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UDC Urges Swedish MPs to block Gripen deal

Umbrella for Democratic Change (UDC) president, Duma Boko has written a petition to the Swedish Government titled Botswana Arms race in the midst of poverty, massive unemployment and social inequality. The petition protests Botswana government’s ongoing and planned military spending.

Boko states that their plea as representatives of Botswana's political parties and civil society is for the Swedish Parliament not to approve the sale of these fighter jets to the government of the Republic of Botswana as it is not in the national interest to do so.

“Our position is that military spending must be kept to the barest minimum, and Botswana's meagre resources should be used to build better infrastructure, such as water and electricity supply, in order attract foreign investment, reduce poverty, unemployment, social inequality and reword labour productivity, especially in the public sector,” he writes.

The UDC leaders observes that since 2008, with the arrival of General lan Khama as Botswana's president, the country's national security' expenditure has been on the increase. He cites the Stockholm International Peace Research (SlPRl), which records that Botswana's military expenditure jumped from US$ 292 million in 1998 to US$ 377 in 2OO8 to US$ 436 in 2015 (at constant 2014 prices and exchanges rates).

“According to the more recent National Development Plan (April 2017-March 2023), Botswana is planning to spend about fifteen (15) percent of its GDP on what is labeled 'Territorial integrity'. lt is estimated thot about half of this will go towards the acquisition of the ultra-modern Swedish mode Gripen JAS 39 fighter aircraft, manufactured by SAAB.”  

Boko informs the Swedish Parliament that Botswana intends to acquire between eight and 12 of these aircraft. He explains that the Gripen JAS 39 aircraft is on ultra-modern and very advanced fighter, even by European standards that military aviation experts say the BDF neither needs nor can afford.


He shares that critics have questioned the wisdom of this intended military aircraft, especially fighter jets such as the Gripen, pointing to the BDF's immediate needs in anti-poaching, border security patrols and peace keeping operations on the continent. While nobody's is against BDF modernization, various experts argue for o multi-role lighter aircraft rather than the Gripen or even the T-50.

“But it is also important to note thot not only the BDF in general, but the soldiers in particular, have much more relevant and even desperate needs. lt is common cause that in many cases BDF men and women lock such basic supplies as new boots and socks, let alone decent accommodation, and live permanently in tents,” observes Boko.

ECONOMY LOOKS REALLY GLOOMY

In the petition, Boko observes that Botswana's economic situation now looks really gloomy. Whilst in 2009 foreign debt stood at 6.3% of the GDP, ii hos now increased to about 16% of GDP, fueled partly by lan Khama military spending spree, official figures pu1 unemployment at 19%, but the accelerating closure of mines and factories is likely to push the figure higher. Youth unemployment now exceeds 4O7", and a fifth of the country's two million people live on less than $2 a day; across the country the ranks of young and embittered are swelling.

According to the UDC leader the impending revision of the SACU revenue-sharing formula will see Botswana's shore-its second largest revenue source after diamonds – decline significantly. Boko says diamond sales – which contribute o third of the country's GDP – have lost their sparkle, declining by up to 30% in market value over two years, according to S&P report published in December 20,l5. Last year, he says, Debswana, a 50/50 venture between Botswana government and De Beers, closed its Damtshaa diamond mine, adding woes to on industry thot hos shed up to 30,000 jobs.

“The Australian copper junior miner Discovery Metals Limited filed for bankruptcy lost year, leaving 450 workers near the Okavango Delta out in the cold, while African Copper closed its operations at Mowana and Thakadu in central Botswana. On August 31 2016, the state-owned BCL – Botswana's biggest copper and nickel mine -collapsed into bankruptcy after enduring three decodes of losses, throwing about 6,000 miners out of work and dealing o heavy blow to the Francistown/Selibe-Phikwe regional economy.


ln a society where the average size of the family is four, the 6000 lob losses mean about 24,000 people have been impacted directly or indirectly by the mine closures. The commercial banking sector, considered more resilient thon others, is seen by the country's central bank as "weakening" because of the general decline of the economy. The financial services sector contributes I 1% of GDP. Ln December 2015, when commodity prices slump began to bite.”  

Boko further blasts Khama for withdrawing P3.5 billion from the Pula Fund, a stabllization reserve created with diamond revenues, to finance a populist Economic Stimulus Package (ESP). He directs the Swedish Parliament to the international rating agency, S&P, which warned in January of this year that Botswana faces a "deteriorating outlook" in 2O17, suggesting a downgrade from A-/A-2 sovereign credit rating could be on the horizon.

Meanwhile, Boko adds that since 2011 lan Khama has tried by all means to emasculate, marginalize and sideline a legally established Public Sector Bargaining Council, throwing the country's industrial relations, especially in the public sector, into disarray. Using the old and discredited tactics of divide and rule.

The UDC president says Khama has abused his executive powers to award salary increment outside the bargaining council. “We believe that lan Khama is doing this in order to a the questions thot might be raised at the PSBC concerning unjustified military spending in view of the claim thot the government has no money to pay public sector employees decent wages and salaries.

The foregoing account of Botswana's economic and fiscal position puts into stork relief the flowed spending priorities by the current government, specifically its military spending spree. Botswana is not in a position to engage in this misplaced defense spending.”

WAY FORWARD

Boko says it is clear that Botswana as a country cannot afford this kind of military spending because; Botswana faces serious challenges of unemployment, poverty and extremely poor social and physical infrastructure and poor services delivery. There is an urgent need to address the issue of ever rising unemployment, and in particular youth unemployment, which will go a long way towards reducing Botswana notorious high levels of poverty and social inequality, says Boko. He cites that none of these challenges can be solved by the current military shopping spree.

According to Boko, Botswana is not facing any direct external threat and the cost of purchasing and maintaining a fleet of high tech and advanced jet fighters is prohibitive as evidenced by the experience of South African Defence Force. He points out that this will be on ill-advised spending in the face of more compelling national priorities. What is more, this is not even o priority for the Botswana Defence Force, but something driven by the selfish interest of the current Botswana president, who stands to reap a handsome commission through his family company, Seleka Springs, he reasons.

The UDC leader is of the view that this purchase is also unjustified in the sense that it starts on arms race in the region, which is the delight of Khama family; will create o vicious circle of arms race, as some countries want to outperform others, and still, Khama family will be the winner.

KHAMA FAMILY AND THE WEAPONS TRADE

Boko further writes that it is also important to note that Ian Khama's military spending spree is not even indicative of his 'patriotic' or even 'altruistic' credentials. He says it is all about his unbridled selfishness and policy of self-aggrandizement. The President's family has deep roots in the weapons trade.

“President lan Khama and his brothers have, through their military supplier company, Seleka Springs, dominated BDF tenders for decodes, especially during the time when he was Commander of the BDF,” he writes. Boko shares the Minisier of Defence, Justice and Security once revealed in an answer to a parliamentary question, thot Seleka Springs, has acted as agents for several European companies for the supply of specialized military equipment, ammunition and spares.

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DIS blasted for cruelty – UN report

26th July 2022
DIS BOSS: Magosi

Botswana has made improvements on preventing and ending arbitrary deprivation of liberty, but significant challenges remain in further developing and implementing a legal framework, the UN Working Group on Arbitrary Detention said at the end of a visit recently.

Head of the delegation, Elina Steinerte, appreciated the transparency of Botswana for opening her doors to them. Having had full and unimpeded access and visited 19 places of deprivation of liberty and confidentiality interviewing over 100 persons deprived of their liberty.

She mentioned “We commend Botswana for its openness in inviting the Working Group to conduct this visit which is the first visit of the Working Group to the Southern African region in over a decade. This is a further extension of the commitment to uphold international human rights obligations undertaken by Botswana through its ratification of international human rights treaties.”

Another good act Botswana has been praised for is the remission of sentences. Steinerte echoed that the Prisons Act grants remission of one third of the sentence to anyone who has been imprisoned for more than one month unless the person has been sentenced to life imprisonment or detained at the President’s Pleasure or if the remission would result in the discharge of any prisoner before serving a term of imprisonment of one month.

On the other side; The Group received testimonies about the police using excessive force, including beatings, electrocution, and suffocation of suspects to extract confessions. Of which when the suspects raised the matter with the magistrates, medical examinations would be ordered but often not carried out and the consideration of cases would proceed.

“The Group recall that any such treatment may amount to torture and ill-treatment absolutely prohibited in international law and also lead to arbitrary detention. Judicial authorities must ensure that the Government has met its obligation of demonstrating that confessions were given without coercion, including through any direct or indirect physical or undue psychological pressure. Judges should consider inadmissible any statement obtained through torture or ill-treatment and should order prompt and effective investigations into such allegations,” said Steinerte.

One of the group’s main concern was the DIS held suspects for over 48 hours for interviews. Established under the Intelligence and Security Service Act, the Directorate of Intelligence and Security (DIS) has powers to arrest with or without a warrant.

The group said the “DIS usually requests individuals to come in for an interview and has no powers to detain anyone beyond 48 hours; any overnight detention would take place in regular police stations.”

The Group was able to visit the DIS facilities in Sebele and received numerous testimonies from persons who have been taken there for interviewing, making it evident that individuals can be detained in the facility even if the detention does not last more than few hours.

Moreover, while arrest without a warrant is permissible only when there is a reasonable suspicion of a crime being committed, the evidence received indicates that arrests without a warrant are a rule rather than an exception, in contravention to article 9 of the Covenant.

Even short periods of detention constitute deprivation of liberty when a person is not free to leave at will and in all those instances when safeguards against arbitrary detention are violated, also such short periods may amount to arbitrary deprivation of liberty.

The group also learned of instances when persons were taken to DIS for interviewing without being given the possibility to notify their next of kin and that while individuals are allowed to consult their lawyers prior to being interviewed, lawyers are not allowed to be present during the interviews.

The UN Working Group on Arbitrary Detention mentioned they will continue engaging in the constructive dialogue with the Government of Botswana over the following months while they determine their final conclusions in relation to the country visit.

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Stan Chart halts civil servants property loan facility

26th July 2022
Stan-Chart

Standard Chartered Bank Botswana (SCBB) has informed the government that it will not be accepting new loan applications for the Government Employees Motor Vehicle and Residential Property Advance Scheme (GEMVAS and LAMVAS) facility.

This emerges in a correspondence between Acting Permanent Secretary in the Ministry of Finance Boniface Mphetlhe and some government departments. In a letter he wrote recently to government departments informing them of the decision, Mphetlhe indicated that the Ministry received a request from the Bank to consider reviewing GEMVAS and LAMVAS agreement.

He said: “In summary SCBB requested the following; Government should consider reviewing GEMVAS and LAMVAS interest rate from prime plus 0.5% to prime plus 2%.” The Bank indicated that the review should be both for existing GEMVAS and LAMVAS clients and potential customers going forward.

Mphetlhe said the Bank informed the Ministry that the current GEMVAS and LAMVAS interest rate structure results into them making losses, “as the cost of loa disbursements is higher that their end collections.”

He said it also requested that the loan tenure for the residential property loans to be increased from 20 to 25 years and the loan tenure for new motor vehicles loans to be increased from 60 months to 72 months.

Mphetlhe indicated that the Bank’s request has been duly forwarded to the Directorate of Public Service Management for consideration, since GEMVAS and LAMVAS is a Condition of Service Scheme. He saidthe Bank did also inform the Ministry that if the matter is not resolved by the 6th June, 2022, they would cease receipt of new GEMVAS and LAMVAS loan applications.

“A follow up virtual meeting was held to discuss their resolution and SCB did confirm that they will not be accepting any new loans from GEMVAS and LAMVAS. The decision includes top-up advances,” said Mphetlhe. He advised civil servants to consider applying for loans from other banks.

In a letter addressed to the Ministry, SCBB Chief Executive Officer Mpho Masupe informed theministry that, “Reference is made to your letter dated 18th March 2022 wherein the Ministry had indicated that feedback to our proposal on the above subject is being sought.”

In thesame letter dated 10 May 2022, Masupe stated that the Bank was requesting for an update on the Ministry’s engagements with the relevant stakeholder (Directorate of Public Service Management) and provide an indicative timeline for conclusion.

He said the “SCBB informs the Ministry of its intention to cease issuance of new loans to applicants from 6th June 2022 in absence of any feedback on the matter and closure of the discussions between the two parties.”  Previously, Masupe had also had requested the Ministry to consider a review of clause 3 of the agreement which speaks to the interest rate charged on the facilities.

Masupe indicated in the letter dated 21 December 2021 that although all the Banks in the market had signed a similar agreement, subject to amendments that each may have requested. “We would like to suggest that our review be considered individually as opposed to being an industry position as we are cognisant of the requirements of section 25 of the Competition Act of 2018 which discourages fixing of pricing set for consumers,” he said.

He added that,“In this way,clients would still have the opportunity to shop around for more favourable pricing and the other Banks, may if they wish to, similarly, individually approach your office for a review of their pricing to the extent that they deem suitable for their respective organisations.”

Masupe also stated that: “On the issue of our request for the revision of the Interest Rate, we kindly request for an increase from the current rate of prime plus 0.5% to prime plus 2%, with no other increases during the loan period.” The Bank CEO said the rationale for the request to review pricing is due to the current construct of the GEMVAS scheme which is currently structured in a way that is resulting in the Bank making a loss.

“The greater part of the GEMVAS portfolio is the mortgage boo which constitutes 40% of the Bank’s total mortgage portfolio,” said Masupe. He saidthe losses that the Bank is incurring are as a result of the legacy pricing of prime plus 0% as the 1995 agreement which a slight increase in the August 2018 agreement to prime plus 0.5%.

“With this pricing, the GEMVAS portfolio has not been profitable to the Bank, causing distress and impeding its ability to continue to support government employees to buy houses and cars. The portfolio is currently priced at 5.25%,” he said.  Masupe said the performance of both the GEMVAS home loan and auto loan portfolios in terms of profitability have become unsustainable for the Bank.

Healso said, when the agreement was signed in August 2018, the prime lending rate was 6.75% which made the pricing in effect at the time sufficient from a profitable perspective. “It has since dropped by a total 1.5%. The funds that are loaned to customers are sourced at a high rate, which now leaves the Bank with marginal profits on the portfolio before factoring in other operational expenses associated with administration of the scheme and after sales care of the portfolio,” said the CEO.

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Botswana ranked 129 in female MPs representation

26th July 2022
Minister of Finance & Economic Development Peggy Serame

The Global Gender Gap Index, a report published by the World Economic Forum annually, has indicated that Botswana is among countries that fare badly when it comes to representation of women in legislative bodies.

The latest Global Gender Gap Index, published last week, benchmarks the current state and evolution of gender parity across four key dimensions (Economic Participation and Opportunity, Educational Attainment, Health and Survival, and Political Empowerment). It is the longest-standing index which tracks progress towards closing these gaps over time since its inception in 2006.

This year, the Global Gender Gap Index benchmarked 146 countries. Of these, a subset of 102 countries have been represented in every edition of the index since 2006, further providing a large constant sample for time series analysis.

Botswana ranks number 66 overall (out of 146 countries), with good rankings in most of the pillars. Botswana ranks 1st in Health and Survival, 7th in the Economic Participation and Opportunity, 22nd in Educational Attainment, and 129th in Political Empowerment.

The Global Gender Gap Index measures scores on a 0 to 100 scale and scores can be interpreted as the distance covered towards parity (i.e. the percentage of the gender gap that has been closed). The cross-country comparisons aim to support the identification of the most effective policies to close gender gaps.

The Economic Participation and Opportunity sub-index contains three concepts: the participation gap, the remuneration gap and the advancement gap. The participation gap is captured using the difference between women and men in labour-force participation rates. The remuneration gap is captured through a hard data indicator (ratio of estimated female-to-male earned income) and a qualitative indicator gathered through the World Economic Forum’s annual Executive Opinion Survey (wage equality for similar work).

Finally, the gap between the advancement of women and men is captured through two hard data statistics (the ratio of women to men among legislators, senior officials and managers, and the ratio of women to men among technical and professional workers).

The Educational Attainment sub-index captures the gap between women’s and men’s current access to education through the enrolment ratios of women to men in primary-, secondary- and tertiary-level education. A longer-term view of the country’s ability to educate women and men in equal numbers is captured through the ratio of women’s literacy rate to men’s literacy rate.

Health and Survival sub-index provides an overview of the differences between women’s and men’s health using two indicators. The first is the sex ratio at birth, which aims specifically to capture the phenomenon of “missing women”, prevalent in countries with a strong son preference. Second, the index uses the gap between women’s and men’s healthy life expectancy.

This measure provides an estimate of the number of years that women and men can expect to live in good health by accounting for the years lost to violence, disease, malnutrition and other factors.
Political Empowerment sub-index measures the gap between men and women at the highest level of political decision-making through the ratio of women to men in ministerial positions and the ratio of women to men in parliamentary positions. In addition, the reported included the ratio of women to men in terms of years in executive office (prime minister or president) for the last 50 years.

In the last general elections, only three women won elections, compared to 54 males. The three women are; Nnaniki Makwinja (Lentsweletau-Mmopane), Talita Monnakgotla (Kgalagadi North), and Anna Mokgethi (Gaborone Bonnington North). Four women were elected through Specially Elected dispensation; Peggy Serame, Dr Unity Dow, Phildah Kereng and Beauty Manake. All female MPs — save Dow, who resigned — are members of the executive.

Overall, Botswana has 63 seats, all 57 elected by the electorates, and six elected by parliament. Early this year, Botswana Democratic Party (BDP) secretary general and Gaborone North MP, Mpho Balopi, successfully moved a motion in parliament calling for increment of elective seats from 57 to 61. Balopi contented that population growth demands the country respond by increasing the number of MPs.

In Africa, Botswana play second fiddle to countries like Rwanda, Namibia, South Africa, Burundi, and Zimbabwe who have better representation of women, with Rwanda being the only country with more than 50 percent of women in parliament.

The low number of women in parliament is attributed to Botswana’s current, electoral system, First-Past-the-Post. During the 9th parliament, then MP for Mahalapye East tabled a motion in parliament in which she sort to increase the number of Specially Elected MPs in parliament to augment female representation in the National Assembly.

The motion was opposed famously, by then Specially Elected MP, Botsalo Ntuane, who said the citizens were not in favour of such a move since it dilute democracy, instead suggesting the Botswana should switch to Proportional-Representation-System. Botswana is currently undergoing Constitutional Review process, with the commission, appointed in December, expected to deliver the report to President Mokgweetsi Masisi by September this year.

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