Connect with us

Business

Corporate governance leads to efficient parastatals

Published

on

Public Enterprises Evaluation and Privatisation Agency (PEEPA) Board Chairman, Tally Tshekiso said there is a need for corporate governance to ensure that parastatals are run well and efficiently.

In his PEEPA 2015 annual report, Tshekiso said that a performance review of 15 commercial parastatals that was conducted during 2013/14 showed mixed results of performance with some parastatals achieving profitability, while others experienced major operating losses. “It is important to note that Corporate Governance is critical in ensuring that parastatals are run well and efficiently,” said Tshekiso.

According to the report, during the year 2013/14 seven parastatals recorded operating profits with the National Development Bank recording operating losses for the first time in number of years.

The loss was caused by the new banking system that was adopted during the period as well as the impairment of non-performing loans. Botswana Telecommunication Corporation Limited (BTCL) achieved lower results after the separation, which led to the formation of Botswana Fibre Network (BoFiNet).

The report also highlighted that Water Utilities’ (WUC) operating loss increased to P327 million in 2013/14 compared to P141 million in 2012/2013. These losses were mainly attributed to the challenges encountered as a result of the expanded mandate of WUC under the Water Sector Reforms. Air Botswana made an operating loss of P97 million in 2013/14 compared to a loss of P72 million in 2012/13.

Tshekiso said that PEEPA has developed a parastatal performance-monitoring tool aimed at enhancing shareholder Oversight over parastatals. “This tool will facilitate systematic monitoring of and reporting on parastatals performance. To enhance governance and promote good corporate principles, a number of parastatals have developed and adopted board Charters as one of their governance instruments,” said Tshekiso.

He added that a number of parastatals have drafted shareholder compacts and submitted them to their line ministries for finalisation. Furthermore Tshekiso said the implementation of the Public services Outsourcing Programme (PSOP) could not commence in 2014/15 due to budgetary constraints experienced by the procuring entities within ministries.

During the year PEEPA also carried out a review to determine the level at which ministries, government departments and local authorities have engaged the private sector in services approved for outsourcing since the PSOP started and other services that have potential for private sector participation.

A total of 138 contracts of outsourced services worth P761 million were awarded to the private sector during the financial year 2013/14.                                                                                                                       

Continue Reading
Comments

Business

Cell City rewards customers

Keikantse Lesemela

Published

on

Cell City gave away two Toyota Hilux pick up cars worth about P300 000 and three Hisense televion sets worth P15 000 each to their customers through their annual competition.

In partnership with Hisense and Orange Botswana, Cell City conducts annual competitions to reward their customers and contribute to citizen empowerment. Handing over the cars on Friday, Cell City Chief Executive Officer, Brian White said through the competition they want to satisfy their customers and give back to the community. “Cell City and Orange clients were given a chance to win either a Toyota Hilux pickup or a Hisense television set.

All they had to do was purchase any Hisense mobile phone from a Cell City or Orange retail outlet and fill in the competition form in the store,” said White.Thato Ntshabele, who won one of the cars told the Business Trends that she bought a Hisense cell phone worth P900. 00.

“I never expected that I can win a car. I was just filling the forms and dropped into the entry box and I forgot about it. I am so happy to receive this prize and I thank Cell City for this opportunity,” said Ntshabele. Another winner, Dimakatso Mmusi expressed his excitement saying he had always wanted a van and he is grateful to Cell City.

“I just bought a cell phone worth P899.00 at Cell City Railpark mall, I never expected anything, and I was just submitting the form as I was requested by the shop assistants. This car is very useful to me,” said Dimakatso.

Continue Reading

Business

Smecha chillie hits the shelves

Keikantse Lesemela

Published

on

For the love of food and the passion to apply modern technology processes in food manufacturing locally, Kgalaletso Mothoagae established her own brand, Smecha specializing in relishes.

She processes and packages chillie in 325 gramms and 1 litre bottles selling at P50 and P150. She told the Business Trends that she decided to process chillies as it is one of the products that are rarely processed in the food industry.

She started cooking it for home consumption and later started selling to friends and currently the product has gone beyond borders at South African Spar shops and Restaurants. “I couldn’t look for any other vegetable as most of them have already been processed in the market. It is my first product of research in the food industry so I found out that I can do good business with this product. This chillie is free from preservatives but still has extended shelf life of 6 months,” said Mothoagae

The Kanye born young lady studied food technology and has the passion to explore the food processing market in Botswana and contribute to reduce the high food import bill. “I wanted to explore more about food and use my skills to contribute to the development of the local food processing and manufacturing industry. I also wanted to supplement my income at the same time,” said Mothoagae.

She has a degree in Food Technology. She says there is a lot of potential for business growth as there is a demand for the product locally and in South Africa. “My main customers are individuals in homes, they have embraced the product, and they love the taste. There is also a market that has been secured in SA; it is available in several shops like spars and some restaurants”. In future, Mothoagae said she would increase the product range to 10 using various vegetables and flavours.

Continue Reading

Trending