VP ‘ takes over’ billions in tenders
Sharon Mathala | Monday December 26, 2022 06:00
The company, a Durban based firm (names known to this publication) is named in a secret Cabinet memo dated November 18 2022, despite the fact that the Transitional National Development Plan, which calls for the appointment of a development manager to oversee major projects, was only passed by Parliament this week.
The SA firm is set to reap a commission of up to 12 percent for each major project it monitors, with an additional maximum of three percent of the project cost being charged as “development fees”.
Documents passed to Mmegi indicate that projects worth more than P11 billion will be hived off to the South African firm, going forward, with the company taking over all responsibility for the government projects. According to the secret memo, the implementation of major government projects will no longer be controlled by the ministries but coordinated through a Catalyst Project Team (CPT) that reports directly to the Vice President. The CPT will comprise independent multi-disciplinary professionals who will act as a link between ministries and the SA firm. It will be constituted 60 professionals from different disciplines.
From the documents seen by Mmegi, it is unclear who will appoint the CPT, but the decision is expected to come from the highest levels of government, including the presidency.
Information indicates that the new development manager model was adopted after an October 2022 benchmarking exercise in South Africa, led by then Transport and Public Works, Eric Molale, featuring the permanent secretary to the president and senior officials from other ministries.
The adoption of the development manager model and the benchmarking trip were shrouded in secrecy.
“Due to the confidentiality and urgency of the matter, the Cabinet memorandum has not been circulated to all Ministries and independent department for comments and input,” the Cab memo reads.
According to the memo dated November, 18 2022, Molale and his team met with officials where the new strategy plan was hatched, conceptualised, and then submitted to cabinet for approval.
“I therefore propose that Cabinet advise His Excellency the President to approve the establishment of a Catalyst Project Team which will act as a contract or link between ministries, departments, agencies, and the development manager. The CPT reports directly to the office of His Honour the Vice President,” Molale said.
Molale said the reason for engaging the South African company is because the current procurement process are protracted.
“The development manager is to be given a portfolio of projects which are strategic, transformative and have direct impact in the lives of Batswana. In light of the protracted procurement process associated with the Public Private Partnership method, it is highly advisable that government prioritises the developer manager model and also provide funding to effectively undertake the identified projects within the Transitional Plan period,” further reads the Cabinet memo.
The latest developments have raised concern that the appointment of a development manager could lead to spiralling corruption due to the concentration of power, oversight and accountability. While SA company is not expected to be involved in awarding tenders, the appointment of the South African firm without a clear public tender and its engagement ahead of Parliamentary approval, has also raised eyebrows about the integrity of public procurement system.
Leader of Opposition (LoO), Dithapelo Keorapetse said the new model is a way of stealing from the government coffers.
“There is no clear information on implementation. Currently the government cannot implement a P16-plus billion development budget and it’s unclear how they will implement P64 billion.
“Something big is happening and we need to know what it is and respond accordingly. “These guys want to plunder the public purse at a much faster rate it would appear,” Keorapetse said, when reached for comment.
The LoO further said that the decision by government and the ruling party to come up with a Transitional National Development Plan was a calculated attempt to undermine existing institutions and an effort to circumvent established ordinances and legal processes.
“Some key decisions have been taken pre-TNDP including the decision to remove PPADB from procurement and or tendering and also to remove planning from Ministry of Finance.
“This was in preparation for repurposing the state to serve narrow sectional interests.
“The decisions were meant to accelerate state capture. “It is not therefore surprising that a foreign company is engaged to oversee projects,” the Selebi Phikwe West legislator said.
He continued: “In any case, the job that will be given to the South Africans suggested by Molale, does it mean it cannot be done by locals. “This doesn’t warrant foreign companies to be engaged to oversee projects especially when we don’t know any objective or a criterion which has been applied in selecting such companies.
“It is wrong in every material respect. We have Batswana who can oversee projects. We have consultants who have supervised projects, having built and designed them, they’re more than qualified.
“It can only be that there is something happening behind the scenes and the Minister has to account to Parliament on why a company is engaged to oversee projects,” he said.
Reached for comment, Permanent Secretary to the President, Emma Peloetletse told Mmegi that whilst she is hamstrung to discuss a secret Cabinet memo as it is ‘illegal and the people who shared the memo with Mmegi need to be jailed’, the public will be informed in due time about these developments.
Pressed further to explain whether this new model would not open room for corruption, the PSP refused to entertain any questions stressing that the memo should have not been seen by Mmegi “in the first place”.
The latest revelations come as President Mokgweetsi Masisi’s name is being dragged through mud by a highly public legal fallout involving his relatives. In his legal filings, the president’s nephew Olebile Pilane has accused the Botswana Democratic Party (BDP) of siphoning funds through government tenders saying that was expected to pay a “a commission” of five percent of the total of the tender he won. Whilst the ruling party has not refuted Pilane’s allegations directly, the BDP has insisted that it does not meddle in government business.
Efforts to secure a comment from the Vice President, Slumber Tsogwane proved futile after weeks of attempts. However, in an interview aired by State television on Thursday afternoon, Tsogwane said the appointment of a development manager was prudent and would create jobs. He added that people should not doubt government.