*Heads to roll at BMC, AB, BAMB & BR
The majority of State Owned Enterprises (SOEs) in Botswana have performed badly for years, leading the government to merge some of them in the 2023/2024 financial year.
This week, President Advocate Duma Boko announced an ambitious turnaround plan, declaring Botswana Meat Commission (BMC), Botswana Agricultural Marketing Board (BAMB), Air Botswana (AB) and Botswana Railways (BR) as four of the SOEs he expects to start making profit before the end of 2025. Boko told a Kgotla meeting that he has identified serious problems of mismanagement and maladministration at these state enterprises. The president was addressing residents of Ramotswa, amid an ongoing comprehensive forensic audit of state entities.
“Going forward, BMC will be paying farmers within a period of five days. BAMB owes its suppliers around P500 million and they will clear that debt before the end of the year. Air Botswana and Botswana Railways have also not been doing well. Many of those trucks that destroy our roads are transporting goods that should have been transported by trains. Very soon you are going to see trains moving across the country,” he assured.
Why The Four SOEs?
Botswana Meat Commission (BMC)
The national abattoir, counted among the largest in the SADC region, has operated below capacity for years, costing the government millions. However, as recently as early this month, the government announced a P240 million cash injection to extend the abattoir. Critics have questioned ‘why government continues to permit licenses for live cattle exports to South Africa while BMC is struggling to operate at full capacity.’
Disgruntled employees have told The Voice in confidence that BMC finds a new market almost every month, but its finances have never improved in many years. They said that the company is struggling to pay them salaries, and that they are waiting for May salaries that should have been paid on May 22. It has also emerged that for many years, some senior staff were able to pocket monies from so-called lost or condemned beef consignments, whilst some facilities in foreign countries were used for private businesses. The Chief Executive Officer left the company recently after angry employees downed tools demanding improvement in their working conditions. There is suspicion that a cattle farming cartel wants to kill the abattoir then re-open it as a private entity, or open their own private abattoir.
Botswana Agricultural Marketing Board (BAMB)
The Botswana Agricultural Marketing Board owes P400 million to its suppliers, but the company has enjoyed government subventions for many years. Unconfirmed reports indicate that the 12 grain storage silos that were commissioned by former President Dr Mokgweetsi Masisi in August 2024 in Pandamatenga were found to have structural defects. Tonnes of grain are believed to be at risk of decay.
Air Botswana (AB)
The national carrier has not realized profit for close to a decade. The Voice has learnt that there were times when the airline was managed by expatriates who prioritized rival airlines over Air Botswana. The constant delays have also cost the airline millions of Pula since it is their responsibility to lodge the delayed passengers at airports, and also compensate them for any lost luggage. In the past, fingers have pointed to some auditors who failed to pick a lot of mismanagement transactions running into millions of Pula.
Botswana Railways
The passenger train was suspended five years ago at the height of the COVID-19 pandemic and has yet to resume. Prior to the suspension, there were reports that Botswana Railways had procured faulty passenger coaches at millions of Pula. Locomotives are reportedly grounded, BR is having unresolved disputes with Transnet of South Africa, and the railway line is in a bad state. Critics argue that the national railway company has shifted focus to real estate investments, neglecting its core transport business.
Meanwhile, across the parastatal sector, there are recurring allegations of corruption, particularly in procurement of goods and services, and recruitment.
