Alliance for Progressives (AP) leader, Ndaba Gaolathe has said De Beers’ dealings with Government of Botswana have so far proven that the former never wanted to support Botswana’s economic ambitions given its overly dominance in key decisions.
When responding to President Ian Khama’s valedictory State of Nation Address (SONA), Gaolathe said the question should not be whether Botswana had benefited from its diamond-based growth path through the DeBeers partnership but rather whether Botswana could have benefited more under a different arrangement with De Beers, had the arrangement allowed for greater value addition much earlier on.
“Over an extended period, many far-sighted citizens argued that the cutting and polishing of diamonds locally is necessary to further local economic development ensuring that a greater proportion of value derived from diamond exploitation stays 'in country' and benefits local communities, through skills development and job creation opportunities,” he said.
“The limited employment spill overs in the current growth path have meant that many locals still live in poverty despite the high GDP per capita and Botswana being classified as a middle-income country,” he said. “Thus a desire to create jobs is a major part of what inspired Government’s move towards beneficiation in recent years.”
Gaolathe, who is the son of former Debswana Managing Director, the late Baledzi Gaolathe said De Beers’ was never keen no supporting Botswana’s ambitions, as it kept on insisting that cutting and polishing activities were not economically viable in Botswana.
Gaolathe said historically, citizens have questioned whether the DeBeers arrangement allowed the country to take full advantage of its diamond resource and whether beneficiating the country’s diamonds would not lead to greater local economic benefit through job creation.
“The concept of diamond beneficiation has therefore been driven by civic population. The Government is a late-comer to the beneficiation school of thought, a school of thought premised on the idea that diamonds can result in new and deeper linkages with the local economy,” he said.
Gaolathe said it was through civil and other pressure as well as Government’s new-found bargaining strength in 2005 that resulted in the signing of an unprecedented 25 years mining sales agreement with De Beers, in exchange of De Beers assisting Botswana in creating a viable cutting and polishing industry.
The contract included the following three agreements; a renewal of the mining licences for Debswana for 25 years, the sale of Debswana’s production to the Diamond Trading Company (DTC) International for another five years; and the establishment of DTC Botswana.
DTC Botswana is responsible not just for sorting and valuing Debswana’s production but also for the sale of rough diamonds to local manufacturers. According to Gaolathe, on paper the new beneficiation drive is manna from the sky for Botswana, through the potential multiple investment opportunities for Botswana in both the diamond and related ancillary industries and although this also gives Botswana an impeccable name of the global stage, while the hard truth is that Botswana has failed to tap on the opportunity, and have in the process missed opportunities to create tens of thousands of jobs.
He said, Botswana has missed opportunities mainly because De Beer has served its own interest not that of Botswana government. “We have missed because the span of control in the diamond industry, it seems, was structured on no clear, transparent process based on merit and that De Beers continued to dictate, at DTC, all the technical management of the company, including, pricing, categorization of diamonds, security and all diamond logistical operations. The Government continues carries little knowledge of what really goes on at DTC Botswana,” he observed.
“DTC international solely serves De Beers interest; It aggregates diamonds from Botswana, Namibia, South Africa and its mines in Canada, for allocation to its sight holders internationally, including those in Botswana. The price determination of Botswana diamonds is formulated by them. The international diamond market is influenced by them.” Gaolathe said the determination of mining of Botswana diamonds is done by De Beers and the marketing of 85% Botswana diamonds by De Beers as well.
“Botswana government has no knowledge of DTC International operations. Botswana Government should rather have traded its 15% shareholding in De Beers for shareholding in DTC International, that’s indeed if the rationale for that was to gain insight and have influence in De Beers’s operations,” Gaolathe argued. He said although Botswana owns 15% in De Beers, its representation is limited to two board members and none at operational level, yet Botswana diamonds contribute 70% of De Beers’s revenues.
“The returns to Botswana are presented as a compound figure. There is no knowing what each business unit contribute,” he said. “The Government Valuator has been an expatriate domain since the 80’s up to now. De Beers and GDV expatriates are close allies. It has been shown to be case in South Africa when the GDV endorsed every pricing De Beers paid for SA diamonds. It has been shown when Botswana GDV went to Sierra Leone with De Beers’s executives to be introduced to the Government as ideal valuators that would assist the government there. It is only recently that citizen trainees were enrolled as GDVs, but the function is 80% expatriate controlled.”
Gaolathe also took a swipe at the government owned Okavango Diamond Company (ODC) as he noted that it is as good as non-existent. “We allowed De Beers DTC to receive ODC portion direct from the mine, sort the diamonds for ODC and present them half sorted for ODC to sell to the same international market De Beers is selling to. What this means is that De Beers DTC can manipulate the assortment and make sure it matches its own, such that what ODC present to the market is exactly the same as De Beers presents. That is why there is no difference in the prices DTC and ODC fetch in the market,” he contended.
“In this case ODC has no reason to exist and its mandate should be reviewed.” Gaolathe said diamonds will remain an integral part of party of economic diversification thorough local involvement by developing new capabilities and new niche engines of economic activity, as the civil population have always advised.
“For all the talk about the need for our country to diversify our economy, the real potent potential still remains how we best make use of our diamonds, as that engine for diversification. The way we are missing the opportunities with our diamonds typifies how we continue to miss glaring opportunities elsewhere,” he argued. “With our diamonds alone, we can inspire tens of thousands of jobs, but to achieve this we need refine and enhance our diamond roadmap and our delivery capacity and capabilities within Government.”
Presidential Commission of Inquiry into the Review of the Constitution held a meeting in Serowe this week. The meeting was to accord Bangwato, just like other tribes, a platform to give their opinions, contributions and what they think is the horse power and limitations of the current Constitution of Botswana.
Bangwato Regent, Kgosi Serogola Seretse said, he is of the understanding that the Commission has not come for anything apart from getting their opinions on how things could be made better. His contribution was that he solely knows of only two social positions in the world; Dikgosi and Pastors. He said other positions are just benedictions. He further urged that, Batswana should respect God’s ordained protocols such as Dikgosi and Pastors.
Seretse pointed out the importance of acknowledging and appreciating Dikgosi as nation builders. He cautioned and warned that, the Commission should ensure that their dealing with Dikgosi is harmonious. He called for an amendment to be made on the ‘National Order of Precedence’ noting that Dikgosi are put at number 11, but should at least be taken a little higher to number 7.
One resident, Tshepo Moloi while giving his contribution said there must be provisions of Social Justice that ensure equal distribution of resources to all citizens. He said this provision should entail an obligation that all citizen have equal opportunities to different Government Initiatives. Moloi substantiated that, all ‘Presidential Commissions’ be engraved on the Constitution
Alfred Thogolwane who is as well a resident of the biggest village in the Central District, pointed out the need for preservation of the country and resources thereof, saying “it must dawn onto all that, the calabash that fetches water for the family cannot fixed once its broken.” Another resident, Keikantsemang Sebedi advocated for Polygamous marriage, saying that men should marry as many wives as they please. She said there is no need for any socioeconomic assessment done on men who wish to marry more than one wife.
She advised that, the country should benchmark from the Zezuru culture that does it, with no complexities. On the other hand, Sebedi said that, there must be considerations done on the Old Age Pension. She said people who earned P4000 should not receive the old Age Pension upon their fullness of age. Forshia Koloi called for amendments on Section 77 and all the provisions that speaks to the subject of Bogosi and the powers infested in them. He said they should be made more detailed and avoid ambiguity in clauses.
Mr Tlhaodi said there must be Land Audits done in the country. Citing an example of the Tati Land as one that should be thoroughly audited. He further advised that, Election Day be put on the Calendar. He said, if it happens that the day be a Saturday, there should be some special dispensation for the 7th Day Adventist Church members to take part in voting without compromising on their day of worship. Tlhaodi added that there must be People’s Complaint Commission in the country.
Speakers emphasized the need for the country to review the exercise of ‘Political Party Funding’. They articulated that lack of funding political parties’ results in political parties resorting to finding funds for themselves. They reiterated that sometimes going to the extent of getting funds through illegal means. Bangwato agreed in one accord that they want the President be tried whilst in office if suspected of any criminal offences. This was revealed in their contributions. They pointed out that, the law should not to wait until the end of their tenure.
For his part, the Deputy Chairperson of the Commission Johnson Motshwarakgole expressed gratitude to the residents of Serowe. He applauded women for their kindness saying it is only them, who always take responsibility for doing things amicably in the society.
Parliament has revealed that it plans to rollout a Community Score Card (CSC) exercise as part of sweeping reforms to its role and mandate among others.
The planed shakeup, along with the rollout of CSC will see creation of new Parliamentary Portfolio Committees on Health, HIV&AIDS, Education and Skills Development, Trade and Economic Development, Agriculture, Lands and Housing and Local Governance and Social Welfare. Parliament informed government ministries and departments that the CSC is a participatory, community based monitoring and evaluation tool that enables citizens to assess the quality of public services and interact with services providers to express their concerns.
According to Parliament, the CSC will assist to inform community members about available services and their entitlements and to solicit their opinions about the accessibility and quality of certain services related to the portfolio committees mentioned. It said the main objective is for Parliament through identified oversight committees is to conduct a participatory monitoring and evaluating process that puts ownership and responsibility for delivery of services in the hands of both the Government and the service recipients.
“Through scorecards developed around identified sectors and services, communities and implementing departments remain in touch with progress made through the programme delivery cycle and are able to respond timely to bottlenecks,” the National Assembly said. Some of the measurements and expected outcomes for the rolling out of the CSC include among others, improved monitoring and economic evaluation, to determine the impact of spending, so as to be able to direct resources from where they having the least benefit to those projects and programmes where they will have a larger positive impact.
The National Assembly explained further that this could result in a willingness to close down ineffective programmes and institutions and not to implement projects that do not deliver adequate returns, improved productivity in the public services, especially given the substantial pay increases.
The National Assembly believes that the rolling out of CSC is also expected to result in efficiency savings: many public services and programmes could be delivered more effectively at lower costs, by improving management and accountability, and making use of e-services. “This would yield financial savings that could be used for development programmes or reducing the deficit,” the National Assembly said.
The exercise is also expected to result in “Careful scrutiny of subsidy schemes and termination of those that do not address market failure or assist truly needy Batswana.” The National Assembly revealed that proposed Parliamentary Portfolio Committee on Health and Wellness has been established in accordance with the Standing of National Assembly of Botswana. It explained that the mandate of the Committee is mainly to exercise Parliamentary oversight and scrutiny over Government Ministries, Departments and Agencies with portfolio responsibilities in respect of Health and HIV/AIDS.
“There is need to identify reasons for inefficiency and poor outcomes and ensure that health system reform improve productivity and value for money. Key areas of focus for scorecard, availability of drugs, staffing ratios, accessibility of health services, speciality care and services and sexual reproductively health,” the National Assembly said.
Another proposed Committee is on Local Governance and Social Welfare. The mandate of the Committee is mainly to exercise Parliamentary Oversight and Scrutiny over Government Ministries. Departments and Agencies with Portfolio responsibilities in respect of Local Governance and Social Welfare.
“Strategies under NDP 11 to improve outcomes of social uplifment include; diversiﬁcation of rural economies, development and support of small businesses, provision of social safety nets, eradication of absolute poverty, provision of quality and equitable education and harmonisation of social protection programmes,” said the National Assembly. It said social nets need to be improved so as to target these most in need (at present some social safety nets benefit many people who are not the most needy, but also miss out some of those who are needy).
“Some social development policies more broadly should also aim to reduce household vulnerability to shocks such as those arising from fluctuations in agriculture, climate change, incomes and employment and improve their ability to handle shocks, thereby building household resilience,” the National Assembly said.
Another Committee established is on Agriculture, Lands and Housing. The mandate of the Committee is mainly to exercise Parliamentary oversight and scrutiny over Government Institutions, Departments and Agencies with portfolio responsibilities in respect of Agriculture, Lands and Housing.
The National Assembly said the average growth rate of the agricultural sector since the beginning of National Development Plan 11 (NDP11) (i.e. during the 2017/2018 and 2018/19 financial years) was 2.5 percent, making it the slowest growing sector of the economy, in line with its historical performance.
“Over the same period, its share of GDP has been stagnant at around 2 percent. The sector also contributes job opportunities for about 80 000 adults. Food security has become paramount since the onset of the corona virus pandemic,” the National Assembly said. The National Assembly said the Government realises the need to increase food production for products in which Botswana has a cooperative advantage such as beef, grains and other horticulture products.
The Committee on Finance, Trade and Economic Development has also been established. One of the mandates of Committee would be to exercise Parliamentary oversight and scrutiny over government ministries, departments and agencies with portfolio responsibilities in respect of Finance, Development, Trade and Industry.
“The sector is at the core of industrialisation aspirations and strategies for economic development in Botswana. Manufacturing in particular can be the driver of economic growth through technological improvements and innovation,” the National Assembly said. Hence, it said, the development of the sector could also foster export diversification and export led-growth in Botswana while benefitting from the African Continental Free Trade Area (AFCFTA).
Two senior members of Directorate on Corruption and Economic Crime (DCEC) have threatened legal action against Directorate of Intelligence and Security (DIS), it has transpired. The threat is contained in an answering affidavit of Director General of DCEC, Tymon Katlholo in which he is seeking an interdiction from High Court to stop the DIS from accessing investigation files at his office.
After the DIS detained DCEC officials Joao Salbany and Tsholofelo Bareetsi on December 16, 2021, they filed an official complaint against DIS and some officials. They complained about abuse of office by DIS and five officers. Salbany and Bareetsi also complained about unlawful detention by DIS and unlawful dissemination of classified information contrary to Section 44 of Corruption and Economic Crime Act. “The DIS interviews were premised on information divulged during the course of official DCEC work product, that is the Monday media brief meeting,” they wrote.
They further requested leave to institute a civil suit against the DIS and its officers, and invariably the State for inhuman and degrading treatment they suffered and unlawful detention. They also pondered a declaratory seeking a sanction against the DIS and Botswana Police Service (BPS) and clarification of the role of BPS officers seconded to DIS.
“The envisaged suit against BPS and DIS officers and the DIS will inevitably centre on investigations done by the DCEC and the scope of the protection availed to DCEC officers for conduct done in the course and scope of DCEC official duties.” The duo said it was self-evident from the conduct of the DIS officers that there was nothing urgent about the information required by the DIS, justifying their detention at its Sebele facility from 08:30 hours on December 16, 2021 until 02:00 hours on December 17, 2021.
They reasoned that the information required by the DIS could have been obtained by a simple request to DCEC Director General. “What the DIS did was to seek to intimidate officers of the DCEC whom they knew were carrying out investigations against some of the DIS officers who were part of their investigation team. This turn of events has a chilling effect not only on the functioning of the DCEC but also on the official conduct of officers of the DCEC as to how they conduct their official duties.”
They concluded by stating that in the event the request is granted, they would further request to be advised as to the provision of legal representation as the unalwful detention and the degrading and inhuman treatment by the DIS was in relation to matters conducted by and on behalf of the DCEC.