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Analogue-to-digital migration gulped P180 million

Government through the Department of Information Services under the Ministry of Presidential Affairs, Governance and Public Administration has already spent over P180 million on analogue to digital transformation.

The analogue-digital migration went live in June 2015 after the recognition of the need to free up space in the frequency spectrum to enable achievement of the information and technology communication (ICT) service and for more television channels that could not be accommodated under the analogue setup.

The Transition was and is still believed to present an opportunity for the country to strengthen Botswana Television (BTV) viewership through additional services and content for both local and international viewers. To be able to implement digital transformation, countries had to make choices with respect to technical standards that were recommended by the International Telecommunications Union (ITU).

Back in 2013 SADC countries considered the adoption of standards that could be agreed and were free to make a determination of a technology that they believed would best suit their interests, as long as it complied with the provisions of the ITU broadcasting plan.
Botswana chose the Japanese version, the Integrated Services Digital Broadcasting-Terrestrial (ISDB-T) standard, for implementing digital TV, amongst others. The process would entail purchase of digital transmitters and Satellite Appling System, setting up of Data Broadcasting Unit and upgrading of Botswana Television (BTV) studio facilities amongst other cost intensive changes.

The Minister for Presidential Affairs, Governance and Public Administration, Eric Molale revealed to parliament last week that government has already spent over P180 million compared to the P130 million that was initially planned for the excise.
This expenditure, according to the minister, was worth the magnitude of the project. “We are not just migrating from analogue to digital; this is also about meeting the international requirements of switching over from analogue to digital. We are working on that because it is an international requirement through the International Telecommunications Union (ITU).”

Molale says Botswana as member of the United Nations (UN) System had to comply and willingly commit to those intentions.”   The Minister was responding to a question from Member of Parliament for Gaborone North, Haskings Nkaigwa who wanted to know if the value that has been created through the digital migration was worth the investment. The Gaborone North legislator wanted to appreciate the level of investment and also the return in investment and whether indeed the objectives of this project have been met.

Molale shared with parliament that 70 million pula has been spent of procuring 45 digital transmitters and Satellite Appling System further revealing that Botswana Television (BTV) studio facilities upgrade  consumed over 25 million pula. Over 33 million pula has already been spent on acquisition of content and the Minster observed that the expenditure on content will continue to go up. “Mind you, since this year, we are fighting to have local content as opposed to buying content from outside. We have talked to other colleagues here to say that we must further organize local producers to give us content. That will continue to cost us.”

The digital migration quest also saw the introduction of a call centre to engage the public and improve viewer’s relations with the state media and the clients being the public. A total of 17 million pula has already been pumped towards the undertaking which entails public campaigns and outreaches.  Over 9000 set-top boxes have been acquired, the devices which are mostly given as handouts to raise awareness  and market the digital transmission have cost taxpayers over 15 million pula together with setting up of a Data Broadcasting Unit.

“We had wished that set-top boxes could be produced locally. We identified a number of young persons who have the suave to do things that relate to technology, Information Technology (IT) and the like. All the time when they were ready to start production, they then gave excuses. We are still encouraging more to come forward so that these set-top boxes are produced here, so that they can even be exported to other countries in Africa,” explained Molale who stipulated that the acquisition funds could be retained locally if the set-top boxes were manufactured locally.

However he explained that his ministry has engaged Botswana Institute for Technology, Research and Innovation (BITRI) who have identified a process by which they believe that the production of these set-top boxes could be cheaper and therefore enable local young people to start producing them. “It is soothing that it is still on the cards, we have not been able to finalize it. I am optimistic, it would come on stream,” said Molale. Other millions went to the upgrading of Transmitter Calling Systems which consumed over P18 million and additional P2 million being channeled to Procurement of vehicles that carry equipment such as cameras.

Molale says the investment towards the project saw Botswana Television signal reaching 95 percent of the country’s population. “Batswana therefore can enjoy quality television picture and sound. Other benefits include; the freeing of the analogue spectrum, the frequencies that have been used so that we could now sell them to the mobile and internet industry, as well as multiple channel broadcasting,” he said. The digital migration undertaking also saw Botswana Television start to broadcast online hence increasing its viewer’s reachability.

However the multimillion pula undertaking as beneficial as it may be raises eyebrows as to whether the right expenditure procedures and procurement systems were followed during the acquisitions and upgrades of facilities. There have been reports about unprocedural procurement exercises when procuring digital migration infrastructure and equipment.

The Member of Parliament for Jwaneng Mabutsane, Shawn Nthaile quizzed Minister Molale on the procurement of Set-top Boxes: “I just want to appreciate the digital migration system that you are in the process of procuring, whether you are now in alignment with the regional infrastructure and also if the technology is still valid and not outdated? On the set-top boxes, you also indicated that you are in the process of procuring them or making them available locally, do you intend to have an open tender where the provision of these set-top boxes will be advertised?” asked Nthaile who said there were allegations that the first batch of set top boxes imported from abroad were not procured through an open tender.  
However Molale says the correct procurement procedures were followed as per public procurement guidelines.

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Botswana’s development agenda in jeopardy

21st September 2020
Botswana’s-development-agenda-in-jeopardy--water-construction

Stanbic Bank Botswana Quarterly Economic Review indicates that Botswana will fail to meet some of its Vision 2036 targets, particularly unemployment reduction and reaching high-income status.

The report says this is mainly due to the slow economic growth that the country is currently experiencing. This Quarterly Economic Review focuses on the 2020 Budget Speech.

The first paper reviews the entire budget with its key observations being that this budget is prepared as prescribed by the Public Finance Management Act; the priorities it seeks to address are drawn from Vision 2036 and the eleventh

The 2020 budget Speech, which was the maiden speech by the Minister of Finance and Economic Development, Dr. Thapelo Matsheka, and the first after the 2019 general elections, was delivered to Parliament on the 4th of February 2020.

It has been well received by the labour unions, business community, and the public at large as well as international organisations such as the International Monetary Fund (IMF).

It mainly derived its support from key facets including, emphasis on changing the business-as-usual approach to development; outlining the transformation agenda; fiscal reform that minimizes the negative impact on economic development and human welfare, competiveness and the decision to implement the 2019 negotiated and agreed public sector.

The budget’s progress review shows that economic growth was consistent with the NDP 11 projections, with growth of around 4 percent. At this growth rate, the country would neither ascend to a high-income status nor reduce unemployment towards the Vision 2036 target of a single digit.

Simple calculations of this review confirm that the economy will need to grow the Vision 2036’s target of 6 percent over the next 16 years for per capita income to increase from around USD 8,000.00 to above USD 12,000.00 in current prices.

Further, the population is anticipated to grow by only 2 percent per annum.

For this reason, the focal areas for the forthcoming FY’s budget include measures to increase economic growth towards an average of 6 percent per annum.

Economic diversification is reportedly progressing fairly well. The report says, the share of the non-mining private sector in value added has risen to 66 percent in 2018 from to 63 percent in 2015.

The sectoral pattern of growth showed that the performance of services sector (particularly transport & communications, trade, hotels & restaurants, and finance & business services) has been the silver lining and that of mining sector was subdued whilst the utility sector disappointed.

The drive towards the service sector of the economy, especially to low-productivity activities (tourism, public administration, wholesaling and retailing) does not bode well for the country’s development aspirations.

In the previous versions of this Quarterly Review, it was noted that there is need for the rethinking of economic diversification. Since the country’s domestic market is small, it is inevitable that economic diversification not only focus on broadening the product mix, but also the composition of exports and markets.

This understanding of economic diversification has not been embraced by this year’s budget. Consequently, Botswana’s exports are still overwhelmingly diamonds, which means that the rest of economic sectors are still highly dependent on foreign-exchange earnings from diamonds. Thus, “the transformation programme requires a review of the country’s entire ecosystem”.

The budget review of the economic context also depicts that an economy with positive medium-term prospects, with growth expected to recover to 4.4 percent in 2020 from the expected growth of 36 percent in 2019 largely due to faster growth of services sectors and, thereafter, to slow-down to 4 percent in 2021.

These projected growth rates are comparable to those of the IMF staff’s baseline scenario of 4.2 percent in 2020 and 4 percent in 2021. Thus, the business-as-usual scenario produces growth rates that are still too low to achieve Botswana’s development objectives and create enough jobs to absorb the new entrants into the labour market.

Trade tensions between the two major markets for diamond exports, viz., the United States of America and China, is one of the factors that are cited as contributing to, indeed, undermining not only the domestic growth, but also the fiscal position.

Another notable downside risk to both global and domestic growth is outbreak of the coronavirus in China around January 2020. This has been declared as a global health emergency. In an attempt to contain the spread of the novel coronavirus pneumonia, the Chinese authorities have ordered city lockdowns and extended holidays, of course, at the expense of near- term economic growth, according to the new Stanbic Bank Botswana report.

According to Nomura Holdings Inc., fewer migrant workers returned for work than in previous years and business activities have been slow to pick up. The havoc wreaked by the virus on the world’s second largest economy is likely to spill over to the global economy. In fact, it has resulted in a glut in crude oil and, thereby placed oil markets into a contango, i.e., a market structure where near-term prices trade at a discount to future contracts.

It also presents significant risks one of Botswana’s main drivers of economic growth, diversification and foreign exchange earnings. According to the Financial Times (February 13, 2020), Chinese tourists spent $130 billion overseas in 2018. Regardless of whether the growth materializes, the projected domestic growth rate would not transform the economy to a high-income one.

Progress towards reduction of unemployment, to a target of single digit, and poverty and achieving inclusive growth has also been relatively slow, the Stanbic Bank Botswana Review says.

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OP leases Orapa House

21st September 2020
Orapa House

Ministry of Presidential Affairs, Governance and Public Administration (MOPAGPA) has through the Office of the President (OP) proposed to avail Orapa House for use by private training institutions as well as research institutions involved in the area of technology development.

For a very long time the monumental building located in the heart of the city has been a white elephant, despite government purchasing it for nearly P80 million from De Beers in 2012.

However, government has now identified a productive use for the iconic building. “The overall vision is for the building to be transformed into a hub for digital technology research and development to be carried-out by institutions, such as; Limkokwing University, BIUST, BITRI and other relevant stakeholders.”

The decision was taken as government traverse a new path of transforming the economy from a mineral led economy to a knowledge based economy through the promotion of research and innovation. However, the facility will need major maintenance to be carried-out in order to meet the requirements of the proposed change in use.

“The work will include provision of laboratories, work stations, production areas and seminar rooms; audio visual centre, high speed internet connectivity, exhibition areas and offices,” reads the proposal note for the development.

These developments will be done through the refurbishment and maintenance of the main building, workshop, and ablution block, gate house, parking area, grounds, and access control and security service.

“There will be minimal modifications to the structure as it stands. The project is estimated to cost approximately P50, 000, 000,” says the report. In this regard, it is said, the initial scope of the OP facility will be modified to accommodate the envisaged digital technology research and development hub.

With funds needed to improve the building, OP has requested that; “the 2020/21 annual budget provision for Orapa House will need to be increased by P37,500,000 from P2,500,000 to P40,000,000 to kick start the maintenance works.” Funds will be sourced from the projects that have been delayed due to Covid-19 protocols during the 2020/21 financial year.

The building has been a thorny issue for government for years. Initially, OP was expected to move there but the move never materialised. At one point it was a question of whether the Office of the President and the Ministry of Finance and Economic Development were planning to override a decision by Parliament which rejected the proposal to buy Orapa House under the belief that government may be buying its own property. The building was to be bought at a negotiated cost of P79 million.

Again in 2012, Government had wanted to buy Orapa House for a negotiated P79m but the Finance and Estimates Committee of Parliament had rejected the request because of the inconsistencies realised in the supporting documents of the proposed procurement. The valuation of the building was put at P74 million.

The Ministry of Lands and Housing had initially offered De Beers P73, 000,000 as the purchase price. However, De Beers countered with P85, 000,000. On negotiation and converging of the minds, the selling price was finally agreed at P79, 000,000.

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Sad state of Brigades: dumped and ignored!

21st September 2020
Brigades

Auditor General, Pulane Letebele, has expressed discontentment at the worrying and deteriorating state of brigades in the country.

In an audit inspection which was carried out at Tshwaragano Brigade in Gabane, a number of observations showed weaknesses and shortcomings in the conduct of the financial affairs of the institution.

According to Letebele’s report, former students of the brigade had been engaged to carry out maintenance works on the school premises, comprising of painting, tiling, plumbing and electrical works, which covered the period from July 2017 to June 2018.

Although the agreed maintenance period had elapsed, the works had not been completed because of unavailability of funds and this situation had persisted up till the time of inspection in November 2019.

Auditor General says arrangements should have been made in time for funds to be available to complete these relatively minor works even before the works commenced.

Various contractors had been engaged for clearing the bush and for the supply of concrete stones, pit and river sand and hiring equipment for digging the trench towards the construction of an auto mechanics workshop, the report said.

It stated that the cost of services and supplies provided totalled P117 949.80. However, despite the services and the supplies having been paid for, the construction works had not commenced for a long period afterwards, resulting in the trench filling back in.

The audit inquiries had not elicited satisfactory responses as both the institution and the Ministry had not accepted the responsibility for the project, although orders for the provision for the supplies had been made. For their part, the Ministry had stated that they had sub warranted funds for the purchase of porta cabins.

Letebele indicated that it is therefore confusing that a project which is critical to the functioning of an institution such as this one would commence without a well-defined plan.

Furthermore, the accounting and maintenance of records for the supplies items were not of the standard prescribed by the Supplies Regulations and Procedures in that the supplies ledger cards, the main accounting records for Government assets, were not properly maintained for the recording of receipts and issues.

This had resulted in significant discrepancies between physical and ledger balances, while in other instances the supplies items had not been recorded at all.

The report says 24 of the 91 new computers found in the computer laboratory at Kumakwane ABC campus were not recorded anywhere, as were the other computers in the storeroom which could not be counted due to the disorderly storage conditions.

The institution had entered into a contract agreement with a security company for the provision of security services at Tshwaragano Brigade, ABC and Horticulture campuses at Kumakwane for a 2-year period which ended in June 2018, WeekendPost learnt.

After the contract expired in June 2018, an extension was granted till the 30th September 2018. Since then, there has been no security service coverage for the institution to-date. According to Auditor General, in the face of prevailing crimes, it is of paramount importance that government properties be protected by provision of security services at all times.

At Tlokweng Brigade, it was noted that the kitchen staff were working under difficult conditions as the kitchen facilities and equipment, such as the cold room, tilting pot, food warmers and solar power for hot water were dysfunctional. The kitchen roof was leaking and men’s restrooms was not working. All these need to be brought to a reasonable and functional state of repair.

The kitchen staff should use a purpose-designed Rations Ledger for the recording of receipts and issues of foodstuffs to reflect the usage of those items. As far back as 2014 the Department of Buildings and Engineering Services had found that the house occupied by the bursar was uninhabitable on account of structural defects, the report said.

A site visit during the audit had established that the house was indeed unfit for occupation as there were cracks on the walls, power switches were not working and the roof was leaking. On a sadder note, there were a number of finished items of clothing, such as dresses, shirts, and jackets from students’ practical exercises from the Fashion Design Textiles Workshop.

Auditor General shared her take on this, saying: “I have not been able to ascertain the policy on the disposal of products from these practicals. A trace of 103 green acid-proof overalls which had been purchased in August 2018 had indicated that there was no record of these items having been recorded or issued, nor were they available in stock. I was not able to obtain any explanation for this situation.”

Kgatleng brigade was also audited and inspected by Auditor General who observed that the brigade has 26 institutional houses at Bokaa, both old campus and new campus. Some of these houses are very old and dilapidated, with two declared uninhabitable. The condition of the houses is a clear indication of lack of care and maintenance of these properties.

At the time of the audit, there was no contractor engaged for the provision of security guard services at the new campus, after expiry of the previous one in July 2019.  It is hoped that steps would be taken to safeguard the security of the premises and government properties against any acts of hooliganism.

In August 2019, there was a break-in at the electrical and at the plumbing maintenance workshops and a number of high value items, such as drilling machines, bolt cutters, spanners and cables, were stolen. The break-in and theft were reported to the police.

“However, at the time of writing this report I was not aware of the outcome of the police investigation, nor of any loss report submitted in terms of the Supplies Regulations and Procedures,” Letebele said.

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