New BERA given vast powers over licence holders
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The Botswana Energy Regulatory Authority (BERA) has been given more powers in line with the new law to crack the whip on license defaulters.
The parastatal was formed two months ago subsequent to the passing of the Botswana Energy Regulatory Act of 2016 by parliament. BERA is responsible for the economic regulation of the energy sector being; electricity, petroleum products, coal, natural gas, solar energy and other forms of renewable energies. The parastatal is tasked with issuance of licences to the five (5) multinational oil companies (Botswana Oil Ltd., Vivo Energy, Puma Energy, Engen Oil Marketing, Chevron Botswana and Total Oil Botswana) including a number of citizen based companies (Excess Petroleum, Stol, Afritech, Tswana Petroleum).
This extends also to a number of international and local Gas Supply and Distribution Companies (Total, Afrox Botswana, Easigas Botswana, Pula Energy, Airliquide, and Simsagas). BERA Chief Executive Officer (CEO) Rose Seretse told the press this week in the inaugural media pitso since the instigation of the organisation that “the parastatal may amend, suspend or revoke a licence and impose such fines as it may consider appropriate at the end of the investigations – if the Authority is satisfied that there is a contravention of the Act.”
She emphasized that in terms of Section 53 (1) of the Act, the Authority is conferred with powers to initiate or receive and investigate any complaint from any person against a licensee. She said the investigation should be based on the existence of reasonable grounds that a contravention of any of the provisions of the Act has occurred or that the conditions of a licence are not adhered to.
According to the ex-Director of Directorate of Corruption and Economic Crime (DCEC) the Authority has the power to enter and search the premises of any licensee it intends to investigate (give a licensee four (4) days’ notice of the intended search and reasons for searching the premises). She stated that however if the Authority decides to investigate it shall inform the licensee or affected person in writing of its intention to investigate. “Before the search, the Authority shall obtain a search warrant from the Magistrate Court. Notwithstanding, the Authority may enter and search any premises, other than a private dwelling, without a warrant (followed by an ex post notice),” Seretse pointed out to the pack of journalists at the briefing.
The BERA CEO warned that the authority has power to require information from any person that it considers necessary to enable it to carry out its functions under the Act, and it is an offence to unreasonably refuse to furnish the Authority with information when required to do so under Section 66 of the Act. According to Seretse, it is important to note that an application for a licence may if the authority considers necessary be done through a tendering method determined by the authority.
“Additionally, it is worth noting that licences will be issued at a fee which includes application fees and annual licence fees among others. However, these fees should be reasonable, justifiable and appropriate for the type of activity. The annual licence fees in aggregate should not exceed one and half percent of the combined gross turnover of the licence or regulated entity,” she said.
BERA is also mandated to ensure that there is competition in the energy sector and that there is energy security in Botswana. Nonetheless, Seretse highlighted that in terms of Section 62, the Authority shall refer all issues relating to competition to the Competition Authority.
In terms of their responsibilities on the tariffs, Seretse said the authority may review a tariff where it considers it necessary to do so in the interest of customers, consumers and other users and where the tariff is due for periodic review as determined by the authority from time to time.
“The Authority shall, from time to time and by notice in the gazette publish the tariff review methodology and considerations that the Authority apply when reviewing a tariff. The Authority shall, when reviewing tariffs, take into account any direct subsidies by government to support energy or cross subsidies between different consumer classes.” Already it was reported that BERA is inundated with reports on mishandling and smuggling of fuel out of the country. It is said that consumers and other informal fuel resellers purchase fuel from various fuel filling points with containers not recommended for safe handling and transportation of fuel.
“Containers used include, 20 litres and 25 litres plastic containers, 200/210 litres drums and in certain instances; worn out jerry cans. It has been observed that this practice is particularly rife in the northern part of the country; Francistown, Kasane and the surrounding areas.” It has also been noted that the fuel being smuggled outside the country is for re-sale in the neighbouring countries to the northern part of Botswana, and that BERA will continue to put such unwanted conduct on line. The Ministry of Minerals Resources, Green Technology and Energy Security (MMGE) through the Department of Energy is responsible for the formulation, development and coordination of the National Energy Policy.
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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries
Botswana Telecommunications Corporation Limited (BTC) has announced that its 3rd Francistown Marathon will be held on Saturday 20th April 2024 at Obed Itani Chilume Stadium in Francistown. The BTC Francistown Marathon is officially recognised by World Athletics and a Comrades Marathon Qualifier will offer race categories ranging from 42.2km, 21.1 km, 10km, 5km fun run, 5km peace run for children and has introduced a 5km and 10km categories for wheelchairs athletics.
BTC also used this opportunity to announce beneficiaries who received donations from proceeds made from the 2nd BTC Francistown Marathon that was held on April 23rd 203. BTC donated a play area, plastic chairs and wooden tables for pupils worth a total of thirty eight thousand, one hundred and three pula, fifty thebe each (P38, 103.50) to Monarch Primary School, Tatitown Primary School, Mahube Primary School and Gulubane Primary School. Ditladi and Boikhutso clinics each received a donation of benches, television sets and 10, 000 litre water tanks worth thirty seven thousan, eight hundred and ninety eight pula (P 37, 898.00). Additionally, BTC also donated seventy thousand pula (P70,000.00) to their marathon technical partner, Francistown Athletics Club (FAC) which will be used for daily operations as well as to purchase equipment for the club.
The BTC Francistown Marathon aligns seamlessly with BTC’s corporate social investment programme, administered through the BTC Foundation. This programme is a testament to BTC’s dedication to community development, focusing on key areas such as health promotion. The marathon, now in its third year, not only promotes a healthy lifestyle but also channels all proceeds to carefully chosen charities as part of BTC’s commitment to impactful and sustainable projects.
Speaking at the launch, the BTC Managing Director Mr Anthony Masunga stated that the marathon underscores BTC’s commitment to community upliftment and corporate social investment. He stated that “the annual event which has been in existence since 2016, having taken a break due to the covid and other logistical issues, is instrumental to the economic upliftment of the city of Francistown”. He congratulated all the beneficiaries for having been nominated to receive the donations, adding that “the donation of proceeds from the 2023 marathon aims to highlight BTC’s commitment and heart for Batswana and our continued impact in the different industries”.
He further stated that through this marathon, “we demonstrate our steadfast commitment to having a good influence on our communities, this event is a manifestation of our dedication to promoting education and a healthier, more active society”. He concluded by stating that “BTC looks forward to another successful marathon that will leave a lasting positive influence on the greater Francistown community and the country at large” he said.
Giving welcome remarks, the Councillor for Donga, Honourable Morulaganyi Mothowabarwa stated that “he is ecstatic that BTC is collaborating with the City of Francistown on yet another installment of the Marathon”. He continued to offer his support to BTC to enable this marathon to continue over the coming years, stating that the “CSI element is a welcome development that helps empower our communities”, he said.
The 3rd BTC Francistown Marathon is officially open for registrations and athletes may use the following platforms to register and pay; through Smega by dialling *173# and choosing opton 5, then choose Option 3 for the Francistown marathon, at any BTC store or by visiting the BTC website and clicking on the BTC Francistown Marathon and choosing the relevant options.
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Letsholo lauds President Masisi’s digitization in fight against corruption
Thapelo Letsholo, Member of Parliament for Kanye North, delivered a moving speech at the United Nations International Anti-Corruption Day commemoration, praising President Dr. Mokgweetsi Eric Keabetswe Masisi’s digitalization initiative in the fight against corruption. Letsholo highlighted the importance of embracing digitalization in governance as a crucial step in curbing corrupt practices.
According to Letsholo, the implementation of digital systems in government services can significantly reduce direct interactions between citizens and officials, which often serve as fertile grounds for corruption. By minimizing these opportunities for illicit activities, the efficiency and transparency of public services can be enhanced. Letsholo pointed to Estonia’s success in digital governance as an example, where public services have become more transparent, accessible, and efficient.
The MP commended President Masisi’s commitment to digitalization and E-Governance, emphasizing that it aligns with global anti-corruption standards. He called for full support and active participation from all sectors to ensure the success of this initiative.
Letsholo also stressed the importance of improving detection methods and refining whistleblower laws to effectively combat corruption. He highlighted the unseen and unspoken facets of corruption as its lifelines, emphasizing the need for robust detection mechanisms and a system that encourages and protects whistleblowers.
Addressing the societal role in fighting corruption, Letsholo focused on the crucial role of everyday citizens and civil servants who often witness corrupt practices firsthand. He acknowledged the existing reluctance to report corruption due to the perceived risks of repercussions. To change this narrative, Letsholo advocated for creating an environment where staying silent is deemed more detrimental than speaking out. He called for a cultural shift where the potential benefits of exposing corruption outweigh the risks, ensuring that whistleblowers are protected and feel secure in coming forward.
Letsholo called for collective responsibility and action in creating a system that not only detects and reports corruption but also supports those who stand against it. He expressed hope that under President Masisi’s digitalization initiatives, the future of governance in Botswana will be characterized by integrity, transparency, and accountability. Letsholo’s speech resonated with the sentiments of hope and determination that permeated the commemoration, emphasizing the need for unity in the fight against corruption.
In summary, Letsholo lauded President Masisi’s digitalization initiative in the fight against corruption, highlighting its potential to curb corrupt practices, enhance efficiency and transparency in public services, and align with global anti-corruption standards. He emphasized the importance of improving detection methods, refining whistleblower laws, and creating an environment where speaking out against corruption is encouraged and protected. Letsholo called for collective responsibility and action in creating a future characterized by integrity, transparency, and accountability in governance.
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FaR property assets value clock P1.47 billion
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.