Broke NDB begins retrenchment
Beleaguered National Development Bank (NDB) has started the process of retrenchment in a bid to rescue the bank from financial ruin, with scores of employees expected to lose their jobs in an exercise expected to cost the bank at least P31 million.
The Negotiation and Consultation Committee (NCC) which comprises of members from both management of the NDB and staff union executive, jointly agreed on the general guidelines for placement and resourcing with respect to the staff rationalisation and performance optimisation exercise. WeekendPost is privy to a document titled, “Joint Statement on the Status in Respect of the Staff Rationalisation and Performance Optimisation Exercise,” which stipulates how the process will unfold.
The document is signed by NCC Chairman Jerry Mwendapole, NDB Staff Union President, Boys Selalame, and Harry Marks, representing NDB malmanagement. The document indicates all employees in the Bank, except the Chief Executive Officer (CEO), Lorato Morapedi, have no job guarantee, and all employees will be tested for job fitness as per placement criteria.
However, the bank promises that considerations will be made during the rationalisation exercise to fill positions with internal candidates before external recruitment. The retrenched employees will also be given preference for re-employment in filling vacancies that may arise within six months; provided they meet the requirements for those roles and are a better fit compared to other potential candidates.
Companies owned by retrenched NDB employees will be given preference in awarding of tenders provided they meet the requirements. This dispensation will only remain enforce for a period of 24 months from date of separation. The document indicates that owing to financial performance challenges faced by the bank, all recruitment and general staff movements such as promotions, fixed term contract renewals and others have been frozen save for exceptional cases. This also extends to all staff advance schemes such as Motor Vehicle, Mortgage and Personal loans, both internally and the Barclays Staff Loan scheme, as well as the employee development and training.
NDB WANTS P400 MILLION RECAPITALISATION
In May this year, NDB approached and lobbied the Parliamentary Committee on Public Enterprises and Statutory Bodies to facilitate a process that will see the beleaguered bank being recapitalised to stay afloat en route commercialisation. NDB has found the going tough in recent years, with the bank riddled with perennial losses amid a funding model that has been ruled out as not sustainable. This year, the bank has found itself in dire crisis as it had only P10 million to disburse for loans.
WeekendPost has established that NDB’s problems and bottlenecks are deeper than simply the matter of recapitalisation. The structure and sources of funding mean that they have an unfavourable cost structure which paralyses their competitiveness. “It is almost a chicken and eggs situation that for them to lower their cost of funding, they need to be deposit taking, that is through banking license, but it appears they need to capitalise a bit more to prepare for qualification as a deposit taking institution,” one committee told this publication earlier this year.
WeekendPost understands that NDB is sourcing its funds from BIFM Capital, Barclays Bank and First National Bank Botswana (FNBB) at an interest rate of 8.5 percent, and 9.5 percent for BIFM capital. This, according to the bank, is brought about by the verity that government has stopped issuing bonds to the bank, forcing it to find alternative funding avenues. It has merged that most of committee members are sympathetic to NDB and are determined to make a case in their favour before parliament.
Parliament has the authority to authorise government spending and has in the past approved bailing out of several public enterprises which were struggling financially. Though NDB was at one point making profit, it does not get subvention from government on annual basis despite the bank being a development bank.
In 2016, NDB requested government to inject capital amounting to about P1 billion in the next three years in order to transform the bank and prepare it for commercialisation. Last year, it was offered P400 million by government, P100 million of it being a grant while the remaining P300 million was a loan.
As per CEO Morapedi’s statement before the parliamentary committee on Statutory Bodies and Enterprises in 2016, NDB wanted government to inject P400 million in the next financial year [2017], followed by two government guaranteed loans of P165 million and P250 million in subsequent years. Due to the financial crisis that the bank found itself in, management recently took a decision to retrench some of its employees to minimize the costs. Already, NDB staff has been informed of management’s intentions to retrench, with letters scheduled to be handed from the 21st-24TH May 2018.
NDB is one of the quasi-government institutions that have been put up for privatisation, with Botswana Telecommunication Corporation (BTC) having successfully gone through the process. It is expected that, like the BTC, government will retain 51 percent shareholding in the company, while 5 percent is offered to employees, with the rest of the shareholding being offered to the public. However, there has been debate both within and outside NDB with regard to whether the bank is in a state to be commercialised. Some school of thought is that in its current state, government would be either giving it away or nobody will show interest in its stock, hence the need to recapitalise the bank.
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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.