Botswana Power Corporation will by beginning of government spending in April 2017 be over a billion pula richer at least on their operations & tariff subsidiary fund, Minister of Finance & Economic Development Kenneth Matambo announced last week in parliament when delivering the national budget speech.
According to Kenneth Matambo the mother ministry of Botswana’s electricity supplier, Mineral Resources, Green Technology and Energy Security will be allocated 2.93 billion, 17.8 % of the total 16.52 billion development budget forecasted for the 2017/18 financial year. “The largest share of the development budget is proposed for allocation to the Ministry of Mineral Resources, Green Technology and Energy Security at P2.94 billion or 17.8 percent. This is in recognition that, reliable and efficient sources of energy are a prerequisite for achieving NDP 11 priority area of Development of Diversified Sources of Economic Growth,” said Minister Matambo.
The specially elected National Treasurer explained that the major projects under the ministry would entail Northwest Transition grid, Morupule A power plant rehabilitation and construction of Rakola substation. Furthermore Matambo revealed that under the ministry P2.94 billion, the financially ailing Botswana Power Corporation will be allocated a whooping 1.46 billion pula to splash on their operation cost. Matambo‘s proposition comes at a time when parastatals are dismally failing to recover their operational costs and continue to make perennial losses.
Last year‘s final parliament sitting which debated the National Development Plan 11 Minister Matambo announced a total of over 2 billion to be owed to government by losing making parastatals as unserviced loans and zero dividends pay . Botswana Corporation which hasn’t being an exception led the loss making parastatals in 2014 with P1.25 billion loss “Furthermore, it is proposed that the Botswana Power Corporation be allocated an amount of P1.46 billion to cover operational costs,” he said, explaining that it was imperative to allot such funds to BPC considering its transition quest and current operation expenditure to keep the electricity tariffs as affordable to ordinary Batswana” With the operation cost increasing due high expenses in maintaining the plants , refurbishing power station components and keeping up with increasing equipment prices,” said Matambo.
Botswana Corporation has been making losses and receiving bail out for the past financial years, in 2014 the Auditor General reported a loss of P1.25billion for BPC, incurred from P4.48 billion expenses which exceeded P3.23billion income , a balance sheet which government enclave resolved by a bail out billions of pulas for Batswana to continue receiving electricity at affordable tariffs.
Again in 2015 according to Botswana Power Corporation Annual report the corporation registered a loss before tariff subsidiary Grant of P1.986 billion, in a bid to reduce the corporation losses BPC adjusted their tariff charges beginning of 2015 , a move which saw average consumer price rise to 61 thebe per kWH an increase which was added on top of the previous year’s 10 percent hike.
Charges for Small scale business consuming 500kWh or less per month were increased by 10 % while 17.5 increase was applied for those consuming more than 500kWh.The corporation which heavily relies on Eskom for electricity supply after the failure of Morupule B was allocated P1.5 billion for tariff subsidiary and some operational cost during the 2015/16 financial years.
It incurred a net loss of P2.60 billion in 2015 compared to P1, 37 billion net losses in 2014 before a tariff subsidy grant of P2.33 billion. In 2016 BPC financial year which is currently under review, Motlakase house already recorded a loss P274.91 million which is a result of expenses amounting to over P5.63 billion against the income of P5.36 billion, For 2016/17 financial year which ends in April, government allocated BPC a tariff subsidy and emergency power grant of P2.33 billion.
otswana Power Corporation which is now under the stewardship of Sweden national Dr Schwarzfischer is reported to be moving into massive restructuring , a move that will see over 200 employees no longer on the corporation ‘s payroll when government spending begins in April 2017 for this financial year, sources from the January 23rd BPC media briefing reveal.
The national subsidized electricity provider which end of last year adopted a new strategy called Masa 2020 that intends to make it a profit making power distributor is said to be looking at relieving over 1000 employees off duties before the end of this year in a restructuring pursuit that will exe 50 % of over 2000 staff.
Currently Botswana Corporation is embattled with uncollected debts, non-performing assets, lack of borrowing capacity, amongst other challenges. BPC’s debtors currently seat at over P557 million from last year‘s over 400 million, largely due to non-payment of power bills by struggling mining companies choked by the international commodities crunch.
Talking of struggling mining companies, Botswana Power Corporation is reported to be one of highest BCL debtors, the corporation had BCL as its largest single consumer of its services, at least from the private sector. BCL is currently going through provisional liquidation. However there are reports that an Emirates company wants to buy the mine.
The budget speech which is currently debated in parliament also indicate that solar energy will be allocated a significant funding to facilitate the country’s quest to shift from non renewable energy, a source of energy which proves to be unreliable and costly as evident to poor financial figures by the country’s national power supplier. Besides extending Morupule B with units 5 and 6 and Refurbishment of Morupule A Power Plant as additional power sources, the use of solar energy has been identified as a potential alternative source of electricity supply in the country,” It reads.
According to Minister Matambo It was against this background that a comprehensive renewable energy strategy which is aimed at attracting domestic and foreign investments is being developed, and will be completed by February, 2017. Further, Government, in collaboration with the German Agency for International Cooperation is undertaking a Green Energy Feasibility Study aimed at providing alternative sources of electricity.
Water tariffs hike by April 2017
Mean while Water Utilities Corporation, another financially troubled state owned enterprise which is also undergoing business remodeling and administrative restructuring has announced that by April 2017 its services charge tariffs will go up. According to Assistant Minister of Land Management, Water and Sanitation Services, Mr Itumeleng Moipisi water tariffs were increased by 10 per cent in 2012 and 15 per cent in 2013.
He indicated that the tariff would increase by 25 per cent for government and 15 per cent for domestic and business effective from April 1. The national water services provider Water Utilities Corporation is no exception from perennial loss making parastatals, in 2015 the corporation recorded a net loss of 367.0 million from 361.0 million in 2014.
Finance Mister Matambo however informed parliament of slightly positive news on Monday when delivering the budget speech that the Ministry of Land Management, Water and Sanitation Services will be allocated the second largest share of development budget at P2.80 billion, or 17.0 percent. According to Matambo this amount will be used for implementation of water projects inclusive of the North-South Carrier II to supply water to the Southern part of the country and reticulation of water from the Thune Dam to nearby villages.
“Following the construction of a parallel pipeline to the existing line under the North-South Water Carrier Scheme, Government will fund the construction of various pipelines such as the ones connecting Thune Dam to Mathathane, Tsetsebye and Moletemane, which is expected to be completed in 2018, and the other connecting Kanye and Molepolole to the North South Carrier” he said.
Besides the implementation of emergency water projects throughout the country, other major water projects planned for 2017/2018 financial year include the rehabilitation of Shakawe Water Treatment Plant and its connection to Seronga, Gunotsoga, Beetsha and Gudigwa villages. In the mist of water tariff hikes all these projects are expected to provide adequate water supply to furfarial villages.”
Botswana Police Service (BPS) has indicated concern about the ongoing trend where the general public falls victim to criminals purporting to be police officers.
According to BPS Assistant Commissioner, Dipheko Motube, the criminals target individuals at shopping malls and Automated Teller Machines (ATMs) where upon approaching the unsuspecting individual the criminals would pretend to have picked a substantial amount of money and they would make a proposal to the victims that the money is counted and shared in an isolated place.
“On the way, as they stop at the isolated place, they would start to count and sharing of the money, a criminal syndicate claiming to be Criminal Investigation Department (CID) officer investigating a case of stolen money will approach them,” said Motube in a statement.
The Commissioner indicated that the fake police officers would instruct the victims to hand over all the cash they have in their possession, including bank cards and Personal Identification Number (PIN), the perpetrators would then proceed to withdraw money from the victim’s bank account.
Motube also revealed that they are also investigating a case in which a 69 year old Motswana woman from Molepolole- who is a victim of the scam- lost over P62 000 last week Friday to the said perpetrators.
“The Criminal syndicate introduced themselves as CID officers investigating a case of robbery where a man accompanying the woman was the suspect.’’
They subsequently went to the woman’s place and took cash amounting to over P12 000 and further swindled amount of P50 000 from the woman’s bank account under the pretext of the further investigations.
In addition, Motube said they are currently investigating the matter and therefore warned the public to be vigilant of such characters and further reminds the public that no police officer would ask for bank cards and PINs during the investigations.
Botswana Congress Party (BCP) leadership walked out of Umbrella for Democratic Change (UDC) National Executive Committee (NEC) meeting this week on account of being targeted by other cooperating partners.
UDC meet for the first time since 2020 after previous futile attempts, but the meeting turned into a circus after other members of the executive pushed for BCP to explain its role in media statements that disparate either UDC and/or contracting parties.
The Director General of the Directorate on Corruption and Economic Crimes (DCEC), Tymon Katlholo’s spirited fight against the contentious transfers of his management team has forced the Office of the President to rescind the controversial decision. However, some insiders suggest that the reversal of the transfers may have left some interested parties with bruised egos and nursing red wounds.
The transfers were seen by observers as a badly calculated move to emasculate the DCEC which is seen as defiant against certain objectionable objectives by certain law enforcement agencies – who are proven decisionists with very little regard for the law and principle.