De Beers moves to improve Botswana partnership
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Executive Vice President of Corporate Affairs for De Beers Group, David Prager has said a debate on whether Botswana is deriving value from its partnership with the world’s leading diamond company is healthy for the relationship.
Prager, said the onus is on De Beers to continue proving its value to the people of Botswana through its contribution to the country’s economy and people’s welfare. Prager said this at the three day Diamond Conference 2017 organised by the company as De Beers look forward to incorporating Sustainable Development Goals (SGDs) in its business practices. “Partnerships are not easy to manage; there is a need for a good will and clear understanding of what the partnership principles are,” said Prager, commending the long standing De Beers /Botswana relationship, which stretches as far as 1967.
“It is up to De Beers to continue proving itself to the people of Botswana to keep the partnership going.” The De Beers Diamond Conference has been running successfully for the past three years in collaboration with the Ministry of Mineral Resources, Green Technology and Energy Security. This year’s conference was conceived out of the conviction that the diamond industry should play a more strategic role in the upstream, midstream and downstream from a sustainability perspective.
De Beers seeks to have a significant contribution in sustainable development and innovation to reinvent and enhance business models that bring together all stakeholders to impact the global economy. The SDGs were adopted in by the United Nations, and would be the guiding tools for world development in the next 15 years. The SGDs envisages that in 2015 they would be; no poverty, zero hunger, good health and well being, quality education, gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, reduced inequalities, sustainable cities and communities, responsible consumption and production, climate action, life below water, life on land, peace, justice & strong institutions as well as partnership for the goals.
Prager said the De Beers will seek to play a role in SGDs through different ways most importantly through incorporating the SDGs in their business operations as well as influencing its partners to have a contribution. In Botswana, a diamond remains a symbol of success story and a source of pride. De Beers through its partnership with the Botswana government remains at the core of this story. This economic and social progress as captured by De Beers itself in the document titled “Turning Finite Resources Into Enduring Opportunity”, has been built largely on a diamond foundation, enabled by high standards of governance, political stability, and the judicious investment of diamond-generated wealth.
Minister Mineral Resources, Green Technology and Energy Security Advocate Sadique Kebonang gave credit for the success of De Beers/Botswana partnership to the country founding fathers; Sir Seretse Khama and Sir Ketumile Masire. “When the diamonds were discovered in the Bamagwato territory, unlike in other countries, they never said those diamonds were for the Bamagwato territory but said they are to be shared and enjoyed by all citizens. Most of these founding fathers were in their 40s when they negotiated this partnership which today we enjoy its successes,” he said.
Botswana has avoided being a resource-cursed nation, as it has been proven that resource-rich economies often grow more slowly than resource-scarce economies, the opposite has been the case for Botswana. This has been mainly attributed to the fact that Botswana has managed its resource with long-term development goals in mind. Botswana government jointly with De Beers owns Debswana, which is today the of the world’s leading diamond producer by companies by value. Until recently Debswana was also the leading diamond producer by volume.
Debswana operates four mines; Orapa diamond mine, opened in 1971, Letlhakane diamond mine, opened in 1975, Jwaneng diamond mine, opened in 1982, Damtshaa diamond mine, opened in 2003. Jwaneng Mine produces the most valuable diamond in the world, and contributes 60 percent of Debswana revenue. The two entities also owns the Diamond Trading Centre (DTC), the world's largest and most sophisticated rough diamond sorting and valuing operation.
While the partnership has undoubtedly been at the core of Botswana economic development, there are some who believes that communities surrounding the mining towns have benefited as much, and still languish in poverty. In political circles, De Beers is still weary of views which are not favourable to its partnership with Botswana. The resurgence of opposition, the Umbrella for Democratic Change (UDC)
This uncertainty has not been helped by the announcement of the leader of opposition in parliament Duma Boko last year when responding to the Budget Speech that UDC once in power, they will vigorously consider other technical partners for the management of Botswana’s diamond mines other than the current De Beers arrangement. “We believe that it is necessary to pursue a fair-minded approach that does not unduly defer to De Beers even where there is a possibility that there are partners that could assist Botswana generate better revenues and profits from our diamond mines,” he told parliament then.
“This posture is informed by our view that there have been companies, including one in Russia that has been able to perform admirably despite the global economic slowdown and storm against diamonds.” Ndaba Gaolathe, Boko’s former deputy who is now the leader of the newly formed Alliance for Progressives (AP), also shares the same sentiments. “If we are going to do things the same as the previous regime why should people vote us? “, he asked rhetorically. “We will be doing that for the freedom of our people and we should be resistant to the pressure.”
Gaolathe however highlighted that they will dialogue with De Beers over what their government will envisage. “I hear they are nervous about UDC, but they should view us as fairly minded citizens who want to do things which are good for the people,” he told this publication last year. Whilst a backbencher, Tati West Bigge Butale was even more vehement. He wants Debswana to be an entity wholly owned by the government without any technical partner.
“I was surprised by the Leader of Opposition yesterday talking about inviting the Russians to come and colonise us just like De Beers colonised us,” he had said then. “Why should we always be hankering for people to come from outside and exploit us? Butale is now part of President Lt Gen Ian Khama’s cabinet as Assistant Minister for Trade and Industry.The Coordinator of the Diamond Hub, Khumo Mogaetsho concurred that while the partnership has been the pinnacle of Botswana’s economic growth over the past years, an ordinary Motswana on the streets may not be privy to the benefits of the partnership. She said talk of Botswana going alone has been there, but was quick to admit that the value of the partnership is instrumental in driving Botswana’s economy.
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Mascom, Letshego partner to deliver the MyZaka instant loan
Letshego Botswana has recently partnered with Mascom to launch the Mascom MyZaka Instant Loan, a customer focused mobile money microloan service designed to provide customers with swift and convenient access to funds, driven by the underlying theme of “Ithuse” meaning “help yourself”
The loan is said to have been developed through a partnership driven by a deep customer focus with the key objectives of access, convenience and flexible financial support to customers of Letshego Botswana and Mascom through instantly disbursed short-term loans from P50 to P1 500 over the period of one month.
Letshego’s head of transformation, Molebogeng Malomo highlighted that working through agile methodologies, the partnership was able to develop and be released as what they call a Minimum Viable Product (MVP) or solution. “In keeping up with the spirit of design thinking and agile methodologies, the experiences and viewpoints of both Letshego Botswana and Mascom’s customers will be valuable to inform further enhancements to the Mascom MyZaka solution,” he said.
He further noted that the partnership and the development of the MyZaka instant loan will provide both the organizations to diversify their offering and customer base, while also offering the customer more choices and flexibility to initiate and be in control of their loan requests through the self-service mobile based application.
Mascom’s Chief Executive Officer, Dzene Makhwade-Seboni also alluded that their origins, priorities and initiatives are firmly rooted in Botswana and in the success of all Batswana, and that their strategy and intent is supported by embracing innovative problem-solving.
“The speed with which Letshego has grown over the years gives us confidence that we have partnered with the right service provider. Their expertise and most of all, innovation, a value we both share, will be beneficial to MyZaka Mobile Money for growth and for the convenience of our subscribers,” she concluded.
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DCEC granted warrant to arrest Khama twins
The Directorate on Corruption and Economic Crime (DCEC) has been granted permission to apprehend the former Minister of Environment, Wildlife and Tourism, Tshekedi Khama, and his twin brother Anthony Khama.
Information gathered by this publication suggests that the DCEC is actively searching for the Khama brothers, this is in connection with events that transpired whilst Tshekedi was Minister of Environment. The duo is currently in exile in South Africa together with their elder brother, and former President Lt Gen Ian Khama.
Approximately two weeks ago, the corruption-busting agency discreetly filed for an arrest warrant that was approved by the Broadhurst Magistrate Court for the two to be taken into custody, according to a highly placed source within the government enclave.
DCEC is also said to have filed an affidavit signed by a high-ranking officer known to this publication. Reports indicate that after being presented with details of the case, the Broadhurst magistrate issued the agency an arrest warrant.
It is also believed that the agency has been conducting extensive investigations into the supposed suspects for quite some time. Furthermore, Weekend Post has it on good word that the DCEC has been looking for methods to summon the two for questioning but has been unsuccessful.
According to unconfirmed reports, DCEC met with attorney Victor Ramalepa, who refused to accept the summons, saying that he is not their attorney. Furthermore, it is believed that DCEC has enlisted the assistance of the Botswana Police Service (BPS) in flagging the suspects’ names in the International Criminal Police Organisation INTERPOL.
Responding to WeekendPost enquiries, DCEC spokesperson Lentswe Motshoganetsi said, “I am not in good position to confirm or deny the allegation,” adding that such allegations may fall within the operational purview of the DCEC.
When contacted for comment, Ramalepa briefly stated that he is unaware of the purported arrest warrant. “I know nothing about the warrant and I haven’t been served with anything,” he said.
Meanwhile, former president Lt Gen Ian Khama recently issued a statement stating that DIS is intensifying the harassment and intimidation of him, family, friends and office employees.
“It is reprehensible for state officials and agencies to abuse government resources to terrorise their own citizens for personal gain,” said the former president in a statement.
He also stated that his brother TK’s staff and security were ordered to falsely implicate him. “Their desperate tactics will never work, it only serves to motivate me more to pursue regime change and free Botswana from tyranny,” he said
This comes after the corruption busting agency wants to interview the alleged suspects as they are still hiding in South Africa since last year.
Despite the hostility between government and Khama family going unabated, last month, Masisi extended an olive branch to Khama in political rally, indicating that he hopes the two of them settle their differences, of which the former responded by welcoming the gesture.
Khama further said his brother, Tshekedi, will facilitate the reconciliation of his behalf. Many have indicated that Masisi did not say what he said in good faith, and was only scoring political brownies since he was in Khama’s territory in Shoshong.
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DCEC’s Tshepo Pilane still has his mojo
Tshepo Pilane silenced his critics after being named the head of the Directorate on Corruption and Economic Crime (DCEC) in May of last year and served his opponents humble pie. Many believed he would only last for a month, but almost a year later, he is still standing.
Pilane, a trained soldier whose appointment surprised both the general public and some officers within the DCEC walls, has never glanced back in his duty to steer the DCEC ship forward.
It is alleged that immediately after his appointment the man embarked on a nation-wide trip touring the DCEC offices across the country in order to confirm and reaffirm the DCEC’s mandate. Sources from inside the DCEC claim that Pilane won the hearts of many DCEC employees due to his humility and plain message; “people at the top of the DCEC will come and go but the mandate of the DCEC remains relevant and unchanged.”
Pilane was appointed the Acting DCEC Director General at a time when the organisation was undergoing turbulence through court proceedings in which the suspended Director General Tymon Katlholo had interdicted the Directorate of Intelligence and Security (DIS) from accessing the DCEC premises. At the time, the DIS had raided the DCEC offices in the absence of Katlholo claiming to be looking for high profile corruption cases allegedly held by Katlholo.
At the time Pilane was Head of the DCEC Intelligence Division holding the position of Senior Assistant Director General reporting directly to the Deputy Director General Operations Ms Priscilla Israel. Contrary to his detractors, Pilane who is a reserved and humble person by nature won the support and backing of many DCEC officers due to his unassuming nature.
In a recent questionnaire sent to the DCEC regarding Pilane’s term in office, the DCEC was resolute on its commitment towards the fight against corruption. When quizzed on allegations of rife corruption since he took over, Pilane through his Public Relations (PR) office stated that the corruption landscape in Botswana remains unchanged as the DCEC continues to receive reports on allegations of corruption with sectors such as procurement (tenders and supplies), Transport (licensing and certificates), and land (dubious allocation and collusion) still leading issues reported. This trend has been consistence in the DCEC database for more than 10 years.
When further quizzed on accusations that suggest that due to the infighting at the agency, particularly at the top management, Investigations of cases has dropped significantly the DCEC claimed ignorance to the matter, stating that they are not aware of any “infights” at the DCEC “at the top management”, further stating that, investigations of cases has increased significantly, contrary to the allegations raised. “The DCEC is currently seeking new ways of expediting the investigations in order to fast track its enforcement role,” said the DCEC Head of Public Relations Lentswe Motshoganetsi. He further stated that the DCEC is in pursuit of high profile cases involving money and assets valued over P900 million. Three companies are involved in the scandal and two cases have already been committed to court while on one, investigations are about to be completed.
When WeekendPost inquired about Pilane’s roadmap, the DCEC stated that in the past, anti-corruption interventions were reactive, particularly in dealing with national projects that involve large sums of money. It was further started that in most instances investigating such matters takes a long time and in most instances, the money looted form Government in never recovered. As a result, the DCEC has taken a deliberate stance to attach its officers from the Corruption Prevention Division to be part of the implementation of these projects before, during, and after implementation.
The DCEC cited the Economic Stimulus Programme which, although meant to grow the economy and uplift Batswana from poverty, yielded incidents of corruption and poor workmanship. To date, the DCEC is still grappling with cases as some projects were not done, or were completed with defects beyond repair. Currently the DCEC is involved at the Ministry of Education conducting project risk management in the Multiple Path Ways Program at Moeng College and Maun Senior School. This intervention will spread to other sectors of the economy as part of the DCEC’s corruption prevention strategy.
Of recent, the DCEC has been in the media for all the wrong reasons following leakage of high profile cases and allegations claiming that the executive management is at war with each other more particularly with some within the agency harbouring ambitions to dethrone Pilane from the Directorship.
Although the infighting was denied by Pilane’s Office, he acknowledged that leakage of information is a problem across Government and stated that it is a pain at the DCEC. He however stated that Staff has been cautioned against leakage of investigation information and that they have roped in the Botswana Police to assist in investigating incidents of leakage. He further stated that they have increased continuous vetting and lifestyle audits for DCEC employees in order to enforce discipline.
Pilane’s term comes to an end in May 2023 after serving the DCEC for a year on acting basis. It will be in the public interest to see who will be given the baton to continue the anti-corruption journey if Pilane’s contract is not renewed. The DCEC has seen arrival and departure of Director Generals having alternated the top seat five times in less than seven years.