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 But in 2001, it made a P38m profit. However, the following year it lost P14m. BMC further lost P64m and P15m in 2003 and 2004 respectively. After consultation with government, Raborokgwe said BMC decided to embark on cost cutting measures that would ensure profitability. “If BMC was a private company, it would have long closed,” he warned. The parastatal has been slaughtering 100 cattle daily instead of the required 200. “Farmers are not bringing cattle to the company because they complain about our low prices and they have looked for better alternatives. Slaughtering 100 herd of cattle per day is as costly as operating to full capacity of 200 beasts.” In its cost cutting exercise, the BMC ceased offering accommodation to some staff in its houses in Maun, Francistown and Lobatse.
The Lobatse houses cannot be occupied because they are dilapidated and need P6m to be rehabilitated. BMC has also decided to sell its tannery and some of its houses. In February, the company informed 430 of its employees living in the BMC village in Lobatse to vacate the houses by end of July. Many councillors have opposed this. They said the deadline will inconvenience school children because it is difficult to transfer to another school in the middle of the year. The councillors urged Raborokgwe to be compassionate and extend the deadline to December. He said the matter will be decided upon by the Board of Directors. The councillor for BMC-Maokane ward, Simon Kgosi wanted to know what happened to the profits that the company made. “In 1996, the then President of Botswana - Dr Masire told us that the profit BMC was making could sustain it for ten more years without having to slaughter any cattle. What has happened to all that money?”
The councillors wanted government to investigate where the money could have gone. “It is very disappointing that Raborokgwe’s predecessors used to boast about the profit the company was making. Suddenly, Raborokgwe is here telling us about the company loses. There can’t be smoke without fire. There is something that we are not being told that has taken place at BMC that resulted in these losses,” said Woodhall councillor, Molaodi Mantle.
Deputy mayor Calvin Matlale told the meeting that he had been informed there was a plot to sell the tannery and cannery to former bosses at BMC. He wanted to know whether the staff at the soon-to-be-sold tannery will be given any packages. Raborokgwe explained that the land at BMC village has been re-zoned to commercial plot.
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