President Lt Gen Dr Ian Khama will leave in his trail at the end of his term in March, scores of public enterprising battling sustainability, ironically some which were profit making entities prior to his presidency.
The Botswana Meat Commission (BMC); Water Utilities Corporation (WUC), and Botswana Corporation (BPC) are among vital public enterprises that have been experiencing perennial losses for the past decade. In 2006, WUC, BMC and BPC made a combined net profit of P371.9 million while, in the latest budget speech, the three entities recorded a worrisome combined loss of P507. 5 million.
The average net profit ratio, which is profit after tax as a percentage of gross sales, of the twelve commercial public enterprises was 21 percent during the 2008 budget speech. The financial performance of the entities ranged from a net loss of P3.5 million, for the Botswana Agricultural Marketing Board (BAMB), to a net profit of P714.8 million, recorded by the Botswana Development Corporation (BDC) during that year.
The Dead alive Botswana Meat Commission
BMC which recorded a P34 million profit in 2006, stumbled along the way, with corruption and maladministration being detected. In this week’s Budget Speech, Kenneth Matambo revealed that BMC has again made a net loss of P229.7 loss, this is despite the fact that in 2015 government injected P600 million to help resuscitate the drowning government entity.
BMC which enjoys monopoly as the sole exporter of beef in Botswana has gone from a profit making entity to a massive lost making corporation in the last seven years with a total losses amounting to over a P1 billion. In 2013, parliament agreed to set-up a Parliamentary Select Committee to investigate the BMC owing to scandals, poor performances and other excesses that bedevilling the organisation.
The Committee had found that BMC CEOs, with few exceptions, have been chosen from the ranks of retired civil servants not based on merit or their commercial experience. The MPs had also pointed out that the BMC management practiced poor governance and there were bad relations between the board and management. It discovered productions inefficiencies caused by over staffing, declining productivity, and high marketing costs. There was no proper and efficient system of financial controls. The BMC became financially insolvent over the 2009-2012 period.
The Parliamentary Select Committee at the time picked on the issue of BMC marketing, pointing out that “At present BMC’s marketing agent, Global Protein Solutions (GPS) provides for a legal monopoly on exports. The BMC should seek to revise the contract and segments of the global beef export market to hedge against a monopoly of the marketing of the Botswana beef produce.”
Interestingly the Committee also declared that an investigation be undertaken by the Directorate on Corruption and economic Crime (DCEC) into the award of the marketing contract by BMC in favour of GPS and consideration be made for a review and renegotiation of the contract terms to ensure residual contract of the beef export marketing by the BMC. The Committee also discovered a “strong circumstantial evidence of under-pricing of beef to the EU, South Africa, and domestic markets over the period. The recommendations by the committee were never considered. The Parliamentary Select Committee also decided that Feedlot activities should be undertaken by the Botswana private sector and not by the BMC.
The Debt riddled Water Utilities Corporation
The WUC was established in 1970 initially to manage a water supply and distribution in the cities of Gaborone and Francistown and the towns of Lobatse, Jwaneng, Selebi-Phikwe and Sowa. Since formation, WUC has been economically self-sufficient, raising enough revenue from billing and subsidies to cover operational costs.
Over the years, there have been several water suppliers in Botswana. WUC has been supplying only towns and cities, but also supplied the Department of Water Affairs and District Councils with bulk water for further distribution to the remaining areas in the country.
However, in 2009, a year after Khama become president, Ministry of Minerals, Energy and Water Resources started implementing the Water Sector Reforms which saw water supplies being transferred from Water Affairs, which was under the authority of councils to Water Utilities Corporation.
The Water Sector Reforms Project (WSRP) was aimed at streamlining this somewhat cumbersome arrangement and therefore to improve water supply service delivery. The National Water Master Plan Review (NWMPR) of 2005-2006 recommended a major restructuring of the water sector which includes, amongst others, the separation of water resources management from water service delivery.
Following this, the Government engaged the World Bank to work with the Ministry of Minerals, Energy and Water Resources to rationalize the water sector. It was from this study that the Water Utilities Corporation was expected to take over all water and wastewater service delivery in the country.
Evers since the takeover, Water Utilities has been experiencing financial problems, and at times looked to government for rescue, in 2012, the corporation made a staggering P541 million loss, followed by p191 million the following year. This week, Matambo announced in the budget speech that Water Utilities made P137.6 loss in 2017.
Matambo has contended however, that Water Utilities as well as another perennial loss making Utility Corporation, BPC are encountering financial quagmire as a result of misalignment between the levels of tariffs charged relative to their mandates. “To address this, the current water tariffs charged by Water Utilities are gradually being aligned with water treatment and distribution expenses,” he said. Water Utilities have seen Godfrey Mudanga who presided over the period of loss making, leaving the organisation. He has since been replaced by a determined Mmetla Masire.
The cash strapped Botswana Power Corporation
In 2006, BPC registered a net profit of P162 million, followed by another profit of P121. million in 2007. Fast forward to 2017, BCP no longer a profit making entity with a loss of 140.2 million. In 2016, BPC loss stood at P99.6 million. Among the worst losses incurred by the troubled utility giant was a net loss of P1.3 billion in 2013, having recorded another loss of P1.1 billion the previous year. As the norm the continued losses have been blamed on power generation, transmission and distribution expenses.
The Minister has again hinted that BPC tariffs will be reviewed in order to meet the corporation’s operational costs. One of the lowest scandals was the failure of Morupule B, following the defect that marred the power station after its completion. Morupule B, was financed by government and World Bank at the tune of P11 billion. Government is currently considering selling the plant to Chinese state owned company China National Electric Equipment Corporation (CNEEC), which was the constructor of the plant.
The fading National Development Bank
Another entity which has experienced losses in recent years is the National Development Bank (NDB). Under the tutelage of Lorato Morapedi, which has been considered for commercialisation, has not been having a good balance sheet in the last three years. In 2008, NDB increased its profit by P11 million from the previous year to P33.6 million.
Last year, owing to recent troubles, NDB made another loss of P168.2 million, a development which would likely disturb its commercialisation plan as well as its ambition to become a commercial 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.
Chief Executive Officer of the Bank, Morapedi wanted government to inject P400 million in the next financial year, followed by two governments guaranteed loans of P165 million and P250 million in subsequent years, of which it was granted. NDB was established under an act of parliament in 1963 with its main objective lying in providing a varied range of financial services to Botswana’s business sector and the public at large while aiming to earn satisfactory returns on shareholder’s funds.
As a Development Financial Institution (DFI), NDB is expected to be viable and self-sustaining and also to contribute immensely to the growth of the local economy. Other parastatal that has continued to make losses is Air Botswana. Over the past 15 years Air Botswana has sparingly made profits, while the recent years have been marred by losses and issues of maladministration.
In a classic and shocking case of disgrace and dishonour to this country, the law enforcement agencies are currently struggling to cover up a damaging and humiliating scandal of having conspired to forge the signature of a Palapye Chief Magistrate, Rebecca Motsamai in an unlawful acquisition of the much-publicised 2019 warrant of arrest against Isaac Kgosi, the former director of the Directorate of Intelligence Services (DIS).
The cloak-and-dagger arrest was led by the DIS director, Brigadier Peter Magosi supported by the Botswana Police, Botswana Defence Force (BDF), with the Botswana Unified Revenue Services (BURS) which accused Kgosi of tax evasion, in the backseat.
Umbrella for Democratic Change (UDC) constituent members are struggling to reach an agreement over the allocation of wards for the imminent ward by-elections across the country.
Despite a Memorandum of Understanding (MoU) between Umbrella for Democratic Change (UDC), Botswana Patriotic Front (BPF) and Alliance for Progressives (AP) are said to be active, but the nitty-gritties are far from being settled.
The eight bye-elections will be a precursor of a somewhat delayed finalisation of the brittle MoU. The three parties want to draw a plan on how and who will contest in each of the available wards.
This publication has gathered that the negotiations will not be a run off the mill because there is already an impasse between the Botswana Congress Party (BCP) which is a UDC constituent and AP (currently negotiating to join umbrella).
The by-elections joint committee met last week at Cresta President Hotel in a bid to finalise allocation but nothing tangible came out of the gathering, sources say.
The cause of the stalemate according to those close to events, is the Metsimotlhabe Ward which the two parties have set their eyes on.
In 2019, he ward was won by Botswana Democratic Party’s (BDP) Andrew Sebobi who unfortunately died in a tragic accident in February last year.
Sebobi had convincingly won by 1 109 votes in the last elections; and was trailed by Sephuthi Thelo of the UDC trailed him with 631 votes; while Alliance for Progressives’ Innocent Moamogwe got 371 votes.
Thelo is a BCP candidate and as per UDC norm, incumbency prevails meaning that the BCP will contest since they were runners up. On the other hand, AP has also raised its hand for the same.
“AP asked for it on the basis that they have a good candidate but BCP did not agree to that request also arguing they have a better contestant,” one UDC member confided to this publication.
Notwithstanding Metsimotlhabe Ward squabble, it is said the by-election talks are almost a done deal, with Botswana National Front (BNF) tipped to take Boseja South ward in Mochudi East constituency. Botswana Patriotic Front (BPF) will be awarded Tamasane Ward in Lerala/Maunatlala constituency, sources say.
“But the agreement has to be closed by National Executive Committee (NEC),” emphasized the informant.
The NEC is said to have been cautioned not to back the wrong horse but rather rate with reason and facts.
UDC President, Duma Boko has told this publication that, “allocation is complete with two wards already awarded but with only one yet to be finalized,” he could not dwell into much details as to which party got what and the reasons for the delay in finalisation.
Chairperson of the by-elections committee, Dr. Phenyo Butale responded to this publication regarding the matter: “As AP we contested and as you may be aware we signed the MoU with UDC and BPF to collaborate on bye-elections. The opposition candidate for all bye-elections will be agreed by these parties and that process is still ongoing,” he said when asked if AP is interested on the ward and how far with the talks on bye-elections.
Butale, a former Gaborone Central Member of Parliament, who is also AP Secretary General continued to say, “As the chairperson of the bye-elections committee we are still seized with that matter. We should also do some consultations with the local structures. Once the process is complete we will issue a notice for now we cannot talk about the other two while the other is still pending the other one”.
Butale further clarified: “There is no such thing as AP and BCP not in agreement. It is an issue of signatories discussing and determining the opposition candidates across the three wards.”
Apart from the three wards, there are five more council wards that UDC is yet to allocate to cooperating partners.
FROM PALAPYE MEET: BPP CAUTION NEC MEMBERS
With the UDC cheerful from last weekend’s meeting in Palapye, the meeting however was very tense on the side of both BCP and BNF, with only BPP flexing its muscle and even lashing out.
BCP going into the meeting, had promised to ask difficult questions to the UDC NEC.
BCP VP and also acting Secretary General, Dr. Kesitegile Gobotswang, presented their qualms which were addressed by UDC Chairperson Motlatsi Molapisi, informants say.
It is said Molapisi is fed up and concerned by some UDC members especially those in the NEC who ‘wash party’s dirty linen in public’.
Insiders say the veteran politician cautioned the NEC members that they “will not expel any party but individuals who tarnish the image of the UDC.”
It is not the first time BPP play a paternalistic role as it once expressed its discontent with BCP in 2020, saying it should never wash UDC linen in public.
At first it is said, BPP, the oldest political formation in Botswana, claims disappointment on BCP stance that UDC should be democratised especially by sharing their stand with the media. Again, BPP was not happy with BCP leader Dumelang Saleshando’s decision to air his personal views on social media regarding the merger of UDC party.
Botswana Police Service (BPS) Commissioner, Keabetswe Makgophe, has of late been dousing raging fires from various quarters of society following the infiltration of the police fingerprint system by the Directorate on Intelligence and Security (DIS), WeekendPost has learnt.
Fresh information gleaned from a number of impeccable sources, points to a pitiable working relationship between the two state organs. Cause of concern is the DIS continuous big brother role to an extent that it is now interfering with other institutions’ established mandates.
BPS which works closely with the DIS has been left exasperated by the works of the institution formed in 2008. It is said, the DIS through its Information Technology (IT) experts in collusion with some at BPS forensics department managed to infiltrate the Fingerprint system.
The infiltration, according to those in the know, was for the DIS to “teach a lesson” to some who are on their radar. It is said the DIS is playing and fighting dirty to win the fights they have lost before.
By managing to hack the police finger print system, a number of renowned businessmen and other politically exposed persons found their fingers in the system. What surprised the victims is the fact that they have never been charged of any wrongdoing by the police and they were left reeling in shock to learn that their fingers are on the data-base of criminals.
In fact, some of those who their fingerprints were falsely included in the records of those on the wrong side of law learnt later when other errands demanded their fingerprints.
“We learnt later when we had to submit and buy some documents and we were very shocked,” one politician who is also a businessman confided to this publication this week.
“We then learn that there are some fabricated criminality recorded for us, as to when did we commit those remained secret to the police, but then we had to engage our lawyers on the matter and that is when we were cleared,” said the politician-cum- tenderpreneur.
The lawyers have confirmed engaging the police and that the matters were settled in a gentlemen’s agreement and concluded.
All these happened behind the scenes with the police top brass oblivious only to be confronted by the irked lot, police sources also add. The victimized group who most of them have been fighting lengthy battles with the DIS read malice and did not blink when it was revealed that these were done by the DIS.
“And it was clear that they (DIS) are the ones in this dirty war which we don’t understand. Remember when we sue, it will be the Police at the courts not the DIS and that is why we agreed to a ceasefire more so they also requested that be kept under carpet,” said the victim.
Nonetheless, the Police through its spokesperson Assistant Commissioner, Dipheko Motube, briefly said: “we do not have any system that has been hacked.” On the other hand DIS mouthpiece Edward Robert was not in office this week to comment on the matter.
Reports however say DIS boss, Peter Magosi, who most of the victims accuse of the job, is said to have met his police counterpart Makgophe to put the matter to bed.
COVID-19 RAVAGES POLICE
As frontline workers, Police have not escaped the wrath of Covid-19. Already the numbers of those infected has reached the highest of high and they suggest that they be priorities on vaccine rollout.
“Our job is complicated, firstly we arrest including those who are non-compliant to Covid protocols and we go to accidents and many more. These put us at risk and it seems our superiors are not bothered,” said one police officer this week.
The cops further complain about that working spaces are small, as such expose them to contact the virus.
“Some tests positive and go for quarantine while the rest of the unit will be left without even test carried out. If at all the bosses are serious all the police officers should every now and then be subjected to testing or else we will be no more because of the virus,” added another officer based in Gaborone.
The government has since placed teachers on the priority list for the vaccines, it remains to be seen whether the police, who also man road blocks, will be considered.
“But our bosses should convince the country leadership about this, if not then we are doomed,” concluded a more senior officer.