The skeletons at Botswana Meat Commission (BMC) are difficult to bury, the Feedlotters Association of Botswana has said in a scathing ‘confidential’ report channelled to the Minister of Agriculture and Food Resources, Patrick Ralotsia.
They express shock at the establishment’s attempt to wish BMC problems and alleged corruption away by pushing numerous damning reports under the carpet.
The report titled ‘Overview of BMC 2013-2016’ is uncompromising in detailing how some executives at BMC in cohort with some third parties are ensuring that the BMC is seen as an unprofitable venture. The Feedlotters are of the view that there is a deliberate move to ensure that the BMC remains unprofitable and does not identify new markets.
In their explosive report, they write: The recent “Shambles” that bedevilled the BMC resulting in the institution of two state Commissions of inquiries to investigate the wrongs of the BMC itself does not seem to have solved anything at BMC. They have no kind words for the current management of the BMC; they allege that it is the worst in many years.
“If managed properly, BMC is a sustainable business that can go far in empowering and enriching communal farmers in Botswana. The country as a whole is being deprived of the values and sustainable incomes that could be available through a thriving cattle industry, under the leadership of a viable and profitable BMC,” the Feedlotters write in their report.
They point out that the nation was recently shocked by a government decision to shut down BCL mine in Selibe Phikwe, they fear that the same fate may befall BMC, “and the looters will have a field day, taking ownership of the country’s biggest butchery.”
According to the Association of Feedlotters, the Parliamentary Select Committee that investigated the BMC 2013 came up with a list of findings and recommendations that could have been adopted to save the BMC and protect the interests of the many Batswana who depend on the BMC for livelihoods.
“Three years later and as at today, October 2016, the Parliamentary Select Committee’s findings were a mere exercise in futility, carried out at such a cost to the nation but none of their recommendations were considered.”
THE SELECT COMMITTEE’S FINDINGS, CONCERNS
The Committee had found that BMC CEOs, with few exceptions, have been chosen from the ranks of retired civil servants not based on merit or their commercial experience. The MPs had also pointed out that the BMC management practiced poor governance and there were bad relations between the board and management. It discovered productions inefficiencies caused by over staffing, declining productivity, and high marketing costs. There was no proper and efficient system of financial controls. The BMC became financially insolvent over the 2009-2012 period.
The Parliamentary Select Committee at the time picked on the issue of BMC marketing, pointing out that “At present BMC’s marketing agent, Global Protein Solutions (GPS) provides for a legal monopoly on exports. The BMC should seek to revise the contract and segments of the global beef export market to hedge against a monopoly of the marketing of the Botswana beef produce.”
Interestingly the Committee also declared that an investigation be undertaken by the Directorate on Corruption and economic Crime (DCEC) into the award of the marketing contract by BMC in favour of GPS and consideration be made for a review and renegotiation of the contract terms to ensure residual contract of the beef export marketing by the BMC. The Committee also discovered a “strong circumstantial evidence of under-pricing of beef to the EU, South Africa, and domestic markets over the period. The recommendations by the committee were never considered.
The Parliamentary Select Committee also decided that Feedlot activities should be undertaken by the Botswana private sector and not by the BMC.
THE BMC SITUATION IN 2016
According to the Feedlotters, “in today’s BMC, management does not seem to have heeded the findings of the Special Parliamentary Committee, one wonders if they even read the report.” They point out that some in the BMC management continue to demonstrate a high level of arrogance, wilful dishonesty, breaches of contracts, and bad corporate governance.
They cite poor financial management as another devil at the BMC, hence the constant failure to pay farmers, agents, or anyone connected to the Beef industry and associated with BMC, on time. The Feedlotters are also concerned that marketing Botswana beef through a monopoly and under suspicious contracts instead of marketing direct to cut off the middleman, in this case GPS.
On the management of the BMC, Feedlotters point out that the organisation currently has the worst management. “This is visible in the dreadful way they treat and handles producers.” According to the Feedlotters, BMC management has developed a culture of ignorance and arrogance whereby producers are talked down to and financially threatened if they complain.
“Managers rarely, if they ever do, answer correspondence and they actively avoid meetings that may be heated.” Feedlotters allege a culture of non-cooperation, non-accountability and secrecy. They also point out that executive management is not proactive, but are prone to sweeping problems under the carpet, in the hope that problems will simply solve themselves and go away.
As a result, these very problems are invariably never to be seen by those who should know what is going on and are authorised to take appropriate action. “It is our experience that the Chief Executive Officer, Dr Akolang Tombale seems not to be aware of what is happening within the BMC, and unfortunately reports on issues are usually manipulated to hide the actual truth at BMC.”
Feedlotters accuse Tombale of placing blind faith in everything said or presented to him by his executive managers. “Most of these executives do not report the truth but distort facts to provide the impression that all is well within the BMC where as in actual fact all facets of the Value Chain of the BMC are complaining bitterly about various vitally important functions of the BMC.”
According to the report by the Feedlotters Association, the executives report to the CEO to impress him, but not to inform him of the true position which then leads him to misrepresent the situation at board level, Cabinet and ultimately Batswana. “Of particular concern is the influence and seemingly vast control that is exercised by the Chief Financial Officer (CFO). The Feedlotters Association says the CFO is the only person who knows the basis of contracts with the marketing company, GPS, and how they operate. They point out that his influence is unhealthy for the BMC.
“The BMC has no ability to market because no capacity has been built in Botswana and the BMC is now more dependant than ever on the relationship with GPS which is under the control of the CFO. The unhealthy relationship with GPS ensures that this single agent of the BMC has complete control of all of Botswana’s external markets. Thus GPS through the CFO control the BMC and decide how the BMC gets paid which leads to continuous failure to manage BMC cash flows.”
Frustration over the GPS contract has seen top executives leave BMC in the recent past, the Feedlotters say. “The Internal Auditor, Distribution Manager was transferred to Capetown, Marketing Manager was turned into a plant manager and banished to Maun, The Finance Manager and the Chief Accountant both left.” In a period of three years, the BMC has lost two financial managers and chief accountant all reporting to the CFO.
The Feedlotters Association is concerned that GPS which markets Botswana beef also has a similar arrangement with competitors such as Meat Corporation of Namibia and Woodhead Brothers United Kingdom.
“The whole conflict of interest issue comes to the fore when one is aware of the fact that Meatco of Namibia has recently entered into a supply contracts with both the USA and China. Whilst at the same time no new markets have been structured and or created for the BMC.”
The Feedlotters Association further observes that GPS is also associated with the Woodheads Brothers United Kingdom. They are one of Britain’s biggest food manufacturers. The Feedlotters are concerned that the BMC does not know its customers; everything is secretive and managed by the CFO and GPS. “This makes it difficult for the BMC to decide to terminate the GPS contract, or to demand transparent marketing picture. The Association want this matter to be looked into as soon as possible. The BMC is said to have recently dismantled an internal marketing team and handed everything to GPS.
“It is known and reported fact that GPS buys more than 40 percent of all EU bonded meat. This it is believed is at a cheaper price. GPS then gains a commission from the BMC for selling this meat but it now also benefits from later selling the same meat at a higher price for their own profit. This is a question many senior Financial Managers have asked only to lose their positions within the BMC, by either being banished, resigning of their own accord due to frustration…” writes the Feedlotters Association of Botswana.
They are concerned that GPS does not allow BMC to find other markets and thus forces the BMC to sell meat at a loss to the South African markets just to satisfy the GPS commission. “Interest was exhibited by a group in Norway, who were introduced to the BMC by the Feedlot organisation, but was immediately turned down by the CEO and CFO, citing contractual obligations with GPS.
A further example was a group representing a very reputable American organisation, MI, introduced to the BMC by a well-known personality in the beef sector of Botswana, who wanted to market BMC beef in China but were also turned down. GPS has made it clear that no one is allowed to market Botswana beef. The Angolan market, which is said to be profitable, was also turned down after internal lengthy discussions.”
WASTAGE AND SABOTAGE
The Feedlotters Association allege that in 2014/2015 the BMC embarked on a destructive and aggressive cattle buying spree, believed to have been engineered by the CFO in order to capture the whole market in Botswana.
They further say the aggressive buying resulted in overstocked feedlots and overstocked back grounding farms. They point out that thousands of cattle died as a direct result of this reckless move by the BMC against the very industry that the BMC act was designed to protect and nurture.
“The losses of the huge numbers of cattle due to DCP decision, seems to have escaped prudent and well-structured financial accountability when the internal auditor was released. The BMC lost millions of Pula during this crusade,” wrote the Feedlotters Association.”
Botswana Telecommunications Corporation Limited (BTC) has announced that its 3rd Francistown Marathon will be held on Saturday 20th April 2024 at Obed Itani Chilume Stadium in Francistown. The BTC Francistown Marathon is officially recognised by World Athletics and a Comrades Marathon Qualifier will offer race categories ranging from 42.2km, 21.1 km, 10km, 5km fun run, 5km peace run for children and has introduced a 5km and 10km categories for wheelchairs athletics.
BTC also used this opportunity to announce beneficiaries who received donations from proceeds made from the 2nd BTC Francistown Marathon that was held on April 23rd 203. BTC donated a play area, plastic chairs and wooden tables for pupils worth a total of thirty eight thousand, one hundred and three pula, fifty thebe each (P38, 103.50) to Monarch Primary School, Tatitown Primary School, Mahube Primary School and Gulubane Primary School. Ditladi and Boikhutso clinics each received a donation of benches, television sets and 10, 000 litre water tanks worth thirty seven thousan, eight hundred and ninety eight pula (P 37, 898.00). Additionally, BTC also donated seventy thousand pula (P70,000.00) to their marathon technical partner, Francistown Athletics Club (FAC) which will be used for daily operations as well as to purchase equipment for the club.
The BTC Francistown Marathon aligns seamlessly with BTC’s corporate social investment programme, administered through the BTC Foundation. This programme is a testament to BTC’s dedication to community development, focusing on key areas such as health promotion. The marathon, now in its third year, not only promotes a healthy lifestyle but also channels all proceeds to carefully chosen charities as part of BTC’s commitment to impactful and sustainable projects.
Speaking at the launch, the BTC Managing Director Mr Anthony Masunga stated that the marathon underscores BTC’s commitment to community upliftment and corporate social investment. He stated that “the annual event which has been in existence since 2016, having taken a break due to the covid and other logistical issues, is instrumental to the economic upliftment of the city of Francistown”. He congratulated all the beneficiaries for having been nominated to receive the donations, adding that “the donation of proceeds from the 2023 marathon aims to highlight BTC’s commitment and heart for Batswana and our continued impact in the different industries”.
He further stated that through this marathon, “we demonstrate our steadfast commitment to having a good influence on our communities, this event is a manifestation of our dedication to promoting education and a healthier, more active society”. He concluded by stating that “BTC looks forward to another successful marathon that will leave a lasting positive influence on the greater Francistown community and the country at large” he said.
Giving welcome remarks, the Councillor for Donga, Honourable Morulaganyi Mothowabarwa stated that “he is ecstatic that BTC is collaborating with the City of Francistown on yet another installment of the Marathon”. He continued to offer his support to BTC to enable this marathon to continue over the coming years, stating that the “CSI element is a welcome development that helps empower our communities”, he said.
The 3rd BTC Francistown Marathon is officially open for registrations and athletes may use the following platforms to register and pay; through Smega by dialling *173# and choosing opton 5, then choose Option 3 for the Francistown marathon, at any BTC store or by visiting the BTC website and clicking on the BTC Francistown Marathon and choosing the relevant options.
Thapelo Letsholo, Member of Parliament for Kanye North, delivered a moving speech at the United Nations International Anti-Corruption Day commemoration, praising President Dr. Mokgweetsi Eric Keabetswe Masisi’s digitalization initiative in the fight against corruption. Letsholo highlighted the importance of embracing digitalization in governance as a crucial step in curbing corrupt practices.
According to Letsholo, the implementation of digital systems in government services can significantly reduce direct interactions between citizens and officials, which often serve as fertile grounds for corruption. By minimizing these opportunities for illicit activities, the efficiency and transparency of public services can be enhanced. Letsholo pointed to Estonia’s success in digital governance as an example, where public services have become more transparent, accessible, and efficient.
The MP commended President Masisi’s commitment to digitalization and E-Governance, emphasizing that it aligns with global anti-corruption standards. He called for full support and active participation from all sectors to ensure the success of this initiative.
Letsholo also stressed the importance of improving detection methods and refining whistleblower laws to effectively combat corruption. He highlighted the unseen and unspoken facets of corruption as its lifelines, emphasizing the need for robust detection mechanisms and a system that encourages and protects whistleblowers.
Addressing the societal role in fighting corruption, Letsholo focused on the crucial role of everyday citizens and civil servants who often witness corrupt practices firsthand. He acknowledged the existing reluctance to report corruption due to the perceived risks of repercussions. To change this narrative, Letsholo advocated for creating an environment where staying silent is deemed more detrimental than speaking out. He called for a cultural shift where the potential benefits of exposing corruption outweigh the risks, ensuring that whistleblowers are protected and feel secure in coming forward.
Letsholo called for collective responsibility and action in creating a system that not only detects and reports corruption but also supports those who stand against it. He expressed hope that under President Masisi’s digitalization initiatives, the future of governance in Botswana will be characterized by integrity, transparency, and accountability. Letsholo’s speech resonated with the sentiments of hope and determination that permeated the commemoration, emphasizing the need for unity in the fight against corruption.
In summary, Letsholo lauded President Masisi’s digitalization initiative in the fight against corruption, highlighting its potential to curb corrupt practices, enhance efficiency and transparency in public services, and align with global anti-corruption standards. He emphasized the importance of improving detection methods, refining whistleblower laws, and creating an environment where speaking out against corruption is encouraged and protected. Letsholo called for collective responsibility and action in creating a future characterized by integrity, transparency, and accountability in governance.
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.