In a classic David and Goliath sequel, Botswana Television (BTV) producer, Koketso Joshua Ntopolelang this week walked out of court a victorious man. Ntopolelang won a Court of Appeal (CoA) bid wherein he sought the court to scupper his ‘dishonest’ election year transfer.
The court set aside his redeployment to the Programs Section and the transfer to the formerly Ministry of Minerals Energy and Water Resources (MMEWR). In January 2014, Ntopolelang was shifted to a less strategic division in BTV after his transfer to MMEWR was foiled by an urgent Industrial Court order.
This redeployment succeeded in extracting him from the News and Current Affairs Section which is primarily responsible for producing current affairs content. In a lead up to the redeployment, he had been apparently told by one Lesole Obonye, a Broadcasting Services Director that he was not trusted enough to head BTV’s News and Current Affairs Section, especially since it was election year (2014).
Ntopolelang’s court papers seen by WeekendPost state that Obonye remarked to Ntopolelang: “Gase gore gare bone bokgoni jwa gago jaaka o bona DPS (Deputy Permanent Secretary) a kgona go go assigner high profile assignments. Re ntse re diilwe ke go bua le bagolo and we were waiting for instructions…kana ke ngwaga wa ditlhopho. Ga se gore gare bone bokgoni jwa gago…ba batla yo ba mo tshephang.” the document reads in part.
Literally translated, Obonye told Ntopolelang that, “It is not that we cannot see your competence, as you can see, the DPS sometimes gives you high profile assignments. The delay was due to discussions with elders and we were waiting for instructions…mind you this is election year. It is not that we don’t acknowledge your competence, but they want somebody they can trust.”
Ntopolelang further noted that Obonye mentioned the phrase ‘ke ngwaga wa ditlhopo (It is election year)’ three times. However, this Thursday Ntopolelang emerged on top in his court skirmish with his bosses. A panel of three CoA Justices comprising Isaac Lesetedi, C Howie and Lord Alistair Abernathy found that Ntopolelang’s employer, being the Secretary in the Ministry of Presidential Affairs, Kebonye Moepeng had not properly consulted him regarding his transfer.
They observed that even though the judge at the previous court determined and held that Ntopolelang’s transfer to MMEWR was preceded by consultation, he had however made no finding in relation to his redeployment to another department within BTV. They further noted that in this particular case there was no material dispute between the parties as to what the law requires in relation to consultations in cases of this kind.
“The dispute was whether in the particular circumstances of this case the legal requirements have been met,” CoA determined. The trio also noted that there was no suggestion by Ntopolelang that the consultation had to take any particular form and that it was accepted that it was for the court to examine the facts and circumstances of the case and determine whether a proper consultation took place.
They highlighted that in consultation, “what follows is not exhaustive and that such consultation is not to be treated perfunctorily or as mere formality. It entails a genuine invitation to the person concerned to say what he wishes to say and a genuine consideration of what he said.”
They further continued: “Sufficient time must be given to enable the person concerned to say what he wishes to say and how to say it.” The judges also determined that sufficient time must then be available to allow the decision maker to consider what has been said and that all this must be done before a decision maker reaches his decision. If his mind is already made up before the consultation process is complete, that is not compatible with a proper consultation.”
The justices further ruled that in regard to the facts of the case it is clear that the legal requirements for a proper consultation were not met either in respect of the decision to transfer Ntopolelang to MMWER or in respect of the decision to redeploy him within the Broadcasting Services.
They also chided that it was not sufficient for Moepeng and Lesole to rely on Ntopolelang to take the initiative in commenting on the stated intention of his superiors to transfer and redeploy him. On the contrary, they stated, it was for them to take initiative and to keep an open mind until the consultation process was complete.
But neither at the meeting on 14 August 2014 nor at the meeting of 10 September 2014 was Ntopolelang given a genuine invitation to comment. Still less was an appropriate timetable set within which he could offer any comments and they could thereafter consider them before coming to a decision.
Indeed from what occurred at the meeting 14 August 2014 and the first Moepeng’s letter of 22 August 2014 it seems to me that she had prior to the meeting of 14 august decided that Ntopolelang was to be transferred to MMWER, the only aspect that remained for discussion was the date the transfer would take place.
They further said that, similarly it seems clear that it had been decided prior to the meeting on 10 September that Ntopolelang was to be redeployed within the Broadcasting services. The very next day, a day before the hearing in the Industrial Court as to whether the interim interdict was to be granted on 5 September 2014 was to be confirmed, Obonye wrote his letter of 11 September.
They further said that even though his redeployment within Broadcasting Services was not illegal, “in my opinion it would be stretching credulity too far to say that it was altogether unconnected with what the Industrial Court might do on 12 September.” Ntopolelang was represented by attorney, Mboki Chilisa of Collins Chilisa Consultants.
Mowana Copper Mine in Dukwi will finally pay its former employees a total amount of P23, 789, 984.00 end of this month. For over three years Mowana Copper Mine has been under judicial management. Updating members, Botswana Mine Workers Union (BMWU) Executive Secretary Kitso Phiri this week said the High Court issued an order for the implementation of the compromise scheme of December 9, 2021 and this was to be done within 30 days after court order.
“Therefore payment of benefits under the scheme including those owed to Messina Copper Botswana employees should be effected sometime in January latest end of January 2022,” Kitso said. Kitso also explained that cash settlement will be 30 percent of the total Messina Copper Botswana estate and negotiated estate is $3,233,000 (about P35, 563,000).
Messina Copper was placed under liquidation and was thereafter acquired by Leboam Holdings to operate Mowana Mine. Leboam Holdings struck a deal with the Messina Copper’s liquidator who became a shareholder of Leboam Holdings. Leboam Holdings could not service its debts and its creditors placed it under provisional judicial management on December 18, 2018 and in judicial management on February 28, 2019.
A new company Max Power expressed interest to acquire the mining operations. It offered to take over the Mowana Mine from Leboam Holdings, however, the company had to pay the debts of Leboam including monies owed to Messina Copper, being employees benefits and other debts owed to other creditors.
The monies, were agreed to be paid through a scheme of compromise proposed by Max Power, being a negotiated payment schedule, which was subject to the financial ability of the new owners. “On December 9, 2021, Messina Copper liquidator, called a meeting of creditors, which the BMWU on behalf of its members (former Messina Copper employees) attended, to seek mandate from creditors to proceed with a proposed settlement for Messina Copper on the scheme of compromise. It is important to note that employee benefits are regarded as preferential credit, meaning once a scheme is approved they are paid first.”
A savingram the Ministry of Local Government and Rural Development sent to Town Clerks and Council Secretaries explaining why councilors across the country should not have access to their terminal benefits before end of their term has been revealed.
The contents of the savingram came out in the wake of a war of words between counselors and the Ministry of Local Government and Rural Development. The councilors through the Botswana Association of Local Authorities (BALA) accuse the Ministry of refusing to allow them to have access to their terminal benefits before end of their term.
This has since been denied by the Ministry. In the savingram to town councils and council secretaries across the country, Permanent Secretary in the Ministry of Local Government and Rural Development Molefi Keaja states that, “Kindly be advised that the terminal benefits budget is made during the final year of term of office for Honorable Councilors.” Keaja reminded town clerks and council secretaries that, “The nominal budget Councils make each and every financial year is to cater for events where a Councilor’s term of office ends before the statutory time due to death, resignation or any other reason.”
The savingram also goes into detail about why the government had in the past allowed councilors to have access to their terminal benefits before the end of their term. “Regarding the special dispensation made in the 2014-2019, it should be noted that the advance was granted because at that time there was an approved budget for terminal benefits during the financial year,” explained Keaja. He added that, “Town Clerks/Council Secretaries made discretions depending on the liquidity position of Councils which attracted a lot of audit queries.”
Keaja also revealed that councils across the country were struggling financially and therefore if they were to grant councilors access to their terminal benefits, this could leave their in a dire financial situation. Given the fact that Local Authorities currently have cash flow problems and budgetary constraints, it is not advisable to grant terminal benefits advance as it would only serve to compound the liquidity problems of councils.
It is understood that the Ministry was inundated with calls from some Councils as they sought clarification regarding access to their terminal benefits. The Ministry fears that should councils pay out the terminal benefits this would affect their coffers as the government spends a lot on councilors salaries.
Reports show that apart from elected councilors, the government spends at least P6, 577, 746, 00 on nominated councilors across the country as their monthly salaries. Former Assistant Minister of Local Government and Rural Development, Botlogile Tshireletso once told Parliament that in total there are 113 nominated councilors and their salaries per a year add up to P78, 933,16.00. She added that their projected gratuity is P9, 866,646.00.
A surge in consumer spending is expected to be a key driver of Botswana’s economic recovery, according to recent projections by Fitch Solutions. Fitch Solutions said it forecasts household spending in Botswana to grow by a real rate of 5.9% in 2022.
The bullish Fitch Solutions noted that “This is a considerable deceleration from 9.4% growth estimated in 2021, it comes mainly from the base effects of the contraction of 2.5% recorded in 2020,” adding that, “We project total household spending (in real terms) to reach BWP59.9bn (USD8.8bn) in 2022, increasing from BWP56.5bn (USD8.3bn) in 2021.” According to Fitch Solutions, this is higher than the pre-Covid-19 total household spending (in real terms) of P53.0 billion (USD7.8bn) in 2019 and it indicates a full recovery in consumer spending.
“We forecast real household spending to grow by 5.9% in 2022, decelerating from the estimated growth of 9.4% in 2021. We note that the Covid-19 pandemic and the related restrictions on economic activity resulted in real household spending contracting by 2.5% in 2020, creating a lower base for spending to grow from in 2021 and 2022,” Fitch Solutions says.
Total household spending (in real terms), the agency says, will increase in 2022 when compared to 2021. In 2021 and 2022, total household spending (in real terms) will be above the pre-Covid-19 levels in 2019, indicating a full recovery in consumer spending, says Fitch Solutions. It says as of December 6 2021 (latest data available), 38.4% of people in Botswana have received at least one vaccine dose, while this is relatively low it is higher than Africa average of 11.3%.
“The emergence of new Covid-19 variants such as Omicron, which was first detected in the country in November 2021, poses a downside risk to our outlook for consumer spending, particularly as a large proportion of the country’s population is unvaccinated and this could result in stricter measures being implemented once again,” says Fitch Solutions.
Growth will ease in 2022, Fitch Solution says. “Our forecast for an improvement in consumer spending in Botswana in 2022 is in line with our Country Risk team’s forecast that the economy will grow by a real rate of 5.3% over 2022, from an estimated 12.5% growth in 2021 as the low base effects from 2020 dissipate,” it says.
Fitch Solutions notes that “Our Country Risk team expects private consumption to be the main driver of Botswana’s economic growth in 2022, as disposable incomes and the labour market continue to recover from the impacts of the Covid-19 pandemic.” It says Botswana’s tourism sector has been negatively impacted by the Covid-19 pandemic and the related travel restrictions.
According to Fitch Solutions, “The emergence of the Omicron variant, which was first detected in November 2021, has resulted in travel bans being implemented on Southern African countries such as South Africa, Botswana, Lesotho, Namibia, Zimbabwe and Eswatini. This will further delay the recovery of Botswana’s tourism sector in 2021 and early 2022.” Fitch Solutions, therefore, forecasts Botswana’s tourist arrivals to grow by 81.2% in 2022, from an estimated contraction of 40.3% in 2021.
It notes that the 72.4% contraction in 2020 has created a low base for tourist arrivals to grow from. “The rollout of vaccines in South Africa and its key source markets will aid the recovery of the tourism sector over the coming months and this bodes well for the employment and incomes of people employed in the hospitality industry, particularly restaurants and hotels as well as recreation and culture businesses,” the report says.
Fitch Solutions further notes that with economies reopening, consumers are demanding products that they had little access to over the previous year. However, manufacturers are facing several problems. It says supply chain issues and bottlenecks are resulting in consumer goods shortages, feeding through into supply-side inflation. Fitch Solutions believes the global semiconductor shortage will continue into 2022, putting the pressure on the supply of several consumer goods.
It says the spread of the Delta variant is upending factory production in Asia, disrupting shipping and posing more shocks to the world economy. Similarly, manufacturers are facing shortages of key components and higher raw materials costs, the report says adding that while this is somewhat restricted to consumer goods, there is a high risk that this feeds through into more consumer services over the 2022 year.
“Our global view for a notable recovery in consumer spending relies on the ability of authorities to vaccinate a large enough proportion of their populations and thereby experience a notable drop in Covid-19 infections and a decline in hospitalisation rates,” says Fitch Solutions. Both these factors, it says, will lead to governments gradually lifting restrictions, which will boost consumer confidence and retail sales.
“As of December 6 2021, 38.4% of people in Botswana have received at least one vaccine dose. While this is low, it is higher than the Africa average of 11.3%. The vaccines being administered in Botswana include Pfizer-BioNTech, Sinovac and Johnson & Johnson. We believe that a successful vaccine rollout will aid the country’s consumer spending recovery,” says Fitch Solutions. Therefore, the agency says, “Our forecasts account for risks that are highly likely to play out in 2022, including the easing of government support. However, if other risks start to play out, this may lead to forecast revisions.”