An enquiry into BPC tenders uncovers rotting corruption
A confidential report from enquiry on the award of tenders at Botswana Power Corporation (BPC) has recommended that key employees within the organisation be subjected to a Declaration of Assets exercise in a bid to find if they have been part of improper award of tenders cabal.
The confidential report seen by this publication was commissioned to give an overview on how procurement of equipment (imports) is conducted and awarded at BPC. The report titled “Enquiry into BPC tenders” which was released last month (5 May 2020), recommends that the organisation should be clear from the start whether they use selective tender or open tender process and which one will work for them.
[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”1,2,3″ ihc_mb_template=”1″ ]“There is a serious public outcry especially local entrepreneurs who have shared their frustrations inflicted on them by BPC for lack of transparency nor consistency in their processes,” noted the report. According to the report, BPC has proved to be disregarding Government’s initiative to drive Citizen Empowerment, their approach non-committal unpatriotic.
“For individual local companies to be able to purchase a tender they have to pay an arm and a half, for example some tenders are going for P7, 500. This will look to be lucrative tender where an individual will hope to be rewarded one day or the other,” the report indicated.
“Tenders as big as this one, costing millions of Pula is not locals, although this has not been made clear, the trend is that a selective tender will be done in the background whereby only manufacturers mainly from South Africa will be invited (they pay zero for tenders). One may wonder why a selective tender was not run in the first place without collecting hard earned money from Batswana and then abandon them.”
However, the report observed that, of the many tenders that are floated at BPC for importing of equipment or goods, less than 25 percent of the total annual budget of tenders is awarded to Batswana (local companies) and for that matter a selected few. “The bulk of these awards are secretly given on selective tenders on the pretext that the tenders are of urgent requirements. Even during their selective tenders there are those untouchable companies (SA manufacturers) which will always be awarded, these are major beneficiaries of BPC annual budget,”’ the report observed.
The report also observes the fact that BPC Supply Chain Managers have the propensity to rub shoulders with the selected Manufacturers. ‘‘Organized visits to these manufacturers’ sites is very intriguing in the sense that the element of collusion cannot be eliminated and will continue to be prevalent for as long as selective tenders are on the rise,” said the report. Conversely, the few local companies which are privileged to benefit from BPC tenders, prefer to use same manufacturers that are used by BPC in selective tenders.
FINDINGS
The enquiry highlighted that the previous CEO, had selected few people in influential positions to have total control. The current Chief Supplies Officer for BPC, Boitshepo Puleng, was suspended and replaced with Meshonga Tsimako who was working for Finance Department, the suspended officer has since returned to office but has not fully assumed his role because the acting Head of Supplies is still present, the report said.
Standards Officer Patrick Seleke was pushed out and replaced with Ronnie Batsile. Standards officers are vital in deciding which product goes through, CEO had to appoint strategically for any product that serves his needs to go through despite the company incurring losses.
The enquiry also note that Patrick Lewanika (former Supply Chain Manager) is still having some influence in deciding who is awarded the tender. Despite him and Cross Kgosidiilwe [former BPC CEO who has since joined Botswana Development Corporation] being old friends from Selibe Phikwe town where they grew up and schooled, his company Malepa Investments, has won a few tenders.
Another influential person, Lerothodi Moshoeshoe, the current acting CFO worked tirelessly for the former CEO ensuring that his plans are executed accordingly especially for repositioning himself accordingly on arranging the department organization chart for Supply Chain Management Personnel which reports to CFO, the report indicated.
The head of supply management was suspended and answerable for an offence that involved approval of and awarding of a 1 million Pula tender under dubious circumstances. Investigations, have proved that Boitshepo Puleng even though showed support and naivety in not doing due diligence checks, his superiors eventually continued to approve it.
“No action was taken on others, this is an issue that sent him on suspension, hearings are continuing. Unfortunately for the incumbent CFO, the former CEO has already held interviews for the position of CFO,” the report stated.
The report also indicated that Keogile Sesiane, Supply Chain Supervisor is still loyal to Lewanika as a front line staff who has access to first-hand information about local companies, indicating that he is the right hand man to Meshonga Tsimako.
“Anything discussed in his presence by his colleagues is censored for fear of annoying Head of Supply Chain. He has orchestrated a relationship between BPC and Dibanisa Holdings,” said the report. “This is a local company that is viewed by the current Supply Chain Management as the go to company. Not long ago, the Director of Dibanisa was a disgruntled individual, he somehow managed to break into the elite after winning the heart of Mr Sesiane, a very close associate and loyal servant to Ms Meshonga Tsimako (the two are believed to be a nail and finger).
“Since Ms Tsimako took over the acting Head of Supplies Management, Dibanisa is enjoying the time of his life, some tenders are revoked from other local companies and handed over to Dibanisa. We congratulate the local boy but we should be weary of the collusion.” The Directorate on Corruption and Economic Crime (DCEC) has since launched an investigation on BPC after one company allegedly benefited tenders worth close to P200 million last month alone.
DCEC confirmed two weeks ago that investigations have been initiated to find out the reliability of the procurement practices at the beleaguered institution. “The DCEC has received allegations of corruption from the institution [BPC] you have alluded to. However, I cannot discuss details of the said allegations as I am bound by the Corruption and Economic Crime Act from doing so,” said Lentswe Motshoganetsi, DCEC Public Relations Officer.
“Nevertheless, some of the allegations are still under investigation; some have been referred to the DPP for advice; while some have been closed due to insufficient evidence.”
BPC TENDER MAJOR BENEFERICIARIES
According to the report, local companies which are inundated with flowing tender awards are; Dibanisa- suppliers of various cables, transformers and other electrical equipment, major beneficiary because they are associated and aligned with the manufacturers; Rockville- likewise, associated to the elite manufacturers and well aligned.
ED Lights (local company of Indians- naturalized) – electrical supplies, metering units. The last tender on metering units was won by ED Lights, they are the agent for Conlog Metering Solutions South Africa, an identified ideal supplier for BPC in selective tenders.
Another company singled out is Carrera Holdings (Indian Owners in partnership with Batswana specifically for tendering- suppliers and installers of security equipment for BPC. “The fact that Carrera Holdings has origins’ from South Africa, it is worth noting who exactly Citizen Shareholders are,” the report highlighted.[/ihc-hide-content]
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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.