Classified Pemandu report exposes Botswana Public Service
News
A confidential report by a Malaysian private consultancy firm, Performance Management and Delivery Unit (PEMANDU) Associates, that was engaged by Botswana government through the Directorate of Public Service Management (DPSM) has revealed a damning state of affairs in the country’s Civil Service.
Curiously, the report has been ready for long but kept in the shelves by the Botswana government, making it out of reach and touch for the critical stakeholders including the trade unions and the public. The report essentially provides the progress and status update on Pemandu Associate’s activity in Botswana from December 2017 up to September 2018 in which their main aim, which they executed, was to conduct preliminary assessments on the areas of remuneration management system.
In the classified report they unearthed that generally the Botswana Public service performance management is not functioning efficiently as it was supposed to be. According to the report, titled, “remuneration system project report for grades A to D,” there are issues on the complexity of performance appraisal form and biased session between employee and employer. It further reveals that “the Botswana Public Service today does not have a comprehensive remuneration structure and does not follow best practices.”
Some of the flaws in the system, it posits, is that the current Botswana public service remuneration follows a traditional model made up of grades and notches or steps within grades; and a new employee will start at the bottom notch of the grade as there is no flexibility to take into account special skills and experience. It states that the employee will move up from one notch to another based on promotion and that the notches remain steep, meaning an employee will reach the ceiling of the particular grade quickly.
“The salary for one grade does not overlap with another. This means that on reaching the ceiling (the top most notch of the salary grade), the employee must be promoted to another grade in order to advance in salary. In addition the current design does not have a fixed salary range – it is merely a series of notches within a particular grade and no fixed ceiling and floor levels. This has serious implications in terms of the salary structure in equilibrium.”
To illustrate this, the report gives an example of an employee (A) who may start at the lowest notch of a grade at P20 000 and another employee (B) at the highest notch earns P100 000 adding that the range between the lowest and the highest salary point is then therefore P80000. “Assuming there is a salary increment of 5 percent. Employee at the bottom will now earn P21000 whilst employee B will earn P105000. The gap between the two salary points increases from P80000 to P84000. With another 5 percent adjustment, the gap widens to P88200,” it highlights.
According to the top secret report, this means the structure will slide with each salary adjustment and the gap will grow exponentially as well. It points out that this design is not sustainable in terms of managing the salary bill, keeping equity and maintaining employee morale as the salary pyramid grows steeper with each salary adjustment. It further revealed that the existing salary structure does not follow the norm in terms of range and notches; it’s complex and difficult to manage.
“The salary rates are below market rates and is thus not competitive in terms of attracting and retaining talent and the required professional skills for the country to become a high performing public service sector,” the report compiled by the engaged Malaysians highlights. The Pemandu Associates report also discloses that the structure contains many legacy issues which arose as a means of circumventing the current shortfalls in the system and that there is no review process to sustain a motivated workforce and productivity.
The current salary is a sliding structure, reports states adding that the minimum and maximum salaries (ranges) are not locked and will change according to any inflationary adjustments declared by the leadership. The range (maximum and minimum) within each grade from grade C to grade E is narrow. Hence over time, this would create a bulge of employees who are stagnated at the top of the scale. This was observed particularly for grade E1 where 63 percent of the employees are stagnated at ceiling.
Many of those who have reached the salary ceiling would remain there for a long time as the number of positions at the next level is usually less and consequently, the number of vacancies is much lesser. In the case of grade E1, report states that 36 percent of the employees at the ceiling have remained status quo for more than 5 years – in fact, all 63 percent of them at the ceiling of grade E1 will not be promoted to grade F1 as there are no vacancies in grade F1. “This is demotivating for current employees and a deterrent for the recruitment of much needed talent for the public service.”
In some Ministries, it states the percentage of employees who are stagnated at the top of their scale has reached a dire situation and that the ministry of Basic Education has 82.7 percent of their employees stuck at the ceiling in grade C1 and 42.8percent at grade D1 while stressing “this has an adverse on productivity.” Considering cadres such as doctors and teachers, the government report posits that the remuneration system is not flexible enough to recognise skills.
As an illustration, it explains that a doctor who joins the public service has a starting basic salary of P187 716 and a scarcity allowance of 40percent of the basic salary to supplement the shortfall in attracting the profession to the public service. It recommends that if the remuneration system is sufficiently robust and flexible, the doctor should be offered a starting salary of P262802 without the need to act as a ‘bandage.’
The same is true for teachers, the shelved report asserts adding that Science and Mathematics teachers join the public service at grade C4 with a starting salary of P73416, supplemented by a 40percent scarcity allowance that makes the total remuneration P102782. “The scarcity allowance albeit a necessity distorts the remuneration structure and makes it difficult to manage the total remuneration.” This comes in light of remuneration system issues which were raised including concern of among others, scarce allowances issues being distributed “unequally” in Botswana.
The current salary plus allowance lags behind the private sector and that it is not competitive and is a concern especially at the leadership level, it stresses. Moreover, the report acknowledges that the government of Botswana has laid out a bold and compelling vision of what the future of the country would look like in Vision 2036, which is, transforming from an upper middle-income nation to a high-income nation.
It adds that “the critical successes factor in arriving at a high-income nation status will be a high performing public service sector that will move the many levers for socio and economic development.” Creating and sustaining a high performing public service sector, it emphasises that will depend to a larger part on having a remuneration framework that will enable the government to attract, retain, and motivate public service employees.
The report further cites a study by the University of Warwick, United Kingdom which showed that productivity increased between 12percent and 20percent if an employee was happy and that in another article, it was noted while money is not the only motivator and it is not the primary motivator for everyone, it is an important motivator for most people in the workplace including the public servants in Botswana.
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.