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FRIDAY 17 JULY 2020 - 23 JULY 2020 VOL. 2 ISSUE #304

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DOMESTIC EXCHANGE RATES: USD/BWP 0.0865 ZAR/BWP 1.4432 GBP/BWP 0.0690 EURO/BWP 0.0756 ...MARKET HIGHLIGHTS ON PAGE 09

story on pages 02

story on page 03

INSIDE

Triggered by a looming lawsuit currently before Justice Moroka of Francistown High Court, the BDF has filed papers in

response...page 07

army nurses,

BDF in Do-or-Die

court Battle

Cash-strapped BPC has received P148million as the first tranche of a P500 million government rescue package for

the power entity...page 03

The Competition Authority (CA) has unconditionally approved the proposed sale and purchase of an immovable

property, Lot 79961 that...page 13

Broke Bpc

receives p148m

From govt

ca approves time

projects property

acquisition

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HOW SOUTH AFRICA OBSTRUCTS BOTSWANA'S JUSTICE SYSTEM

MOLEFE IMPLICATES MORUPISI IN POTENTIAL CONFLICT OF INTEREST

• morupisi DiDn’t Declare BeneFicial interest in cmB-moleFe

• morupisi linkeD to cmB Directors

• Bakang seretse letter Blew whistle on morupisi

GABORONE 13 July 2020, Carter Morupisi and his wife Pinnny Morupisi at High Court for alleged corruption charges (Pic:monirul Bhuiyan/Press Photo)

News

weather

GABORONE TODAY (FRI)

plenty of sunshine

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plenty of sunshine

Chilly

plenty of sunshine

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TEAM

SUB EDITOR

Douglas Motheo

douglasmotheo@gmail.com

SALES & MARKETING

Mosetsanagape Chifana

mosschifana@gmail.com

GRAPHICS GUY

Taelo Maphorisa

taelobw@gmail.com

CONTRIBUTORS

Jonathan Hore

Sonny Serite

Nature Mogotsi

INSIDE

News 2-9

Tax & your Pocket 10

Companies & Markets 11

DISCLAIMER

Commentaries, letters and columns

present are the views of the authors

and not necessarily those of

The Business Weekly & Review

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2THE BUSINESS WEEKLY & REVIEW

Friday 17 July 2020 - 23 July 2020 www.businessweekly.co.bw

Frustration is the right word to describe how Botswana’s Directorate of Public

Prosecutions (DPP) feels towards his South African counterparts. During a press briefing a fortnight ago to announce DPP’s decision to engage AfriForum to facilitate a request by the Botswana Government for Mutual Legal Assistance (MLA) from South Africa in the Bank of Botswana fraud and money-laundering probe, DPP Director Stephen Tiroyakgosi ran short of expressing his department’s frustrating relationship with South African authorities.

Tiroyakgosi had submitted a request for MLA for the case to South Africa’s Department of International Relations and Co-operation on September 25, 2019. But almost a year later, no assistance has been forthcoming. Infact, Tiroyakgosi, had to submit a second request after the South African authorities claimed the initial one had mysteriously disappeared from their records.

The case at hand is a very delicate one in that it involves powerful politically exposed persons and well connected businesspeople in both Botswana and South Africa, hence the suspicions that South Africa’s dawdling is orchestrated from high echelons of power to frustrate the investigation. It is also believed that the move is intended to discredit the Director General of the Directorate of Intelligence and Security Service, Peter Magosi, who has been tireless in his pursuit of the suspects. Thus, upon their conclusion that no assistance would come from South African authorities, the DPP opted an organisation that is completely out of the reach of any the powerful sought to face justice.

However, in doing so, the DPP’s choice of AfriForum was a move that no one could have anticipated, for AfriForum is an Afrikaner proto-nationalist organisation that is dimly regarded as an apartheid advocacy outfit out to reverse the gains of democracy and majority rule in South Africa. Its website presents it as a civil rights organisation that mobilises Afrikaners, Afrikaans-speaking

people and other minority groups in South Africa and protects their rights.

Investigations by this reporter, however, point to a time-ticking bomb that has been waiting to explode for a long time even before AfriForum showed up. The Bank of Botswana case just broke the camel’s back. The frustrations of the DPP are not new as they can be traced to cases from as far back as 2017, long before the Bank of Botswana alleged ‘heist’ came to the fore. A cursory look at nearly 50 cases that have been presented to South African authorities for Mutual Legal Assistance shows that Batswana and Botswana-registered companies were swindled out of money amounting to almost P40 million by South African individuals and companies between 2017 and 2019 because South African authorities have done little to assist its smaller neighbour to bring the felons to justice. In one case, Botswana authorities alerted their South African counterparts about a transaction of P11 million and asked for the account at a South African bank to be frozen but to no avail. Today the balance in that account stands at just 1 million in South African Rands.

Another case involves a Motswana who was drawn to an Internet advert about a

company named AMS Industrial Machinery that was selling livestock mixers/grinders. The Motswana subsequently paid R15,800 into bank account number 62553078728 held at FNB in Port Elizabeth belonging to a company called AMS Industrial Machinery. When the company failed to deliver, a need for Mutual Legal Assistance was triggered and submitted in July 2019. To-date South African authorities are yet to respond.

In another instance, a Botswana company was defrauded funds amounting to R145,535 under the impression that it was payment for a tender for solar generators it received purportedly from the American Embassy. The funds were sent to Gulf Suppliers (Pty) Ltd Account no. 62646911330, First National Bank. An MLA request was submitted to South African authorities in November 2019 but nothing has come of it. There is also a case of fraud in which a Motswana businessman reported receiving an email from one Benjamin Paledi of PPADB to supply the Ministry of Finance and Economic Development with gas detectors. The businessman said he was given a link to a South African company that would provide the detectors. He then transferred P104,483.85 to its bank account number 62775143440 held at an

FNB branch code 250655 but subsequently realised that it was a scam.

An accountant from a local electrical appliance distribution company reported that around October 2018, he received a call from a certain Nomagugu Nyoni who presented as an Accountant at Schneider Electric in South Africa that usually supplied the Botswana company with electrical appliances. Nyoni informed the accountant in Botswana that Schneider Electric had changed its banking details. In October 2018, when the company in Botswana was about to pay Schneider, its accountant, a woman, called the Botswana accountant to provide the new banking details as she had promised. Nyoyi forwarded the banking details and the Botswana accountant accordingly made a transfer of R455 160.26 to account number 62787590142 held at an FNB branch of code 250655. However, on 14 January 2019 the Botswana company received a call from Nyoyi saying Schneider had not received any payment and had not changed its banking details. An MLA was subsequently submitted but was never acted upon.

Freelance Investigative Reporter SONNY SERITE takes a peek into what might have triggered

Botswana to choose an Afrikaner proto-nationalist organisation for assistance in following the

money trail from the Bank of Botswana to banks in South Africa and further afield in order to

strengthen the prosecution of powerful personages in both Botswana and South Africa

A PEEK INTO HOW SOUTH AFRICA FRUSTRATES BOTSWANA CRIMINAL JUSTICE

These are just few of the many cases that have added to mounting frustration with South Africa at the DPP. At the time of going for press, the DPP had not yet responded to questions sent while a call to the head of DISS, Magosi, was not answered.

The case at hand is a very delicate one in that it involves

powerful politically exposed persons

and well connected businesspeople in both

Botswana and South Africa, hence the

suspicions that South Africa’s dawdling is orchestrated from high echelons of

power to frustrate the investigation.

Gerrie Nel

(Pic: www.

enca.com)

The DISS boss Peter Magosi, has been in pursuit of the alleged money trail from the Bank of Botswana to banks in South Africa up to no vail which led government of Botswana to engage Gerrie Nel to help trace the money. In the picture former President Lt.Gen Dr Seretse Khama Ian Khama arrives at the BDP National Retreat in Palapye on 2 February 2019 before things fell apart, Peter Magosi walks alongside him. (Pic:monirul Bhuiyan/Press Photo)

News 3THE BUSINESS WEEKLY & REVIEWFriday 17 July 2020 - 23 July 2020www.businessweekly.co.bw

PRESS RELEASE

Icho Molebatsi appointed as partner at PwC

PwC is pleased to announce the appointment of Icho Molebatsi

as a partner in its Botswana practice, with effect from 1 July 2020.

Icho has been with PwC for 17 years and rose through the ranks

from new graduate to his admission to the partnership.

During this time, he has worked in Botswana and South Africa,

where he was seconded to work in our Mining and Utilities

industry group. Before his appointment as a partner, he served a

cross section of industries in the capacity of Associate Director.

Icho will be responsible for overseeing and growing our Broader

Assurance Services practice in Botswana.

Icho is a member of the Botswana Institute of Chartered

Accountants (BICA), Association of Chartered Certified Accountants (UK) and the Institute of Internal Auditors Botswana

(IIAB). He is a member of the Botswana Integrated Reporting

Committee under BICA and a former board member of the IIAB.

Commenting on Icho’s admission to the firm’s partnership, Butler Phirie (Country Senior Partner), said “I am pleased to

welcome Icho as a partner. His admission bears testimony to

our firm’s training and development efforts. At PwC, we create opportunities for personal growth and success, value diversity,

and stand for quality and integrity. Icho represents the next

generation of leaders who put people first — leaders who do the right thing for our staff, our clients, and the communities in which

we live. Icho’s dedication and focus on quality and client service

have been exemplary. He is a true professional dedicated to

contributing to solving important societal problems.”

© [2020] PwC. All rights reserved.

KABO RAMASIA

Staff Writer

TO PAGE 05

STAFF WRITER

Cash-strapped Botswana Power Cooperation (BPC) has received P148million

as the first tranche of a P500 million government rescue package for the power entity, The Business Weekly & Review has established.

After months of speculation that BPC had squandered all its funds and was at a point of collapse, the power utility has opened up to this publication on its struggles for much-needed cash and power in its operations.

Responding to The Business Weekly & Review’s enquiry into the matter, BPC Manager Marketing and Communications, Dineo Seleke, said by email: “The allegation is unfounded. BPC wishes to clarify that at the time of speculation around the P500 million fund by the government, the process to release funds to BPC was in progress.”

“The Corporation has to-date received the first tranche of the P500million amounting to P148million which was received on 19 June 2020. This amount is being used to supplement local power generation fuel (coal) costs as well as power importation.”

In earlier editions, this publication reported that May salaries were postponed as BPC was cash-strapped. A letter to employees seen by this reporter

dated 22 May 2020 sought to explain the postponement of salaries. “The postponement is mainly on the basis that the Corporation is currently experiencing cash flow challenges as a result of the COVID-19 pandemic, hence proving difficult to meet the deadline.” the letter said.

Quizzed about the cash flow crisis, Seleke answered: “Like most businesses, during the COVID-19 pandemic period, BPC experienced (a) sales revenue decline due to the reduced consumption of electricity by major businesses, e.g. mines, commercial customers. This reduced consumption (and) the cash inflow profile was adversely affected.”

She said BPC was working round the clock to remedy the situation. “However, BPC is implementing cost management strategies to ensure business continuity.”

Asked if BPC would be able to pay staff salaries for the remainder of the year, Seleke responded: “BPC has always met its obligations to pay salaries within the month they fall due. The Corporation will continue to honour this obligation. Meanwhile, the 48hrs extension of payment of June 2020 salaries was a cash flow management measure to address the COVID-19 impact on cash flow.”

• Utility failed to pay May salaries on time• Blamed Covid-19 for revenue decline

BROKE BPC RECEIVES P148M froM govt

As the jury is still out, a key expression that may turn out to be essential in the

high profile graft case in which the state is gunning for former PSP Carter Morupisi is the word phrase “beneficial interest”. This phrase emerged as star witness Boitumelo Molefe took to the witness stand and sought to give an account of the BPOPF-CMB tale of sorrows that led to the misappropriation of over P600million of pensioners’ funds.

According to Molefe, the former Principal Officer at Botswana Public Officers Pension Fund (BPOPF), the BPOPF received a letter from Bakang Seretse which alleged that Morupisi, as Chairman of the BPOPF board might have had beneficial interest in CMB.

However, the court has learnt that Morupisi failed to declare his beneficial interest in asset management firm, Capital

Management Botswana (CMB) and denied if there was any.

This week the Gaborone High Court has learnt that Morupisi who at the time was the Chairman of the pension fund board of trustees might have failed to declare any interest in CMB when he signed a contact on behalf of the pension fund.

The once mighty man at the helm of the public service, Morupisi faces two counts of corruption and one on money laundering.

As the DPP pushes to nail the accused, the state alleges that Morupisi abused his office while employed at DPSM and chairman of the board corruptly signed a contract with CMB on behalf of BPOPF.

When taking the witness stand earlier this week, former Botswana Pension Officers Pension Fund (BPOPF) Chief Executive Officer (CEO) and Principal Officer Boitumelo Molefe maintained the same

version of her recollection of events.

Molefe said CMB had been given a conditional offer pending legal due diligence which was to be conducted at a later stage of the finalisation of the contract.

Molefe told court that a meeting was held in December 2017 which was to discuss among other things CMB’s breach of contract and subsequently its termination. The asset management firm had failed to meet part of its conditional contractual obligation to submit valuation in terms of their partnership agreement.

As partners they had failed to provide vital information on what assets they have and their worth despite requesting for more mon-ey from the pension fund. Ac-cording to Molefe they had been a sum of P477.5 million invested and CMB had requested an addi-tional P600million of which only P300million was agreed to.

At the board meeting held in December 2017, Molefe con-

firms receiving a letter from one, Bakang Seretse, who at the time was Director at Kgori Capital. Seretse had made serious allega-tions raising conflict of interest on the part of then chairman, Morupisi. ”Following this letter there was a board meeting. Dur-ing the board meeting the main agenda was to discuss the fact that CMB had been non-compliant in their contract,” she said. “There was also the fact that CMB had attempted to terminate BPOPF as a limited partner by claiming it had been non-complaint in the draw down notice.”

She told court, CMB had made a draw down in relation to com-panies among others; Lobatse Clay Works.

It was then that the matter was put forward to Morupisi who denied any conflict of interest. “One of the resolutions was that the matter should be reported to the DCEC for further investiga-tions. Management was also re-quested to write to the chairman

to inform him of these matters and afford him an opportunity to state his position in writing “she further noted.

Further, Molefe said in January 2018 Morupisi in his capacity as chairman responded and denied any beneficial interest in CMB.

Morupisi stands accused to-gether with his wife and the R7 Group, a company she is a Direc-tor of.

Investigators are said to have found the link between him and CMB Directors Marsland and their company, R7 Group.

It is said that acting in his ca-pacity as chairman of BPOPF, and having signed a contract with CMB, he gifted his wife a Toyota Land cruiser, the state has since brought it to court as an exhibit.

Marsland and Okaile whom the state alleges had links to Morupisi are central to the charges in this case.

The case continues Today (Fri-day) before High Court Judge Christopher Gabanagae.

MOLEFE IMPLICATES MORUPISI IN POTENTIAL CONFLICT OF INTEREST• Morupisi didn’t declare beneficial interest in CMB-Molefe • Morupisi linked to CMB Directors • Bakang Seretse letter blew whistle on Morupisi

4THE BUSINESS WEEKLY & REVIEW

Friday 17 July 2020 - 23 July 2020 Newswww.businessweekly.co.bw

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STAFF WRITER

The General Manager of Orapa, Letlhakane and Damtshaa Mines

(OLDM), Bakani Motlhabani, officially launched the first Mining Suppliers Development Programme last week.

Motlhabani, who is also member of the Board of Directors of Tokafala, explained that the programme is run through the organisation, which is a partnership between the Government of Botswana, Debswana, De Beers Group and Anglo American.

Tokafala is an enterprise development programme that focuses on helping existing micro, small and medium enterprises to grow their businesses. It further supports with youth skills development through a youth development programme (STRYDE) that delivers a comprehensive package of services, including core skills training, business development and mentoring to empower and inspire them to join the workforce or start a business. Its main objectives are to grow and contribute to the development of the economy by supporting already existing jobs, creating new jobs and growing micro, small and medium enterprises.

According to Motlhabani, the objective of the Supplier Development Programme is to develop the capacity and competitiveness of citizen companies to improve their access to markets and ensure sustainable enterprises. He said that the programme will focus on improving skills in the areas of sales, operations, financial, strategic business management and that it will include a six Aftercare Support for six months.

The GM of OLDM said a total

of 100 participants have been enrolled on the Mining Supplier Development Programme of which 47 are from Boteti and 53 from the Jwaneng/Mabutsane area. With 31 percent of the participants being women, he expressed happiness that that the programme has particularly made efforts to enroll as many female-owned businesses as possible.

Motlhabani reaffirmed Debswana’s commitment to continue to make a meaningful and lasting contribution to Botswana and communities around the mines, noting that the company has a Citizen Economic Empowerment Policy that aims to capacitate citizen companies to participate in the Debswana supply chain. “We are currently developing a new CEEP framework which will focus on Impact Analysis as well as ringfence certain goods and services for citizens,” Motlhabani said.

In her welcome remarks, OLDM Senior Finance Manager, Kgomotso Kereng, noted that Debswana remains committed to matters of socio-economic development. “We are pleased to have signed-off the business continuity plan for the SDP, which is a commendable effort, given that the COVID-19 pandemic has changed the operating environment of many institutions and businesses across the globe,” she said.

The Programme Director of Tokafala, Montle Phuthego, told the participants that her organisation will work with them to develop strong businesses with diversity of products and markets. Phuthego said they will conduct a diagnostic assessment of their businesses in order to set new goals and direct their energies and resources to areas of high impact.

oLDM generaL Manager LAUNCHES BOTETI TOKAFALA SUPPLier DeveLoPMent PrograMMe

• the programme will run through a Debswana and government partnership organisation called tokafala

General Manager of Orapa, Letlhakane and Damtshaa Mines , Bakani Motlhabani

5THE BUSINESS WEEKLY & REVIEW

Friday 17 July 2020 - 23 July 2020News www.businessweekly.co.bw

KABO RAMASIA

Staff Writer

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Over the years BPC has been listed alongside parastatals that gobble up government funds (subsidy) because they are operationally inefficient. This has since prompted new finance minister Dr Thapelo Matsheka to intervene. In his maiden budget speech earlier this year, Matsheka said he would cut funding for parastatals and review the mandates of some.

Because of failure of Morupule B project, a plant that is under endless rehabilitation with no sign of resuscitation, BPC still looks to South Africa, Namibia and Mozambique for power imports.

“As per the latest audited financials of financial year 2018/19, the total cost of power imports was at P861million,” Seleke has said.

BROKE BPC RECEIVES P148M froM govt

FROM PAGE 03

Since hiking prices in April this year, troubled Botswana Power Cooperation (BPC) has moved to

unpack their electricity billing system which they say encompasses a fixed monthly charge, an energy charge and an electricity levy.

The utility’s Manager Marketing and Communications, Dineo Seleke, has told The Business Weekly & Review that the electricity tariff for prepaid customers, which includes households and small businesses, is made up of a fixed monthly charge, an energy charge and an electricity levy.

According to BPC, the fixed monthly charge currently stands at P32.45 while the energy charge per unit for 200 is P0.938 and P1.303 for 201+ units. On top of this, there is a levy for rural electrification that currently stands at P0.05 per unit. All these costs are inclusive of VAT.

Responding to an enquiry from this publication about the rationale behind the pricing, BPC’s spokesperson Seleke wrote back in an email. “It should be noted that the monthly fixed charge of P32.45 is charged at 5thebe per unit, which means the full charge is only collected after the customer has purchased 649 units in one calendar month. The usage below 649 units in a calendar month will not be charged the full monthly fixed charge and the balance is not carried over to the next month’s purchase.”

Regarding the energy charge, she answered: “To cushion domestic customers, the energy charge for the first 200 units in a calendar month is at a lower rate of P0.938 per unit which translates to P187.60 for 200 units bought. For usage above 200 units, the energy charge increases to P1.303 per unit.”

By way of illustration, BPC said a customer who uses 300 units in a month will have the costs as follows: Fixed charge at P15, energy charge for the first 200 units

at P187.60, energy charge for the remaining 100 units at P130.30 and the electrification levy at P15. These add up to P349.90.

“The seemingly inconsistent rate in prepaid electricity units for the same price in the same calendar month is on account of the following: a fixed charge and a stepped energy charge at P0.938 per unit for the first 200 units and P1.303 per unit for more than 200 units,” Seleke sought to explain.

In an effort to explain the complicated billing system further, the BPC mouthpiece shared continued: “Botswana Power Corporation has been undertaking public communication on the tariff and we will continue to educate our valued customers on the tariff during our business interactions across our Customer Service Centres countrywide.”

Meanwhile, the troubled power utility has attributed occasional power cuts that

are currently being experienced at Block 7, Block 6, Broadhurst, Ledumadumane, businesses around Btv Mogoditshane and Ramotswa to damage to a power cable resulting from excavations by contactors on site at Btv Circle.

“Supply to these areas was interrupted following damages on the underground power cable during excavation for road works by the contractor on site at BTV Circle,” BPC said in a statement.

INSIDE BPC'S STEEP FEES• it is complicated bill that is made of three charges

6THE BUSINESS WEEKLY & REVIEW

Friday 17 July 2020 - 23 July 2020 Analysiswww.businessweekly.co.bw

The Umbrella for Democratic Change Parliamentary Caucus

has resolved to introduce an initiative that will improve our communication with the public. Through “An Alternative View” the official opposition will on a fortnightly basis reach out to the public to account for our activities in the National Assembly and present our proposals on how emerging challenges may be resolved. It is our view that this will add value to our democracy and empower the general public with information. The inaugural address is focused on addressing the fuel crisis that the country faces.

Background

to Fuel crisis

The fuel shortages were first experienced in the Gaborone area and its surroundings around 27 June 2020. The Ministry responsible for Energy attributed the shortages to delays at the borders caused by the Covid 19 testing protocols that the truck drivers had to be subjected to. The delays were said to have triggered “panic buying” resulting in long queues at petrol stations. The Ministry officials assured the nation that the fuel shortages will take less than 3 days to resolve. The country is currently on third week of fuel shortage.

Steps Taken by UDC Parliamentary Team

On 30th June, with the fuel crisis spreading beyond Gaborone to many other parts of the country, we wrote to the Minister to intervene and explain the true causes of the shortages. The Presidential Taskforce coordinating response to Covid 19 had publicly dismissed the

claim by the Energy Ministry that the Covid 19 testing at the borders were responsible for the delay in delivery of fuel. To date, the Minister has not responded to our letter but made further false assurances that the situation was under control.

On 3rd July we dispatched a team of 4 MPs to visit the Pioneer border to get first hand experience of the situation. The team established that there was indeed issues of concern at the border, though not on a magnitude that could cause severe disruption to the delivery goods into the country.

On the 8th of July we wrote the Parliamentary Committee responsible for providing oversight over the Energy Ministry requesting the Chairperson to convene a meeting of the committee. The committee is expected to meet tomorrow (14 July) to among other things, interrogate institutions charged with the mandate of ensuring that Botswana has adequate fuel supplies.

ProPosals By

President Masisi.

In In his address to the nation last week, President Masisi presented the following measures to resolve the fuel shortage;• Botswana to secure additional

fuel supplies through Namibia and Mozambique.

• Limiting fuel purchases to P 250.00 per vehicle and reducing the operating hours of the petrol stations.

• Purchase of petrol through jerrycans to be limited to Thursday only

• Public urged to walk, cycle, use public transport and car-pooling.

• Expedite the Tshele Hills

Project and expand Gantsi and Francistown strategic oil reserves facilities.udc ProPosals

1.In the short term, the crisis can best be resolved by increasing supply into the country. Though rail is reportedly more expensive than road transport, the economic cost of the fuel shortages possibly dwarfs the higher costs of rail transport. Botswana Railways should be directed to deliver greater quantities of fuel from South Africa with 7 days. Funds from the National Petroleum Fund and other Special Funds like the Alcohol Levy should be availed for this exercise.

2.Review the decision on limiting purchases of fuel through jerrycans on Thursdays only as this has a devastating effect on the agricultural sector. The limitation should only be implemented in towns and cities.

3.Botswana needs to urgently import petroleum products from the international markets, including the countries that South Africa imports from like Saudi Arabia.

4.Tshele Hills strategic reserves project was supposed to have been completed in 2017. There needs to be an investigation of why the project remains incomplete and adopt a firm deadline for the project to be completed. Similarly, there needs to be a deadline for the completion of the Gantsi and Francistown strategic reserves storage expansion.

5.Botswana maintains low levels of strategic fuel reserves (less than 20 days). Most landlocked countries maintain 90-day strategic reserves. Government

should set the target for what we need to retain in our strategic reserves and state the time frame within which it is to be attained.

6.We need to explore possibilities of setting up a refinery that will target the domestic market and export to neighbouring countries. Furthermore, there should be research on coal to fluid viability to allow Botswana to exploit her abundant coal deposits.

7.There should be an investigation to establish why BERA and Botswana Oil were not able to anticipate the major disruption in fuel supplies. Public institutions need to account for failure to perform their duties.

8.Government must impress upon the Directorate of Intelligence Services that they have a statutory duty to protect the country’s economic interests. Chronic shortage of fuel amounts to a national threat.

9.Delays at the boarder need to be addressed urgently. The delays are in the main caused by minor logistical hurdles that can be resolved expeditiously, such as availing adequate showers and toilets for the truck drivers and stable internet for the clearing agents. Key commercial borders like Pioneer and Tlokweng should be transformed into one stop border posts as is the case with the Kazungula border.

10. Botswana should dialogue with the South African government on logistics for speedy testing of truck drivers destined for the Botswana border to reduce waiting time at points of entry.

Botswana Innovation Hub (BIH) has announced the introduction of

a Top 1000 Digital Skills platform, a tool that serves as a catalyst in the Botswana’s digital transformation agenda. The Top 1000 Skills Platform showcases digital skills of software developers to stakeholders (both private and public) and interest them to collaborate or procure developers skills.

The BIH Top 1000 Digital Skills Platform enlists top 1000 software developers in the country, to be ranked according to their technical capabilities and completed projects. The registered innovators will be able to participate in developer activities such as workshops, trainings, hackathons and many others that will be facilitated through the platform.

The platform is rolled out in two phases; phase one implementation involves registration, creation of a profile and ranking based on Github projects performed. Phase two implementation of the platform would interface with a ranking platform to provide online assessments. At phase two, the platform will have all technologies and /or languages and developer’s ranking will be based on combination of projects and online assessments.

The enlisted innovators will be given opportunities in the form of challenges from both the public and private sectors to develop new digital products/services. As an example, BIH in collaboration with Botswana Insurance Holding Limited (BIHL) successfully implemented a financial literacy gaming App named MogwebiQuest. In the project, BIH identified suitable

BiH launctoP 1000

digital skillsPlatFor

STATEMENT DELIVERED BY LEADER OF OPPOSITION ON FUEL SHORTAGES

an alternative view By duMelang salesHando 13 July 2020

7THE BUSINESS WEEKLY & REVIEW

Friday 17 July 2020 - 23 July 2020News www.businessweekly.co.bw

Triggered by a looming lawsuit currently before Justice Moroka of

Francistown High Court, the Botswana Defence Force (BDF) has filed papers in response to an affidavit by aggrieved nurses who are demanding restructuring of their salaries and is moving to get the case dismissed with costs, The Business Weekly & Review has established.

The latest news from the barracks is that BDF top brass will not cede an inch in its opposition to the efforts of army nurses’ salaries and progression ‘putsch.’

In a memorandum of appearance to defend, the defendant, who is cited as

the Attorney General (AG) representing the BDF, has denied that termination of de-linking that was carried out to remunerate BDF nurses at the same scale as civilian nurses employed in the same facilities was unlawful.

According to documents seen by this publication, BDF flatly denies any wrongdoing in this. “The defendant denies that the termination of de-linking was wrongful and unlawful,” reads its memorandum of appearance to defend. “The defendant denies that the termination of de-linking amounted to unilateral variation of the plaintiffs’ terms of employment.”

In court papers filed on 8 July 2020, the BDF also contests the plaintiffs’ claim that they were entitled to remuneration in accordance with the de-linking exercise. “The defendant denies

that the plaintiffs are entitled to be paid remuneration in terms of the de-linking exercise,” the BCF papers say.

“The defendant denies that each of the plaintiffs is entitled to be remunerated at par with their civilian counterparts who perform the same duties at the same level.”

The aim of the BDF is to have the nurses’ action dismissed with costs. The army nurses have 14 days to file further litigation papers with the court from the date on which they received their employer’s reply.

They are a group of 52 military nurses who work at BDF facilities around the country and have instructed Tshekiso Ditiro & Jani Legal Practice to seek relief through the Francistown High Court from government’s unilateral decision to terminate

App developers- Power Circle Group through a hackathon activity that was followed by training and expert advisory to yield a desired product for the procuring partner- BIHL.

“We believe that there is an opportunity to adopt the same model with other institutions in the private or public sector to fast-track the development of digital products/services. The digital skills area is ripe for private sector investment and participation. The Top 1000 Digital Skills platform initiative relies on a multi-stakeholder partnership for its success” BIH CEO, Alan Boshwaen said.

launcHes toP 1000

digital skills latForM

I n f o r m a t i o n Communication Technology is one of the focus sectors underpinning the BIH mandate as it is a key driver in the transformation of Botswana towards a digital economy and the creation of job opportunities. The universal digital revolution is underway, hence BIH is appealing to all developers to join the evolution that underscores the importance of digital skills for invention, employability and competitiveness in the digital economy.

The enlisted

innovators

will be given

opportunities

in the form of

challenges from

both the public

and private sectors

to develop new

digital products/

services.

its dedication and hard work. “Oftentimes when we think of frontline workers, our focus is on those in the medical fraternity,” Masupe observed. “Today we would like to pay tribute to the disciplined forces for their unwavering commitment to fighting the COVID-19 pandemic. It is because of you that we feel safe and protected.

He added that discipline has been maintained due to the incredible work of the police.

Significantly, he noted that BPS has once again been recognised by the World Internal Security and Police Index Report as the Best Police Service in Africa. For this reason, Masupe said, the bank was inspired to make a donation that should serve to encourage BPS to work even harder.

Standard Chartered Botswana recognises the critical role that the police play in managing the pandemic through various interventions, which include

STANCHART ‘PROTECTS’ POLICE• Bank makes donation of facemasks to protect officers on duty in the frontline of the war on Covid-19

As global numbers of COVID-19 cases continue to grow, Standard

Chartered Bank is rising to the challenge by spreading its support to efforts to curb the pandemic more widely.

The bank this week donated 5,000 N95 facemasks valued at P510,000 to the Botswana Police Service (BPS) for use by police officers countrywide.

Chief executive Mpho Masupe expressed gratitude to BPS for

Standard Chartered Bank Chief executive Mpho Masupe handing the donation to Senior Assistant Commissioner Solomon Mantswe

ARMY NURSES, BDF IN DO-OR-DIE COURT BATTLE• BDf won’t cede an to accommodate the nurses’ demands• the nurses are so determined they will resign en masse if their suit is denied

KABO RAMASIA

Staff Writer

crowd control and maintenance of social distancing protocols, manning traffic and inter-zonal boundaries and escorting trucks supplying Botswana with essential goods, the banker noted.

Receiving the donation, Senior Assistant Commissioner of the Police, Solomon Mantswe, remarked: “The donation will go a long way in assisting us to continue to protect and serve, and to do so whilst ensuring our officers are protected.”

de-linking of their salaries from the structure under which civilian nurses are paid. This, they argue, has impacted their remuneration and progression negatively.

The army nurses want the controversial termination of de-linking nullified and hold that those who terminated the de-linking had no power to do so. According to the plaintiffs, de-linking was adopted to ensure progression for military-based nurses which for some time had been only reserved for their civilian counterparts.

The aggrieved nurses argue that as a result, their progress within payment scales has been rendered a nullity. Sources say they feel so hard done by that they plan mass resignations should their demands not be met.

8THE BUSINESS WEEKLY & REVIEW

Friday 17 July 2020 - 23 July 2020 Tax & your Pocketwww.businessweekly.co.bw

Tax ColumnWRITE TO US AT

The Business Weekly & Review

P.O Box Post Net Kgale View 449 ADD, Gaborone

www.businessweekly.com

Commentaries, letters and columns present here are the views of

the authors and not necessarily those of The Business Weekly & Review

Jonathan Hore is a Managing Tax Consultant at Aupracon Tax Specialists and feedback on this article can be relayed to jhore@aupracontax.co.bw or 7181 5836.

covid-19:- a Basis For taX Penalty waiversJONATHAN HORE Managing Consultant Aupracon Tax Specialists

Botswana seems to have been hit by a wave of citizen economic empowerment euphoria

which in some circumstances has seen prosperous foreign enterprises coming under fire simply because they are successful. We seem to be content with blaming everyone but ourselves. We choose to ignore the role we have played and continue to play in this saga. We have had more than 50 years to right the wrongs done by the colonisers. We simply opted to swap masters by replacing Europeans with Asians at the helm of our economy and today we are crying victim. Realistically speaking we have not been victimized by anyone, we are where we are because of our own doing. We have reneged from serving our own to seeking to be better than them. We compete with those we are meant to serve and because of this we have created a bureaucratic system which frustrates citizen while at the same time providing kick-backs and looting by public servants in co-hoots with those willing to pay kickbacks who unfortunately happen to be foreigners in most instances. The foreigners are now left to bear the brunt of all economic hardships being suffered by the majority whole ignoring the role played by civil servants in this fiasco. Today if we were to name the top 10 richest indigenous Batswana more than half the list would be former civil servants or their descendants even though our civil servants are known to be underpaid. Tenders reserved for citizens are printed in English and not Setswana simply because the intended beneficiaries of those tenders are not Batswana. The sad part is that our government is made up of Batswana, yet we blame government as if we are talking about an external party. Government is not corrupt; it is individuals within government who are self-serving and collude with others within the private sector to loot public coffers. It is ill advised to lay all the blame on foreigners while they are not in charge of government. We need to conduct a lifestyle audit not just on politicians but a large chunk of our civil service otherwise we will continue to be bystanders in our own economy. The mere fact that a large portion of donors to political organizations is evidence enough of who is benefiting economically from whatever party will eventually win. We need to move from singing about citizen empowerment and improve transparency within the government enclave,that is the starting point.

WE HAVE CreateD a BUREAUCRATIC SYSTEM WHICH FRUSTRATES CITIZEN WHILE AT THE SAME TIME ProviDing kiCk-BACKS

Comment

The advent of COVID-19 brought so much unexpected disruptions to business as well as normal life.

It is almost impossible to numerate the number of negative effects that this pandemic has caused but most businesses have lost revenue, some have folded and many are still trying to figure out whether or not they will survive this menace. It is not in question whether non-compliance with taxes will increase as the pandemic has caused so much havoc to normal operational systems. This may lead to tax penalties as well as tax interest with a direct nexus to the advent of the pandemic. I will analyse why business disruptions caused by COVID-19 is likely to constitute just cause for tax penalty and interest waivers. In this article, words importing the masculine shall be deemed to include the feminine.

wHy taX Penalties?

Most tax laws empower tax authorities to levy tax penalties and interest for various reasons as an incentive to enhance voluntary compliance. If taxpayers were to be given the liberty to choose whether or not to pay taxes, then the taxman would collect virtually nothing. Therefore, tax penalties and interest act as the carrot and stick mechanism where the taxman lashes those who underpay or pay taxes late.

As a general rule, the tax laws levy various penalties for late submission of tax returns and underdeclaration of tax whilst tax interest is charged for late payment of taxes. Tax penalties vary with the tax involved but they may be as high as 100% of principal tax whilst in the extreme circumstances, 200% may be levied. On the other hand, interest is generally levied at 1.5% per month, compounded monthly. On an annual basis, it amounts to 19.56%, which is quite a significant burden to bear.

enter covid-19

With COVID-19, taxpayers who are genuinely incapacitated to comply with taxes may use their particular circumstances as just cause for waiver of tax penalties and interest. Below are some of the reasons which taxpayers may advance for such waivers:•Depressed sales: Low sales arising from

lockdowns, border closures, event cancellations, among others, may have negative impact on the cashflows of taxpayers, impeding timeous payments. This may be advanced as just cause for waivers of tax penalties.

•Restricted movements: It is common knowledge that most businesses could not operate during the 2 lockdowns that we went through. For most businesses, staff could not access offices, records and at times BURS. Late payment or submission of returns may have therefore arisen due to these challenges.

•Uncertainty: Corporates are required to pay income tax in advance, based on estimated profits and failure to do so leads to interest charges. COVID-19 ravaged the world and local economy such that trading projections made before April 2020 are most likely to be revised. However, even if they are revised, it will be very difficult to project how much profits one will make in such dicey economic environments, which may lead to underpayment of corporate tax. Interest waivers may also be requested based on the inability to project projects, due to the pandemic.

•Other reasons: The pandemic also affected movement of people from one country to others whilst zonal movements were also restricted movements in-country. Other reasons not mentioned above may also be advanced as the basis of seeking waivers, as the reasons vary per each taxpayer.

docuMent events

Taxpayers must be aware that citing COVID-19 without necessarily documenting how it affected them may lead to rejection of their applications for waivers. It is therefore critical that all circumstances which caused non-compliance be documented in order to build a formidable case which may be acceptable to the authorities. Where possible, taxpayers must communicate with BURS the circumstance they face as they happen and get any letter to be stamped or store emails sent to the taxman, as supporting documentation of events. This will prove handy when one requests for the mentioned waivers.

conclusion

I must conclude by stating that the granting of penalty and interest waivers remains the prerogative of the tax authorities and it is not guaranteed that any submission premised on COVID-19 will be considered. However, it is common knowledge that the pandemic will impact tax compliance, hence it is a good basis for waivers.

Well folks, I hope that was insightful. As Yours Truly says goodbye, remember to pay to Caesar what belongs to him. If you want to join our Tax Whatsapp group, send me a text on the cell number below.

It is almost impossible

to numerate the

number of negative

effects that this pandemic has caused but most businesses

have lost revenue,

some have folded and

many are still trying to

figure out whether or not they will survive this menace.

9THE BUSINESS WEEKLY & REVIEW

Friday 17 July 2020 - 23 July 2020www.businessweekly.co.bw

Companies & MarketsMARKET HIGHLIGHTS

MAJOR MARKET MOVERS (Thebe)

16/07/2020

Counter Share price Change (%)

Source: BSE

DOMESTIC EXCHANGE RATES

17/07/2020

Rate

CNH/BWP 0.6056

EURO/BWP 0.0759

GBP /BWP 0.0690

USD /BWP 0.0865

ZAR/BWP 1.4432

YEN/BWP 9.2500

Source: BOB

WORLD MARKETS

As at 17/07/2020

INDEX VALUE % CHANGE

AMERICAS INDEXES

Dow Jones Industrial Average

26870.10 +0.85

S&P 500 3226.56 +0.91

NASDAQ 10550.49 +0.59

EUROPE, MIDDLE EAST & AFRICA INDEXES

EURO STOXX 50 Price EUR

3355.73 -0.67

FTSE 100 Index 6255.95 -0.58

DAX 12850.46 -0.62

ASIA-PACIFIC INDEXES

Nikkei 22770.36 -0.76

Hong Kong Hang Seng Index

24970.69 -2.00

TOPIX 1579.06 -0.66

Source: Bloomberg

TEL: (+267) 3170 615

FAX: (+267) 3170 618

WRITE TO US AT

P.O Box Post Net Kgale View 449

ADD, Gaborone

In 2019, the Botswana Agricultural Marketing Board (BAMB) was hard hit by the low maize performance

in all their harvest. Their odds have however changed since this year BAMB has reported a 902 percent growth in purchases when compared to purchases in 2019. Addressing the media recently the BAMB Chief Executive Officer Leonard Morakaladi reported that the growth in maize production is highly commendable and they are projecting around 20-30 thousand metric tonnes in harvest compared to the 2019’s dry 2000 tonnes.

In the past 2019 period, sorghum production grew by 30 percent which made it a key performer of the year at 73 percent beating maize which registered a major fall down of 77 percent. Although happy with the maize production this

year the Agricultural entity has also reported a double digit growth in their Year on Year revenue which increased by 49 percent to P401 million.

Faced by many challenges including Covid-19, Logistics and cash flow, Morakaladi has explained that they have been able to make a breakthrough in grain purchases as they have registered a 118 percent purchase increase.

The BAMB CEO says because of the economic downturn currently being experienced, Botswana could no longer rely on its neighbors for food supply. Currently due to Covid-19 it takes 2-3 before trucks are allowed into the country.

Morakaladi noted that although they have had their own share of setbacks, they have managed to stay above target by surpassing the 2019’s revenue by 2.5 percent.

He said that they are optimistic and anticipate more growth going forward.

He also explained that unlike in 2019

where the total expenditure stood at P140 million for local farmers with a production cost of 43. 6 tonnes, this year the figure had increased tremendously. He says the farmers have registered a higher crop yield in which BAMB is projecting to payout P398 million to the farmers.

According to Morakaladi, BAMB is currently in a season where it is paying a lot of money to farmers to procure grain as they have surpassed the P50 million spent on farmers, without having reached 50 percent of the harvest. This he explains will prove a challenge as they might have to spend more for the grains to be stored in the silos.

Although the harvest is commendable, Morakaladi noted that what BAMB can get from local farmers is only enough to service its walk-in-trade and small-time millers. Collectively, the big millers bring close to 80,000 to 100, 000 metric tonnes, which is an opportunity for many Batswana to get into crop production.

Tshepi GABOTLhOMOLWe

Staff Writer

BaMB records growtH41% 902% 430%

SORGHUMINCREASE FROM

2019 -2020

INCREASE IN MAIZE FROM 2019-2020

INCREASE IN PULSE FROM 2019 -2020

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Companies & Marketswww.businessweekly.co.bw10 THE BUSINESS WEEKLY & REVIEWFriday 17 July 2020 - 23 July 2020

visit us at www.gobotswana.com

INVITATION TO TENDER

Botswana Investment and Trade Centre wishes to invite reputable companies to tender for the

following tender:

1. Tender No. BITC 003 /2020-21 Partnership with Botswana Investment and Trade Centre to

organize Global Expo Botswana (GEB) Virtual Exhibition

• PPADB Registration Certificate under Code : 120-ICT Technical Support Services Sub codes: 01

– Systems Development Services and Maintenance, 02 – Server Management and Maintenance

Services, 03 – Data Centre Maintenance & Hosting Facilities, 04 – Desktop Management

and Maintenance Services, 05 - Network Management and Maintenance Services ,06 – ICT

Security Management and Maintenance Services.

• Closing Date of Submission- 4th August 2020 at 10:00 hours. A tender box will be kept at BITC

Office 1st floor where the bidders are expected to submit their proposals.

• Price: P100.00

NB: THIS TENDER IS RESERVED FOR 100% CITIZEN OWNED COMPANIES ONLY.

Full details, requirements and specifications will be provided in the Tender Document that can be

obtained from the address below:

THE SECRETARY

BITC TENDER COMMITTEE

PLOT 54351, CENTRAL BUSINESS DISTRICT,

GABORONE

PRIVATE BAG 00445

GABORONE

TELEPHONE: 3633357 FAX: 3170452

Email: botsangk@bitc.co.bw

Contact Person: Kgomotso Botsang

The tender documents may be collected on or after Monday 06th July 2020 between the hours of

08:00 hours to 12:30 hours and 14:30 to 16:30 hours between Monday and Friday (working days)

from the above address.

CONDITIONS FOR ALL THE TENDERS

• BITC reserves the right to accept or reject any bid; and is not bound to accept the lowest or any

tender or assign reasons for the acceptance or rejection of the tender.

• The Centre reserves the right not to proceed with the tender and may cancel the envisaged

tender without providing any reason.

• The submitted proposal shall under no circumstances be returned to the bidders.

• Proposals received or delivered after the above-mentioned dates and time will not be consid-

ered nor will any telephonic, telex, facsimile or electronic mail submissions.

• No liability will be accepted by BITC for loss or late delivery of tender documents.

• BITC reserves the right to request for a site visits before the award of any tender.

• Tender documents and all supporting documents shall be submitted in plain /unmarked and

firmly sealed envelopes or packages.

• Tenders shall be opened immediately after the tender closing at the BITC Head office, in the

presence of bidders or any representatives who choose to attend.

Aim-listed Power Metal Resources says it is now in a position to move forward more aggressively as

reported as the company’s assets amounted to £3 million.

The company currently has five main projects and two additional projects in the later stages of due diligence and under commercial discussion.

strong Balances inFluence drilling Plans

• Power Metals plans to undertake drilling at the Molopo farms Complex

Tshepi GABOTLhOMOLWe

Staff Writer

It has reported that it is striving to build a diversified exploration business backed by a strong balance sheet to drive the company towards self-financing its activities and breaking the dependency that most juniors have on market financings.

For the remainder of the year 2020, the company has reported on its plans to undertake drilling at the Molopo Farms Complex where it paid $500 000 to earn-in a 50.96 percent stake. This project targets major nickel, copper and platinum group metals (PGMs) mineralisation.

According to the company CEO Paul Johnson, the company intends on building its balance sheet working capital in three ways. These are to adopt a dual approach of taking a position in project holding companies alongside direct project participation.

Johnson says that the aim is that successful project development will drive the value of the ultimate holding company in which Power Metal Resources has a stake, “driving the value for our investment in that company higher”.

In the continued effort to bolster the balance sheet, interests may be vended to third parties or into new listings in exchange for cash, equity and other forms of consideration which will build the company’s working capital.

As a significant majority of Power Metal’s working capital is deployed to operating projects and associated investment in project holding companies, the CEO says only a small amount of initial capital has been allocated for the fund, less than 5 percent, or £75 000, of the company’s current working capital.

Should all go well with 11 licence grants in Australia’s Victoria Goldfields, the company has reported that it has plans to undertake exploration drilling in priority areas of the licences.

Johnson further notes that if successful, that project development will drive the value of the ultimate holding company in which Power Metal has a stake, driving the value for their investment in that company higher.

The company has reported that it will build its working capital by monetisation of existing project interests. Following acquisitions of projects, Power Metal has reported it intends to move each one forward corporately and technically.

Johnson says he believes there are opportunities for significant capital returns generated from investment in junior resource equity or related financial instruments, especially during the current global circumstances.

Companies & Markets www.businessweekly.co.bw

A tax clearance certificate is a carrot-and-stick

mechanism which is used

internationally to enforce

voluntary tax compliance

(because) failure to do

so may result in loss of

business or result in a

business being viewed by

clients as unprofessional

and not law abiding

11THE BUSINESS WEEKLY & REVIEW

Friday 17 July 2020 - 23 July 2020

•

•

•

•

•

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• • •

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In an effort to ensure observation of Covid-19 regulations safeguard its employees against the pandemic,

the Botswana Unified Revenue Services (BURS) has resorted to extending the life of old or expired Tax Clearance Certificates (TCC).

A tax clearance certificate heralds a taxpayer’s good standing with BURS, meaning that all necessary tax returns would have been submitted. It is also an indication that the taxpayer does not owe BURS any unpaid taxes.

According to Jonathan Hore of Aupracon Tax Specialists, the certificate is usually required when taxpayers bid for tenders and when some potential clients on-board suppliers of goods or services for the first time.

The tax specialist says that there are very few downsides to the move as it allows taxpayers to trade even when they may not be compliant, which is beneficial to the economy when job security is threatened by COVID-19. "A tax clearance certificate is a carrot-and-stick mechanism which is used internationally to enforce voluntary tax compliance (because) failure to do so may result in loss of business or result in a business being viewed by clients as unprofessional and not law abiding," Hore says.

This will ease congestion at BURS offices at a time when they have just switched to a new tax management system, he warns. "It will give them time to iron out teething system problems without inconveniencing taxpayers,” Hore notes. “On the other hand, as they stated, it is in line with the social distancing protocols."

This will also allow BURS to deal with any backlog that may have been caused by their move to new offices, Hore observes. In a public notice, BURS says it extends the validity of all Tax Clearance Certificates that have expired or are due to expire during a period that commenced at the beginning of April and will end on March 31, 2021. Hore says the move to extend the validity of tax clearance certificates means that taxpayers will continue to use expired certificates until 31 March 2021, allowing ease of trade.

According to the tax specialist, taxpayers run pell-mell when their tax clearance certificates expire because that touches the core of any business, directly impacting cash flow and future growth.

Hore explained last month that the expected contraction of the economy due to Covid-19 will shed off sales, directly impacting VAT collections which are dependent on volumes of sales made by VAT registrants. With tax debt posed to spike to a record P5.4 billion, this tax expert says it is axiomatic that Covid-19 will continue to shed a significant chunk of business revenues, negatively impacting their cash flows.

Hore says that the moment a business’s cash flows are impacted, its ability to pay creditors dwindles, tax authorities included. The economic drought brought about by the pandemic will result in an astronomical jump in tax debts way above the annual average of 22 percent recorded in past years.

According to a report by Hore’s tax firm, taxpayers owed P2.2bn at the beginning of that 2017 and by 31 March 2017, the bill

had shot up by 22 percent to P2.7bn. Citing the 2016-17 BURS annual report,

Hore notes that by the end of 2017/18, debt had put on another 22 percent and climbed to P3.3 billion. He anticipates another 22 percent rise for the 2019 to

2020 financial year. Considering the harsh economic conditions under Covid-19, Hore warns that the spike in tax debts for the 2020-2021 year could stand at a staggering P5.4bn, putting on a much higher 35 percent annual increase.

Burs Move likely to BeneFit econoMyalthough a tax firm has warned about a spike in tax debts, BUrS continues to devise means of ensuring that taxpayers honour their obligations. this includes breathing new life into expired tax clearance certificates. Staff Writer TSHEPISO GABOTLHOMOLWE reports

Companies & Marketswww.businessweekly.co.bw12 THE BUSINESS WEEKLY & REVIEWFriday 17 July 2020 - 23 July 2020

STAFF WRITER

ca aPProves tiMe

ProJects ProPerty

acquisition

The Competition Authority (CA) has u n c o n d i t i o n a l l y

approved the proposed sale and purchase of an immovable property, Lot 79961 that is made up of lots 75727, 75728, 75729 and 75730 in Gaborone, by Time Projects Botswana (Pty) Ltd from Barloworld Equipment Botswana (Pty) Ltd.

The Authority says it determined through analysis of the facts of the merger that the proposed transaction is not likely to result in prevention or substantial lessening of competition or endanger the continuity of the services offered in the relevant market. Furthermore, no public interest concerns have been identified.

However, the Authority says this approval does not override or negate any other mandatory statutory approvals or processes that any of the parties to this merger must comply with under the laws of Botswana. The acquirer, Time Projects, is a company incorporated in accordance with the laws of Botswana. Time Projects is not directly or indirectly controlled by any other firm.

However, Time Projects directly or indirectly controls the following companies: Dimosse Investment (Pty) Ltd which owns a piece of residential land in Gaborone Block 5, Lot 75068, FSA Property (Pty) Ltd which owns an investment property in Gaborone Plot 138, GICP, dormant company Adonis (Pty) Ltd that holds title to Plot 74538 Prime Plaza in Gaborone, Merle Investment (Pty) Ltd which owns investment property Plot 134, Independence Avenue, Gaborone, dormant company intended for a staff trust Bristal (Pty) Ltd, Time Projects (Mauritius) Limited that has a wholly owned subsidiary in Zambia (Time Projects (Zambia) Limited that is into development and property management, Wheki Pty Ltd which owns an investment property in the Gaborone CBD, and Veamet Limited

(Zambian Company).CA says it therefore suffices

to note that Time Projects is into the business of property development (develop to sell), development and project management, property and asset, as well as management and property investment. In Botswana, the company provides its services to the following geographical areas: Gaborone, Palapye, Francistown, Serowe, Ghanzi, Pilane, Lobatse, Kanye and Ramotswa.

The Directors of Time Projects are Alexander Lees Kelly Brett Anthony Marlin (both South Africans), Mmoloki T. Morolong (Motswana) and Joana Claire Jones (British). The target enterprise, Barloworld Equipment Botswana, is a private company incorporated in accordance with the laws of the Republic of Botswana.

Barloworld Equipment Botswana is entirely controlled by Barloworld Equipment UK Limited. Barloworld Equipment UK Limited also directly or indirectly controls the following companies in Botswana: Barloworld Motor, Avis and Barloworld Equipment.

• Says acquisition will not affect competition or services offered

Often times risk m a n a g e m e n t practitioners are asked

the question of whether it is possible to identify all risks that a business is exposed to. The honest answer is no! Risks emerge daily and even when a business thinks they have everything under control, the risks can materialize and result in losses. The essence of risk management is to eliminate surprises and ensure that business is not caught off-guard by risks that they did not prepare for. While we still cannot identify all risks our organization or businesses are exposed to, we should not beat ourselves too hard on it, but rather use this to enhance our risk maturity journey. The risk universe refers to the risks that a business or organization is exposed to, and it is achieved through the risk identification process. This article is aimed at helping us ensure we maximize on risk identification as part of effective risk management. The world is currently in a phase where risks are emerging at a faster frequency than anticipated, hence the need to ensure we settle well in the risk identification process to ensure that controls are bedded down proactively before the risks occur. Identifying emerging risks requires a bit more effort since we are trying to determine what will go wrong without a benchmark since the risks are new to business. Essentially, it is easy to disregard emerging risks, and undermine their impact, but the repercussions thereof can be dire to the business.

With reference to the current pandemic, we can agree that the world as a whole, our country included, did not anticipate Covid-19 and the risks incidental thereto such as but not limited to decline in demand for various industries, shut down of major firms, loss of jobs, major disruption to the educational curriculum and the subsequent hardships that

navigating tHe risk universeNATURE MOGOTSI operational risk Manager, Banking

will follow. On the other hand there are organizations that have Business Continuity Management programs in place which is good risk management practice, but they were still inadequate and were not adequately financed to fully address the effects of a large scale pandemic such as Covid-19. This goes without saying that it may not always be possible to identify all risks, particularly emerging risks. Still referring to the pandemic, it is evident that most companies that had assumed a form of continuity planning were not as hard hit as they were able to carry out work remotely under stringent movement restrictions, while those with inadequate continuity management had to come to a stand-still. Retailers who had alternative delivery service were also able to continue trade as they had delivery as a control activity where walk-in purchases are prohibited. If these businesses had not identified the risk and quickly added controls, they wouldn’t have thrived. This is an indication that risk management does not guarantee that risks will not materialize, but assures stakeholders that should the risk materialize; the impact thereof will not be worse off than if the risks were not identified and controls embedded ahead of time.

We cannot overemphasize the need to navigate the risk universe and ensure that risks are identified through a structured approach. Depending on the nature of risk, the frequency of the risk identification may be higher or lower. Subsequent to identification, the risks and the control activities must be documented for effective monitoring. Documentation of risks and controls is done through a risk register. This can be created by a business and does not have to be as complex as that of a larger organization. It is very important to review the risk universe more often to ensure that all key risks

are documented. The review also allows emerging risks to be documented.

For purposes of ensuring an adequate risk universe, focusing should be on key risks. These are risks that inherently have a high impact to the business and have a high likelihood of occurring. For larger organizations these may include regulatory risk, reputational risks and liquidity and market risks, while for smaller businesses it is mostly the risk of failure to meet short and long term debts, failure in financial management and supply and delivery failures. The risk universe should be a major consideration regardless of business size as no business is immune to risk. In simplicity, identifying a risk refers to determining anything that can go wrong in the business. When identifying risks, ensure to call all your team members, and enquire with them where they are encountering or likely to encounter risks. Employees are your best bet in risk identification as they are the first point of contact. If it is not possible for all employees to be available, ensure there is an adequate representation of all staff members. Risk identification must not be seen as a management function. To ensure that the risk universe is adequate, the business can consider categorizing the risks into themes such as IT risk, Financial Risk, Reputational Risks, Strategic Risks, Credit Risks and many more. Finally, it is always encouraged to employ the expertise of a Risk Management practitioner or part time Risk Management Consultant to help the business identify risks and independently evaluate the control environment of the business. Risk identification must be an ongoing activity as risks emerge daily. They must be documented with their controls and the control evaluation prioritized based on the risk severity.

Nevertheless, Barloworld Equipment Botswana does not directly or indirectly control any company. Barloworld Equipment Botswana is the leading supplier of heavy earthmoving equipment to the mining and construction industry in Botswana. The Directors of Barloworld Equipment Botswana are Matimba Mike Mahange, Jabulile Penelope Mkhwanazi (both South Africans) and Kagiso Peace Katse (Motswana).

the Authority says this approval does not

override or negate any other mandatory statutory approvals

or processes that any of the parties to this merger must comply with under the laws

of Botswana.

www.businessweekly.co.bw 13THE BUSINESS WEEKLY & REVIEW

Friday 17 July 2020 - 23 July 2020

PRESS RELEASEREVISED GUIDELINES

Since its inception in 2001, the Citizen Entrepreneurial

Development Agency (CEDA) has been gradually reviewing

its guidelines to match the ever evolving and dynamic

environment in which it operates. The review of the CEDA

guidelines is aimed at positioning the agency to grow,

become highly sustainable and develop SMMEs to be

the drivers of economic development. The first review of

the CEDA guidelines was 8 years after the Agency was

established.

In line with CEDA’s commitment to move with the times,

the agency engaged International Financial Consulting Ltd.

(IFCL) in October 2019 to conduct a review of its financing

model to ensure continued relevance as per stakeholders’

expectations. This review was meant to put focus on

CEDA’s core mandate which is to finance, develop and

sustain citizen-owned businesses. CEDA strives to provide

accessibility, sustainability and growth for its clients

and the latest review covers adjustments on loan limits,

interest rates, repayment periods and security/collateral

requirements.

The review was aimed at key external factors that would

potentially influence CEDA going forward and these

include, among others; improved focus and investment in

citizen empowerment initiatives aimed at dealing with a

highly competitive environment, the deterioration of global

economic conditions, increased mobile penetration and

use of technology as an enabler of business processes

and strategy. The review also considered and addressed

issues of high urbanisation rates, reduction in government

subvention and most importantly, the need for CEDA to be

sustainable going forward.

As such, the reviews as announced by His Excellency the

President of the Republic of Botswana, Dr Mokgweetsi

E. K. Masisi recognises the importance of stakeholder

engagement and input in the review of the guidelines.

Stakeholders engaged include CEDA clients, members

of the public, CEDA staff, CEDA board, sectoral

representatives, and civil societies, amongst others. As

previously highlighted, of immediate importance was the

review of the CEDA’s minimum and maximum loan limits

for the delivery of various financial solutions to emerging

SMME needs.

Based on the terms of reference as advised by IFCL, CEDA

has approved and adopted the following:

1. Increase small/micro scale projects loan limits from a

maximum of P500, 000 to a maximum of

P1, 000,000.

2. Increase medium scale projects loan limits from

a maximum of P4,000,000 to a maximum of

P10,000,000

3. Increase large scale projects loan limits from a

maximum of P30, 000, 000 to a maximum of

P50, 000,000.

INTEREST RATES

An interest rate equivalent to the prevailing Bank Rate per

annum will be charged on all loans. However, for special

sectors (currently manufacturing, mining, construction,

energy, technology and innovations, agriculture, creative

industry and tourism) as may be selected by the Board

from time to time an interest equivalent to prime lending

rate minus 3% per annum will be charged.

REPAYMENT PERIODS

Repayment periods have been reviewed such that loans

of up to P1, 000,000 will not exceed 7 years. Loans from

P1, 000, 001 to P5, 000 000 will not exceed 15 years

while loans from P5, 000 001 to P10, 000, 000 will not

exceed 20 years.

Repayment periods for large scale projects will now not

exceed 20 years. Previously they were not to exceed 15

years.

SECURITY REQUIREMENTS

Security/collateral will be mandatory for loans over

P5, 000,000, whereas security/collateral requirements

for large loans in the special category will be personal

surety and security over assets financed. Additional

security requirements may be discounted based on job

creation, economic diversification and location of the

project. Furthermore, CEDA endeavors to ensure that

security requirements will be discounted for people with

disabilities, youth and women and will be determined by

the board from time to time.

These guidelines are with immediate effect.

www.businessweekly.co.bw14THE BUSINESS WEEKLY & REVIEW

Friday 17 July 2020 - 23 July 2020

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Companies & Markets www.businessweekly.co.bw 15THE BUSINESS WEEKLY & REVIEWFriday 17 July 2020 - 23 July 2020

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IN THE HIGH COURT OF THE REPUBLIC OF BOTSWANA

HELD AT LOBATSE

CASE NO. CVHGB – 001619 -17

In the matter between

STANBIC BANK BOTSWANA LIMITED Plaintiff

and

GOITSEMANG BALANG 1st Defendant

SHADRACK BALAN 2nd Defendant

NOTICE OF SALE IN EXECUTION

BE PLEASED TO TAKE NOTICE THAT pursuant to a Judgment granted by the above Honourable Court on the 06th

September 2017 the following immovable property of the abovementioned Defendant will be sold by means of public auction

to the highest bidder by Deputy Sheriff K Ntebele as follows:

DATE OF SALE : Friday 07 August 2020

VENUE : Lot 59101, Gaborone West

TIME OF SALE : 1030 hours

TERMS OF SALE : All participating bidders are required to make an upfront payment of BWP 10 000.00 directly to the

undersigned Attorneys, refundable only to those who did not succeed in the sale. Only cash or bank guaranteed cheques will

be accepted. The detailed conditions of sale are available for inspection at the undersigned Attorneys’ offices.

PROPERTY TO BE SOLD : The 2nd Defendant’s rights, title and interest in a certain piece of land being Lot 59101,

Gaborone, situate in the Gaborone West Extension 48 measuring 378 m2 (Three Hundred and Seventy Eight Square

Metres) which property is held under Notarial Deed of Deed Fixed Period State Grant Number 2614/2008 dated the 17th

October 2008 made in favour of Shadrack Balang together with all the improvements thereon being a 3 bedroomed house,

kitchen, garage, combined bath and toilet

DATED AT GABORONE ON THIS 29TH DAY OF JUNE 2020.

COLLINS CHILISA CONSULTANTS.

Plaintiff’s Attorneys

The Village Chambers

Plot 21064, Next to Nanogang CJSS

P O Box 45136,

GABORONE

Deputy Sheriff K Ntebele

[Cell No. 71694303]

IN THE HIGH COURT OF THE REPUBLIC OF BOTSWANA

HELD AT LOBATSE

CASE NO. CVHGB – 001672 -16

In the matter between

STANBIC BANK BOTSWANA LIMITED Plaintiff

and

BAKANG JOHN SETHOLE Defendant

NOTICE OF SALE IN EXECUTION

BE PLEASED TO TAKE NOTICE THAT pursuant to a Judgment granted by the above Honourable Court on the 12th

September 2016 the following immovable property of the abovementioned Defendant will be sold by means of public auction

to the highest bidder by Deputy Sheriff M B Marumolwa as follows:

DATE OF SALE : Friday 07 August 2020

VENUE : Lot 54335, Gaborone

TIME OF SALE : 1030 hours

TERMS OF SALE : All participating bidders are required to make an upfront payment of BWP 10 000.00 directly to the

undersigned Attorneys, refundable only to those who did not succeed in the sale. Only cash or bank guaranteed cheques will

be accepted. The detailed conditions of sale are available for inspection at the undersigned Attorneys’ offices.

PROPERTY TO BE SOLD : The Defendant’s rights, title and interest in a certain piece of land being Lot 54335 Gaborone,(a

portion of Lot 10099 Gaborone, Portion of Lot 10091, Gaborone) situate in the Gaborone Administrative District (Gaborone

North) measuring 977m2 (Nine Hundred and Seventy Seven Square Metres) which property is held under Deed of Transfer

No. 2144/2009 dated 22nd September 2009 together with all the improvements thereon being 4 bedroomed house,1

ensuite, double garage, kitchen, dining room, study room, sitting room, motorized gate, paved garden, intercom, double

servants quarters, fully air-conditioned, porcelain tiles.

DATED AT GABORONE ON THIS 17TH DAY OF JUNE 2020.

COLLINS CHILISA CONSULTANTS.

Plaintiff’s Attorneys

The Village Chambers

Plot 21064, Next to Nanogang CJSS

P O Box 45136,

GABORONE

Deputy Sheriff M B Marumolwa

[Cell No. 73354391/75365073]

IN THE HIGH COURT OF THE REPUBLIC OF BOTSWANAHELD AT LOBATSE CVHGB-000218-17In the matter between:BANK OF BARODA (BOTSWANA) LIMITED andFIRST INTAKE INVESTMENTS (PTY) LIMITEDSKY-WAY CHEMICALS (PTY) LIMITEDKEIKANETSWE MASHILAMSUMIKWA HANGANANI PRISCAH

NOTICE OF SALE IN EXECUTION

BE PLEASED TO TAKE NOTICE that pursuant to a Judgment granted by the above Honourable Court, the following immovable property will be sold by public auction by DEPUTY SHERIFF NTSHWARELANG OOKAME to the highest bidder as follows:-

DATE OF SALE : 2ND SEPTEMBER 2020TIME : 14:00 HRSVENUE : TRIBAL LOT 400 MATSHELAGABEDI

PROPERTY TO BE SOLD : Certain piece of land being Tribal Lot 400, Matshelagabedi, situated at Matshelagabedi in the Tati Tribal Area, measuring 1150 m2 which property is held under Memorandum of Agreement of Lease No. FT TL 118/2009 dated 5TH day of MARCH 2009 made in favour of SKY-WAY CHEMICALS (PTY) LIMITED together with developments being a two roomed house, kitchen with corrugated roofing, storeroom (build with bricks and roofed with corrugated iron), toilets (male and female) separated with shower) with security fence.

TERMS OF SALE : Subject to Conditions of Sale. Only cash or bank guaranteed cheques will be accepted.

DATED AT GABORONE ON THIS THE 10TH DAY OF JULY 2020.

OSEI-OFEI