The Public Procurement and Asset Disposal Board (PPADB) has reviewed and increased the financial ceilings of both the Ministerial Tender Committees (MTCs) and District Administration Tender Committees (DATCs).
This is a biennial exercise and this time around it saw the Ministry of Mineral Resources, Green Technology and Energy Security’s threshold shoot from P300 000 000 to P600 000 000 . The new ceilings will become effective on the 1st June 2018. According to the PPADB the objective is to improve efficiency in the procurement system by ensuring that timely decisions are made at the Ministry and District level.
The PPADB is mandated in terms of Section 65 of the Public Procurement and Asset Disposal (PPAD) Act to carry out this exercise. Ministry of Land Management, Water and Sanitation Services also had its threshold doubled from P200 000 000 to P400 000 000. Central Medical Stores Adjudication Committee also leaped from P100 000 000 to P200 000 000. Ministry of Agriculture and Food Security Ministerial Tender Committee will now preside over a threshold of P240 000 000 instead of the old P120 000 000. The Ministry of Basic Education threshold has improved from P80 000 000 to P130 000 000.
The Ministry of Defence, Justice and Security Ministerial tender Committee budget has doubled from P160 000 000 to P320 000 000. The Ministry of Employment, Labour Productivity and Skills Development is up to P160 000 000 from P100 000 000; while the Ministry of Environment, Natural Resources Conservation and Tourism threshold doubles to P130 000 000.
The Ministry of Finance and Economic Development Tender Committee will make decisions worth P200 000 000 effective 1st June2018, a double from P100 000 000, the same figures and changes apply to the Ministry of Health and Wellness. The Ministry of Infrastructure and Housing Development Tender Committee threshold experienced the biggest percentage jump from P135 000 000 to P400 000 000.
On the other hand the Ministry of International Affairs and Cooperation Ministerial Tender Committee threshold was increased from P65 000 000 to P130 000 000; as for the Ministry of Investment, Trade and Industry, the Ministerial Tender Committee will start presiding over tender worth P300 000 000 compared to the previous P150 000 000. At the Ministry of Local Government and Rural Development, the threshold has doubled to P240 000 000; as is the case at Ministry of Nationality, Immigration and Gender Affairs where the figure has doubled to P200 000 000.
The Ministry of Presidential Affairs, Governance and Public Administration Ministerial Tender Committee will deal with awards capped at P160 000 000, a jump from P80 000 000. At the Ministry of Tertiary Education, Research, Science and Technology the Tender Committee has been capped at P160 000 000, an increase from the old P80 000 000. Ministry of Transport and Communications’ Ministerial Tender Committee has its ceiling pinned at P260 000 000, an improvement from the P160 000 000 of old. The Ministry of Youth Empowerment, Sport and Culture Development also has a huge percentage jump from P120 000 000 to P360 000 000.
Mr. Charles Keikotlhae, Public Relations and Education Manager at PPADB said the organisation has throughout the last financial year been carrying out comprehensive assessments of MTCs and DATCs to determine their capacity and performance. “From the last assessments, PPADB was able to identify the performance level of each Committee, hence the appropriate margin of increase to be effected at each Committee as was the case in 2014 and 2016. The Board has opted for non-uniform financial thresholds given that the capacity, procurement requirements and performance across Ministries are not the same.”
Keikotlhae stated that consultations have been held with Accounting Officers at each Ministry to share with them the findings from the assessments as well as to secure their commitment to swiftly close the gaps and support MTCs and DATCs to operate at higher thresholds for their respective Ministries.
Consultation on the increase of all DATC thresholds was carried out with the Accounting Officer for the Ministry of Presidential Affairs, Governance and Public Administration. The Board is committed to intensifying oversight on the Committees’ work to ensure they execute their mandate as expected and will provide any necessary support. At District Administration Tender Committees (DATCs) Thresholds, Francistown has the highest threshold of P20 000 000, a double increase from P10 000 000. Gaborone is capped at P11 000 000, an increase from P8000 000. Charleshill has the least threshold at P2 000 000.
Government is currently sitting on 4 400 vacant posts that remain unfilled in the civil service. This is notwithstanding the high unemployment rate in Botswana which has been exacerbated by the recent outbreak of the deadly COVID-19 pandemic.
Just before the burst of COVID-19, official data released by Statistics Botswana in January 2020, indicate that unemployment in Botswana has increased from 17.6 percent three years ago to 20.7 percent. “Unemployment rate went up by 3.1 percentage between the two periods, from 17.6 to 20.7 percent,” statistics point out.
Leading commercial bank, First National Bank Botswana (FNBB), expects the central bank to sharpen its monetary policy knife and cut the Bank Rate twice in the last quarter of 2020.
The bank expects a 25 basis point (bps) in the beginning of the last quarter, which is next month, and another shed by the same bps in December, making a total of 50 bps cut in the last quarter. According to the bank’s researchers, the central bank is now holding on to 4.25 percent for the time being pending for more informed data on the economic climate.
An audit of the accounts and records for the supply of food rations to the institutions in the Northern Region for the financial year-ended 31 March 2019 was carried out. According to Auditor General’s report and observations, there are weaknesses and shortcomings that were somehow addressed to the Accounting Officer for comments.
Auditor General, Pulane Letebele indicated on the report that, across all depots in the region that there had been instances where food items were short for periods ranging from 1 to 7 months in the institutions for a variety of reasons, including absence of regular contracts and supplier failures. The success of this programme is dependent on regular and reliable availability of the supplies to achieve its objective, the report said.
There would be instances where food items were returned from the feeding centers to the depots for reasons of spoilage or any other cause. In these cases, instances had been noted where these returns were not supported by any documentation, which could lead to these items being lost without trace.
The report further stressed that large quantities of various food items valued at over P772 thousand from different depots were damaged by rodents, and written off.Included in the write off were 13 538 (340ml) cartons of milk valued at P75 745. In this connection, the Auditor General says it is important that the warehouses be maintained to a standard where they would not be infested by rodents and other pests.
Still in the Northern region, the report noted that there is an outstanding matter relating to the supply of stewed steak (283×3.1kg cans) to the Maun depot which was allegedly defective. The steak had been supplied by Botswana Meat Commission to the depot in November 2016.
In March 2017 part of the consignment was reported to the supplier as defective, and was to be replaced. Even as there was no agreement reached between the parties regarding replacement, in 51 October 2018 the items in question were disposed of by destruction. This disposal represented a loss as the whole consignment had been paid for, according to the report.
“In my view, the loss resulted directly from failure by the depot managers to deal with the matter immediately upon receipt of the consignment and detection of the defects. Audit inspections during visits to Selibe Phikwe, Maun, Shakawe, Ghanzi and Francistown depots had raised a number of observations on points of detail related to the maintenance of records, reconciliations of stocks and related matters, which I drew to the attention of the Accounting Officer for comments,” Letebele said in her report.
In the Southern region, a scrutiny of the records for the control of stocks of food items in the Southern Region had indicated intermittent shortages of the various items, principally Tsabana, Malutu, Sunflower Oil and Milk which was mainly due to absence of subsisting contracts for the supply of these items.
“The contract for the supply of Tsabana to all depots expired in September 2018 and was not replaced by a substantive contract. The supplier contracts for these stocks should be so managed that the expiry of one contract is immediately followed by the commencement of the next.”
Suppliers who had been contracted to supply foodstuffs had failed to do so and no timely action had been taken to redress the situation to ensure continuity of supply of the food items, the report noted.
In one case, the report highlighted that the supplier was to manufacture and supply 1 136 metric tonnes of Malutu for a 4-months period from March 2019 to June 2019, but had been unable to honour the obligation. The situation was relieved by inter-depot transfers, at additional cost in transportation and subsistence expenses.
In another case, the contract was for the supply of Sunflower Oil to Mabutsane, where the supplier had also failed to deliver. Examination of the Molepolole depot Food Issues Register had indicated a number of instances where food items consigned to the various feeding centres had been returned for a variety of reasons, including food item available; no storage space; and in other cases the whole consignments were returned, and reasons not stated.
This is an indication of lack of proper management and monitoring of the affairs of the depot, which could result in losses from frequent movements of the food items concerned.The maintenance of accounting records in the region, typically in Letlhakeng, Tsabong, and Mabutsane was less than satisfactory, according to Auditor General’s report.
In these depots a number of instances had been noted where receipts and issues had not been recorded over long periods, resulting in incorrect balances reflected in the accounting records. This is a serious weakness which could lead to or result in losses without trace or detection, and is a contravention of Supplies Regulations and Procedures, Letebele said.
Similarly, consignments of a total of 892 bags of Malutu and 3 bags of beans from Tsabong depot to different feeding centres had not been received in those centres, and are considered lost. These are also not reflected in the Statement of Losses in the Annual Statements of Accounts for the same periods.