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Botswana is a paradise of corruption– Gaolathe

Leader of newly formed political party, Alliance for Progressives (AP), Ndaba Gaolathe has attributed the current corruption scandals sweeping across the country to the lack of strong institutions and poor oversight.

He said the poor foundation laid out in the country’s three arms of government which gives more powers unnecessarily to the Executive has resulted in the corruption mess as every accountability institution reports to the Executive. In terms of the 3 arms of government; Legislature, Executive and Judiciary, the soft spoken Gaolathe maintained that the Executive remains powerful as compared to others although ideally they should be on the same level.

Gaolathe said this in light of the current setting in government where most oversight and accountability bodies like the Ombudsman, Directorate on Corruption on Economic Crime (DCEC), Directorate on Intelligence and Security Services (DISS), Independent Electoral Commission (IEC) and to some extent the Judiciary (Chief Justice) all report to and are financed by the Executive and therefore by extension not totally independent. 

“There are no independent and trustworthy institutions that can take on the public confidence in dealing with such corruption taking place in the country. That is why we are suspicious of each other at the moment; we know longer even trust each other. Our country is now in a total mess,” Gaolathe said at a Public Lecture/Meeting on Corruption this week held in Gaborone. 

The public lecture came at a time when there are strong allegations that link President Lt. Gen. Dr. Seretse Khama Ian Khama, Vice President Mokgweetsi Masisi, DISS Director General Isaac Kgosi, Minister of Youth Empowerment, Sport and Culture Development Thapelo Olopeng and Minister of Mineral Resources, Green Technology and Energy Security Sadique Kebonang among other top government officials – to high magnitude corruption.

In the said biggest financial scandal in Botswana involving P250 million, an attorney representing Bakang Seretse in the case, Kgosi Ngakaagae said in court last week that the country’s top politburo may have unduly benefitted from the controversial National Petroleum Fund(NPF) – which they all denied. 

In the ongoing case, Gaolathe said even if the culprits can be taken to book and the money returned to the government purse, the issues will still come back in future to haunt us (or repeat itself) owing to governance issues (still). “These issues have turned this country into a fertile ground and paradise of corruption,” he pointed out.

According to Gaolathe, in terms of the corruption at NPF, “to be honest with you, I doubt anybody really knows what happened; it’s just a tip of the iceberg. But all indications suggest that the money landed in the wrong pockets.” He continued: “we don’t even know how much money was taken from the fund, although I have seen numbers been dropped up like 250 million, 300 million etc. But that’s just a transaction that has leaked, this shows there might be other transactions which have not leaked to the public. We don’t even know when the looting started. In this circus, some have broken their constitutional vow not to steal from the public purse.”

Calls for a commission of inquiry on corruption allegations

According to Gaolathe, “when we don’t know the answers to all this for now, we must be honest, and look for answers from those with the technical expertise to assist find out with a fair and transparent exercise.” “They should be fair to everyone involved. That’s why we are saying that let there be an independent commission of inquiries to find out who stole how much and clear others who are not in any way involved.  We want a motion for a commission of inquiry on the abuse of the National Petroleum Fund and general abuse of public resources,” he said.

He added: “Even I have been accused of receiving 1 million through corrupt means of the controversial NPF but the inquiry will put that to bare if correct and I will also be brought to book if found to be implicated.” Gaolathe pointed out that his motion differs from the Public Accounts Committee (PAC) one which calls for the review of the NPF.

The NPF has a fund order; he said adding that it’s basically used in case of increases in petroleum fee; some money will be used to caution motorists with such high prices of fuel. The other role, he added, is to build strategic fuel reserves for use in future in times of need. “Some countries that supply us with fuel may also get into war and this may adversely affect us, and in cases of delay of fuel.”

Parliament role in Botswana in funds like NPF is insufficient

The son of the former and late Minister of Finance and Development Planning Baledzi Gaolathe highlighted that in American parliament in terms of the NPF, it has a bigger role than Botswana. “Pity, with us we have a Committee of Supplies; the Minister presents his proposals and parliament rubber stamps and that is not a proper procedure. But parliament should have committees that oversee the use of public funds and can have a significant contribution.”

The country, he said, has many public funds and levies but there is one big fund called Consolidated Fund which takes part of the government money that it disperses to the public. Others include National Disaster Funds, Botswana Public Officers Pension fund (BPOPF), National Petroleum Fund (NPF).

“Some countries like the US have a solid foundation of a constitution, in which you cannot be corrupt in any way. But in terms of our constitution, when the President becomes implicated in corruption it becomes a total mess. The Constitution makes the president to tow the line unlike in our country.” According to Gaolathe, the arms of government of Botswana do not have a firm, strong and solid foundation.

“By not necessarily pointing fingers at anyone, we are only revealing our findings as sent by you. We found out that the executive and parliament are less resourced and very weak. In some countries of the world, some Student Representative Councils (SRC’s) are more resourced than our parliament. Those SRC’s are equipped with their in house lawyers. They also have some economists dedicated to the Councils,” he pointed out. 

The Gaborone Bonnington South lawmaker said, in the case of Botswana even parliament lacks a department consisting of attorneys. “Where have you seen people assigned with making laws but without any lawyers to guide such process? It’s the first time to witness such in my life,” he lamented. He raised concern that there is no “economics” department at parliament that would oversee the budget of the national cake and see whether it is fair and transparent. “At the moment there is no economist even purely dedicated to assist the executive or Ministry of Finance and Development Planning to assist in country’s economic forecast and day to day business.”

Botswana should establish a Comptroller General not Auditor General

In America he said they have what is known as ‘government accountability office’ headed by a Comptroller General. “In Botswana the office is almost similar to that of the Auditor General. The difference between these offices is that in Botswana, the Executive is more powerful. That is why all ministries and even Auditor General report to the Executive.”


Gaolathe highlighted that the Comptroller General in other countries like US, unlike Botswana, does not report to the Executive but rather to parliament. Parliament, he said has legislative agencies just like there are government ministries for the Executive. “The Auditor General is therefore very independent in that way in those countries, they can’t even touch him. Even his contracts and salaries are done by parliament.”

The Comptroller, he said, has been disagreeing with the Central government in America for long, since 1996, and they have been calling for prudent spending of government funds while denouncing heavy budget on the military and others. “If we had such an independent office such as Comptroller General in Botswana, the corruption issues currently engulfing the country would be no more. In times like these, the local Comptroller General would tell us that there has been corruption where and how, and to what extent,” he said.

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13 AUGUST 2022 Publication

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DIS blasted for cruelty – UN report

26th July 2022
DIS BOSS: Magosi

Botswana has made improvements on preventing and ending arbitrary deprivation of liberty, but significant challenges remain in further developing and implementing a legal framework, the UN Working Group on Arbitrary Detention said at the end of a visit recently.

Head of the delegation, Elina Steinerte, appreciated the transparency of Botswana for opening her doors to them. Having had full and unimpeded access and visited 19 places of deprivation of liberty and confidentiality interviewing over 100 persons deprived of their liberty.

She mentioned “We commend Botswana for its openness in inviting the Working Group to conduct this visit which is the first visit of the Working Group to the Southern African region in over a decade. This is a further extension of the commitment to uphold international human rights obligations undertaken by Botswana through its ratification of international human rights treaties.”

Another good act Botswana has been praised for is the remission of sentences. Steinerte echoed that the Prisons Act grants remission of one third of the sentence to anyone who has been imprisoned for more than one month unless the person has been sentenced to life imprisonment or detained at the President’s Pleasure or if the remission would result in the discharge of any prisoner before serving a term of imprisonment of one month.

On the other side; The Group received testimonies about the police using excessive force, including beatings, electrocution, and suffocation of suspects to extract confessions. Of which when the suspects raised the matter with the magistrates, medical examinations would be ordered but often not carried out and the consideration of cases would proceed.

“The Group recall that any such treatment may amount to torture and ill-treatment absolutely prohibited in international law and also lead to arbitrary detention. Judicial authorities must ensure that the Government has met its obligation of demonstrating that confessions were given without coercion, including through any direct or indirect physical or undue psychological pressure. Judges should consider inadmissible any statement obtained through torture or ill-treatment and should order prompt and effective investigations into such allegations,” said Steinerte.

One of the group’s main concern was the DIS held suspects for over 48 hours for interviews. Established under the Intelligence and Security Service Act, the Directorate of Intelligence and Security (DIS) has powers to arrest with or without a warrant.

The group said the “DIS usually requests individuals to come in for an interview and has no powers to detain anyone beyond 48 hours; any overnight detention would take place in regular police stations.”

The Group was able to visit the DIS facilities in Sebele and received numerous testimonies from persons who have been taken there for interviewing, making it evident that individuals can be detained in the facility even if the detention does not last more than few hours.

Moreover, while arrest without a warrant is permissible only when there is a reasonable suspicion of a crime being committed, the evidence received indicates that arrests without a warrant are a rule rather than an exception, in contravention to article 9 of the Covenant.

Even short periods of detention constitute deprivation of liberty when a person is not free to leave at will and in all those instances when safeguards against arbitrary detention are violated, also such short periods may amount to arbitrary deprivation of liberty.

The group also learned of instances when persons were taken to DIS for interviewing without being given the possibility to notify their next of kin and that while individuals are allowed to consult their lawyers prior to being interviewed, lawyers are not allowed to be present during the interviews.

The UN Working Group on Arbitrary Detention mentioned they will continue engaging in the constructive dialogue with the Government of Botswana over the following months while they determine their final conclusions in relation to the country visit.

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Stan Chart halts civil servants property loan facility

26th July 2022
Stan-Chart

Standard Chartered Bank Botswana (SCBB) has informed the government that it will not be accepting new loan applications for the Government Employees Motor Vehicle and Residential Property Advance Scheme (GEMVAS and LAMVAS) facility.

This emerges in a correspondence between Acting Permanent Secretary in the Ministry of Finance Boniface Mphetlhe and some government departments. In a letter he wrote recently to government departments informing them of the decision, Mphetlhe indicated that the Ministry received a request from the Bank to consider reviewing GEMVAS and LAMVAS agreement.

He said: “In summary SCBB requested the following; Government should consider reviewing GEMVAS and LAMVAS interest rate from prime plus 0.5% to prime plus 2%.” The Bank indicated that the review should be both for existing GEMVAS and LAMVAS clients and potential customers going forward.

Mphetlhe said the Bank informed the Ministry that the current GEMVAS and LAMVAS interest rate structure results into them making losses, “as the cost of loa disbursements is higher that their end collections.”

He said it also requested that the loan tenure for the residential property loans to be increased from 20 to 25 years and the loan tenure for new motor vehicles loans to be increased from 60 months to 72 months.

Mphetlhe indicated that the Bank’s request has been duly forwarded to the Directorate of Public Service Management for consideration, since GEMVAS and LAMVAS is a Condition of Service Scheme. He saidthe Bank did also inform the Ministry that if the matter is not resolved by the 6th June, 2022, they would cease receipt of new GEMVAS and LAMVAS loan applications.

“A follow up virtual meeting was held to discuss their resolution and SCB did confirm that they will not be accepting any new loans from GEMVAS and LAMVAS. The decision includes top-up advances,” said Mphetlhe. He advised civil servants to consider applying for loans from other banks.

In a letter addressed to the Ministry, SCBB Chief Executive Officer Mpho Masupe informed theministry that, “Reference is made to your letter dated 18th March 2022 wherein the Ministry had indicated that feedback to our proposal on the above subject is being sought.”

In thesame letter dated 10 May 2022, Masupe stated that the Bank was requesting for an update on the Ministry’s engagements with the relevant stakeholder (Directorate of Public Service Management) and provide an indicative timeline for conclusion.

He said the “SCBB informs the Ministry of its intention to cease issuance of new loans to applicants from 6th June 2022 in absence of any feedback on the matter and closure of the discussions between the two parties.”  Previously, Masupe had also had requested the Ministry to consider a review of clause 3 of the agreement which speaks to the interest rate charged on the facilities.

Masupe indicated in the letter dated 21 December 2021 that although all the Banks in the market had signed a similar agreement, subject to amendments that each may have requested. “We would like to suggest that our review be considered individually as opposed to being an industry position as we are cognisant of the requirements of section 25 of the Competition Act of 2018 which discourages fixing of pricing set for consumers,” he said.

He added that,“In this way,clients would still have the opportunity to shop around for more favourable pricing and the other Banks, may if they wish to, similarly, individually approach your office for a review of their pricing to the extent that they deem suitable for their respective organisations.”

Masupe also stated that: “On the issue of our request for the revision of the Interest Rate, we kindly request for an increase from the current rate of prime plus 0.5% to prime plus 2%, with no other increases during the loan period.” The Bank CEO said the rationale for the request to review pricing is due to the current construct of the GEMVAS scheme which is currently structured in a way that is resulting in the Bank making a loss.

“The greater part of the GEMVAS portfolio is the mortgage boo which constitutes 40% of the Bank’s total mortgage portfolio,” said Masupe. He saidthe losses that the Bank is incurring are as a result of the legacy pricing of prime plus 0% as the 1995 agreement which a slight increase in the August 2018 agreement to prime plus 0.5%.

“With this pricing, the GEMVAS portfolio has not been profitable to the Bank, causing distress and impeding its ability to continue to support government employees to buy houses and cars. The portfolio is currently priced at 5.25%,” he said.  Masupe said the performance of both the GEMVAS home loan and auto loan portfolios in terms of profitability have become unsustainable for the Bank.

Healso said, when the agreement was signed in August 2018, the prime lending rate was 6.75% which made the pricing in effect at the time sufficient from a profitable perspective. “It has since dropped by a total 1.5%. The funds that are loaned to customers are sourced at a high rate, which now leaves the Bank with marginal profits on the portfolio before factoring in other operational expenses associated with administration of the scheme and after sales care of the portfolio,” said the CEO.

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