Botswana Unified Revenue Services (BURS) is snooping around Lekidi football centre, following allegations that the centre, which houses both Botswana Football Association (BFA) and Botswana Premier League (BPL), has been evading taxes in the last few years-WeekendSport has learnt.
According to sources, it is said that BFA has tough questions to answer since it has come to light that their immediate affiliate, BPL has not being paying tax. The association, now under the stewardship of business guru, MacLean Letshwiti is expected to provide clarity because the premier league on its own is not an independent legal entity. The premier league reportedly owes the taxman close to P2 million from an unspecified period of time.
When fielding WeekendSport enquiries, BPL acting Chief Executive Officer (CEO) Thabo Ntshinogang conceded that, upon assuming office, he inherited the BURS debt. He however could not be drawn into revealing the amount saying some of the information should be confidential, all in the interest of the game. “Yes it is correct that my office owes BURS, but it is best you ask the association because you know the premier league is not an independent structure. More-over, understand that some of the information you are looking for cannot be given to you, just to for the image of football,’’ he said.
Sources have told this publication how the premier league has been struggling with the BURS tariffs for a long time now. The thrash about, information says, began sometimes in 2010-11 season when the premier league was spear headed by Mike Molefhe as the chairman and Setete Phuthego as General Manager.
It is said the two held several meetings with the tax collecting organization to plead for tax exemption but their plea fell on deaf ears. At the time; the premier league is said to have argued that the money in its circulation coffers was not theirs but rather belonged to the teams, but BURS hit back asking, to whom the teams belonged. The misunderstanding was never ironed out in the following seasons. Both the association and the BPL changed leadership, but the debt grew unnoticed. Money that is usually in league’s hands comes from their sponsors.
Marshlow Motlogelwa, Vice President of the association revealed that, “A payment plan between BURS and the association has been made.” However, Letshwiti’s right hand man refused to share how the plan was attained, altogether with its duration. According to penalties stipulated in the income tax Act of Botswana, the association faces heavy charges.
Article 117 of the same act states, “Where any person who is required to furnish a tax return including a withholding return for any tax year fails to do so within the prescribed time or any extended time allowed under section 77, he or she shall be liable to- (a) interest at the rate of two per cent per month on the amount of tax charged for such tax year, calculated for the period- (i)commencing 30 days after the date on which the return should have been lodged;
and (ii) ending on the date on which the tax becomes due and payable under the assessment made for that tax year under section 78, or 30 days after the day when the return was furnished; and (b) a penalty not exceeding the amount of tax chargeable for that tax year.”
The government of Botswana has reportedly approved the dream of hosting African Cup of Nations in 2027 with Namibia as co-host, following a proposal to cabinet by Minister of Youth Empowerment, Sports and Culture Development, Tumiso Rakgare.
WeekendSport learns that the organizing committee dreaming to host the tournament is preparing to hand their hefty book to Confederation of African Football (CAF) when bidding stage comes into open. Botswana Football Association (BFA) has, to this date, managed to win the confidence of the government, and all thoughts around the African football prestigious tournament are given serious attention with acceleration of construction of 10 mini stadia across the country, sources have said.
Furthermore, reports in Namibia state that the Botswana government has approached them with a proposal to co -host the 2027 edition of African tournament. “I can confirm that the minister of sport in Botswana has written to our minister but these are still early days and no decision has been made yet,” Audrin Mathe, an executive director in the Ministry of Sport was quoted by Namibia Sun this week. Meanwhile, Rakgare has said: “It is still an internal issues but yes, we are interested in hosting with Namibia.”
All the while, BFA president who also sits in CAF national executive committee is expected to embody a more emotive promise about the ability of African Cup in Botswana and how it can benefit the citizenry and by extension, the Southern region. With Zimbabwe having come out clean about their intentions to bid for 2034 World Cup, there has been a growing feeling that Botswana should try her luck, and therefore Botswana delegation will be hopeful to walk a fine line.
Although, the commercial potential of a Botswana AFCON Cup is a compelling factor in their favour, following the relative uncertainty of many African countries ( due to political instability, extent of corona virus ) and state of insecurity, BFA is minded not make that their thrust of the case. Hence the concentration on providing a home from home for all teams among Botswana’s diverse population and the opportunity to use the proceeds to advance legacy projects around Africa. The feeling on the ground is that the move might be bold, and some association influential players believe that it will be a matter of upgrading Maun stadium, Masunga and Serowe stadium.
An idea is also harbored that another stadium will be built in around Gaborone to boost the existing National Stadium with the Lobatse and Francistown stadia also expected to play pivotal role. All the while, a more than P20 million operational budget is said to be needed to travel the African countries in convincing them that Botswana is more suitable to host with its security and economy very much stable.
Botswana passes the mark when it comes to transportation, accommodation and hotel facilities. The fact that CAF normally want a country that has hosted youth tournaments before enables Botswana to score points in that it has hosted before. The only problem that might mark Botswana down is road infrastructure. BFA will consider roping in an experienced sport person and the high profile of former players like Diphetogo Selolwane is anticipated to appear for the thoughts building around the bid, and his name will be seen as watershed moment.
The southern region, however, might be dealt a devastating blow following the catastrophe that hit Angola when they hosted the 2010 edition. The Togo team was shot by rebels and panic erupted. However, the field is open and the ever shifting sands of CAF internal politics make the race hard to call and feed fears of horse trading and backroom deals.
A delegation from FIFA, the world football governing body, has left heads rolling after concluding what some call ‘early findings’ that Botswana Football Association (BFA) secretariat has not misused FIFA funds contrary to widespread reports and criticism. This comes to the fore against the much peddled P8.8 million which disappeared within the coffers of the association.
However, FIFA delegation led by David Fani, a former BFA boss himself, finds out that the funds have been used to projects they were not initially meant for. The delegation cited money for covid-19 which was meant to cushion clubs from distress due to lack of playing and was used to pay BFA employees. However, the findings by FIFA are said to have left the world of football divided on the way forward. They are those who are skeptical about the manner in which investigations were carried out but are afraid to voice out for fear of being victimized or being relieved of their duties.
While FIFA is adamant that the funds were misallocated, BFA finds itself at pains to answer a difficult question where some staff members at the finance department were sacked. More complicating the already strained situation is the decision to suspend the Chief Executive Officer, Goabaone Taylor and threatening to expel her while she had an over-riding duty to prioritize BFA funds when corona had ravaged the administration and operational wing of the association.
It might be that the National Executive Committee was building a case for her and would now want to look as if they were saving face when they sidelined her. “During the four day visit, the delegation carried out its assessment and interviewed BFA staff and former employees. At the end of the investigation, the delegation briefed the NEC on initial findings. The delegation informed the NEC that it found no evidence of misappropriation or embezzlement of funds,” reads part of BFA statement.
BFA has claimed that its brand has been “deeply tarnished” and that its “ability to use its resources for positive actions throughout the country, and to meet its mission of supporting and enhancing the game of football” has been “impaired” as a consequence of the actions of the football officials and some sports administrators under their watch. “We are not out of the woods yet, we had made good strides in earning FIFA’s trust; we will wait to see what the remedial action will be. However, we will be tightening our gabs and ensuring that we regain the financial confidence we worked so hard for,” BFA president Maclean Letshwiti said.
Botswana Football Association (BFA) leadership finds itself caught between a rock and a hard place owing to the ever burning issue of mischievous spending at operational level.
While the association coffers have suddenly dried up, with some staff members getting the boot, the Ministry of Youth Empowerment, Sport and Culture Development has threatened to place the Maclean Letshwiti led association under strict funding for unspecified period of time.
WeekendSport learns that the sport ministry is not happy about the financial status of the association and will want to act before everything get messy.
At the close of last year, the Ministry had to intervene for the Women National Football Team to travel to Ethiopia as BFA had no penny to cover for the travelling costs.
As if that was not enough, the BFA December wages were covered from the Botswana National Sport Commission (BNSC) purse, an abnormality that BFA is at pains to explain.
All these incidents, however, coincide with a time when the Sport ministry is putting in place a new revised modeling for funding. The model requests national sports associations to explain in details the why they will need funding for their calendar of events.
Moreover, the Ministry is eager to prioritize funding basing on the performance of the sport code on a yearly basis.
“Things have changed, we are not going to splash money like we used to do, and we want a code to explain fully how they are going to spend the money,” a source shared.
Moreover, we will be funding looking at the overall performance of the code, we are not going to fund just because it is football and it is loved by many people.”
At worst, the ministry will want the association to account and should BFA fail to balance their books, the National Executive Committee(NEC) is likely to be dissolved by the ministry.
Sources further state that the Ministry’s patience has actually wilted away concerning codes that abuse funds. In the case of BFA, sources point out that they are likely to get half subvention until everything goes back to normalcy.
On a good year, BFA subvention reaches P 5.4million annually. Should the ministry persists, BFA will start operations of the year on a budget of about P 2.7 million. It will not be for the first time the association finds itself bearing the brunt.
Sometimes in 2018 when Tshekedi Khama was the Minister, the association’s subvention were cut down to pay an old standing debt that amounted to P3 million.
However, high ranking officials at the association believe funds can still be accounted for and refuses to accept that they have been reckless when it comes to spending. The official who does not want be named is of the view that the association had to halt FIFA projects and concentrate on incidental expenses brought by COVID -19.
According to BFA expenditure, the CEO gets the higher chunk and that’s where most of the money went. A national trip to South Africa by senior national team has also seen the association spending close to a million.
Moreover, the communication department of the association is bleeding more money after a certain PR agency was appointed nearly two years ago.