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BMC cash flow problems ignite protests

BMC makes a quick pay-out of 9 Million Pula

Several farmers in the Ghantsi Administration District recently spent a night at the Botswana Meat Commission (BMC) offices in protest of late payment of their slaughtered cattle as the cash flow of the beef exporting commission remains in the red.


The BMC had to make a quick payout of 9 Million Pula the following day as more farmers arrived the following morning demanding payments, further, mounting the pressure.


“BMC paid out nine Million Pula in two transactions, the first was made in the morning (5 Million) and the next was made in the afternoon (4 Million) on Wednesday 24 June to assist some farmers who had requested for their pay-outs that day. Beyond this, BMC has further increased its deposits to varied accounts for farmers to cash-out their vouchers on continual basis. The latter is still ongoing,” explained the Commission’s Public Relations Manager, Brian Dioka this week in response to WeekendPost questions.

On the 22nd June farmers were expecting payments, but a week leading to the set date the Commission sent out text messages and called the affected farmers informing them that their payments will be delayed or pushed back by five days due to unforeseen circumstances that needed urgent attention. This consequently meant, payments for the week 15-19 June were pushed back by a week and therefore were to be honoured as of 22nd June onward considering who supplied first.

However on the 22nd June, no payments were seemingly coming forth and farmers were getting agitated. Several of them refused to leave the BMC offices at closing time and spent the night there.

“We were reliably informed by our Extension Officers that about seven individuals spent a night at BMC offices, and this was not all Ghantsi Farmers but some,” Dioka confirmed and added that, “unfortunately some farmers came to BMC Ghantsi Offices, even though they were not first on the line to be paid-out, this therefore required BMC to adjust its payment plan to now cater for all outstanding balances regardless of prioritising according to supply, to discourage any further inconveniences.”

BMC does not only owe Ghantsi farmers, but even farmers and suppliers in other parts of the country that supplied cattle to its three abattoirs from both the commercial holdings and field-buying. However Dioka and the current Minister of Agriculture, Patrick Ralotsia, maintain that no special dispensation was done for Gantsi farmers as the payments were an already existing plan.

“No special dispensation was made to favour Ghantsi Farmers, the Commission took a decision to address the issue of some farmers in Ghantsi who at that time seemed stranded or challenged to go back to their homes given the emergent challenges of going back home. BMC has continued with its plan from June 22nd to clear all outstanding balances, and this is currently ongoing. BMC has never failed to pay its suppliers or honour payments. The only issue here is the delay, noting the above-said. Even as we speak Farmers in other parts of the country are currently being paid on a daily basis,” Dioka further explained.

The BMC liquidity has been publicly profiled and it is a well known factor that it is still recovering. This is also largely part to the outdated current operative model, which BMC has motivated for its reforms and asked for all stakeholders to be supportive of it.

The referred operative-model is designed in such a way that BMC buys non-compliant cattle from the fields or communal areas and transfers them to feedlots for a stay of 90 days (3 months), then slaughter and sell to markets which takes about 8 week, making the total waiting period of realizing sales-proceeds for such production to be 5-6 months.

Dioka says even with knowledge of the latter, some beef cattle suppliers, requires that they be paid within 21 days or even less.


“It must be noted that while at feedlots, BMC alone foots the bill for cattle feed, occupancy, transport and other logistics, further tying-up immediate cash to honour farmers payments within the shortest possible time. This is done to get the cattle to comply with slaughter and market requirements amongst other, so in simple terms, cattle bought from communal areas (which makes about 70 percent of supply to BMC) have to wait for 3 months to be slaughtered,” Dioka contended.


However the Ghantsi South Member of Parliament, Noah Salakae is of the view that communal farmers are being exploited by the Commission because they do not have an alternative market.


“People’s cattle are taken from them because they are hopeless, they do not have any other place to sell them other than BMC. They wait up to two months and even beyond for payments. Just recently the Ghantsi farmers had to spend a night at the BMC office as a last resort and they were paid the following morning. Is this what BMC has become? Is this what it takes for people to be paid for their cattle?” Salakae rhetorically commented.


Meanwhile the Minister of Agriculture, Patrick Ralotsia is optimistic that the Commission is in the right path of recovery as its cash flow has significantly improved since the take-over of new management in 2013.

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Government sitting on 4 400 vacant posts

14th September 2020
(DPSM) Director Goitseone Naledi Mosalakatane

Government is currently sitting on 4 400 vacant posts that remain unfilled in the civil service. This is notwithstanding the high unemployment rate in Botswana which has been exacerbated by the recent outbreak of the deadly COVID-19 pandemic.

Just before the burst of COVID-19, official data released by Statistics Botswana in January 2020, indicate that unemployment in Botswana has increased from 17.6 percent three years ago to 20.7 percent. “Unemployment rate went up by 3.1 percentage between the two periods, from 17.6 to 20.7 percent,” statistics point out.

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FNBB projects deeper 50 basis point cut for Q4 2020

14th September 2020
Steven Bogatsu

Leading commercial bank, First National Bank Botswana (FNBB), expects the central bank to sharpen its monetary policy knife and cut the Bank Rate twice in the last quarter of 2020.

The bank expects a 25 basis point (bps) in the beginning of the last quarter, which is next month, and another shed by the same bps in December, making a total of 50 bps cut in the last quarter.  According to the bank’s researchers, the central bank is now holding on to 4.25 percent for the time being pending for more informed data on the economic climate.

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Food suppliers give Gov’t headache – report

14th September 2020
Food suppliers give Gov’t headache

An audit of the accounts and records for the supply of food rations to the institutions in the Northern Region for the financial year-ended 31 March 2019 was carried out. According to Auditor General’s report and observations, there are weaknesses and shortcomings that were somehow addressed to the Accounting Officer for comments.

Auditor General, Pulane Letebele indicated on the report that, across all depots in the region that there had been instances where food items were short for periods ranging from 1 to 7 months in the institutions for a variety of reasons, including absence of regular contracts and supplier failures. The success of this programme is dependent on regular and reliable availability of the supplies to achieve its objective, the report said.

There would be instances where food items were returned from the feeding centers to the depots for reasons of spoilage or any other cause. In these cases, instances had been noted where these returns were not supported by any documentation, which could lead to these items being lost without trace.

The report further stressed that large quantities of various food items valued at over P772 thousand from different depots were damaged by rodents, and written off.Included in the write off were 13 538 (340ml) cartons of milk valued at P75 745. In this connection, the Auditor General says it is important that the warehouses be maintained to a standard where they would not be infested by rodents and other pests.

Still in the Northern region, the report noted that there is an outstanding matter relating to the supply of stewed steak (283×3.1kg cans) to the Maun depot which was allegedly defective. The steak had been supplied by Botswana Meat Commission to the depot in November 2016.

In March 2017 part of the consignment was reported to the supplier as defective, and was to be replaced. Even as there was no agreement reached between the parties regarding replacement, in 51 October 2018 the items in question were disposed of by destruction. This disposal represented a loss as the whole consignment had been paid for, according to the report.

“In my view, the loss resulted directly from failure by the depot managers to deal with the matter immediately upon receipt of the consignment and detection of the defects. Audit inspections during visits to Selibe Phikwe, Maun, Shakawe, Ghanzi and Francistown depots had raised a number of observations on points of detail related to the maintenance of records, reconciliations of stocks and related matters, which I drew to the attention of the Accounting Officer for comments,” Letebele said in her report.

In the Southern region, a scrutiny of the records for the control of stocks of food items in the Southern Region had indicated intermittent shortages of the various items, principally Tsabana, Malutu, Sunflower Oil and Milk which was mainly due to absence of subsisting contracts for the supply of these items.

“The contract for the supply of Tsabana to all depots expired in September 2018 and was not replaced by a substantive contract. The supplier contracts for these stocks should be so managed that the expiry of one contract is immediately followed by the commencement of the next.”

Suppliers who had been contracted to supply foodstuffs had failed to do so and no timely action had been taken to redress the situation to ensure continuity of supply of the food items, the report noted.

In one case, the report highlighted that the supplier was to manufacture and supply 1 136 metric tonnes of Malutu for a 4-months period from March 2019 to June 2019, but had been unable to honour the obligation. The situation was relieved by inter-depot transfers, at additional cost in transportation and subsistence expenses.

In another case, the contract was for the supply of Sunflower Oil to Mabutsane, where the supplier had also failed to deliver. Examination of the Molepolole depot Food Issues Register had indicated a number of instances where food items consigned to the various feeding centres had been returned for a variety of reasons, including food item available; no storage space; and in other cases the whole consignments were returned, and reasons not stated.

This is an indication of lack of proper management and monitoring of the affairs of the depot, which could result in losses from frequent movements of the food items concerned.The maintenance of accounting records in the region, typically in Letlhakeng, Tsabong, and Mabutsane was less than satisfactory, according to Auditor General’s report.

In these depots a number of instances had been noted where receipts and issues had not been recorded over long periods, resulting in incorrect balances reflected in the accounting records. This is a serious weakness which could lead to or result in losses without trace or detection, and is a contravention of Supplies Regulations and Procedures, Letebele said.

Similarly, consignments of a total of 892 bags of Malutu and 3 bags of beans from Tsabong depot to different feeding centres had not been received in those centres, and are considered lost. These are also not reflected in the Statement of Losses in the Annual Statements of Accounts for the same periods.

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