Kenewendo wants P1 billion FNB student fund audited
Specially Elected Member of Parliament, Bogolo Kenewendo has requested the Ministry of Tertiary Education, Research Science and Technology to conduct an audit on the suspicions Students Allowance Disbursement Account, operated by the First National Bank Botswana (FNBB).
From 2006 until 2017, the Ministry of Education and Skills Development, which has since been split into two, has failed to reconcile the Student Allowance Disbursement Account periodically, raising fears of losing public funds due to unaccountability. In its latest report, for 2015-2016 accounts, the PAC indicates that there is evidence that despite the large sums of money involved, there was no follow up on the part of the ministry officials to ensure that the monthly remittances to the bank are fully accounted for through periodic returns by the bank and reconciliations of those returns.


Government sponsored students in local tertiary institutions are paid their stipends through FNBB, one of the country’s leading commercial banks. The procedure is that the funds are advanced to the bank monthly on the basis that after disbursements, the bank would submit a return of how the funds had been disbursed on a monthly basis.

“There were clear indications that the Accounting Officer had lost control of these accounts. For example, as at 31st March 2016, the account for these transactions had a balance of P1 122 852 010 and another related had a balance of P1 099 078 632, for which there were no explanations from the Accounting Officer,” states the report.
Kenewendo, who is also a member of the PAC this week in parliament pushed for details on the suspicious account with regards as to how long the FNBB has had a contract of disbursing allowances to Government sponsored students; the cost associated with the contract as well as the length of the contract and date for renewal.
The youngest MP also wanted to know the FNBB’s value proposition that led to them winning the tender; the system put in place to reconcile the remittances from the FNB Students’ Allowances Disbursements Account; the frequency of the accounts’ reconciliation; and
whether there have been any discrepancies with the account in the last five years. “If there was no reconciliation prior to this year, would we see an audit of the previous years because FNB has been running this account since 2006?” Kenewendo enquired.
According to Assistant Minister of Tertiary Education, Fidelis Molao, the contract of disbursing allowances to Government sponsored students was started in 2006 and all banks were invited for expression of interest for the student services and only FNBB responded, consequently it was awarded the contract. Since then, it has been renewed for FNBB until an invitation to tender was re-done in 2015. The current contract of disbursing allowances to Government sponsored students by the First National Bank Botswana came into effect on the 1st of January 2016.
“A tender was issued in 2015 and all the major banks in Botswana responded, there was an evaluation and FNB got the contract. So, it is due to come to an end very soon. We want to believe that another contract notice would be issued and have all the banks locally respond and then evaluation would be done and whoever wins would win the tender,” said Molao. Ministry of Tertiary Education is paying P99 000. 00 per month for the services of registering and opening students’ accounts under the appropriate account category and issuing students with ATM cards.
The length of the contract is for 36 months and is expected to terminate on the 31st December 2018 and can be considered for renewal. Prior to 2006, Standard Chartered was the service provider. “FNBB were the least costly and they also met all the required tender specifications,” Molao told parliament.
The Assistant Minister revealed to parliament that, following the realisation that the ministry had not been closely monitoring the account, a team of employees were set up to carry out the monthly reconciliation of the student allowances disbursement account. “The team ensures that they reconcile the funds requested and paid into the students account with the funds actually paid to the individual students. The aim is to ensure that unclaimed funds for whatever reason are paid back into the Government expenditure account rather than being left in the bank account,” he said.
“The reconciliation ensures that the bank account has a zero balance after each month’s payments. This will mean that the funds requested have been used for what they were requested for.” Molao said the accounts’ reconciliation was done on monthly basis, since this financial year (2017/2018). “It is not possible to indicate if any discrepancies occurred in the account in the last five years. This is because the reconciliation process for the account started in April this financial year,” he said, noting that the team is working on the financial years going backwards.
FNBB CHARGES STUDENTS SERVICE FEES
Kenewendo has also questioned the payment of P99 000.00 per month to FNBB given the fact that the bank has been charging students service fees, despite the Assistant Minister contending that the bank was not suppose to do so. “You [Asst Min Molao] said there are no service charges to these accounts. Students are paying for every transaction; maintenance costs every month. They are paying P1.00 per transaction from this account. Why are we saying there are no service charges? Why do we pay P99 000.00 if these costs remain transferred to the students?” questioned Kenewendo.
Kenewendo said the anomaly should be corrected to save students from paying the services fees, as the government is already paying that to FNBB. Molao expressed ignorance to the fact that students are charged for every transaction they make, promising that the ministry would follow up the issue and get it sorted, if there is that need.
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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.