Minister of Finance & Economic Development, Dr Thapelo Matsheka has cried foul of the business community saying the private sector is not collaborative when it comes to government‘s efforts geared towards empowering Batswana through procurement.
Delivering the 2020/21 Budget Speech on Monday, Dr Matsheka said Government is concerned that, despite the efforts to empower Batswana through procurement, prices charged by the private sector for purchase of goods and services by Government are substantially higher than the market prices. “This means that Government does not get value for money. Therefore, the private sector needs to appreciate that by so doing, they are depriving the public of essential services that are expected to be provided by Government,” he said.
Government procurement is worth around P15 billion annually. This is predominantly administered by Public Procurement & Asset Disposal Board (PPADB) as the body that receives bids, evaluates, adjudicates and allocates mega tenders. Amongst other goods and services acquired under the government procurement system is infrastructure development, medical and pharmaceutical services, supplies of goods, services and other works.
In an interview with WeekendPost on the sidelines of the budget speech Public Procurement and Asset Disposal Board (PPADB) Executive Chairperson Elijah Motshedi said his organization is well aware of exorbitant charges that government is subjected to by business owners. “We have noted this trend and it cuts across the entire procurement space whether supplies, works or services, when it comes to government the prices are hiked way beyond market threshold,” he said.
Motshedi explained that according to several studies undertaken by his organization it has emerged that several reasons contributes to this trend. “One of the findings from our assessment is that government payments process takes too long , thus services providers price for that as part of the risk , encompassing the fact that during a longer payment duration rates may also go up.”
The PPADB Boss added that bidders also price for longer tendering period taking into account that some government tendering processes can take longer and stretch to even a year “Bidders will then say by the time the tender closes rates may have gone increased , thus they price for that resulting in exorbitant charges,” he said. Elijah Motshedi reiterated that PPADB has since highlighted these inefficiencies on the part of government to authorities. “We indicated to Government that these impediments in the procurements system have significant contribution to this increasing and worrying trend of above market price charges.
On the part of private sector Motshedi explained that the business community has also been addressed to make them aware of acceptable charges “ we have a price guide in place that we communicate to our service providers to say let’s not rip off and take government for a ride with over 100 % profits charges,” he said.
PPADB has also included in the proposed review of PPAD act a bid to enable the board to negotiate prices “Currently after earmarking a bidder we cannot negotiate prices, this is not helping and we are hoping the proposed amendment once passed and approved into law will assist with making sure government funds are not depleted with these exorbitant charges.
CITIZEN ECONOMIC EMPOWERMENT LAW
Finance Minister however underscored that government is committed to citizen economic empower against all odds. Matsheka revealed that Government is currently formulating a law on citizen economic empowerment to support the existing Citizen Economic Empowerment (CEE) policy. “Over the years, Government has embraced citizen empowerment in its development planning process because of the low citizen participation in economic development in the country.”
Minister Matsheka noted that among the existing initiatives, include citizen reservation, where only 100 percent citizen owned companies are eligible to participate; price preference where citizen owned companies, joint ventures/associations of citizens and non-citizens and local companies are eligible for preference; and mandatory subcontracting to citizen owned companies.
The other existing citizen economic initiatives include: the Economic Diversification Drive (EDD), where procurement is reserved for local manufacturers and service providers regardless of citizenship; Local Procurement Scheme (LPS), which facilitates economic development in rural areas using public procurement in line with the CEE Policy.
The objective is to empower women, youth and people living with disability in general, and specifically in the rural areas in line with Section 66(3) of the PPAD Act. The Scheme also introduces preference in tenders within the District Administration Tender Committees (DATC) threshold, whether administered by the DATC or Ministerial Tender Committees (MTC).
The Scheme requires that a 20 percent target quota be reserved for the target groups in all tenders above the micro procurement financial threshold, but within the DATC financial threshold at all districts country wide. Minister Matsheka reiterated that despite the existence of these schemes, effective citizen participation in some sectors of the economy has not been satisfactory, hence the decision to move from policy to a law to ensure effectiveness in application and implementation of the citizen economic empowerment agenda.
He explained that the law will address the inequalities of the past by transferring the country’s wealth to disadvantaged Batswana, thereby allowing for more participation of citizens in the economy. Dr Matsheka shared that Government has developed a Consolidated Framework for Empowerment Programmes. A key feature of this Framework is the proposal to separate economic empowerment programmes and social upliftment schemes, which will be critical in promoting entrepreneurship development and enterprise development.
The Framework acknowledges the relevance and importance of social upliftment towards developing sustainable livelihood. “However, this model puts more emphasis on entrepreneurship to address unemployment, economic growth, poverty eradication and economic diversification,” he said
While there is no hard-and-fast rule in politics, former Molepolole North Member of Parliament, Mohamed Khan says populism acts in the body politic have forced him to quit active partisan politics. He brands this ancient ascription of politics as fake and says it lowers the moral compass of the society.
Khan who finally tasted political victory in the 2014 elections after numerous failed attempts, has decided to leave the ‘dirty game’, and on his way out he characteristically lashed at the current political leaders; including his own party president, Advocate Duma Boko. “I arrived at this decision because I have noticed that there are no genuine politics and politicians. The current leaders, Boko and President Dr Mokgweetsi Masisi are fake politicians who are just practicing populist politics to feed their egos,” he said.
Former Botswana Democratic Party (BDP) parliamentary hopeful, Lawrence Ookeditse has rejected the idea of taking up a crucial role in the Botswana Patriotic Front (BPF) Central Committee following his arrival in the party this week. According to sources close to development, BPF power brokers are coaxing Ookeditse to take up the secretary general position, left vacant by death of Roseline Panzirah-Matshome in November 2020.
Ookeditse’s arrival at BPF is projected to cause conflicts, as some believe they are being overlooked, in favour of a new arrival. The former ruling party strategist has however ruled out the possibility of serving in the party central committee as secretary general, and committed that he will turn down the overture if availed to him by party leadership.
Ookeditse, nevertheless, has indicated that if offered another opportunity to serve in a different capacity, he will gladly accept. “I still need to learn the party, how it functions and all its structures; I must be guided, but given any responsibility I will serve the party as long as it is not the SG position.”
“I joined the BPF with a clear conscious, to further advance my voice and the interests of the constituents of Nata/Gweta which I believe the BDP is no longer capable to execute.” Ookeditse speaks of abject poverty in his constituency and prevalent unemployment among the youth, issues he hopes his new home will prioritise.
He dismissed further allegations that he resigned from the BDP because he was not rewarded for his efforts towards the 2019 general elections. After losing in the BDP primaries in 2018, Ookeditse said, he was offered a job in government but declined to take the post due to his political ambitions. Ookeditse stated that he rejected the offer because, working for government clashed with his political journey.
He insists there are many activists who are more deserving than him; he could have chosen to take up the opportunity that was before him but his conscious for the entire populace’s wellbeing held him back. Ookeditse said there many people in the party who also contributed towards party success, asserting that he only left the BDP because he was concerned about the greater good of the majority not individualism purposes.
According to observers, Ookeditse has been enticed by the prospects of contesting Nata/Gweta constituency in the 2024 general election, following the party’s impressive performance in the last general elections. Nata/Gweta which is a traditional BDP stronghold saw its numbers shrinking to a margin of 1568. BDP represented by Polson Majaga garnered 4754, while BPF which had fielded Joe Linga received 3186 with UDC coming a distant with 1442 votes.
There are reports that Linga will pave way for Ookeditse to contest the constituency in 2024 and the latter is upbeat about the prospects of being elected to parliament. Despite Ookeditse dismissing reports that he is eying the secretary general position, insiders argue that the position will be availed to him nevertheless.
Alternative favourite for the position is Vuyo Notha who is the party Deputy Secretary General. Notha has since assumed duties of the secretariat office on the interim basis. BPF politburo is expected to meet on 25th of January 2020, where the vacancy will be filled.
Botswana Democratic Party (BDP) big wigs have decided to cancel a retreat with the party legislators this weekend owing to increasing numbers of Covid-19 cases. The meeting was billed for this weekend at a place that was to be confirmed, however a communique from the party this past Tuesday reversed the highly anticipated meeting.
“We received a communication this week that the meeting will not go as planned because of rapid spread of Covid-19,” one member of the party Central Committee confirmed to this publication. The gathering was to follow the first of its kind held late last year at party Treasurer Satar Dada’s place.