The National Development Bank will shrink the Bank’s 2013/14 comprehensive loss by at least 50 percent during the year 2014/15 to ensure that the NDB tracks back to profitability. This assertion was made by NDB chief executive, Lorato Morapedi, this week.
Having experienced a significantly high level of Non-performing loans the Bank at the beginning of financial year 2015/16 embarked on a vigorous collections campaign to reduce its NPL (non performing loans) by 80 percent in order to drive the Bank back to profitability.
Morapedi said that while the Bank is targeting to cut its comprehensive loss by at least 50 percent, the auditors are still at work to ensure that the current audit is completed.
“But as we all know the 2013/14 external audit took a bit of time to complete thus having a sequential effect on the 2014/15 which then started late,” Morapedi lamented.
The NDB was hit by drought induced farming losses which resulted in a significant 86 percent rise in loan impairments. The losses are also attributed to the Bank’s focus on start up businesses, which commercial banks are averse to in terms of funding due to the associated risks.
However, NDB’s focus on SMME’s is said to be in support of Government’s agenda on food security, employment creation and empowering Batswana especially those with difficulty in accessing funding. Notwithstanding that, NDB faced increased, aggresive competition from the commercial banks in both the SME sector and agribusiness loans.
The low liquidity environment that banks operated in, in recent times, has also contributed to NDB’s
The Bank recorded a total loss of P86.4 million compared to a profit of P45.6 million in the previous year. During the same period gain on property plant and equipment amounted to P18.5 million and the overall comprehensive loss for the period was P67.9 million. The decline was largely due to the significant rise in impairments’ charge from P38.5 million to P163.7million.
This comes on the backdrop of the Bank’s adopted project to commercialise its operations. One of the major projects undertaken towards commercialisation readiness was the implementation, in 2013, of a new banking system (SAP) which necessitated a major data clean-up exercise, thereby delaying the completion of the 2013/14 statutory financial audit till February 2015 when the fieldwork was completed.
Going forward, NDB is still on the protracted move towards privatization, with a commercialization consultant appointed to come up with a new business model that will guide the process of listing on the Botswana Stock Exchange and acquire a commercial banking license from the central bank.
“We expect that when the new business model has been completed and approved at relevant governance structures this will deal with most of the Bank’s woes” said NDB CEO.
The Botswana Democratic Party (BDP) Central Committee (CC) meeting, chaired by President Dr Mokgweetsi Masisi late last month, resolved that the party’s next Secretary-General (SG) should be a full-time employee based at Tsholetsa House and not active in politics.
The resolution by the CC, which Masisi proposed, is viewed as a ploy to deflate the incumbent, Mpho Balopi’s political ambitions and send him into political obscurity. The two have not been on good terms since the 2019 elections, and the fallout has been widening despite attempts to reconcile them. In essence, the BDP says that Balopi, who is currently a Member of Parliament, Minister of Employment, Labour Productivity and Skills Development, and a businessman, is overwhelmed by the role.
The Botswana Defence Force (BDF)-Namibians fatal shooting tragedy Inquest has revealed through autopsy report that the BDF carried over 800 bullets for the mission, 32 of which were discharged towards the targets, and 19 of which hit the targets.
This would mean that 13 bullets missed the targets-in what would be a 60 percent precision rate for the BDF operation target shooting. The Autopsy report shows that Martin Nchindo was shot with five (4) bullets, Ernst Nchindo five (5) bullets, Tommy Nchindo five (5) bullets and Sinvula Munyeme five (5) bullets. From the seven (7) BDF soldiers that left the BDF camp in two boats, four (4) fired the shots that killed the Namibians.
The former Minister of Foreign Affairs and International Cooperation, Pelonomi Venson-Moitoi’s decision to apply for the positions of United Nations Special Representative of the Secretary-General (SRSG) and their deputies (DSRSG), has left the government confused over whether to lend her support or not, WeekendPost has established.
Moitoi’s application follows the Secretary-General’s launch of the third edition of the Global Call for Heads and Deputy Heads of United Nations Field Missions, which aims to expand the pool of candidates for the positions of SRSG) and their deputies to advance gender parity and geographical diversity at the most senior leadership level in the field. These mission leadership positions are graded at the Under-Secretary-General and Assistant Secretary-General levels.