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Accountants’ oversight body in questionable deals

Skeletons have started to tumble out of the Botswana Accountancy Oversight Authority (BAOA) closet, as the newly established regulator tasked with reviewing the public sector audits is embroiled in corruption and flouting of procurement procedures practices, Weekend Post has been informed.

 
According to highly placed sources within BAOA, this came to light recently when there was a tender in relation to partitioning of their new offices at Central Business District (CBD). It is understood that the said tender was flouted resulting in other companies querying the outcomes of the tendering processes. This is believed to have brought into question whether BAOA is complying with set tendering processes. Further, it came to light that the organisation was operating without a procurement officer. According to an immaculate source close to developments, this has resulted in tenders being awarded willy-nilly.

“Everyone who wants a tender is allocated willy-nilly. An Information Technologist (IT specialist) is currently acting as a stop gap procurement officer. And it appears they are not ready to hire a qualified procurement officer as they may be benefiting out of the deal,” the source told this publication.   She also added: “there are also many unanswered questions hovering of how the tender of partitioning the new office was handled. “It is understood that, as such the same companies which are linked to the authority’s executives are dominant in providing services such as catering to the organization from time to time.

However when queried about the concern, BAOA Chief Executive Officer (CEO) Duncan Majinda downplayed the scenario saying they came up with Procurement and Tender procedures approved by the Board and vetted by PPADB and the procedures are being followed.  “Any non-compliance is enforced accordingly through the normal enforcement procedures of the Authority.” The office is undergoing a new partitioning exercise which has been dragging on for months now; meanwhile the organization is occupying another office and paying high rental fees.

In essence, this means the authority is paying rental for both offices, the one they are occupying at Finance Park and the one under renovation at the CBD. According to sources, the CBD office is BAOA’s new office and they should have already moved in by now. According to the minutes of the last recent meeting the organisation held, passed to this publication, the Director of Finance and Administration reported that the Authority had been occupying the current offices (in Finance Park) for the past four and a half years despite having endured problems such as being stuck in lifts; air conditioners not working and awful rest room smells.

“He reported that the current lease would be coming to an end in December 2017 but with the approval of the Board, the Authority has been able to secure a place in the CBD, behind Masa hotel for its new offices. He stated that if everything goes according to plan some employees would be moving by mid-June 2017 and that by end of June 2017 all employees would have vacated the current premises.” The BAOA CEO played his cards close to his chest when questioned about the costly exercise while falling short of confirming it.

Although they have been renting both buildings for long now, he said that BAOA is only renting only one office at Finance Park but that “we will be moving to Central Business District (CBD) at the end of September 2017”. He added that “the offices at CBD are being prepared for occupation.  As the new building does not belong to BAOA, the costs of partitioning being incurred are a capital cost intended to bring the office to the condition that it can be occupied. Because of the requirements of the City Council and the tendering processes involved this takes a bit of time.”    

Information further reaching Weekend Post suggests that the authority has also been spending irresponsibly by “leasing” a printer for close to 4 years which raises questions of financial management and acumen. The Toshiba printer is estimated to cost P58 000 – the amount that they easily surpassed while they were hiring it. At the moment this publication can confirm that the authority has since bought a new printer last week replacing the one which has been rented, despite costs already incurred while leasing the Toshiba printer.

When justifying the spending, Majinda said a decision to lease or rent any asset in an organization is a function of many variables including availability of funds at the time to make a cash purchase. “Most organizations prefer leasing to outright purchase so it is not a bad thing to lease,” he said.For BAOA, Majinda revealed that with cash savings from the past, it has become possible to acquire some assets for cash this year. “It is important to clarify at this stage that the Authority reviews its business decisions all the time to ensure their continued relevance and business suitability.”

Strong issues of Nepotism and favouritism at BAOA

While Minister of Finance and Economic Planning Kenneth Matambo appointed the Chief Executive Officer (CEO) Majinda to the lucrative post, other Executives’ portfolios are said to be marred with controversies of allegations of nepotism and favouritism.
In the web of nepotism and preferential treatment of staff members, it is alleged that the CEO is a long time friend to the Director of Finance and Administration, Limited Nkani. The IT Manager, who acts as a procurement officer, is also said to be linked to one of the senior managers and that they have previously worked together before joining BAOA.

Insiders say three Accountants were poached from Delloitte, and most of the staff employed are also said to be having a background of association (with each other) somehow. “The CEO and PA to CEO as well as an Accountant are all from Botswana Institute of Chartered Accountants (BICA),” the source highlighted.      

Ex-DIS officer bullying staff members

An ex Directorate of Intelligence and Security Services (DISS) officer who is now a Human Resource Manager at the BAOA (names withheld), is said to be maltreating staff members. It is understood that she comes with cases hanging on her head from her previous employer, DISS. “In the web of associates she also came to BAOA through the Director of Finance and Administration.” While at DIS, sources at the BAOA said she left many cases unresolved involving millions as back pays for staff. “She intimidates staff members. She boasts of how she hires and fires staff members,” the source alleged.  

That notwithstanding, Majinda told this publication that the authority is not aware of any nepotism and favouritism in human resource issues. “The Authority condemns such practices in the strongest possible sense and if it exists, as you allege, it would be uprooted at the earliest notification,” he emphasized.  

Salary structure questionable

According insiders, there is also no salary structure and the top executive management gets lucrative salaries while the lower band gets very low salaries. In terms of the salaries, some staff members with Association of Accounting Technicians (AAT) qualification are said to be getting less than an employee with Association of Chartered Certified Accountants (ACCA).  In addition salary bands of drivers are said to be almost equivalent to qualified accountants who are employed on temporary basis.

However the BAOA CEO said they have gone through an elaborate salary grading exercise approved by experts (Tsa Badiri) and based on the Hay Grading System.  Every position at BAOA, he added, has been graded and hay points have been attached which determine the positioning of individuals based on their skills and expertise. “All entrants are scrutinized and placed accordingly in their respective grades and promotions then follow in the normal course of events.” According to Majinda the Authority is a parastatal and as such complies with Government policy on salaries and wages.

“The Authority’s salary structure is tagged to the Government salaries and was appropriately approved. Allowances are paid when applicable and no staff is disadvantaged. A salary structure is, therefore, available and applies to all members of staff,” he explained.  

Anti-media tactics at organisation

The Public Relations Unit is said to be placed under the auspices of the HR department and not as an independent entity – an anomaly which staff also make an issue with. The authority is said to have censored the staff members from engaging with the media or leaking information that may help the organisation with governance and transparency issues. To buttress the speculation, this week upon Weekend Post inquiries on the state of affairs at the organisation, the management moved swiftly to induce staff members to sign Secrecy forms to compel them not to leak information.

The secrecy clause which has also been passed to this publication states that: “all information obtained during the course of employment with the Authority is confidential, and the strictest secrecy shall be observed by a staff member in regard to confidential information acquired during the course of his duties. A staff member shall not communicate or allow being communicated to any un-authorized person, any information made available to them in their capacity as staff members of the authority unless instructed to do so by the authority’s management, or a court of law.”

It continues: “any breach in terms of this section shall be treated as a serious offence and a staff member concerned is liable for dismissal without notice (summary dismissal), and in addition may be charged with an offence in terms of the Employment Act.” In addition, following this publication’s inquiries (which they later responded to), the organization also re-scheduled a planned staff meeting at the eleventh hour which was to address some staff grievances.

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DPP halts JSC, Judge’s back to work plan

25th January 2021
Kebonang

The Directorate of Public Prosecutions (DPP)’s decision to reject and appeal the High Court’s verdict on a case involving High Court Judge, Dr Zein Kebonang has frustrated the Judicial Service Commission (JSC) and Judge Kebonang’s back to work discussions.

JSC and Kebonang have been in constant discussions over the latter’s return to work following a ruling by a High Court panel of judges clearing him of any wrong doing in the National Petroleum Fund criminal case filed by the DPP. However the finalization of the matter has been hanged on whether the DPP will appeal the matter or not – the prosecution body has since appealed.

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BDP rejects Saleshando payment proposal

25th January 2021
MP saleshando

Botswana Democratic Party (BDP) top brass has declined a request by Umbrella for Democratic Change (UDC) to negotiate the legal fees occasioned by 2019 general elections petition in which the latter disputed in court the outcome of the elections.

This publication is made aware that UDC Vice President Dumelang Saleshando was left with an egg on his face after the BDP big wigs, comprising of party Chairman Slumber Tsogwane and Secretary General Mpho Balopi rejected his plea.

“He was told that this is a legal matter and therefore their (UDC) lawyer should engage ours (BDP) for negotiations because it is way far from our jurisdiction,” BDP Head of Communications, Kagelelo Kentse, told this publication.

This spelt doom for the main opposition party and Saleshando who seems not to have confidence and that the UDC lawyers have the dexterity to negotiate these kind of matters. It is not clear whether Saleshando requested UDC lawyer Boingotlo Toteng to sit at the table with Bogopa Manewe, Tobedza and Co, who are representing the BDP to strike a deal as per the BDP top echelons suggested.

“From my understanding, the matter is dealt with politically as the two parties are negotiating how to resolve it, but by far nothing has come to me on the matter. So I believe they are still substantively engaging each other,” Toteng said briefly in an interview on Thursday.

UDC petitioners saddled with costs after mounting an unprecedented legal suit before the court to try and overturn BDP’s October 2019 victory. The participants in the legal matter involves 15 parliamentary candidates’ and nine councillors. The UDC petitioned the court and contested the outcome of the elections citing “irregularities in some of the constituencies”.

In a brief ruling in January 2020, Judge President Ian Kirby on behalf of a five-member panel said: “We have no jurisdiction to entertain these appeals. These appeals must be struck out each with costs including costs of counsel”. This was a second blow to the UDC in about a month after their 2019 appeals were dismissed by the High Court a day before Christmas Day.

This week BDP attorneys decided to attach UDC petitioners’ property in a bid to settle the debts. UDC President Duma Boko is among those that will see their property being attached with 14 of his party members. “We have attached some and we are on course. So far, Dr. Mpho Pheko (who contested Gaborone Central) and that of Dr, Micus Chimbombi (who contested Kgalagadi South) will have their assets being sold on the 5th of February 2021,” BDP attorney Basimane Bogopa said.

Asked whether they met with UDC lawyers to try solve the matter, Bogopa said no and added. “Remember we are trying to raise the client’s funds, so after these two others will follow. Right now we are just prioritising those from Court of Appeal, as soon as the high court is done with taxation we will attach.”

Saleshando, when contacted about the outcomes of the meeting with the BDP, told WeekendPost that: “It would not be proper and procedural for me to tell you about the meeting outcomes before I share with UDC National Executive Committee (NEC), so I will have to brief them first.”

UDC NEC will meet on the 20th of next month to deal with a number of thorny issues including settling the legal fees. Negotiations with other opposition parties- Alliance for Progressives and Botswana Patriotic Front (BPF) are also on the agenda.

Currently, UDC has raised P44 238 of the P565 000 needed to cover bills from the Court of Appeal (CoA). This is the amount in a UDC trust account which is paltry funds equating 7.8 per cent of the overall required money. In the past despite the petitioners maintaining that there was promise to assist them to settle legal fees, UDC Spokesperson, Moeti Mohwasa then said the party has never agreed in no way to help them.

“We have just been put in debt by someone,” one of the petitioners told this publication in the past. “President’s (Duma Boko) message was clear at the beginning that money has been sourced somewhere to help with the whole process but now we are here there is nothing and we are just running around trying to make ends meet and pay,” added the petitioner in an interview
UDC NEC has in December last year directed all the 57 constituencies to each raise a minimum of P10, 000. The funds will be used to settle debts that are currently engulfing the petitioners with Sheriffs, who are already hovering around ready to attach their assets.

The petitioners, despite the party intervention, have every right to worry. “This is so because ‘the deadline for this initiative (P10, 000 per constituency) is the end of the first quarter of this year (2021),” a period in which the sheriffs would have long auctioned the properties.

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Boko-Khama axis viewed with suspicion

25th January 2021
boko-and-khama

President of the Umbrella for Democratic Change (UDC) Duma Boko’s alliance with former President Lt Gen Ian Khama continues to unsettle some quarters within the opposition collective, who believe the duo, if not managed, will once again result in an unsuccessful bid for government in 2024.

While Khama has denied that he has undeclared preference to have Boko remaining as leader of UDC, many believe that the two have a common programme, while other opposition leaders remain on the side-lines.

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