy Security issued a communique where they advised all quasi-government institutions under the ministry not to engage China Jiangsu International in any of their organisations’ activities or projects as they have been found to have been involved in massive corrupt activities.
The letter which was signed by Permanent Secretary Cornelius Dekop was addressed to; Debswana Diamond Company, Okavango Diamond Company, Diamond Trading Company, Botswana Oil Limited, Botswana Power Corporation, Botswana Geo- Science Institute, Botswana Regulatory Authority, Minerals Development Company Botswana, and Morupule Coal Mine. Information gathered by WeekendPost this week suggests several senior government officials (names known to this publication) benefited close to P 25 million each in the ongoing saga.
China Jiangsu has lost P4 billion worth of four big tenders. This publication has been informed that Permanent Secretary to the President, Carter Morupisi has ordered the Ministry of Infrastructure and Housing Developments to only deal with a few approved companies that are ethical. The PSP as head of civil service is championing the ‘clean up’.
It is understood that China Jiangsu International Botswana through their lawyers Monthe Marumo and Company have written to the Attorney General to notify them of the matter where due process was ignored and called for PPADB to furnish them with a written undertaking or not to reverse the award of the tender in question. China Jiangsu International Botswana has resolved not to seek legal redress because they are a Chinese State company and they do not want to be seen as if they are fighting the Botswana government.
It is reported that the intelligence organ, was involved in the operation which exposed China Jiangsu. Contacted for comment Directorate of Intelligence and Security (DIS), Director General, Brigadier Peter Magosi said they are a lot of investigations concerning the matter of China Jiangsu International on corruption allegations and such undertaking is still ongoing. Magosi said he could not disclose the names of those implicated as that will jeopardize the investigations but promised that he will do so when the time is right.
The Director General could not confirm whether the Chinese State company poses any issues of national security or not saying they are still investigating the matter. Meanwhile Morupisi told this publication that he does not know anything about Red East Construction (Pty) Ltd which is alleged to have been given the job.
“As far as I know, the China Jiangsu International Botswana matter has not reached my office and I don’t know anything about it. The issue concerning the Ministry of Minerals can be addressed to Permanent Secretary Cornelius Dekop, he authored that letter,” said Morupisi.
China Jiangsu International has deep roots in Botswana and has won a lucrative multi- million pula contracts for a mega construction project, easily outbidding local and foreign competitors.
China Jiangsu International was to be engaged in a THREE GRADE SEPARATED INTERSECTIONS (INTERCHANGES) project, which has been awarded to Unik Construction Engineering (Pty) Ltd and Zhong Gan Engineering & Construction (Pty) Ltd. The project objective is to contribute towards improved traffic flow in Greater Gaborone through construction of the 3 interchanges along KT Motsete Drive (‘Western Bypass’) i.e. at ‘Kgale Circle’, ‘Rainbow Circle’ and ‘BTV Circle’.
Conceptual design: was carried out by ADK-NAMA (Pty) Ltd consultancy firm since May 2016 and are now the Monitoring/Supervising Consultant. Procurement Process was on the basis of the OFID “Procurement Guidelines” where a “No Objection” had to be granted for critical decisions such as Technical Bids Evaluation, Financial Bids Evaluation, Bids clarifications, Tender validity extension requests etc. the tender process commenced on 21 April 2017 and up to 1st September 2017.
The Technical Evaluation Report was completed in December 2017 while Financial Evaluation Report was completed in September 2018. Tender Award for Design, Build and Transfer was awarded to Zhong Gan Engineering & Construction (Pty) Ltd, China Jiangsu International Botswana (Pty) Ltd and Unik Construction Engineering (Pty) Ltd Joint Venture (ZGEC/CJI/UCE JV) on 25 October 2018 at a Contract Price of BWP 447,239,902.03, inclusive of 12% VAT.
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.
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.
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.