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.
The United States (US) will on the 3rd of November 2020 chose between incumbent Donald Trump of the Republicans and former Vice President Joe Biden of the Democrats amid the coronavirus pandemics, which has affected how voting is conducted in the world’s biggest economy.
Trump (74) seeks re-election after trouncing Hillary Clinton in 2016, while Biden (77) is going for his first shot as Democratic nominee after previous unsuccessful spells.
US Presidents mostly succeed in their re-election bid, but there have been nine individuals who failed to garner a second term mandate, the latest being George W H. Bush, a Republican who served as the 41st US President between 1989 and 1993.
Dr Mark Rozell, a Dean of the School of Policy and Government at George Mason University in Arlington, Virginia describes the complex US electoral system that will deliver the winner at the 3rd November elections.
“The founders of our Republic de-centralised authority significantly in creating our constitutional system, which means that they gave an enormous amount of independent power and authority to State and local governments,” Dr Rozell told international media on Elections 2020 Virtual Reporting Tour.
Unlike parliamentary democracies, like Botswana the United States does not have all of the national government elected in one year. They do not have what is commonly called mandate elections where the entire federal government is elected all in one election cycle giving a “mandate” to a particular political party to lead, and instead US have what are called staggered elections, elections over time.
The two house Congress, members of the House of Representatives have two-year long terms of office. Every two years the entire House of Representatives is up for re-election, but senators serve for six years and one third of the Senate is elected every two years.
For this election cycle, US citizens will be electing the President and Vice
President, the entire House of Representatives and one third of the open or contested seats in the Senate, whereas two thirds are still fulfilling the remainder of their terms beyond this year.
An important facet of US electoral system to understand given the federalism nature of the republic, the US elect presidents State by State, therefore they do not have a national popular vote for the presidency.
“We have a national popular vote total that says that Hillary Clinton got three million more votes than Donald Trump or in Year 2000 that Al Gore got a half million more votes than George W. Bush, but we have what is called a State by State winner takes all system where each State is assigned a number of electors to our Electoral College and the candidate who wins the popular vote within each State takes 100 percent of the electors to the Electoral College,” explained Dr Rozell.
“And that is why mathematically, it is possible for someone to win the popular vote but lose the presidency.”
Dr Rozell indicated that in 2016, Hillary Clinton won very large popular majorities in some big population States like California, but the system allows a candidate to only have to win a State by one vote to win a 100 percent of its electors, the margin does not matter.
“Donald Trump won many more States by smaller margins, hence he got an Electoral College majority.”
Another interesting features by the way of US constitutional system, according to Dr Rozell, but extremely rare, is what is called the faithless elector.
“That’s the elector to the Electoral College who says, ‘I’m not going to vote the popular vote in my State, I think my State made a bad decision and I’m going to break with the popular vote,’’ Dr Rozell said.
“That’s constitutionally a very complicated matter in our federalism system because although the federal constitution says electors may exercise discretion, most States have passed State laws making it illegal for any elector to the Electoral College to break faith with the popular vote of that State, it is a criminal act that can be penalized if one is to do that. And we just had an important Supreme Court case that upheld the right of the states to impose and to enforce this restriction”
There are 538 electors at the Electoral College, 270 is the magic number, the candidate who gets 270 or more becomes President of the United States.
If however there are more candidates, and this happens extremely rarely, and a third candidate got some electors to the Electoral College denying the two major party candidates, either one getting a majority, nobody gets 270 or more, then the election goes to the House of Representatives and the House of Representatives votes among the top three vote getters as to who should be the next President.
“You’d have to go back to the early 19th century to have such a scenario, and that’s not going to happen this year unless there is a statistical oddity, which would be a perfect statistical tie of 269 to 269 which could happen but you can just imagine how incredibly unlikely that is,” stated Dr Rozell.
BLUE STATES vs RED STATES
Since the 2000 United States presidential election, red states and blue states have referred to states of the United States whose voters predominantly choose either the Republican Party (red) or Democratic Party (blue) presidential candidates.
Many states have populations that are so heavily concentrated in the Democratic party or the Republican party that there is really no competition in those states.
California is a heavily Democratic State, so is New York and Maryland. It is given that Joe Biden will win those states. Meanwhile Texas, Florida and Alabama are republicans. So, the candidates will spent no time campaigning in those states because it is already a given.
However there are swing states, where there is a competition between about five and 10 states total in each election cycle that make a difference, and that is where the candidates end up spending almost all of their time.
“So it ends up making a national contest for the presidency actually look like several state-wide contests with candidates spending a lot of time talking about State and local issues in those parts of the country,” said Dr Rozell.
High Commissioner of the Federal Government of Nigeria to Botswana, His Excellency Umar Zainab Salisu, has challenged President Dr Mokgweetsi Masisi to move swiftly and lobby Africa’s richest man, Nigerian Billionaire, Aliko Dangote to invest in Botswana.
Speaking during a meeting with President Masisi at Office of President on Thursday Zainab Salisu said Dangote has expressed massive interest in setting up billion dollar industries in Botswana. “We have a lot of investors who wish to come and invest in Botswana , when we look at Botswana we don’t see Botswana itself , but we are lured by its geographic location , being in the centre of Southern Africa presents a good opportunity for strategic penetration into other markets of the region,” said Salisu.
As murder cases and violent incidents involving couples and or lovers continue to be recorded daily, Specially Elected Member of Parliament, Dr Unity Dow has called for more funding of non-governmental organizations and accelerated action from government to come up with laws that could inhibit would-be perpetrators of crimes related to Gender Based Violence (GBV).
Just after Dr Dow had deposited her views on this subject with this reporter, a young man in Molepolole opened fire on a married woman he was having an affair with; and ended her life instantly. While it is this heinous cases that get projected to the public space, the former minister argues that the secrecy culture is keeping other real GBV cases under wraps in many spaces in the country.
The former Minister of Foreign Affairs and International Cooperation said there is GBV all the time in all kinds of places. “We have become accustomed to stories of rapes, marital rapes, defilement of children, beatings and psychological violence and even killings,” she said.
Gender-based violence is a phenomenon deeply rooted in gender inequality, Dow is worried that there is absolutely no social punishment for perpetrators; they will continue to have the same friends, jobs, wives, homes, as before. Yet another factor, she said, is that there is little or no “justice” for victims of GBV.
The renowned activist said justice for GBV victims is not just the jailing of the perpetrator. “Justice for victims means an agile, victim-friendly, accessible (time, money and procedures) and restorative justice system.”
Asked what could be leading to a spike in Gender Based Violence cases or incidents, she observed that there is no one factor to which this spike can be attributed. “The most obvious factor is stress as a result of economic distress and or poverty. Poverty makes one vulnerable and open to compromises that they would otherwise not make. For perpetrators with anger management issues, economic stress leads to lashing out to those closest to them. Another factor is the disintegration of families and family values,” she opined.
According to Dow, no government anywhere in the world is doing enough, period. “We know the places and spaces where women and girls are unsafe. We know the challenges they face in their attempts to exit those spaces and places.” The former Judge of the High Court said GBV undermines the health, dignity, security and autonomy of its victims, yet it remains shrouded in the culture of silence.
Asked what could be done to arrest GBV cases, Dow said it is critical to involve and fund civil society organizations. She observed that much of the progress done in the area of women’s human rights was during the time when Botswana had strong and funded civil society organizations.
“The funding dried up when Botswana was declared a middle-income country but unfortunately external funding was not replaced by local funding,” she acknowledged.
Further Dow said relevant government institutions must be funded and strengthened.
“Thirdly, create a society in which it is not okay to humiliate, rape, beat or kill women. You create this by responding to GBV the same way we have responded to livestock theft. We need to create agile mechanisms that hear cases quickly and allow for the removal of suspected perpetrators from their homes, work places, boards, committees, etc.”
The former Minister said the much anticipated Inter-Ministerial Task Force on Gender Based Violence will have its work cut out for it. According to Dow, GBV is not just a justice issue, it’s not just a gender issue, but rather an issue that cuts across health, education, labour, economic, housing and politics. “As long as any one believes it is someone else’s problem, we will all have the problem,” she said.
In her view, Dow said every work, educational and other place must have a GBV Policy and/or Code of Conduct. “It is important that we acknowledge that the majority of men are law-abiding. The problem is their silence, in the face of injustice,” she observed.