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Parley probes Transport Ministry projects

P320 million cost overruns in audited road works

Two public road works completed recently, have attracted the attention of the Office of the Auditor General after the cost overruns amounted to over P320 million.      

The Public Accounts Committee of Parliament last week, held value for money audits, in the process questioning the cost overruns where The Department of Roads is said to have over expended P300 million in two road projects that were completed recently.

The Western bypass-Metsimotlhabe road project which was initially priced at about P400 million ended up costing the ministry about P644 million. While the Gaborone-Tlokweng border gate road was estimated at about P376 million but ended up drawing more than P454 million from the government coffers.

In both projects, the consultancy fees doubled from initial contract cost to final cost with, Tloweng road consultancy fees raking in P20,1 million from P9,8 million while the Western bypass-Metsimotlhabe road fees reached P21 million from the initial P8,9 million.

PAC members were uncomfortable with the use of consulting engineers who design and then go on to supervise road works.

While the parliamentary committee would have liked to see some segregation of roles in the projects, the accounting officer at the Ministry of Transport and Communications, Permanent Secretary, Goitsemang Morekisi said that: “When the one who designed the road works, does not supervise the project, the new supervisor will in turn, say that they did not design it and will not accept responsibility or they will also want to make changes to the designs; so it is a challenge there. But we are not saying that it is not possible for roads designed by one to be supervised by another.”

In an interview with BusinessPost, Morekisi, said that as a Ministry, they acknowledge that cost overruns of projects have been a concern, but the advice from the Office of the Auditor General, is already helping to define and tighten processes.

“It is about expertise in the design stage,” adding that, “We do not want to crowd out the private sector; what we need to do is that our staff supervises the supervising contractors,”

The PAC (Public Accounts Committee) felt that consulting engineers were in a position to delay projects and stretch their earnings.

“Rather than to have our own people there, we should have only one engineer on site supervising say 30 people at the works,” said Morekisi.

“The engineer recommends to the Roads department, if there is need for a review of contract pricing, that is why we are saying that we as the permanent secretaries will now be involved in approving these reviews; that is where we have been lacking and the audit has advised that we tighten up there,” said Morekisi. She admitted that internal processes often delay projects from the design stage to the implementation stages.

In future, consultants will be held to account for cost overruns, Morekisi affirmed.

 Morekisi said there are other factors that contributed to cost overruns including the raising of value added tax from 10 to 12 percent as well as the intermittent workers strikes in neighbouring South Africa that affect timely procurement of materials.  

“Because of the strikes that happened in South Africa, we had problems in getting bitumen from that side and that also contributed to the escalation of prices,”
Morekisi noted that the parliamentary committee emphasised the need to review cost projections of projects that were on hold, after the global recession hit, as there will be a need to adjust for inflation. This is meant to avoid distortion of project price projections that add to cost overruns.


The long planned Mohembo Bridge on the North Western tip of Botswana, had good social benefits but the economic value was difficult to justify for financiers. “Looking at the social benefits of the Bridge which will connect some villages such as Seronga, with others, we looked at how we can scale down the designs and make it more affordable and now it will be going to tender,” said permanent secretary, Morekisi. The 1162 metre bridge will be the longest in the southern Africa region when completed.

“The Kazungula Bridge project consists of three parts; the bridge, the Botswana side and the Zambian side.”

“While Zambia can get concessionary financing from the likes of African Development Bank, we as a middle income country had to access funding from JICA (Japan International Cooperation Agency),” said Morekisi.

“During the opening of tenders, there were three companies that satisfied the tender requirements for the final shortlist, a Korean company, a Chinese company and a Japanese company,” she explained.

“There was a seven month delay, when the Japanese insisted on the disqualification of the other companies, even when they satisfied the criteria.”

Construction of the much anticipated P1.4 billion Kazungula Bridge is also expected to get under after delays due to financing. With the start of National Development Plan 11 next year, the construction will get under, said Morekisi. The project was meant to start early in 2015 after the two hosting countries, Botswana and Zambia, signed a contract agreement with the contractor, Daewoo Engineering and Construction.

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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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