P65 million rent deal back to haunt Trade Ministry
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Permanent Secretary in the Ministry of Investment, Trade and Industry (MITI), Peggy Serame came under fire this week over failure to act on the instruction of the Public Accounts Committee (PAC) regarding the acquisition and rent of Ministry’s headquarter buildings.
The ministry is accused of flouting procurement rules by bypassing Public Procurement and Assets Disposal Board (PPADB) and ignoring the latter’s guidelines.
When the matter resurfaced at the ongoing PAC deliberations, the permanent secretary, Serame had to answer to the Committee as to why she had failed to instigate an investigation into the matter, as was instructed by the PAC last year.
PAC learnt this week that Serame had not made any effort to investigate the acquisition of her ministry’s offices, prompting the PAC members to consider instituting own investigations on the matter to identify key players in the authorisation of the deal.
The acquisition of the office, the PAC learnt, was done without following the procurement rules which limit Ministerial Tender Committees (MTC) from adjudicating any tender beyond its threshold of P25 million. The MTI headquarters building was acquired on lease basis at the tune of P65 million.
MTI moved into the building in 2013, at the time when Dorcas Makgato was at its helm. Makgato is now Health Minister. The office is located at the Central Business District (CBD), where the Ministry of Trade currently operates.
The accounting officer, Serame told PAC that the ministry did not launch a probe into the matter because she was of the view that PAC did not expect her to be the one looking into the matter. However PAC member Dithapelo Keorapetse stated that Serame, as accounting officer, was liable to do such and report back to the PAC.
According to the PPADB Act, public procurements beyond the limits of the MTCs are sent to PPADB for adjudication which has the right to approve or reject them based on the factors prevailing.
PAC also established that the acquisition of the office space was done without an invitation to tender, raising eyes bows on how the ministry was able to identify the building without expressions of interest from property owners.
PAC members doubt DCEC role
Biggie Butale, Member of Parliament for Tati West and committee member questioned the involvement of Directorate on Corruption and Economic Crime (DCEC) as he remarked their coming on board under the pretext of investigating was a bluff while in fact they are trying to deploy delaying tactics and conceal the matter.
“I am sorry to say this as a member of the ruling party. We are not children, we can see, we know what the DCEC is doing,” he stated.
“Why is it that we see in the accounting officer’s report that the DCEC only came on board in February this year? Unless P65 million means nothing to you, the PAC cannot just allow this matter to go through without answers.”
DCEC has found itself at odds with parliament over investigations, with the former accusing the latter of interfering in its investigations. MPs on the other hand are of the view that DCEC is compromised, and cannot investigate scandals involving ministries, ministers in particular.
MP for Selebi Phikwe West, Keorapetse had wanted for the accounting officer to reveal the name(s) of people who authorised the procurement which violated the rules.
“We want to know why and who took this decision? You [accounting officer] are obviously privy to such information and you are trying to protect the person responsible,” he said.
Keorapetse was also of the view that the purported investigation launched by the DCEC should not deter PAC from probing and requesting to be furnished with the required information.
“We are not going to stop and hope that DCEC will investigate the matter, otherwise we will just be here doing nothing while everyone who asks is referred to DCEC,” he said.
Ignatius Moswaane, MP for Francistown West was convinced that there is criminal activity surrounding the procurement of the office in question and requested that the accounting officer, who was ordered to re-appear before the committee with explanations, to bring all documents necessary which led to procurement of the office building.
Moswaane said the accounting officer’s decision not to act on the matter following recommendation by PAC to do so in the last sitting, is a clear sign that accounting officers are taking for granted the PAC as an oversight institution.
It is becoming common that ministries procure office space without following proper procurement rules. In 2011, Ministry of Defence, Justice and Security also went ahead to procurer office space without authorisation of neither MTC nor PPADB. PAC went on to recommend rescission of the decision and an investigation into the matter.
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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries
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
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
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.