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MAHUPELA: I will turn around Phikwe through SPEDU

Government this week announced the liquidation of BCL, a copper and nickel mining company which was the second largest employer in the country employing over 4000 people and was the heartbeat of Selibe Phikwe economy. Only Debswana, a diamond company, employs more people.

Explaining factors that led to the liquidation decision, members of a cabinet subcommittee commissioned by President Lt Gen Dr Ian Khama to evaluate and map the way forward on the future of the unprofitable mine noted the decision to liquidate was informed by the poor performance of the copper nickel in the global market.

BCL liquidation has prompted many to zoom into the leadership of Daniel Mahupela, the General Manager of BCL who took over the reins in 2011 from Montwedi Mphati who currently flourishes at the helm of Southern Africa’s largest salt and soda ash producer BOTASH. The company is enjoying positive figures ever since Mphati relocated to Sowa Town. BOTASH paid P91 million dividends to Government for the 2015 financial year alone. Currently Mahupela also doubles as SPEDU board chairman, an institution mandated to transform the town and the regional economy. This further piles more pressure on the embattled Mahupela. BCL mine workers have not hesitated to compare him to his predecessor, Mphati and he does not rank well.

At the point of Mphati’s exit from BCL, the company was enjoying a slightly positive cash flow owing to profitable global commodity prices and perhaps good corporate governance. BCL was involved in various income diversifying projects like fruit and vegetable production, Mine Museum and other CSI undertakings.

RECKLESS INVESTMENT DECISIONS UNDER MAHUPELA

Immediately after assuming office, Daniel Mahupela developed a huge appetite under what was to be name BCL investment Pty Ltd, a subsidiary company under BCL limited aimed at finding diverse ways to help expand the company’s treasury. Mahupela and his board, which was at the time led by Dr Akolang Tombale of the financially troubled  BMC, was to inject US$337 million(P2.9 billion) into BCL Investments for the acquisition of Tati Nickel Mine and 50% stake of Nkomati mine in South Africa, in both transactions  BCL was buying out Norilsk Nickel operations  from Africa.

Quoted in 2014 at a press conference announcing the acquisition, Mahupela said: “On October 17, 2014 BCL Limited through its wholly owned subsidiary, BCL Investment (Pty) Ltd entered into a binding sale and purchase agreements (the SPA’s) with Norilsk Nickel Mauritius (NNM) and other international Norilsk Nickel Group Companies for the acquisition of 100 per cent of the issued share capital of Norilsk Nickel Africa (NNAf) and Tati Nickel Mining Company.” BCL became South African billionaire’s partner in the Nkomati mine which faced possible closure before Mahupela came to rescue.

However the acquisitions never boosted BCL’s financial muscle as anticipated, but rather only added more misery to the company’s negative balance sheet. Sources close to the echelons of power revealed to WeekendPost that cabinet’s decision was influenced mainly by the Nkomati mine debt alone.

The mine alone is reported to be responsible for P3 billion of the BCL debt. “The Nkomati Bill alone is at $US265 million, the 2014 transaction is the reason why BCL is liquidating now,” said a source who preferred anonymity.

Member of Parliament for Selibe Phikwe West, Dithapelo Keorapetse also confirmed the Nkomati deal crippled BCL. Norilsk Nickel Group disinvested out of  Africa and decided to sell all of its African Operations owing to anticipated commodity price fall, and Mahupela‘s BCL Investment (PTY) Ltd was there to purchase the depleting business.

Earlier in 2014 BCL Investment bailed out another financial troubled business in Pula Steel, Daniel Mahupela approved 30 million Pula for the steel manufacture on 50.5 % equity investment. Pula Steel struggled to takeoff, a year down the line the steel casting & Manufacture Company was shut down owing to poor financial management, environmental unfriendly operations, and workers were put on indefinite no pay leave. Pula Steel is almost dead. Indications are that BCL spent roughly P150 million on Pula Steel.

MAHUPELA’S DATE WITH SPEDU

Daniel Mahupela was appointed Chairman of SPEDU board in September 2013. Selibe Phikwe Economic Diversification Unit (SPEDU) was  established in 2008 under the Ministry of Finance and Development Planning, set up to facilitate economic diversification within the area. In 2012 SPEDU was transferred to the Ministry of Investment, Trade and Industry and has since been incorporated as a company.

SPEDU was transformed into a company so as to have it operate semi-autonomously outside the cumbersome government processes. For the three years that Mahupela was presiding over major decisions and approving major financial undertakings and expenditures at SPEDU, Mahupela has been occasionally fingered on numerous alleged conflicts of interest. In July 2015 Mahupela was reported to be suspended by Minister Vincent Seretse on allegations of having used inside information to influence the formation of a Recycled Energy and Fuels company which was to be based in Sefhophe within the SPEDU region. Mahupela’s associate was to be the director of Recycled Energy and Fuels Company, owned by the Verma family who were already in partnership with BCL at Pula Steel Casting and Manufacturers, a subsidiary of BCL Limited.

Reports indicated that the project was one of the proposed undertakings by SPEDU and board members were shocked that Mahupela was involved in the formation of a similar company.

Information gathered by WeekendPost shows that SPEDU wanted to complement the steel recycling company by empowering one of the communities to start a recycling company dealing especially with used tyres but was shocked that the Vermas and Mahupelas have already started one.  Mahupela later denied his suspension and reports reveal that Vincent Seretse was brought to calm by Mahupela’s questions over James Mathokgwane’s appointment.

Again in July 2015, Daniel Mahupela reportedly had a rift with SPEDU CEO, Dr Mokubung Mokubung over the employment of former acting SPEDU CEO, Monte Phuthego as caretaker consultant for research. Phuthego was engaged as a caretaker consultant by Mahupela at a cost of P1.5 million with benefits which included a housing allowance and a company car and Mahupela had done so without consulting other board and senior management members.

SPEDU intends to transform and resurrect the economy of Selibe Phikwe with Mining, Manufacturing, Agribusiness and Tourism and of the four strategic areas; Daniel Mahupela leadership has failed dismally in all of them.  

The Pula Steel investment is best described as ‘dead man walking’- observers say this casts doubt on Mahupela’s ability to lead an entity like SPEDU.  His negligence of the BCL farm suggests he has no plans to unearth jobs and increase trade through agriculture. To date BCL is yet to set up the proposed museum that was intended to display the rich history of copper and nickel locally, proving Mahupela‘s lack of business acumen. At SPEDU, 50 percent of expenditure is directed to workers’ salaries only, this publication gathered from Parliamentary Committee on Statutory Bodies and Enterprises recently.

The committee led by Samson Guma Moyo expressed concern over SPEDU’s lack of urgency on the future of Selibe Phikwe. This publication has it on good authority that Mahupela might just have sown his appetite seed for bailing out failed companies into SPEDU’s investment plans as he is on the verge of influencing SPEDU to take over Botswana Development Corporation (BDC) stake at Talana farms after the Government equity investor liquidated the farm when Bashi Gaetsaloe took over. The deal is said to be almost complete as the other partner (yet to be disclosed) has already paid up P1.5 million to secure the farm. It is still to be seen if the man who failed dismally at the day to day driving seat of the town’s economic heart beat can resurrect the town through a vehicle called SPEDU which he chairs.

MAHUPELA REMAINS DEFIANT – I WILL TURN AROUND PHIKWE

When responding to concerns about his inability to lead Phikwe out economic crush as SPEDU chairman, the soft spoken Daniel Mahupela told weekendpost on a telephone interview Wednesday October 13th around 12:12 pm, that SPEDU has day to day executive staff that works tirelessly to transform the economy of the town. He explained that the board exists to give guidance and accountability. “I am not in a good position to comment about SPEDU, as am currently engaged in complex matters of handing over operations and paperwork to the liquidator, but I can tell you that SPEDU is in good shape and will resuscitate this town,” said Mahupela .

Sharing more on his SPEDU chairmanship Mr Mahupela told Weekend Post that he was not aware of any rifts or un-cordial relationship between or within his board and executive management. “Like I said I cannot comment much about SPEDU, we are in good progress at SPEDU, that’s why I am still chairman, you can ask the Minister if there are any developments.”

For his side of story on allegations of poor decision making at BCL, Mahupela explained that the acquisition of Nkomati mine was influenced by the desire to keep the smelter full peak operational, and that BCL was in the process of reviving the farm under new strategies that complemented the efforts of the National Agro Processing Plant.

For their part SPEDU management declined to talk about the developments, and efforts to contact Minister Vincent Seretse were unsuccessful as he was said to be engaged with back to back meetings.

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Botswana imports in numbers

1st March 2021
Botswana-imports

For so many years, Botswana has been trying to be a self-sufficient country that is able to provide its citizens with locally produced food products. Through appropriate collaborations with parastatals such as CEDA, ISPAAD and LEA, government introduced initiatives such as the Horticulture Impact Accelerator Subsidy-IAS and other funding facilities to facilitate horticultural farmers to increase production levels.

Now that COVID-19 took over and disrupted the food value chain across all economies, Botswana government introduced these initiatives to reduce the import bill by enhancing local market and relieve horticultural farmers from loses or impacts associated with the pandemic.

In more concerted efforts to curb these food crises in the country, government extended the ploughing period for the Southern part of Botswana. The extension was due to the late start of rains in the Southern part of the country.

Last week the Ministry of Agriculture extended the ploughing period for the Northern part of the country, mainly because of rains recently experienced in the country. With these decisions taken urgently, government optimizes food security and reliance on local food production.

When pigs fly, Botswana will be able to produce food to feed its people. This is evident by the numbers released by Statistics Botswana on imports recorded in November 2020, on their International Merchandise Trade Statistics for the month under review.

The numbers say Botswana continues to import most of its food from neighbouring South Africa. Not only that, Batswana relies on South Africa to have something to smoke, to drink and even use as machinery.

According to data from Statistics Botswana, the country’s total imports amounted to P6.881 Million. Diamonds contributed to the total imports at 33%, which is equivalent to P2.3 Million. This was followed by food, beverages and tobacco, machinery and electrical equipment which stood at P912 Million and P790 Million respectively.

Most of these commodities were imported from The Southern African Customs Union (SACU). The Union supplied Botswana with imports valued at over P4.8 Million of Botswana’s imports for the month under review (November 2020). The top most imported commodity group from SACU region was food, beverages and tobacco, with a contribution of P864 Million, which is likely to be around 18.1% of the total imports from the region.

Diamonds and fuel, according to these statistics, contributed 16.0%, or P766 Million and 13.5% or P645 Million respectively. Botswana also showed a strong and desperate reliance on neighbouring South Africa for important commodities. Even though the borders between the two countries in order to curb the spread of the COVID-19 virus, government took a decision to open border gates for essential services which included the transportation of commodities such as food.

Imports from South Africa recorded in November 2020 stood at P4.615 Million, which accounted for 67.1% of total imports during the month under review. Still from that country, Botswana bought food, beverages and tobacco worth P844 Million (18.3%), diamonds, machinery and fuel worth P758 Million, P601 Million and P562 Million respectively.

Botswana also imported chemicals and rubber products that made a contribution of 11.7% (P542.2 Million) to total imports from South Africa during the month under review, (November 2020).

The European Union also came to Botswana’s rescue in the previous year. Botswana received imports worth P698.3 Million from the EU, accounting for 10.1% of the total imports during the same month. The major group commodity imported from the EU was diamonds, accounting for 86.9% (P606.6 Million), of imports from the Union. Belgium was the major source of imports from the EU, at 8.9% (P609.1 Million) of total imports during the period under review.

Meanwhile, Minister of Finance and Economic Development Thapelo Matsheka says an improvement in exports and commodity prices will drive growth in Sub-Saharan Africa. Growth in the region is anticipated to recover modestly to 3.2% in 2021. Matsheka said this when delivering the Annual Budget Speech virtually in Gaborone on the 1st of February 2021.

He said implementation of the African Continental Free Trade Area Agreement (AfCFTA), which became operational in January 2021, could reduce the region’s vulnerability to global disruptions, as well as deepen trade and economic integration.

“This could also help boost competition and productivity. Successful implementation of AfCFTA will, of necessity, require Member States to eliminate both tariffs and non-tariff barriers, and generally make it easier to do business and invest across borders.”

Matsheka, who is also a Member of Parliament for Lobatse, an ailing town which houses the struggling biggest meat processing company in the country- Botswana Meat Commission, (BMC), said the Southern African Customs Union (SACU) recognizes the need to prioritize the key processes required for the implementation of the AfCFTA.

“The revised SACU Tariff Offer, which comprises 5,988 product lines with agreed Rules of Origin, representing 77% of the SACU Tariff Book, was submitted to the African Union Commission (AUC) in November 2020. The government is in the process of evaluating the tariff offers of other AfCFTA members prior to ratification, following which Botswana’s participation in AfCFTA will come to effect.”

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Sheila Tlou: On why women don’t get votes

1st March 2021
Sheila Tlou

BARAPEDI KEDIKILWE

Women continue to shadow men in politics – stereotypes such as ‘behind every successful man there is a woman’ cast the notion that women cannot lead. The 2019 general election recorded one of Botswana’s worst performances when it comes to women participation in parliamentary democracy with only three women elected to parliament.

Botswana’s former Minister of Health, Professor Sheila Tlou who is currently the Co-Chair, Global HIV Prevention Coalition & Nursing Now and an HIV, Gender & Human Rights Activist is not amused by the status quo. Tlou attributes this dilemma facing women to a number of factors, which she is convinced influence the voting patterns of Batswana when it comes to women politicians.

Professor Tlou plugs the party level voting systems as the first hindrance that blocks women from ascending to power. According to the former Minister of Health, there is inadequate amount of professionalism due to corrupt internal party structures affecting the voters roll and ultimately leading to voter apathy for those who end up struck off the voters rolls under dubious circumstances.

Tlou also stated that women’s campaigns are often clean; whilst men put to play the ‘politics is dirty metaphor using financial muscle to buy voters into voting for them without taking into consideration their abilities and credibility. The biggest hurdle according to Tlou is the fallacy that ‘Women cannot lead’, which is also perpetuated by other women who discourage people from voting for women.

There are numerous factors put on the table when scrutinizing a woman, she can be either too old, or too young, or her marital status can be used against her. An unmarried woman is labelled as a failure and questioned on how she intends on being a leader when she failed to have a home. The list is endless including slut shaming women who have either been through a divorce or on to their second marriages, Tlou observed.

The only way that voters can be emancipated from this mentality according to Tlou is through a robust voter education campaign tailor made to run continuously and not be left to the eve of elections as it is usually done. She further stated that the current crop of women in parliament must show case their abilities and magnify them – this will help make it clear that they too are worthy of votes.

And to women intending to run for office, Tlou encouraged them not to wait for the eleventh hour to show their interest and rather start in community mobilisation projects as early as possible so that the constituents can get to know them and their abilities prior to the election date.

Youthful Botswana National Front (BNF) leader and feminist, Resego Kgosidintsi blames women’s mentality towards one another which emanates from the fact that women have been socialised from a tender age that they cannot be leaders hence they find it difficult to vote for each other.

Kgosidintsi further states that, “Women do not have enough economic resources to stage effective campaigns. They are deemed as the natural care givers and would rather divert their funds towards raising children and building homes over buying campaign materials.”

Meanwhile, Vice President of the Alliance for Progressives (AP), Wynter Mmolotsi agrees that women’s participation in politics in Botswana remains a challenge. To address this Mmolotsi suggested that there should be constituencies reserved for women candidates only so that the outcome regardless of the party should deliver a woman Member of Parliament.

Mmolotsi further suggested that Botswana should ditch the First Past the Post system of election and opt for the proportional representation where contesting parties will dutifully list able women as their representatives in parliament.

On why women do not get elected, Mmolotsi explained that he had heard first hand from voters that they are reluctant to vote for women since they have limited access to them once they have won; unlike their male counterparts who have proven to be available night or day.

The pre-historic awarding of gender roles relegating women to be pregnant and barefoot at home and the man to be out there fending for the family has disadvantaged women in political and other professional careers.

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SEZA’s P126 million tender heads to court

1st March 2021

Special Economic Zone Authority’s (SEZA) P126 million Master Planning of Pandamatenga Special Economic Zones Business Case, Urban & Landscapes tender is in court after one of bidders, Moralo Design challenged its disqualification from the tender.

SEZA is transforming Pandamatenga into an Agropolis which will combine modern farming with top notch industrial, residential, commercial and recreational land use. The project is measured at 137, 007 ha which comprises of 84, 500 ha for commercial production, 12 400 ha for the subsistence production, 107 ha will be for Agro-processing while 40 000 ha will be for the Zambezi Integrated Agro-commercial Project (ZIACDP).

In their court papers, Moralo Designs, represented by Jones Moitshepi Firm, said they received a letter from SEZA on or around the 12th November 2020 notifying that their bid has been disqualified at the technical evaluation stage of the tender adjudication process.

In their response, Lonely Mogara who is Chief Executive Office of SEZA said Moralo Designs is not entitled to be heard by the court as the company never participated in the disputed tender hence SEZA knows the bidder as Moralo Design Consortium.

“Moralo Designs had failed to establish any right to be heard by the court. The fact that they had submitted a tender was not guarantee that they would be awarded the tender,” he said.
“The reasons for the disqualification of Moralo Design Consortium’s bid were valid and justified because their bid was insufficient as it lacked vital information as required by the terms of reference.”

SEZA Chief said the requirements for the work plan and project programme were clearly stated in the Invitation To Tender (ITT). Moralo Design Consortium was not penalised for non-existent requirements.  In disqualifying the bid by Moralo Designs Consortium, Mogara further indicated that SEZA considered that there was a requirement for a programme and work plan.

“The purported “project programme” that was submitted by Moralo Design Consortium failed to depict the activity durations, activity phasing and interrelations, milestones, delivery dates of reports and logical sequence of activities constituent with methodology and showing a clear understanding of the terms of reference,” said Mogara in responding affidavit.

He said the ITT required that there be provision of delivery dates within the programme hence Moralo Designs Consortium failed to consult with SEZA when they felt that such a requirement would be impossible to provide.  He continued to say there was an avenue available when the tender was being prepared, but they failed to use it.

“Moralo Designs’ application for interim relief lacks merit and only seeks to delay SEZA from completing the evaluation and award of a tender that will serve the greater good of the nation,” said Mogara.

He went on to say Moralo Designs has no prospects of succeeding in its review application as the possibility of court granting the review are so remote in that the court does not possess the requisite technical knowhow on what constitutes an adequate work plan and what ought to be contained in it.

A bidder disqualified for failure to provide adequate information has no right to be protected by the court. Irreparable harm can only be suffered by one who has shown that there exists a right in so far as having stood the chance of being awarded the tender.

The financial benefit likely to be derived by Moralo Designs- which is highly unlikely- is outweighed by the nature of the project. In the unlikely event that the application for review is successful, they can claim for damages.  The availability of such remedy weighs in favour of the interdict being refused. The refusal stands to benefit the nation more than the financial interest that Moralo Designs seeks to protect.

Moralo Designs failed to establish the urgency of their application. They waited for more than a month and half after the disqualification to approach the court on urgency. Meanwhile when delivering the State of the Nation Address (SONA) last year, President Mokgweetsi Masisi revealed that the detailed design and construction of 12 steel grain silos — with an overall storage capacity of 60 000 metric tonnes — is underway at the Pandamatenga SEZ and the P126 million project will be completed by August 2021.

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