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SPEDUs web of failed leadership

Selibi-Phikwe Diversification Unit (SPEDU) is possibly an endangered organisation at the moment, after falling under the stewardship of two men who are currently embroiled in financial mess at other entities they lead, that is, Bammangwato Concessions Limited (BCL) and Botswana Meat Commission (BMC).

Even Parliament is worried about the direction in which SPEDU is seemingly headed. Parliamentary Committee on Statutory Bodies and Enterprises was this week not convinced with the ambition of the SPEDU project given the poor level of success since its formation. The committee is of the view that there could be a leadership problem at SPEDU, given the ability of the organisation’s failure to appreciate the real reason it was formed.

The current chairperson of SPEDU board is BCL’s general manager, Daniel Mahupela. His deputy is BMC’s Chief Executive Officer (CEO), Akolang Tombale.

One committee member, speaking off the proceedings, highlighted that at Board level, the organisation is steered by the people who themselves are struggling to salvage their entities from financial crisis they are ensnared in, yet SPEDU is expected to successfully fulfil its mandate under their leadership.  

Chairman of Parliamentary Committee, Samson Guma also expressed concern at the manner in which SPEDU is running its affairs. Guma stated that the organisation’s management does not indicate if indeed it appreciates the reason behind its formation.

Guma is of the opinion that the CEO of SPEDU and its Board should know what is going on with BCL affairs because, SPEDU was formed to respond to BCL’s situation. He mentioned his concern that such is not the case and is a grave error, given the dire situation that BCL is in.

Ndaba Gaolathe, a committee member was worried about SPEDU’s seemingly lack of familiarity with the affairs of BCL. Gaolathe said at present moment, SPEDU should know how they want Selibe- Phikwe economy to look like without the mining activities.

The committee was also not impressed by SPEDU’s spending. Out of its total expenditure, salaries accounts to more than 50 percent of the money, and in the next few years the salaries are event expected to account for more than 60 percent of the organisation’s expenditure.

Mahupela – General Manager of BCL and Chairperson of SPEDU

Daniel Mahupela, the Chief Executive Officer (CEO) of Bammangwato Concessions Limited (BCL) is the Board Chairperson of SPEDU, while Dr Akolang Tombale, the CEO of Botswana Meat Commission (BMC).

Mahupela took over the reign at BCL in 2011 following the departure of Montwedi Mphathi, who left to join Botash.  Mahupela joined BCL Limited in 2008 as Divisional Manager of Resource Planning prior to his ascendance to the top position. While during Mphathi’s tenure, BCL endured profitability, Mahupela has watched BCL failing to near collapse, with government coming to its rescue on more than two occasions.

While the BCL situation have also been brought by external factors such as falling commodity prices, there have been reports that lack of shrewd administration have led to the dire financial crisis which the organisation found itself in.  Commodity prices fell by more than 57 percent earlier this year making it one of the worst falls in history.

Amid this crisis, Mahupela has resisted calls for him to resign despite mounting pressure that  including job losses. Government has engaged a consultant on the future of BCL, which will lead the way on what government would do next with the mine.

SPEDU formation, had anticipated that should BCL close, they would be great economic shock to the Selibi Phikwe economy and surrounding areas. Mahupela as the chairperson of Board is not only entrusted with saving BCL, but leading an organisation which would transform the economy of Selibi Phikwe away from the mining activities.

When the chairperson of the parliamentary committee asked for the professional opinion on whether or not government should put more money into the BCL, SPEDU’s CEO, Mokubung Mokubung noted that, while it could be important to do so to save jobs, there is no “business case” for doing that.

A common concern has always been whether it would make business sense for injecting money into BCL without change of model which will ensure that the entity is able to be financial stable again.

Tombale- BMC CEO and Vice Chairperson of SPEDU

Tombale first came into BMC picture in 2012, after being appointed on the initial agreement of 12 months. This was the time when reports were emerging about BMC corruption and dubious business practices which led to an instigation of commission on inquiry.

Tombale, with a background in Geology, has spent the better part of his career as a civil servant and had the opportunity to serve in boards such as of Debswana Diamond Company. He was brought to the BMC with clear believe that he will effectively turn its fortunes around over a short period of time

However, Tombale has not been able to transform BMC from its crisis, despite his assurance when he was appointed four years back that he will ‘fix’ BMC. For the past three years, BMC has continued to make perennial losses, and government have had to come to its rescue on number of occasions.

Until recently, Tombale was resistant to efforts of ending BMC monopoly as a way of ending BMC troubles. BMC has also been accused by parliamentary committee, under Tombale for failing to practise best management as far as public procurement procedures are concerned.

Both Tombale and Mahupela will be in charge of SPEDU direction, but are still fighting their own wars and from a spectator’s view, they are on the losing side. Both BMC and BCL are still in dire financial crisis, their situations have not improved over the last few years, and they would still rely on government for survival.

Tombale and Mahupela have even been associated before. Until June this year, Tombale was the chairperson of the troubled BCL board of directors. The two have worked closely together at BCL, and presided over the mine’s possible worst crisis in its own history.

SPEDU’s risky investment

Meanwhile, SPEDU could be headed for a partnership with an undisclosed company in taking over the business operations of Talana Farms. Talana Farms was operated by Botalana Ventures, which Botswana Development Corporation (BDC) was equity partner. The business involves the horticultural projects, ostrich farming and crocodile farming.

Although SPEDU CEO told parliamentary committee that it is an “ambitious project” the project had failed to produce desired results under Botalana Ventures.

BDC has been operating Talana Farms jointly with Botalana Ventures since 2006 and the two entities had enjoyed what looked like a breakthrough for Botswana’s horticultural produce sufficiency. Talana Farms’ General Manager, Jan Willemse, revealed in the past that for future growth the farm was targeting the South African and Namibian market for their produce.

 Following the appointment of Bashi Gaetsaloe as Managing Director of BDC, the partnership was sacrificed leading to liquidation of Botalana Ventures.

Mokubung revealed that already the equity partner, identified by SPEDU have paid P1.5 million deposits to secure the farm.

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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries

8th December 2023

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.

 

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Letsholo lauds President Masisi’s digitization in fight against corruption

8th December 2023

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.

 

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FaR property assets value clock P1.47 billion

6th December 2023

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.

 

 

 

 

 

 

 

 

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