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Khama leaves Public Enterprises bleeding

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.

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Opposition talks: Conveners ditched, experts engaged

13th October 2021

The much-anticipated opposition unity talks that will see Umbrella for Democratic Change (UDC) engage Botswana Patriotic Front (BPF), and Alliance for Progressives (AP) are expected to kick off any time from now.

According to informants, the talks, which were preceded by-elections negotiations, aim to be as inclusive as possible. As the talks start, the UDC, composed of Botswana National Front (BNF), Botswana Congress Party (BCP) and Botswana People’s Party (BPP), insist on retaining its preferred model of Umbrella; on the other hand, the BPF is proposing a PACT; and AP is in favour of an alliance model.

BPF is reportedly sceptical on the umbrella model and wants cooperation with the flexibility to allow other parties to join hands with UDC but without necessarily contesting elections using UDC symbols and colours.

BPF, which is currently the fastest-growing party, seems to be focused on self-actualization, self-preservation and securing institutional capacity in case of any political calamity. Although often profitable, cooperation politics can often leave individual political parties battered by political events and weakened beyond meaningful survival.

Discussions with some BPF members suggest that the party has big ambitions and harbour serious intentions of taking the BDP by its horns-all by itself-one day. “The position by some of our leaders is that the future of the UDC remains uncertain. The position and advice are that we should not put all our eggs in one basket. And the party elders think the pact model of cooperation is the safest under prevailing circumstances. Some, however, are worried that we should not overestimate our worth despite being the fastest-growing party in the country.

However, the matter is yet to be concluded once we receive the official invite,” revealed a BPF member of the NEC. Asked about the specifics of the pact idea, another high ranking party official revealed that the party Patron, Lt Gen Ian Khama and his brother Tshekedi Khama are among those who are for the election pact model.

BPF Spokesperson Lawrence Ookeditse has earlier this year told this publication that: “We have not settled on a model yet.” He also added that as a party, they are ready and willing to work with UDC, “but we will have our thoughts on how the cooperation or the talks should transpire, and they too will tell us their preference, and we will sit on the table to see how best to work together”.

AP heads into these negotiations with proposals of its own. On the model part, AP has expressed flexibility but want its partners to consider other models. AP believes that beyond the umbrella model, the coalition could also have a matrix to ensure that opposition parties select the best candidates for parliamentary and council seats.

AP, a splinter party of the beleaguered Botswana Movement for Democracy (BMD), asks for the constituencies allocated to BMD in the previous talks before it was kicked out on the eve of the 2019 elections.

AP, which garnered a popular vote of under 40 000 in the 2019 general elections, is confident that it brings tremendous value to the UDC, and state power could be within reach in 2024.
To reconcile the various interest of political parties, the leaders have agreed to engage political experts in a bid to arrive at the best decisions.

“There will be no conveners because parties in the past believed that they (conveners) took decisions on behalf of the constituent parties, though they are not representing any. So, the idea is to rope in political experts to direct UDC and the negotiating parties as to which path of cooperation model to follow,” a highly placed informant said this week.

UDC convener Lebang Mpotokwane has also defended the umbrella model in the past, noting that it creates fewer problems for the participants. The negotiations will be the fourth opposition cooperation talks since the 2009 elections. The opposition has held talks in 2011, 2012 and 2017. The 2012 talks resulted in Umbrella for Democratic Change (UDC), which has been anchoring negotiations since then.

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‘Dingake’ name spoils Botswana’s interest in ILO top post

13th October 2021

When the Chairperson of the International Labour Organization (ILO) Governing Body invited member states to submit candidates for the vacant Director-General post for consideration, Botswana developed a keen interest.

It swiftly mobilized to beat the deadline, but the unions, upon consultation, nominated Justice Key Dingake as their preferred candidate, much to the government’s disappointment, who then decided to dump the whole issue altogether.

In accordance with the Rules governing the appointment of the Director-General and the decisions made by the Governing Body at its 341st and 342nd Sessions, the Chairperson of the Governing Body calls for candidates for appointment to the office of Director-General of the ILO through communication to all Governing Body members and all ILO Member States and candidatures must be submitted by a Member State of the ILO or by a regular or deputy member of the Governing Body.

The deadline for submission was on Friday, 1 October 2021, and candidatures were to be sent by postal or electronic mail to the following address to the Chairperson of the Governing Body.
This publication had established that when Cabinet sat to discuss the issue, it was resolved that the unions as key stakeholders should be consulted and requested to submit a name for consideration. They did and offered Justice Oagile Key Dingake-a distinguished scholar and labour law expert whose contribution to the country’s labour fraternity is unparalleled.

When asked this week to share their side of the story, the unions said they were first invited to partake in the process by the government but never got a response after they nominated judge Dingake as an ideal candidate.

“We sent our correspondence to the Minister of Employment, Labour and productivity, Mpho Balopi, with our suggested name being Justice Oagile Key Dingake, but since then we never got a response,” said unionist, Tobokani Rari who further expressed disappointment at how the government has handled the matter.

Rari said that while he would not want to impute any improper motives to anyone, the developments rekindled memories of the government’s hostility towards Judge Dingake, who has been forced by circumstances to take his skills and wealth of experience to the benefit of other countries. Balopi did not respond to questions sent to him and did not pick this publication’s calls at the time of going to press.

Cabinet insiders say Dingake’s name spoilt the party and dampened the spirits. “In the list of nominated names, he was the leading candidate, but I guess the powers that be could not imagine themselves campaigning for him and doing all they did for the Executive Secretary of SADC Secretariat, Elias Magosi.”

Dingake’s sin, observers say, has always been his progressive, independent mind and family’s political background, all of which have always stood in his way to progress to the country’s judicial ladder’s ends.

It is understood that also in the mix and preferred by the state was former Attorney General, judge, and now Ambassador and Permanent Representative of Botswana to the United Nations and other international organizations, Dr Athaliah Molokomme, who also has a background in human rights advocacy.

But insiders say many believed that the country should export Dingake to represent the country given his decorated experience and background. As a lawyer, Dingake represented 90% of Trade Unions in Botswana, drafted numerous Collective Labour Agreements, later presided overall trade disputes, including Collective Labour Agreements, and made determinations as Judge of the Industrial Court of Botswana.

Dingake has also written and lectured widely on trade, labour and human rights and holds numerous citations and awards for his work regarding peace, human rights, and social development. Had he contested and won, he would have been the first African to lead the ILO.

The ILO is built on the constitutional principle that universal and lasting peace can be established only if based on social justice. The ILO has been the source of such hallmarks of industrial society as the 8-hour day, maternity protection, child labour laws and a whole range of policies promoting workplace safety and peaceful industrial relations. Unique among UN organizations, the ILO has a tripartite structure involving governments, employers and workers.

ILO Director-General elections events lineup…

At its 341st (March 2021) and 342nd (June 2021) Sessions, the ILO Governing Body approved the following timetable for the appointment of the Director-General because the current term of office of the Director-General will come to an end on 30 September 2022:

1 July 2021: The Chairperson of the Governing Body calls for candidatures
1 October 2021: Last date for the reception of candidatures
A week in January 2022: The Chairperson of the Governing Body conducts interviews with candidates for the position of Director-General based on the format and principles contained in document GB.342/INS/6 and the guidance provided by the Governing Body at its 342nd Session
14-15 March 2022 (344th Session of the Governing Body): The Governing Body conducts candidate(s) hearings
25 March 2022 (344th Session of the Governing Body): The Governing Body conducts the ballot for the election of the Director-General
1 October 2022: The term of office of the Director-General commences.

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Botswana, EU clash over human rights issues 

13th October 2021
human-rights

Botswana and the European Union (EU) appear to have been at each other’s throats behind the scenes since last year, with the EU saying it held several meetings with Botswana to convince her to address human rights issues. 

This is contained in a 2020 Human Rights Report that reveals broad divisions in contentious issues boiling behind the scenes between Gaborone and the Union. According to the report, which was released recently, the EU says it “continues to follow closely three main human rights issues in Botswana: the application of the death penalty; the rights of LGBTI persons; and gender equality.”

“Botswana remains part of a small group of countries – in Africa and globally – which continue to retain the death penalty both in law and in practice. Three executions were recorded in 2020,” the report says. According to the report, the Botswana Government indicated that a public debate on the application of the death penalty should be part of its ongoing work towards developing a Comprehensive Human Rights Strategy and the related National Action Plan.

The report says further progress on the rights of LGBTI persons’ seen in 2019, when Botswana’s High Court decriminalised same-sex consensual relations, is still pending, subject to a final court decision over a government appeal.

“Finally, gender-based violence and the need to advance gender equality and women’s rights in society remain another challenge for the country. In response to the high incidence of gender-based violence – which has intensified in many countries during the current COVID-19 pandemic – the President and the First Lady launched a public campaign to fight gender-based violence and to promote equality,” the report says.

The report says the EU did not fold its arms and watch from the sidelines the human rights issues in question are concerned but confronted Botswana to have the contentious issue addressed. “The EU continued to engage with the Botswana Government, multilateral organisations, non-governmental organisations and the broader society in Botswana in three main areas: the death penalty, gender-based violence and empowerment of women, and rights of LGBTI persons, as well as on the support of media and implementation of Universal Periodic Review recommendations,” the report says.

The report says that in addition to ad hoc consultations and human rights-oriented outreach efforts, the EU engaged with the Botswana Government on human rights formally in the context of the Article 8 Political Dialogue, which took place in February 2020.

“The dialogue offered an opportunity to exchange views on EU’s and Botswana’s experiences concerning the three EU priority areas in Botswana (capital punishment, gender-based violence and rights of LGBTI persons) as well as other human rights challenges, while also exploring opportunities for EU-Botswana cooperation on human rights issues in the context of the EU-Africa partnership and at the multilateral level,” the report says.

In parallel to engagement with the government, the EU said it continued to maintain dialogue with representatives of civil society focusing on human rights and with UN organisations and other partners of the country.

“The EU continues to be the driving force behind the Gender Dialogue (in principle co-chaired with UN Women and the Gender Affairs Department in the Ministry of Immigration, Nationality and Gender), which brings together various stakeholders to discuss gender issues to chart a way forward regarding partnerships. The EU has also used public diplomacy efforts to stimulate broader dialogue in the country on human rights issues,” the report says.

The EU said it continued to provide financial support to projects funded through the European Instrument for Democracy and Human Rights, with activities focused primarily on helping Botswana tackle gender-based violence, strengthen the notion of gender equality in the country, and promote participation in political processes.

“With six projects already underway, the EU signed two new programmes, in the wake of the COVID-19 pandemic, to support victims of gender-based and domestic violence and defend the rights of marginalised people, with a combined budget of EUR 430,000,” the report says. It says one of the projects is designed to offer care services to victims of gender-based violence and provide clinical services, counselling, shelter, and a referral system for legal and social assistance. Another project provides legal, medical and psychosocial support to refugees, undocumented migrants and indigenous people.

It says Botswana remains an important like-minded partner for the EU on the human rights agenda at a multilateral level. “The country’s positive role on human rights in the multilateral context would be further strengthened by initiating a domestic process of reflection about the signature and ratification of several pending core human rights conventions and/or optional protocols (e.g. the Convention for the Protection of all Persons from Enforced Disappearances, the International Covenant on Economic, Social and Cultural Rights, the Convention on the Rights of Persons with Disabilities, the Optional Protocol of the Convention against Torture, etc.)” the report says.

But the report acknowledged that Botswana is a stable and well-established democracy with a legal framework and institutions designed to guarantee respect for human rights in society. It says human rights complaints are addressed by the courts, with the government accepting decisions and implementing relevant rulings.

“Although the media scene in the country is relatively undeveloped, the World Press Freedom Index has noted a further positive trend concerning the role of the media in society (as was also the case in 2019) and has improved Botswana’s ranking from 44th to 39th place (out of 180 countries),” the report says.  Meanwhile, this week, President Dr Mokgweetsi Masisi met with the EU delegation led by the managing director for Africa of the European External Action Services, Ms Rita Laranjinha.

 

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