PPADB, DPS, Director of Roads caught up in P28 million tender row
News
A contractor has raised a red flag over what he says are matters of clear malpractice and maladministration of government funds. In a scathing letter passed to Weekend Post, Moira (Pty) Ltd attorney raises some basic contractual contraventions between Public Procurement and Asset Disposal Board (PPADB), department of Roads and the contractor awarded.
The contractor conferred, Emark (Pty) Ltd, has been awarded the tender in question at a whopping P28 million under dubious circumstances. The tender comprises a “works contract for the resealing and road marking of Tshootsha – Mamuno road section II (40km) tender no. MTC 240/55/2017-2018.” Office of the President has this week been informed of the tender dispute.
In the dispute, Kgotso Botlhole of Lekorwe Legal Consultants, on behalf of Moira (Pty) Ltd, urged the OP in a scathing letter to halt implementation of the said multimillion road project until the matter is resolved at the courts. Information reaching Weekend Post suggests that the contractor (Emark) wants to implement the project so that they use the move as an excuse in case they lose the matter at the courts – where they believe it will be too late.
In the said letter to OP titled, “complaint of serious maladministration by the Director of the Department of Roads and the Chairperson of the Ministerial Tender Committee (MTC) in the Ministry of Transport and Communication/Moira (Pty) Ltd, (which is the client) /PPADB, Attorney General and Emark Enterprises (Pty) Ltd – case no: UAHGB – 00029 – 19” the contractor queries some essential tender procedures in the awarding of the tender.
The letter dated 5 February 2019 and which was copied to Permanent Secretary in the Ministry of Transport and Communications, Kabelo Ebineng as well as to PPADB urges Permanent Secretary to the President, Carter Morupisi to tread carefully not to implement the project until justice is reached.
“Our client is currently engaged in litigation commenced on an urgent basis against the Department of Roads (represented by AG) seeking to halt the implementation of a works contract titled “a works contract for the resealing and road marking of Tshootsha – Mamuno road section II (40km) tender no. MTC 240/55/2017-2018” which was awarded to Emark (Pty) Ltd,” attorney Botlhole told the highest decision making office in the country.
He further pointed out that having perused Maipelo Ragalase’s affidavit, who is the acting Deputy Permanent Secretary (Corporate Services) in the Ministry of Transport and Communication, there are certain matters of clear malpractice and maladministration of government funds which have been committed by both herself and the Director of Roads.
Chief among the irregularities he cited that: “first, the Director of Roads issued a notice of commencement handing over the site to Emark without first having received a performance bond giving security in favour of the government of Botswana for Emark’s performance of the works.” This is notwithstanding that in the letter of acceptance concluding a contract with Emark for the performance of the works, a certain paragraph in question therefore clearly provides that:
“You shall agree to submit a Performance Security bond of 5% of the amount as stated in this letter of acceptance as per clause 4.2 of condition of contract for construction for building and engineering works designed by the employer within 28 calendar days from the date of acceptance of this letter (date of signing the contract acknowledgement), following the receipt of which, the engineer’s order to commence work will be issued,” the lawyer pointed this to OP as his main area of ‘emphasis.’
He stressed that the letter of acceptance is dated 17 December 2018 while Emark issued a letter dated 14 January 2019 apparently attaching a performance bond only issued by Old Mutual two days later, and on 16 January 2019. “Irrespective of when the bond was actually provided between these two dates, the Director has already issued a notice to Emark for the commencement of the works on 11 January 2019,”Botlhole highlighted to the Office of the President.
He also claimed to OP that the Director of Roads, Modisa Segokgo, authorized the occupation of site and the commencement of works by a civil contractor for a project awarded in the amount of P 28, 046, 343. 22 to be paid by the government, “without first ensuring that security is furnished to the government for the performance of the contract by Emark.”
The Moira company attorney, which lost the bid in the second position as they ran short of half a million to reach the 28 million mark, said “this is a clear act of unlawful maladministration inexplicably placing the government at an unnecessary and wholly avoidable fiscal risk. This behavior does not conform with the letter of acceptance, nor to any standard government practice.”
Secondly, the attorney further told OP that PPADB, acting in terms of Regulation 79(1) of the Public Procurement and Asset Disposal Regulations S.I. 12 of 2006 (Regulations) issued a directive to the Chairperson of the MTC and the Department of Roads to cease all procurement processes related to the tender pending the resolution of their client’s complaint, which was pending before it. The letter communicating this directive is dated 11 January 2019, he said.
“In her affidavit Ag. DPS (Corporate Services) Ragalase claims to have only seen the letter on 16 January 2019, after the Director had (unlawfully) issued a notice to commence the works. Be that as it may, the actions of both Ms. Ragalase and the Director thereafter do not demonstrate any level of adherence to the directive issued by PPADB,” Botlhole pointed out.
This is so because, he said a payment certificate was submitted in favour of Emark for the mobilization (advance payment) of the project on the very next day of 17 January 2019; and on 25 January 2019, the payment certificate was checked by one L. Lekgaotswe and approved on this date. Thereafter, he added that the Director of Roads inspects the certificate and requests that payment be made on 29 January 2019.
He continued: “he does so despite having been served with our client’s application on the same date. The payment is then received by the accounts department on 30 January 2019 and sent to government revenue office on 31 January 2019.” According to Botlhole, the conduct of both the Director and Ms. Ragalase clearly disregards the directive issued to them by PPADB and Regulation 79(1). Instead of seeking to halt the implementation of the works, he said they do the opposite, frantically seeking to implement the contract without following due process, such as taking receipt of the relevant bonds, and awaiting a decision from the PPADB. As at the date of this letter, he mentioned that the PPADB is yet to determine his client’s complaint.
Thirdly, and similar to how the Director issued a notice to commence without first taking receipt a performance bond from Emark, the Director has authorised the payment of advance payment without first taking receipt of the advance payment guarantee (bond), the attorney highlighted to Carter Morupisi.
“We believe these administrative irregularities by both the Chairperson and the Director are serious in nature, and warrant that your esteemed office investigate what we have alleged in herein and take disciplinary action against both the Director and the Chairperson. It appears quite clearly to us that they are hastily trying to implement the award of the tender, on the misguided belief that this will frustrate the relief sought by our client in the intended review application.”
Conduct such as what we have detailed above seriously erodes public confidence in the procurement processes employed by government, he said adding that there is no rational/acceptable reason to explain the conduct of these two officers. “If the government itself does not comply with the laws it created, it losses its legitimacy and becomes a catalyst for inexplicable and corrupt practices. These officers must be called to account, and we beseech your esteemed office to act accordingly,” he said.
Temporarily, when approached for a comment on the matter, Permanent Secretary in the Ministry of Transport and Communication Kabelo Ebineng said he cannot immediately remember details to the disputed matter and instead referred this publication to the Director of Roads Segokgo. Segokgo was said to be outside the office at the time of press. However, his deputy, Kitso Chibule spoke to this publication but could not be drawn into the issue at hand and instead referred this reporter back to the PS in the Ministry.
Meanwhile, in the court case PPADB is one of the respondents cited in the matter and they have not opposed the relief sought by Moira and they have instead filed a notice to abide. AG filed an answering affidavit opposing the application on behalf of both the Chairperson of the MTC and the Department of Roads.
The affidavit is disposed to by Maipelo Ragalase, the acting Deputy Permanent Secretary (Corporate Services) in the Ministry of Transport and Communication. She is also the Chairperson of the MTC in question.
The parties appeared before Acting Judge Khan on 31 January 2019, who decided having heard the parties briefly, that the AG be given time to file its answering affidavit before the matter is heard on 6 February 2019. The case continues.
News
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.
News
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.
News
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.