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Botswana in Covid-19 Budget Padding Scandal

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NEWS: BOTSWANA SUFFERS HEALTH INDEPTH: CEDA’S NEW GUIDELINES IGNORED PAGE 3 MANPOWER DEFICIENCIES PAGE 11 SPECIFIC ADVICE FROM BIDPA July 26 - 1 August, 2020 EXCELLENCE IS STANDARD PRACTICE PRICE: P12.50 www.sundaystandard.info @SunStd_bw Choppies new Botswana in Covid-19 Islamic State auditors can’t insurgency in vouch for Mozambique financials budget padding scandal unsettles Mazars says it’s unable n Budget inflated by about P1 billion to prove accuracy of n Sunday Standard breaks down Ministry’s budget estimates Botswana KHONANI ONTEBETSE financials The militant Islamist extremists wreaking VICTOR BAATWENG havoc in a subtle but equally dangerous in- surgency in Mozambique is unsettling coun- Shareholders of Choppies Enterprise Lim- tries such as Botswana and South Africa. ited and capital markets players in Botswana To this end, The Botswana Defence will have to dig a little deeper for informa- Force (BDF) is reportedly on stand-by fear- tion on the true value of the company. ing that terrorism attacks in Mozambique This comes after at least two auditing could spill over to other southern African firms linked to Choppies – one former and nations among them Botswana. another current said they could not obtain The BDF Commander Placid Segokgo sufficient appropriate evidence that could at last week stopped short of admitting that least give a hint of the true value of Chop- there is panic at the barracks following re- pies. ports that recently civilians were the main The Choppies Group has been serving targets of attacks by Islamist militants in suspension at both the Botswana Stock Ex- Cabo Delgado Province, Mozambique. change and Johannesburg Stock Exchange Appearing before the Public Accounts after it failed to publish its audited financial Committee (PAC) Segokgo appealed to Par- statements for 2018 and 2019 respectively. liament to ensure that the army is well re- On Friday, the same day in which Chop- sourced to deal with the terrorist attacks in pies suspension at BSE was lifted, the newly Mozambique. appointed auditors – Mazars said they were “Terrorism, particularly the insurgen- unable to express an opinion on some of cy in Cabo Delgado in Mozambique, is a the financial statements of the troubled lo- very serious threat. It is not on our shores cal retailer. but it is a threat that moves very dynamically. The independent audit firm was ap- Unfortunately, Mozambique is caught in a pointed Choppies external auditors in Feb- situation where previously they were told ruary 2020, five months after the mass gro- they were dividends of peace. They needed cery retailer was ditched by a member of the not invest in security,” said Segokgo. top four international auditors – PwC. He told PAC that Mozambicans are now At the time of departure, the former faced with this particular emergency which auditors - PwC said that while auditing calls for special resourcing on “human re- Choppies financials they had picked up cer- sources for Mozambique to be able to ad- tain transactions and business relationships dress this particular challenge.” which were not made fully apparent by the Segokgo said Mozambique is part of directors, therefore not sufficiently consid- Southern African Development Community ered in preparation of historical annual fi- (SADC) adding that the bloc is committed nancial statements. to regional security. Following a painstaking 20 months long “It’s a situation (in Mozambique) that audit process, PwC in September 2019 made we as a member of SADC cannot just turn it public that it was parting ways with the a blind eye to,” Segokgo pointed out. He troubled grocer as a client. PwC said at the warned that the “modus of operandi of time that it had since realised that Choppies these terrorism organizations is that if you was a ‘risky client’ thus making it a quit. should help, they will then visit yourself and Following the sudden departure of the result is “that your jurisdiction” will be a PwC, the then newly appointed Choppies President Mokgweetsi Masisi with some of his cabinet at a special parliament session to discuss Covid-19 related issues in April. haven for “terrorism activities.” board approached leading external auditors, “These are challenging times of terror- amongst them former auditors – KPMG and SUNDAY STANDARD REPORTER istry’ budget, made a price comparison the Ministry of Health initial estimate was reduce the quantity of headcovers from ism groups. How we will address it… I don’t another member of the top four Deloitte as against market rates and established that inflated by about P90 million. 1000 to 800 000 at a budgeted cost of P16 think I have answers here, Chairperson I well as Ernst & Young and BDO to assume he Botswana COVID 19 budget the Ministry’s budget has been inflated by The Ministry of Health was subse- million against the actual cost of P4 mil- don’t know.” the vacant role. For various reasons undis- estimates have been padded by about P 1 billion. quently forced by the Ministry of Finance lion. But it was important in his view, Segok- closed to the public and shareholders all the about P 1 billion, Sunday Standard The Ministry of Health had initially to revise the budget for triple boxes down The Ministry has budgeted P10 mil- go pointed out, that since PAC is a commit- approached firms shunned the appointment investigations have revealed. budgeted P110 million for triple packaging from 22000 units to 11000, bringing the lion for 100 000 disposable aprons at tee of Parliament and Parliament facilitates but the retailer was saved by Mazars - a firm Documents passed to the boxes, apparently for specimen transport. estimated budget down to P55 million. At P100 a piece. The Sunday Standard was able how the army should be “able to execute with strong links to its Chief Executive - Sunday Standard reveal that the Ministry The Ministry’s estimate cost the packaging the current revised estimate, the cost of to source the aprons for US$1.86/piece the mandate that has been given to us, it is Ramachandran Ottapathu. Tof Health & wellness budget estimate for boxes at P5 000. 00 a unit and the ministry the boxes has been inflated by P45 million. about P22 a unit from Wuhan Woohoo important that this is highlighted to your- Fast forward to July 2020, the newly ap- the containment of Covid-19 pandemic wanted to buy 22000 pieces. The Ministry had also budgeted P 20 Co. Ltd China. This reveals that the Min- selves.” pointed auditors now say they are also un- in Botswana was P2, 259, 694, 550.00, The Sunday Standard team was however million for 1000 000 head covers at P20 istry has inflated the cost of disposable Commenting, Chairperson of PAC able to express a conclusion on Choppies’ comprising of P2, 088, 249, 450.00 for able to source the triple packaging boxes a piece. The Sunday Standard investigat- aprons by about 500 percent. Dithapelo Keoraptse noted that Segokgo financial statements as at December 2018 personal protective equipment, drugs and from a high-end supplier, Alpha laborato- ing team was however able to source the The Ministry of Health has request- raised a point on the threats that Botswana which were released last week. medicines and P171, 445, 100.00 for oper- ries in the United Kingdom for P 1,300 head covers from Indiamart Rs3,5 apiece, ed close to 80 million (79 200 000. 00) should be prepared to address “citing the “We were not appointed as auditors of ational costs. The figure does not include a unit. The Alpha Laboratories price is about 50thebe a unit. The actual budget from the Ministry of Finance to buy N95 example of Mozambique, and the inference Choppies Enterprise Limited in the prior the human resource cost which the minis- P3,700 cheaper per unit than the Minis- for 1000 head pieces comes to P 5 million mask/ EFFP2(20 per pack) 800 000 pieces that one can draw from your statement is try estimated at P 387, 038,060.00. try’s estimate. The Sunday Standard was against the Ministry’s budget estimate of at P99 a unit. CONTINUES ON PG 2 The Sunday Standard investigation team able to source the boxes even cheaper, P P20 million. The Ministry of Health was CONTINUES ON PG 2 accessed a detailed breakdown of the Min- 900 from a supplier in China. This means later forced by the Ministry of Finance to CONTINUES ON PG 2 WEATHER WEATHER SUNDAY MONDAY TUESDAY SUNDAY STANDARD IS A MEMBER OF THE PHYSICAL ADDRESS: PHYSICAL ADDRESS FORECAST Max: 23°C Max: 22°C Max: 21°C BOTSWANA PRESS COUNCIL AND SUBSCRIBES Commerce Park, Plot 104, Rowland, Ngilichi House (Meriting Spar) Unit 6, Francistown GABORONE Min: 04°C Min: 05°C Min: 04°C TO THE BOTSWANA MEDIA CODE OF ETHICS Unit 21. Gaborone TEL: 3188784 FAX: 3188795 TEL: 2412319 FAX: 2412310 & INFO Source: www.weather.com www.mascom.bw Get up to 100% Bonus Airtime when you recharge with MyZaka! Dial *167# or visit https://online.mascom.bw to recharge. Transfer money to your MyZaka account from any bank account through Mascom Online. Promotion valid from the 24th-31st July Terms and conditions apply. E&OE. 2 Behind the News July 26 - 1 August, 2020 Botswana The DIS know What Islamic State in Covid-19 insurgency in budget pad- Mozambique You Did Last Summer CONTINUED FROM PG 1 ding scandal • Spy agency fails to deny eavesdropping charges that really we can’t sort of predict the na- ture of future threats and given the charac- CONTINUED FROM PG 1 THOBO MOTLHOKA mittee that his agency would not do where the legislature has tangible sible.
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