NPF struggling to recover
Goitsemodimo Kaelo | Monday October 25, 2021 06:00
In 2017, the alleged NPF looting became Botswana’s biggest financial scandal after it was alleged that businessman, Bakang Seretse, Botho Leburu and Kenneth Kerekang, had diverted P250 million from the Fund. Seretse was at the time the managing director of Kgori Capital, an asset management company that was tasked with administering the NPF after winning the tender in January 2016. When the money laundering case started, the nation was buzzing with excitement and hope that finally the government in office has finally caught the big fish.
On Tuesday this week, the chief executive officer of Botswana Energy Regulatory Authority (BERA) Rose Seretse told members of the Parliamentary Committee on Statutory Bodies and State Enterprises that the fund (NPF) is still unable to perform what it's supposed to do. Seretse said according to the information they got from the Department of Energy, the NPF balance stood at P451 million as at September 22, 2021, against the P525 million being claimed by oil companies. “The claims for oil companies as at August stood at P525 million. You can see that the balance is lower than what the companies are claiming.
Even now, the NPF is unable to sustain what it is due to pay to the oil companies,” stressed Seretse. However, Seretse said they have been considerate to cushion Batswana against increasing international oil prices by not increasing to the full rates every time there is a global increase. For instance, she explained that had they increased prices to the full rates last month, ULP 93 would have gone up by P1.41 thebe, ULP 95 by P1.43, diesel by P1.24 and paraffin by P1.72 thebe. "But, you can see we couldn't do that because we realised it was going to be a heavy burden on the ordinary Motswana hence we slashed the prices to 71thebe, 69thebe and so on.
We always look at this and try to find a balance to see if it's affordable or a killer." “This is something of a take home between us and the Department of Energy so that we have a session to explain to the members the role of the NPF and where the challenges are,” she added. Seretse said among the challenges is that BERA does not fall at the end of the decision-making in terms of fuel prices as its role is limited to just recommending.
She explained that if BERA were autonomous, it would copy the South African way whereby the fuel market determines itself. “We would do like in South Africa where we can increase or decrease as at when the need arises, whereby the market determines itself. But we have a process that goes all the way from us to the board, the ministry then Cabinet. By the time we have to decrease, we increase the prices because of that lap in between,” she explained. Seretse’s comments followed questions from members of the committee who sought explanations on the state of the NPF and if it was in a stable position to cushion Batswana against the increasing global oil prices.
Firstly, it was Molepolole North legislator, Oabile Regoeng who asked what role the NPF was playing in the midst of frequent increasing oil prices. Mahalapye West MP David Tshere asked if Batswana are now paying for the alleged misuse of the NPF funds.
He said Batswana were feeling the brunt of the recent fuel increases. Other members such as MP for Shoshong Aubrey Lesaso and committee chairperson who is also MP for Nkange Never Tshabang also chipped in demanding an explanation on the performance of the fund. The MPs shared sentiments that it looks like the fund has been depleted, as such the frequent increases are meant to replenish it. Tshabang also asked if the fund has been audited. Meanwhile, Seretse said they are concerned that most filling stations in the country are owned by naturalised Batswana.