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Zakhem to get P90 million windfall as Ministry ‘surrenders’

ZAC Construction may soon smile all the way to the bank after the Ministry of Transport and Communications caved in after the contractor of Charleshill-Ncojane road lodged a dispute with the Dispute Adjudication Board (DAB) demanding compensation.

If successful ZAC Construction will get a possible P70 million award and another P20 million from an initial claim against the Ministry of Transport and Communications. Reports suggest that while ZAC has made compelling submissions before the Board, the Ministry is somewhat cold and submissive. An attempt by Department of Roads to submit a constructive written response was denied while ZAC Construction was allowed to supplement its earlier filing.


Nicholas Zakhem’s company has made three claims before the Dispute Adjudication Board, with the first dealing with “Costs for the initial delay”. In its response the Roads Department notes that “If and only if the DAB finds that the Contractor’s referral has merit, in order to save time the Employer has reviewed the Contractor’s computation of costs and confirms it is correct. “ Before stating as captured above the Department confirms that the Contractor (ZAC) has agreed to the extension of time granted and that this is not in dispute.

“The point of principle is should the Contractor be paid,” they write, while also stating that the Engineer, who they have since fired, determined the Contractor has no entitlement to compensation. In the second claim, ZAC Construction is querying the “Change to vertical alignment”. The contract is a design and construct contract. The Department of Roads notes that “the point of principle regarding claim 2 is whether the Engineer’s instruction to increase the vertical alignment is a variation.” Again, the Ministry states, “If and only if the DAB finds that the Contractor’s calculation of the extension of time and computation of costs and confirms it is correct.”

The third claim deals with the “Pre-collapse treatment. “The point of principle regarding Claim 3 is the Engineer’s time-barring. The Fidic contractual provision for time-barring is covered under clause 20.1. As is the standard response, the Department of Roads writes, “If and only if the DAB finds that the Contractor’s referral has merit, in order to save time the Employer has reviewed the Contractor’s computation of costs and confirms that it is correct.” The DAB is chaired by Mr Jeffrey Bookbinder of Bookbinder Business Law.

COURT BATTLES ONGOING

The dispute around the Charleshill-Ncojane road are also playing themselves out in the courts where the permanent secretary in the Ministry of Transport and Communication, Kabelo Ebineng is compelled to defend his 20 year friendship with businessman Nicholas Zakhem who convinced him to terminate a contract for a Consultant engaged in the construction of the Charles Hill- Ncojane road.

ZAC Construction, whose Managing Director is Zakhem is the contractor in the project. The two parties are throwing jabs of conflict of interest at each other and the permanent secretary has stated that he has even borrowed money from Zakhem, a red flag already observed by the consultant, Bothakga Burrow and other players in the matter. It not clear what the role of the Permanent secretary is in the current claim before the Dispute Adjudication Board and how the members of this Board are appointed because the Ministry had not responded to our questions by the time of going to print.

It is not clear as to whether the dismissed Consultant Engineer will be given a chance to respond to some of the claims made by ZAC Construction because Bothakga was responsible for some of the decisions in question. From the beginning of the project, Zakhem had flatly refused to work with the Consultant, Bothakga Burrow Botswana (BBB) accusing them of being difficult to work with and later alleging conflict of interest on their part – they had tendered for the same project, he said. BBB was awarded the Consultant contract by the PPADB with the Ministry of Transport and Communications as the procuring entity.

As of 16 February 2018 Bothakga Burrow Botswana has dragged the Ministry of Transport and Communications before court accusing it of unlawfully terminating its contract. Ebineng terminated BBB’s contract with effect from 16 February 2018 citing convenience on the part of the Employer or procuring entity. But Bothakga is arguing that the Ministry did not follow the correct procedure when terminating the contract and the Public Procurement and Asset Disposal Board (PPADB) agrees with Bothakga.

Zac Construction was awarded the Charles Hill – Ncojane tender on 26th November 2013 for an amount of P436 279 046. 45 to be completed in 36 months on a design and build basis. In January 2017, sixteen months after commencement of construction Zac or Zakhem complains to the Ministry of Transport citing conflict of interest on the part of the consultant, Bothakga Burrow. His views are such that the consultant has not been properly appointed and he threatens to stop taking instructions from the Consultant and requests that Bothakga Burrow be removed from the project.

Records show that in May 2017, one month after the appointment of Kabelo Ebineng as Permanent Secretary at the Ministry of Transport, Zakhem restarts work after a four week unauthorized stoppage of work, and reconfirms that they will not work with the Consultant, Bothakga Barrow, and again he requested the removal of the Consultant.

What has irked Bothakga Burrow directors before their contract was terminated is that the Permanent Secretary at a meeting held on 19th June 2017 he confirmed that “he and Mr Nicholas Zakhem know each other socially. He mentioned that he has even had the opportunity to borrow money from him because of their relationship and they continue to have a relationship.”  After this meeting Bothakga Burrow requested that Ebineng recuse himself from meeting dealing with the matter but he refused stating that there was no conflict of interest.

During the course of July 2017, construction was suspended by the consultant, because the contractor was no longer accepting project works to be tested, as per the contract, however the Contractor proceeded to construct 12km of road, whose quality could not be vouched for. Ebineng immediately requested Bothakga to withdraw the suspension and he instructed Zac Construction to proceed with construction work unsupervised. Records further show that by September 2017 the Parliamentary Committee on Communications, Works, Transport, and Technology, had visited the project site to understand the challenges on the project.

Shortly thereafter the Contractor on his own volition stopped construction on the project, and demanded to be paid for the 12km of road that he had refused to have tested. The Consultant was asked by the permanent secretary to certify payment for the 12km, and declined to do so without verifying the quality of works in accordance with the contract. Indications are that at some stage the Permanent Secretary to the President, Carter Morupusi intervened and advised that the project be executed in accordance with the signed contracts of all parties. In all meetings, Zac Construction requested that the Consultant be removed as a pre-condition to return to work on the project.

WeekendPost learns that by the end of 2017 the Ministry had paid Zac Construction for the 12km of untested road works; failed to test or verify the quality of the constructed work; acceded to the contractor’s request to remove the Consultant from the project; the permanent secretary has refused to recuse himself from dealing with the matter which he is said to be conflicted; the PPADB had notified him that his position is untenable.  

Ebineng’s defense of his relationship with Zakhem is a simplified one. He states that he knows most of the contractors, engineers, and consultants that deal with his Ministry. He states that most of them he went with them to school, met them at play grounds, socializes with them hence he wonders if he will recuse himself for almost everyone in town. On the other hand allegations of conflict of interest on the part of Bothakga were dismissed by the PPADB but the Ministry through Ebineng held that conflict was inherent.

The two parties are now in court with Bothakga Burrow Botswana pleading with the court to reverse the unlawful decision of the permanent secretary. Bothakga Burrow Botswana’s contract is worth P40 million. Judge Rannowane gave both parties an ear on 16th March 2018 and will deliver judgement next month.

Some in the Ministry are worried that Ebineng’s actions are setting a bad precedent that will have far reaching consequences for the entire construction industry where contractors can pick and choose who they want to supervise them. They also raise a concern for the role of PPADB in awarding and terminating contracts, where government can willfully undermine its own laws and institutions.

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No end in sight for Nam, Botswana borderline feud

27th July 2021
Namibian-report

Despite the President Dr Mokgweetsi Masisi and his Namibian counterpart, Hage Geingob giving an impression that the borderline security disputes are a thing of the past and that diplomatic ties remain tight, fresh developments from Namibia suggest otherwise, following Geingod’s close confidante’s attack on Botswana and its army.

Giving a Zambezi region state of the affairs last week, a Geingob-appointed governor of Zambezi region, Colonel Lawrence Ampofu, a retired Colonel in the Namibian Defence Force, former plan combatant during the liberation struggle of Namibia, in a written speech, charged at the BDF and condemned their killings of the Namibians as unacceptable.

“The security situation within our borders remains calm. The incidence of the Botswana Defence Force shootings and wanton killings on the Nchindo Brothers on 05 November 2020 and other 37 Namibian lives lost since independence remain a serious challenge with our neighbor, Botswana.

Our residents living along the Chobe, Linyanti and Kwandu rivers are living under constant threats, harassment, fear, intimidation and killings and such activities are condemned and not acceptable,” he said under the safety and security title.

The attack suggests that Namibia has not bought Botswana’s story. Ampofu was part of the entourage that accompanied Geingob to the three Nchindo brothers and their cousin who were gunned down by the BDF, and is reported to be privy to the details of the unpublished Botswana-Namibia joint investigations report about the killings as a governor or political head of the region which has eight electoral constituencies.

The report contains the sensitive details of how the three Namibians referred as poachers by the BDF – and Fisherman by the Namibian government were gunned down on 5 November last year along the Chobe River.  They were Tommy (48), Martin (40) and Wamunyima Nchindo (36), and their cousin Sinvula Muyeme (44).

His views are not really in contrast to his President’s views who also described the BDF as trigger happy in a scripted report to his cabinet.

The Zambezi region is located in the extreme north east part of Namibia and covers a total of 14,667.6 square kilometres. “We share borders with Angola, Zambia to the north, Zimbabwe to the east and Botswana to the South,” he said.

Sampofu was first appointed governor of the former Caprive Region in 2010 by the former Namibian president, Hifikepunye Pohamba and was reappointed as Zambezi governor by President Dr.Hage Geingob in 2015, a term running to 2025.

37 Namibia residents killed by Botswana army so far

Sampofu is a man who continues to insist that Botswana has killed 37 residents of his region. A video posted by the Namibian Broadcasting Corporation (NBC) shows him alleging that at least 37 Namibians were killed by the BDF, after he met with the community at Impalila.

“It is true, the BDF started long ago. As we speak 37 lives have been lost here in Impalila along the Chobe river going to Linyanti and Kwado rivers up to Lizauli. All those families lost their loved ones,” Ampofu said in the video posted by NBC.

It is not known how the BDF, which has maintained their position that the Namibians were engaging in illegal activities of poaching, treats the constant attacks by the Namibian authorities, but they have repeatedly vowed to continue protecting the country’s sovereignty and natural resources.

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Masisi gives KBL the “middle finger”

27th July 2021
President Masisi

Botswana’s premier brewer and leading distributor of beer, Kgalagadi Breweries Limited (KBL), this month dragged the government of Botswana to court after President Mokgweetsi Masisi imposed an alcohol ban with immediate effect. KBL labelled the decision as unjustifiable, irrational and that it overrides the rights that are enshrined in the constitution.

This week, Masisi through attorneys representing the government disparaged the case in his written affidavit of KBL’s application, referring to it as frivolous and that it ought to be dismissed with costs on a punitive scale.

In his court papers, Masisi reminded KBL that Botswana is a Republic whose laws find validity from the constitution, and in terms of Section 17 of the constitution the President is empowered to declare a State of Emergency and that it is a common cause that Botswana is under such state.

“It is common course that there is in existence emergency powers (Covid-19) Regulations 2020 as amended from time to time which is solely designed to regulate the Covid-19 pandemic,” he said.

Masisi pointed out that he denies that the application before Court is proper such as to challenge the lawfulness and validity of a regulation made and a notice published in the exercise of a legislative function in accordance with the Emergency Powers Act which empowers the President to make regulations as appear to him to be necessary and expedient for securing public safety.

Furthermore, the President revealed that the decision to ban alcohol sales was not arrived at willy-nilly, but rather that there had been careful considerations that the risks posed by Covid-19 had increased and therefore it was expedient and necessary to suspend all liquor licenses.

Moreover, Masisi denied that the decision to reinstate the ban should be made by the Director of Health Services as indicated by KBL in their nature of the application, “the Director is to cause the notice to be published in the Gazette after consultation with the President.”

Masisi indicated that the role of the Director of Health Services is to publish a regulation made by the President.

He further, reminded KBL that the power to make regulations in a State of Public Emergency in accordance with the EPA lies with the President, “such power includes the amendment of any enactment, suspending the operation of any enactment or modification of an enactment.”

According to Masisi, his decision to ban alcohol sales was based on evidence provided by the Director of Health Services who indicated to him that there was a sudden spike in the transmission of the Covid-19 virus following the reinstatement of liquor licenses.

Another piece of advice tendered by the Director of Health to Masisi was that bars and other liquor outlets were some of the major hotspots in the sense of such being high-risk areas at which the virus spread rapidly.

“Alcohol was one of the major causes of non-compliance with the health protocols that were put in place to control the spread of the Covid-19 virus. Further, there was an indication that more arrests were made on people failing to adhere to Covid-19 protocols more particularly at places where there were gatherings,” he contended.

He pointed out that therefore, it was expedient and or necessary to preserve lives and to reduce the risks of transmissions of the virus to reinstate the suspension of liquor licenses.

Moreover, the President says that it must be noted that he avers that the Director of Health Services is a credible source on matters of public health of which he also accordingly gave due weight to the Director’s advice on deciding to reinstate the ban through the impugned notice.

“I am aware and was always aware at the time of promulgating the regulation complained of that it shall negatively affect some sectors of the economy. However, after due consideration and receipt of advice, I decided to give priority to the safety and health of the nation,” Masisi said.

He presaged KBL that it would not be prudent and in the best interest of the nation to ignore a health emergency such as Covid-19 and gave preference to trading and making of profits by the applicant. “The results would only be catastrophic to the extent that when we emerge from the scourge we would be left with a depleted and ailing nation from Covid-19 and its side effects.”

Furthermore, his written affidavit further pointed out that the decision to reinstate the ban on alcohol was taken notwithstanding understanding and appreciation of the economic hardships that would befall the country.

However, he said he deliberately made the decision based on the evidence provided to him by the Director of Health, whose evidence he believes to be credible to give public/safety and health priority over economic considerations in some sectors.

In making the decision, Masisi states that he was and considered different options including allowing for sale of alcohol consumption off premises, however the evidence he had been provided with suggested that such other alternatives would not achieve the overall objective of securing public safety and health by reducing the risk of the spread of the virus.

“By the time I imposed the ban, alcohol was already being sold for consumption off-premises. This did not work. The information provided to me by the Director and the Presidential Task-Force team demonstrated that consumers purchased alcohol and then loitered and consumed it within the peripheries of bars and other liquor outlets,” he said.

Attached to the affidavit as emphasis, were photographs and videos of Gaborone West, Phase 4 in mid-June 2021, which he explains circulated on social media and was brought to his attention.

“I need not say much about the photos as they depict a crowd exceeding 50 gathered at the parking area of a bar. There is little or no regard to Covid-19 protocols. It was clear to me and my advisors, including the Director of Health Services and members of the Presidential Task-Force team that the total ban of alcohol was necessary to manage the risk of increase in infections, to understand what seems to have led to an increase in the risk of infection when alcohol is present I was advised by the Presidential Task-Force team that scientifically there has been evidence that alcohol narrows physical distance,” he argued.

Masisi says that allegations made by KBL are serious allegations of infringement of fundamental rights yet they fail to state how imposition and reinstatement of the suspension of liquor licenses out of necessity and expediency of the health of the nation infringes on the rights as alleged.

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Gov’t gives parallel statements on COVAX

27th July 2021
COVAX---lelatisitswe

In  an embarrassing turn of events that depicts disintegration in government communication on the fight against COVID-19, President Mokgweetsi Masisi and Assistant Minister of Health & Wellness, Sethomo Lelatisitswe gave two conflicting statements on the same matter, same day, just minutes apart.

The Commander-in-Chef told health practitioners and residents in Ramotswa that the COVAX facility has scammed African countries after billions were paid in a crowd funding effort to procure COVID-19 vaccines in bulk.

“We have pumped money as developing countries of the African continent into the COVAX Facility but the returns were not satisfactory, they cheated us,” the President said in Ramotswa.

According to President Masisi, the COVAX facility Vaccine only came in bits and pieces, frustrating the continent ‘s head immunity targets amid rapidly spreading Delta Variant which is currently reversing all progress made by Africa in containing the contagious virus.

“What we are getting is very small portions of the vaccine, they keep telling us that there is shortage of supply, this is not fair, but we have paid in advance, however what can we do, we have no choice but to spend more  money and look for other avenues of securing other available vaccines,” he said.

Meanwhile in Gaborone, Assistant Minister of Health and Wellness told Parliament that vaccine from COVAX facility is anchoring Botswana’s vaccination program.

“I am not aware of such information that COVAX facility is not delivering as expected, we are actually bolstered by COVAX facility in this country,” he said responding to a question from Mahalapye West Member of Parliament David Tshere who is also Chairman of Parliament Committee On Health and HIV/AIDS.

“We have received doses as ordered from the COVAX facility, and we are still receiving more, I have not seen that information which is purported to have been revealed by the President, unless its new information, we as the Ministry we are not aware of any frustrations by the COVAX facility,” he said.

COVAX is co-led by the Coalition for Epidemic Preparedness Innovations (CEPI), Gavi and the World Health Organization (WHO), alongside key delivery partner UNICEF.

Its aim is to accelerate the development and manufacture of COVID-19 vaccines, and to guarantee fair and equitable access for every country in the world.

The facility is a global coalition that works to ensure fair and equitable access of COVID-19 vaccines around the world. So far, 190 countries have joined the COVAX initiative, including all 22 countries in the Eastern Mediterranean Region.

The COVAX Facility aims to have 2 billion doses of COVID-19 vaccines available for distribution across the globe by the end of 2021, targeting those most at risk (e.g. frontline health workers) and most vulnerable severe diseases and death (e.g. elderly and people with co-morbidities).

On other vaccination issues President Masisi revealed, still in Greater Gaborone vaccination centre visits, that Botswana has placed orders with Pfizer, a United States vaccine producer noting that they have promised to deliver next year.

Meanwhile, government kick-started phase two of the Covid-19 vaccination program this week, opening up for ages between 30 and 54.

President Masisi revealed that this was done because some elderly were reluctant to be inculcated.

“We can’t take forever trying to convince people to take vaccine, we moved to the next age segments because we cannot afford to have vaccines-which are already in shortage supply to just lie there,” he said.

On Friday, Ministry of Health revealed that it was receiving large numbers of people below the age of 55 lining up to be vaccinated.

In a statement the Ministry of Health said it, “acknowledges the huge turnout that marked the commencement of the Phase two COVID-19 vaccination program”.

Given this high turnout, especially in the Greater Gaborone region, the ministry announced an extension of operation hours in order to serve the huge crowds that had come for vaccination.

Of the nearly 85 000 doses that were being doled across the country as first doses, the majority of the Greater Gaborone vaccination sites were already getting depleted by 1800hrs on 22 July 2021.

As a result of this development, the ministry took a decision to discontinue the extended hours of operation announced yesterday for vaccination sites in Gaborone.

This means that vaccination sites in Gaborone and elsewhere in the country which still have some vaccines, will offer them in the normal working hours and days of the week.

The Ministry says it appreciates the great desire to be vaccinated shown by thousands of citizens and residents of this country and wishes to assure them that it will continue to expedite their vaccination every time vaccines become available. As has been communicated in various fora, more vaccines are expected in August 2021.

As at July 2021, Botswana has so far received 62, 400 doses of AstraZeneca/COVISHIELD bought through the Covax facility, 30,000 doses of AstraZeneca vaccine donated by the Republic of India, 19, 890 doses of the Pfizer vaccine bought through the COVAX facility, 200, 000 doses of the Sinovac vaccine, donated by the Peoples Republic of China and another 200, 000 doses of the Sinovac vaccine bought through bilateral negotiations with Sinovac company in China.

“We encourage Batswana to remain hopeful that although it’s taking longer than anticipated, enough COVID-19 vaccines will eventually arrive in our country. We urge them to always strictly abide by all COVID-19 protocols so that they protect themselves and others from this deadly virus,” the ministry said.

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