MPs approve P2.4 billion add-on budget
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Member of Parliament for Serowe North, Kgotla Autlwetse
Parliament has approved a total amount of P2.4 billion request for supplementary funding by government and government departments amid strong dissatisfaction from opposition MPs, to be financed through General Revenue balance and Development Fund revenues.
The Finance and Estimates Committee chaired by Member of Parliament for Serowe North, Kgotla Autlwetse approved P1, 104,713,370 recurrent supplementary budget and P 1, 381, 060, 038 for development fund supplementary budget requested by government Ministries. Opposition MPs contend that approving such request without prudent consideration through a framework and scoring system in place is grossly irresponsible.
The role of Finance and Estimates Committee is to interrogate and analyze the supplementary budget request and make recommendations to parliament. However, opposition is aggrieved by the manner in which the request was approved which rendered weak, parliament’s ability to play an oversight role.
Ndaba Gaolathe, who is a member of the committee, submitted in a fierce debate in parliament that no country in the world could appropriate such amount of money without careful considerations. “Ministry of Finance and Development Planning has its role as part of the executive, and parliament has to play its role as the legislature by providing oversight,” Gaolathe said.
Gaolathe is of the view that the Budget and Estimates Committee must have its own framework and scoring points to satisfy itself on whether the money requested are worth it or not.
The opposition MPs who are members of the Finance and Estimates Committee, Tawana Moremi, Shawn Nthaile and Ndaba Gaolathe submitted a proposal on the framework of analysis of supplementary funding of Government ministries, and its departments.
The framework identifies five key criteria, considered to be pertinent in any national supplementary budgeting process. This categories are; Category unforeseen, Category high systematic risk, Category cost-benefit, Category sustainability and Category Management of Risk.
Opposition argue that supplementary funding should only be those expenses that meet the requirements as prescribed by the constitution or that were foreseen but not budget for due to planning lapse or sudden changes in government revenue out-turn.
The proposal points out that the framework does not necessarily mean it could be used to deny ministries the money which they requested but assists in informing parliament under what circumstances did each ministry get approval for its request.
“For instance a score of 20% does not necessarily mean the Ministry deserves exactly 20% of the funding request but strongly suggest that the case for granting that money is weak, and should not attract a positive response in general because then in the long term fiscal approach of the country would be violated in the long term,” reads the report.
The total of supplementary funding required for recurrent expenditure is in the total of P1 104 713 370 allocated across eight ministries: State President (49.6 million), Labour and Home Affairs (P10.5 million), Education and Skills Development (P536.3 million), Local Government (P71.1million), Foreign Affairs (P1million), Environment, Wildlife and Tourism (P2 million), Transport and Communication (P43.3 million) and Defence, Justice and Security (390.8 million).
The total supplementary funding required for capital expenditure is P1 381 060 038 million divided among Agriculture (P497 million), Education and Skills Development (P396.1 million), Environment, Wildlife and Tourism (P46 million) and Defence, Justice and Security (P442 million).
A frame work and scoring system proposal reveals that in their analysis, ministries and government department scored the following points; Agriculture (51%), BDF (52%), DIS (33%), Education and Skills Development (66%), Environment, Wildlife and Tourism (39%), Home Affairs (50%) and, Transport and Communications (66%).
In essence the proposal reveals that Ministries like Education and Skills Development and, Transport and Communications had stronger case for seeking supplementary funding while ministries like Environment, Wildlife and Tourism, DIS department have weak points for seeking supplementary funding.
The proposal says it is not clear why Directorate on Intelligence and Security Services (DIS) should constitute a supplementary request since the reasons for the quantum required for service level agreements are not clear. Their recommendation was that this should be assessed at the level of the regular budget process as it does not meet any of the requirements for supplementary funding.
The proposal also note that a ministry like of Environment, Wildlife and Tourism, should only be given 40% of the requested budget i.e P15.2 million because there is no reason why the ministry should commit to build a rhino protection capability of such magnitude overnight, while it can be phased and also could be planned for through the normal Government budgeting process. The proposal also recommend the same for Ministry of Labour and Home Affairs by approving 0nly 50% of the request while the remaining is routes through the normal government budgeting process.
The proposal grants Ministry of Education and Skill Development the total amount of money requested by request that the money be approved on condition that the ministry submit a risk management plan, a major part of which should be how the ministry intends to address the ‘planning risk’ that permeates its functioning.
Opposition members of the committee are the view that by granting 100 percent of the supplementary requests by ministries, the Finance Estimates parliamentary has erred, and this will create not only a precedent but a culture that will compromise Botswana government’s system of sustainable budgeting.
CONSOLIDATED FUND
Ministry of State President- P50 million
Office of the President – (P12 ,3 million)
Subsistence cost on travel
Operational cost of two new offices
Vehicle maintenance
Directorate of Corruption and Economic Crime – (P7 587)
Augment Basic Salary Allowances
Directorate of Intelligence and Security (P28.5 million)
Service Level Agreement for Computer Systems Maintenance
Ministry of Labour and Home Affairs – P11 million
Cater for fixed contract which maintains the system for Passport and Border Control
Ministry of Education and Skills Development- P500 million
Shortfall in salaries and allowances
Cater for increase in sponsored students
Ministry of Local Government and Rural Development – P71 million
Destitute Allowances, World War Veterans and Old Age Pension
Ministry of Foreign Affairs and International Cooperation – P1 million
Replace amounted advanced for humanitarian situation in Sierra Leon, Liberia and Guinea for Ebola epidemic
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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries
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
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
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.