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Job losses loom large

Botswana Power Corporation (BPC) intends to retrench, CEO Jacob Raleru

The Ministry of Labour and Home Affairs has informed President Lt Gen Ian Khama that 55 companies have submitted notifications of intent to restructure which might lead to retrenchment of employees during the next quarter, as required by the Employment Act.

This comes in the wake of further job losses reported by other companies including Kgalagadi Breweries this month. KBL retrenched 88 employees at its Lobatse plant.  Information on possible retrenchments surfaced at President Khama’s briefing by the Ministry last week.

According to Pearl Matome, Permanent Secretary in the Ministry of Labour and Home Affairs, fourteen companies retrenched a total of 297 employees between March and June 2015. The sector that has had the highest number of retrenched employees is the diamond polishing industry. Zebra Diamond and Leo Schechter Botswana retrenched a total of 82 employees between them.

Notifications of intentions to restructure and retrench came from companies including – Botswana Power Corporation (BPC); Botswana Housing Corporation (BHC); Diamond Trading Company Botswana (DTCB); Botswana Investment and Trade Centre (BITC); Botswana Public Officers Pension Fund (BPOPF); and the Directorate of Public Service Management (DPSM), among others.

Matome has also revealed that the Employers’ Organisations Act is being reviewed with particular attention to dismissal process of non performing employees as there is an impression by employers that the process is long and therefore compromises productivity. She pointed out that the current laws were inherited from the pre-independence era and seem to be undermining productivity.

BPC going through transformation

A decision by the Botswana Power Corporation is currently subject to a Management Contract for a period of three years to enable the Corporation to achieve performance turnaround and organisational transformation.

This is said to have influenced the decision to restructure.

The decision was taken pursuant to a Business Operations Review consultancy that was carried out on BPC by an energy consultancy firm based in Ireland, ESB International Limited in 2013.

 A change process for BPC is envisaged that was largely brought about by the Corporation’s transformation from a retailer of power to an electricity generator with a higher asset base due to increased generation and transmission infrastructure.

“It is imperative that BPC be transformed from its current operating status to a financially viable power utility and  a BPC 2018 end state strategy has been developed to achieve this,” read an earlier statement by the BPC.

This is seen as an opportune time for the project given the following developments in the Botswana electricity industry; The external expertise will assist BPC to ready itself for competition in the electricity industry in line with Government’s decision to open up the market to independent power producers; With the imminent setting up of an electricity regulator, BPC will also be assisted to prepare itself to operate within a regulated environment.

The Management Contract service provider took over the operations of Botswana Power Corporation for a three year period to facilitate the transformation. The management and staff of BPC are participating in the transformation process with a view to leading the transformed organisation at the end of the contract period. It is expected that at the end of the three year Management Contract the service provider will deliver a transformed BPC in line with the agreed performance indicators.

DTC Botswana goes for efficiency

Diamond Trading Company Botswana (DTC Botswana) is a 50/50 Joint Venture partnership between the Government of the Republic of Botswana and De Beers. DTC Botswana sorts and values Debswana Diamond Company’s rough diamond production.

Debswana Diamond Company (Pty) Ltd is a 50/50 Joint Venture partnership between the Government of the Republic of Botswana and De Beers. DTCB could be embarking on a restructuring process because of market pressures and the need to optimise its operations.

BITC wants a lean organisation

BITC is mandated to promote export led investment and seek export markets for Botswana products. The parastatal has been operating amidst a still, subdued global economy that is likely to continue for the foreseeable future.

However, despite the economic gloom, BITC believes that Botswana remains an attractive destination for investment not only in terms of the growing size of an increasingly affluent consumer base, but also taking into account the returns that investors have been able to achieve in Africa over the years.

BITC has a complex organisational structure, its possible re-organisation may phase out some positions, and there is little suggestion that there will be new posts created. Sources say the BITC may be looking at making the organisation leaner while still executing its mandate efficiently.   
DPSM may phase out posts

Government’s employing organ, the Directorate of Public Service Management has also notified the Ministry of Labour and Home Affairs of its intentions to restructure which may lead to retrenchments. This is despite the fact that government currently has over 10 000 vacancies.

The Minister of Finance and Development Planning has on a number of occasions indicated that government is going leaner and was looking at lowering the wage bill. There is generally a freeze of recruitment within government and most government departments are working towards having streamlined organisational structures. DPSM is likely to lead the way in trimming down staff numbers.

BHC has notified Government  

“The signs of recovery from the global financial crisis are creeping in at a slow pace and Botswana is not an exception. The local GDP is expected to grow by 5.9% during 2014. The growth is driven by the recovery in the mining sector, especially diamonds. The contribution of mining to GDP is still much less than the pre-2008 levels. This slow recovery has had a negative impact on the Botswana Housing Corporation as Government scaled down on new construction projects, leading to low activity in the construction and infrastructure sector. The prospective BHC customers were also affected as they struggled to afford the houses. In some cases, prospective customers prioritised other basic necessities like food and clothing over home ownership. It is evident that the BHC customers have not benefited from the low interest rates currently prevailing in the market due to issues of affordability of our houses,” wrote BHC chairperson in her report in the BHC 2014 annual report.

BHC as a parastatal is not doing badly. Their balance sheet looks healthy despite reduced economic activity which is acknowledged by the chairperson. It is evident that they may be going through a phase where they need to realign their workforce and slot them into a new structure that will promote efficiency. Observers are not expecting a full scale retrenchment but rather restructuring.
Government Austerity program  

When a government tightens its belt in tough economic times the entire nation feels the squeeze. With less money to pay for the full spectrum of government services because of declining tax revenues and increasing debt, deep cuts in expenditures would seem inevitable. Minister Kenneth Matambo has already alluded to the fact that government will have to make cuts in spending. He was emphatic on the need to reduce the government workforce among other things.  

At its simplest, an austerity program, usually enacted by legislation, may include one or more of the following:

A cut, or a freeze without raises, of government salaries and benefits.

A freeze on government hiring and layoffs of government workers.

A reduction or elimination of government services, temporarily or permanently.

Government expenditures may cut. Previously planned government spending programs – infrastructure construction and repair, healthcare and veterans' benefits, for example – may be cut, suspended or abandoned.

An increase in taxes, including income, corporate, property, sales and capital gains taxes.

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Botswana economic recovery depends on successful vaccine rollout – BoB

5th May 2021
Botswana-economic-recovery-depends-on-successful-vaccine-rollout---BoB-

Bank of Botswana (BoB) has indicated that the rebounding of domestic economy will depended on successful vaccine roll-out which could help business activity to return to its post pandemic days.

Projections by the Ministry of Finance and Economic Development and the International Monetary Fund (IMF) suggest a rebound in economic growth for Botswana in 2021.

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Inside the UB-BDF fighter Jet tragedy report

5th May 2021
Inside-the-UB-BDF-fighter-Jet-tragedy-report

Despite being hailed and still regarded as a hero who saved many lives through his decision to crash the BF5 fighter Jet around the national stadium on the eve of the 2018 BDF day, the deceased Pilot, Major Clifford Manyuni’s actions were treated as a letdown within the army, especially by his master-Commander of the Air Arm, Major General Innocent Phatshwane.

Manyuni’s master says he was utterly disappointed with his Pilot’s failure to perform “simple basics.”

Manyuni was regarded as a hero through social media for his ‘colourful exploits’, but Phatshwane who recently retired as the Air Arm Commander, revealed to WeekendPost in an exclusive interview that while he appreciated Batswana’s outpouring of emotions and love towards his departed Pilot, he strongly felt let down by the Pilot “because there was nothing wrong with that Fighter Jet and Manyuni did not report any problem either.”

The deceased Pilot, Manyuni was known within the army to be an upwardly mobile aviator and in particular an air power proponent.

“I was hurt and very disappointed because nobody knows why he decided to crash a well-functioning aircraft,” stated Phatshwane – a veteran pilot with over 40 years of experience under the Air Arm unit.

Phatshwane went on to express shock at Manyuni’s flagrant disregard for the rules of the game, “they were in a formation if you recall well and the guiding principle in that set-up is that if you have any problem, you immediately report to the formation team leader and signal a break-away from the formation.

Manyuni disregarded all these basic rules, not even to report to anybody-team members or even the barracks,” revealed Phatshwane when engaged on the much-publicised 2018 incident that took the life of a Rakops-born Pilot of BDF Class 27 of 2003/2004.

Phatshwane quickly dismisses the suggestion that perhaps the Fighter Jet could have been faulty, “the reasons why I am saying I was disappointed is that the aircraft was also in good condition and well-functioning. It was in our best interest to know what could have caused the accident and we launched a wholesale post-accident investigation which revealed that everything in the structure was working perfectly well,” he stated.

Phatshwane continued: “we thoroughly assessed the condition of the engine of the aircraft as well as the safety measures-especially the ejection seat which is the Pilot’s best safety companion under any life-threatening situation. All were perfectly functional.”

In aircrafts, an ejection seat or ejector seat is a system designed to rescue the pilot or other crew of an aircraft in an emergency. The seat is propelled out of the aircraft by an explosive charge or rocket motor, carrying the pilot with it.”

Manyuni knew about all these safety measures and had checked their functionality prior to using the Aircraft as is routine practice, according to Phatshwane. Could Manyuni have been going through emotional distress of some sort? Phatshwane says while he may never really know about that, what he can say is that there are laid out procedures in aviation guiding instances of emotional instability which Manyuni also knew about.

“We don’t allow or condone emotionally or physically unfit Pilots to take charge of an aircraft. If a Pilot feels unfit, he reports and requests to be excused. We will subsequently shift the task to another Pilot. We do this because we know the risks of leaving an unfit pilot to fly an aircraft,” says Phatshwane.

Despite having happened a day before the BDF day, Phatshwane says the BDF day mishap did not really affect the BDF day preparations, although it emotionally distracted Manyuni’s flying formation squad a bit, having seen him break away from the formation to the stone-hearted ground. The team soldiered on and immediately reported back to base for advice and way forward, according to Phatshwane.

Sharing the details of the ordeal and his Pilots’ experiences, Phatshwane said: “they (pilots) were in distress, who wouldn’t? They were especially hurt by the deceased‘s lack of communication. I immediately called a chaplain to attend to their emotional needs.

He came and offered them counselling. But soldiers don’t cry, they immediately accepted that a warrior has been called, wiped off their tears and instantly reported back for duty. I am sure you saw them performing miracles the following day at the BDF day as arranged.”

Despite the matter having attracted wide publicity, the BDF kept the crash details a distance away from the public, a move that Phatshwane felt was not in the best interest of the army and public.

“The incident attracted overwhelming public attention. Not only that, there were some misconceptions attached to the incident and I thought it was upon the BDF to come out and address those for the benefit of the public and army’s reputation,” he said.

One disturbing narrative linked to the incident was that Manyuni heroically wrestled the ‘faulty’ aircraft away from the endangered public to die alone, a narrative which Phatshwane disputes as just people’s imaginations. “Like I said the Aircraft was functioning perfectly,” he responded.

A close family member has hinted that the traumatised Manyuni family, at the time of their son’s tragedy, strongly accused the BDF ‘of killing their son’. Phatshwane admits to this development, emphasising that “Manyuni’s mother was visibly and understandably in inconsolable pain when she uttered those words”.

Phatshwane was the one who had to travel to Rakops through the Directorate of Intelligence Services (DIS) aircraft to deliver the sad news to the family but says he found the family already in the know, through social media. At the time of his death, Manyuni was survived by both parents, two brothers, a sister, fiancée and one child. He was buried in Rakops in an emotionally-charged burial. Like his remains, the BDF fighter jets have been permanently rested.

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Uphill battle in Khama’s quest to charge Hubona

5th May 2021
JAKO HUBONA

A matter in which former President Lt Gen Ian Khama had brought before Broadhurst Police Station in Gaborone, requesting the State to charge Directorate on Corruption and Economic Crime (DCEC) lead investigator, Jako Hubona and others with perjury has been committed to Headquarters because it involves “elders.” 

Broadhurst Police Station Commander, Obusitswe Lokae, told this publication this week that the case in its nature is high profile so the matter has been allocated to his Officer Commanding No.3 District who then reported to the Divisional Commander who then sort to commit it to Police Headquarters.

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