Why PPADB trades with shady companies
PPADB Executive Director Bridget John at one of her organisation’s briefings
The Public Assets and Disposal Board (PPADB) has explained why it continues doing business with companies which are implicated in alleged fraudulent awarding of tenders; and are currently subject of investigation by the Directorate on Corruption and Economic Crime (DCEC).
It has come to the attention of this publication that although PPADB introduced delisting measures as a way of curbing alleged corruption and unethical practices from contracting companies, some companies implicated in unethical practices have not been deregistered by government central procurement entity despite the PPADB being aware of investigations launched by DCEC.
The PPADB spokesperson Ditapole Chibua-Tsheboeng revealed that, PPADB cannot deter a company from tendering based on ongoing investigations by the DCEC since the allegations levelled against the company may prove to be untrue after the conclusion of the investigations.
She noted that action to suspend or delist is taken after a company had been found guilty following the investigation. Chibua-Tsheboeng says by virtue of being part of a Memorandum of Understanding (MoU), DCEC forms part of the committee which is instrumental in either delisting or suspending companies.
According to the organization’s recent Annual Report (2013/2014) the Suspension and Delisting Disciplinary Committee was able to consider submissions from Procuring Entities (PEs) to either delist or suspend eight contractors. The committee considered the submissions and referred five of them back to the PE’s to provide additional information whilst one is still under consideration. The report further states that following the recommendation from the Suspension and Delisting Disciplinary Committee, the board delisted Kentz Botswana (Pty) Ltd, and warned Mylan Laboratories.
Weekend Post can authoritatively reveal that atleast three more companies namely (names withheld) are currently subject of DCEC investigation but do not appear in the report either for suspension or delisting from doing business with PPADB.
This publication has it on good authority that in August 2014, DCEC launched an investigation on the affairs of PPADB in which at least these three companies were implicated in a series of maladministration and dubious awarding of tenders. DCEC has entrusted two agents to start investigating the fraudulent award of tenders which also implicate a significant number of employees in the management of PPADB.
The government crime busting agency was informed earlier last year about the bid rigging and fraudulent award of tenders at PPADB orchestrated by certain employees and a group of company directors to influence the outcomes of the tenders.
The three companies which are currently subject of investigations are being probed for fraud relating to winning tenders they do not qualify for through conspiring with some members of the PPADB staff to manipulate the bidding process. It has transpired that since 2009, the directors of these companies have consistently won the tenders by conniving with some of the PPADB staff members to exalt their companies into higher grades, therefore helping them to win more lucrative tenders they ordinarily do not qualify for.
PPABD has contractor grading ceiling in which companies are graded into different categories depending on the experience of the company, qualifications of its employees and equipments/assets which the company owns to determine the magnitude of tenders they can be awarded. In the construction category, which is currently under DCEC investigations the grades are; OC, A, B, C, D, and E. The threshold of tenders a company can be awarded falls under the following categories are; Grade OC (P1.5 million), Grade A (P4 million), Grade B (20 million), Grade C (P40 million), Grade D, (P85 million) while Grade E has unlimited threshold.
The primary mandate of PPADB is to adjudicate and award tenders for Central Government and any other institutions specified under the Act for the delivery of works, services and supplies related services. This is coupled with the registration and grading of contractors who so which to do business with government. This is to ensure that projects are prudentially managed to ensure value for money in the procurement and disposal of assets.
In an economy of Botswana’s size, government continues to be the main player and the biggest provider of business to private sector. Government expenditure through public procurement activities represents about 70% of the Gross Domestic Product. This essentially means the well functioning of the economy in Botswana solely rest on the efficiency and the integrity of its public procurement system when compared to most developed countries where public procurement account to a less percentage of up to 20 percent.
PPAD has partnership with the Organisation for Economic Co-operation Development (OECD) which supports governments in reforming their public procurement systems to ensure cost savings and better service delivery. OECD promotes efficient and effective public procurement system because it considers public procurement the backbone of a well-functioning government that ensures delivering quality services to the public.
In August 2012 PPADB entered into Memorandum of Understanding with Competition Authority (CA) and DCEC with the objective of ; regulating public procurement and deal with corruption and economic crime, preventing and addressing anti-competitive practices in the economy, and to remove constraints on the free play of competition in the market.
The purpose of the MoU was to strengthen cooperation amongst the three entities and facilitate timely sharing of relevant information to support the work of each party and to collectively contribute to the creation of a good business environment that inspires investor confidence.
According to the Contractor Code of Conduct, a contractor shall not submit false information during the tendering process in order to deceive the Board, a procuring or disposing entity or clients into believing that the contractor has capabilities and capacities to perform contracts which the contractor is not capable of doing.
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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.