Kenewendo finally gets Matambo working
The Minister of Finance & Economic Development Kenneth Matambo has finally met his match in Special Elected Member of Parliament, Ms Bogolo Kenewendo. The legislator has of late been calling Minister Matambo to duty with an array of piercing and relevant questions.
In one of her latest question Kenewendo has demanded easy access to information relating to Botswana’s national funds and investment accounts. Posing a question in Parliament to Minister Matambo this week, the youthful Kenewendo had said it was paramount for every Motswana who demands information on the investment and management strategy of the Government Investment Account (GIA) to access such without difficult. Specifically, Kenewendo’s question probed Minister Mathambo to categorically inform Members of Parliament on guidelines for depositing and withdrawing from the GIA.
The Specially Elected MP said it was important to have “transparency on those accounts so as to inform Batswana how we deposit and withdraw from our accounts to fund our budgets. That is important so that we can also adequately plan and save for future generations,” she said. When responding to Kenewendo Minister Matambo indicated that the Government Investment Account (GIA) was established in accordance with Section 35 of the Bank of Botswana Act Cap. 55:01.
The Account represents Government’s share of the Botswana‘s foreign exchange reserves. Its investment and management strategies are aligned to the Bank of Botswana’s foreign exchange reserves management and investment guidelines. Matambo further shared that the Government Investment Account, comprises of Pula denominated deposits at the Bank of Botswana and held in the Pula Fund, which is the long-term investment tranche of the foreign exchange reserves.
The Minister also revealed that as of June 30, 2017, the total assets in the Pula Fund were valued at P56.818 billion, of which the balance in the GIA was P30.832 billion. “There are three primary considerations that underpin investment policies of the Pula Fund, namely, and in order of priority; safety, liquidity and return,” he said. 
Parliament was also told that the Government Investment Account may be drawn-down or added to, in line with actuations in the Government’s expenditure and revenue outturns.
“This is intended to provide the Government with appropriate funds to execute its functions and responsibilities effectively and efficiently,” said Matambo. According to the Minister the processes was guided by adherence to Government’s fiscal rules, in particular, the need to maintain an overall budget balance over the medium term more specifically, the principle that revenues from exploitation of non-renewable mineral resources should only be used to fund productive public investments. “Thus, although no explicit guidelines relate to deposits and withdrawals from the GIA, the current fiscal rules ensure that withdrawals from the GIA are limited, and restricted to funding productive Government spending priorities, that benefit t the country’s economic and social development in the long-term,” Matambo explained.
In addition, Kenewendo also wanted to know if there were any plans to turn this account into a sovereign wealth fund mirroring investments of the Norwegians and the United Arab Emirates. When responding to that Matambo reiterated that the Government has no plans of changing the current legal, governance and institutional framework for the management of the Government Investment Account. He said the current set up served the country fiscal interests better. “We have no intention of changing our investments country frameworks to be the same as the Norwegian or United Arab Emirates model of a sovereign wealth fund, however, as part of the Pula Fund, the GIA is already managed according to many of the principles that are applied to Sovereign Wealth Funds,” he said.
The Finance Minister also explained that through the Pula Fund, the Bank of Botswana is a founder member of the International Forum of Sovereign Wealth Funds, and abides by the Santiago Principles, a globally recognized framework of investment and operational principles and practices that emphasize appropriate governance, accountability arrangements and prudent investment activity. Further clarifying on Kenwendo’s questions Matambo said supplementary budgets are funded on consolidated fund.
He said the Pula Fund was administered according to the principles which are followed by those who have Sovereign Funds. Matambo assured members of parliament that Botswana observes international guidelines and that transparency was one of those “I can guarantee you that the way we account for and administer these accounts, or the Pula Funding, we demonstrate total transparency. I personally have got no doubt that there is any lack of transparency, in the manner that we administer these funds,” he noted.
Kenewendo expressed displeasure at the manner in which these national accounts were being administered. She said in terms of transparency the public was unable to access the interest that has been gained from our investments. “Even as we search, it is not possible to access this kind of data. So, I therefore say that there is no transparency in how the investment account is managed and if you say it is so, kindly point to where I can find such information,” she boldly requested.
Kenewendo said it was unclear whether the Consolidated Fund that resources the supplementary budgets was funded through the Government Investment Account and how that was done. She observes that information on national funds and the manner in which budgets are drawn and resourced should be of public accessibility and easily understood by ordinary Batswana who demand to know how their resources are administered and managed.
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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.