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SADC lose millions in unauthorised contracts

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The delay by SADC secretariat to finalise a financial manual, which includes processes and responsibilities regarding dealings with bank guarantees at all stages, has cost the organisation dearly.

The latest from the headquarters of the regional economic bloc in Gaborone has it that the organisation lost over P487million being un unfulfilled portion of the advance payment paid through an Italian Bank, Fidiroma for the procurement of bio-security laboratory equipment to upgrade the existing facilities in Tanzania which is financed under the African Development Bank (AfDB).

The said equipment which is still to be delivered is for the Trans- Boundary Animal Diseases Project. Insiders and observers say, this is just but one of the many examples on how SADC has lost huge sums as some of the senior officers allegedly often commit SADC in contracts without authority exploiting the lack of  guiding manuals.

The amount in question is among the many shortfalls exposed by the forensic audit conducted by Ernst & Young following complaints of alleged rampant corruption at SADC. The Midweek Sun has reliably learnt that SADC secretariat has gone all out to recover its money, but a stumbling block could be the fact that the Italian bank used for the transaction has been sold.

SADC has further learnt that the Project Coordinator of the Trans-Boundary Animal Diseases Project (name witheld) is the one that had authorised the bank guarantee, contrary to the rules and procedures and not the Executive Secretary. In the past SADC did not have financial manual.

Amongst others, the proposed manual includes processes and responsibilities covered, finalisation of standard bidding documents for services, goods and works requiring advance payment in the form of a financial bank guarantee. The manual which has now been put in place states that a financial bank guarantee shall only be issued, directly and or via a swift instruction, by a bank or financial institution registered under the laws of the host country being Botswana for the Secretariat and legally authorised to issue such financial instruments.

Further, that there must be verification, authentication, custody and security of financial/bank guarantee; and conditions and authority for the release of financial bank guarantee.

Documents passed to this publication which also formed part of the August SADC council of ministers agenda state that Council noted that the Secretariat continued to follow-up on a refund of US$487,008.72, being an unfulfilled portion of the advance payment made under the grant.  The Council also noted that the efforts of the Secretariat to recover the advance payment guarantee.

Unresolved issues
The Council noted that although the issue remains unresolved the Secretariat had written a letter to central bank of Italy seeking intervention of state structures on liquidation of the bank guarantee on 31 March 2015.

The Secretariat has also written to the Italian public prosecution through the Italian Embassy in Zambia, seeking intervention of state structures on liquidation of the bank guarantee on 8 April-2015. The Secretariat has also written a final demand legal letter to Fidiroma that is the Bank, which issued the bank guarantee on 25 May 2015.

There is also a planned visit to the Embassy of Italy in Lusaka, Zambia to obtain facilitation in dealing with Central Bank of Italy and Italy Public Prosecutions. This is yet to be done.

The advance payment
The Council further noted that the internal investigation has been carried out and looked into all aspects of the supply contract relating to bank guarantee advance payment of USD 487,008.72, and it has been established that SADC signed a contract with AGMIN worth US$1,999,132.14 in 2012 for the procurement of bio-security laboratory equipment to upgrade the existing facilities.

This procurement followed AfDB procurement rules for international bidding which stipulates a payment of 50 percent of the value of goods at the signature of the procurement contract.

To this effect, a total of USD 999,566.07 was paid to AGMIN in June 2012 for which a bank guarantee from Fidiroma Bank in Italy was obtained in line with ADB rules.

By June 2014 equipment worth USD 512, 557.57 had been supplied and installed while equipment worth US$487, 008.72 has been delivered and yet to be installed. The Secretariat is following up with the supplier to ensure that the equipment is installed.

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BR train 0501/BD 540 would not have derailed on 10 December 2019 had necessary precautions been taken, Botswana Railways (BR) staff members told the ongoing commission of inquiry in Mahalapye.

They blame the fatal accident in which two BR employees were killed on a raft of lapses, indecisions and negligence on the part of BR management. BR Senior Traffic Controller Simon Matenje revealed that there is a WhatsApp group that discusses everything concerning the running of BR trains. He said meteorological services had posted a memo warning that there would be floods on 4th December and shared it on the WhatsApp group. “The contents of the memo and their implications were discussed,” said Matenje who revealed that the group comprises most of the senior personnel in the BR hierarchy.

He lamented that although read and discussed the contents of the memo were “not given due attention.” Above that, on 9th and 10th December many BR staff members using the south bound and north bound trains warned relevant authorities about the possibility of floods, said Matenje. He believes there was negligence of duty on the part of management because everybody was aware of the floods at Moreomabele and Palla Road. “The relevant office should have directed stoppage of the trains or the adoption of an appropriate speed limit. “The best that management did was to give warnings about the floods but fell short of prescribing a solution,” he said. Matenje, who was on leave, said that he communicated his concerns about the reports of flooding and possible solutions to no avail.

When asked who exactly had the authority to do that, Matenje explained that it was the Operation’s Manager. Matenje also decried the lapses in the organisation’s system. He said motor trollies are helpful when inspecting the railway line. “However, they have not featured for a long time,” said Matenje who feels that regular inspection of the rail is a very critical part of safety. He said BR has not held any safety workshops in a long time. Mompoloki Rutherford, a train driver also appearing before the commission conceded that trollies had not been used on the BR lines for a long time. He said some senior managers use the train to inspect the line instead of trollies. “There are only two seats in the cabin but, contrary to safety rules, sometimes they just join us in the cabin which is a breach of the safety rules,” said Rutherford. Dikabelo Nawa, a retired train driver noted that BR workers were a sad lot because of pressure always exerted on them by management.

“Drivers work under pressure. The line between Mafikeng and Plumtree is old and very bad but we were always pushed by management to arrive on time. “There is just too much pressure. I once lost time and that put me into a big problem.” He said. He is also unhappy with the undergrowth and hanging branches next to the line because they obstruct the view of the crew. He appealed to the panel to recommend the introduction of a training centre for BR staff.

Peter Mokokwe, a recently retired train driver also complained that the rail road is never inspected. In addition to that, he told the commission that, he witnessed water around Palla Road on 9th December at the same place where the derailment later took place. Mokokwe, who himself did not alert control room about the water because he had heard through radio communication that his colleagues had reported the situation to control room, is also of the view that the disaster could have been averted had the 501 crew been alerted of the water situation.

On the other hand, a train controller named Moses Sethomo says he never got the communique warning the drivers about the impending floods. “There was a clear breakdown of communication,” said Sethomo who revealed that very often, even BR assets are wrongly used. “For example, sometimes freight locomotives instead of passenger train locomotives are used to haul the passenger train and this is a safety concern,” he noted. The hearings are continuing this week. The rail services that were suspended have since been resumed.

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Youth lament slow pace towards ICPD commitments

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Young people representing Botswana at the International Conference on Population and Development (ICPD25) in Nairobi, Kenya last week have expressed disappointment at the slow pace at which governments are moving towards achieving ICPD25 ideals.

Trevor Oahile, a youth advocate and student at the University of Botswana participated at the Nairobi Summit to highlight on Sexual Reproductive Health and Rights (SRHR) of men and boys.
Oahile hosts a radio show sponsored by the United Nations Population Fund (UNFPA), Don’t Get It Twisted on Yarona FM. The show deals with issues that affect boys and men. Oahile participated in a panel discussion at the Summit on the involvement of men and boys in accelerating the ICPD promise.

He is of the view that countries needs to work together to end violence that is perpetuated by harmful gender norms that are antagonistic to progress towards the ideals of the ICPD agenda. “Botswana government and private sector are still challenged to invest a lot of money into implementing their commitments,” Oahile said, adding that Comprehensive Sexual Education on the other hand has to be rolled out to every school in the country.

“We also acknowledge that it is important to avoid stereotypes that impact decisions that people make. Men and boys often avoid certain services because they are known to be for girls and women,” Oahile said. Millicent Sethaile was at the Summit as a youth ambassador from an organisation called Her Voice, which funds and offers grants to smaller organisations that advocate for SRHR in communities. In her view the summit was significant because it was an opportunity for countries including Botswana to make commitments to fulfill the unfinished business of the ICPD made 25 years ago.

“What struck me the most is that I realised that Botswana has a long way to go to achieve the commitments she set for herself.”Sethaile also observed that the four commitments including to strengthen access to family planning, the reduction of maternal deaths, reduction of Gender Based Violence, provision of quality, timely and disaggregated data are activities that were already in the pipeline and have been discussed before. “I believe we now have to come up with actionable items that we can work on so that we can effectively deal with current challenges.”
For 18 year old University student Michelle Simon, the Nairobi Summit was a reality check, an opportunity to reflect and map the way forward.

“I realised that there are so many challenges, especially in Africa concerning SRHR,” Simon said. She also realised that Botswana has a lot of catching up to do to implement the commitments of the ICPD. “I also realised that issues including youth in power were left out.” Botho Mahlunge on the other hand comes back from the Summit with a conclusion that there are a lot of predicaments that young people find themseles in across the African continent including GBV and teenage pregnancy.

Programmes need to be intensified to ensure implementation. Mahlunge is also of the view that there is minimum youth engagement on issues that affet them the most. “Young people are tired of always convening about the same issues. It’s time to see the outcomes of Summits and Conferences,” Mahlunge said. She advised the youth to also be willing to engage when the oppotunity avails itself and to take up programmes that have been set to help them. Mahlunge said that failure to educate our young people on sexuality “is the reason so many girls are getting pregnant and infected with HIV.”

She said the continued exclusion of young people in rural areas from sexual and reproductive health and rights discussion is also to blame for the prevailing state of affairs. “Young people in rural areas are completely vulnerable. They are so far removed from the little information and services available to young people in urban areas,” Mahlunge observed.

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