Gov’t rejects ‘costly’ Moti deal, prefers open bidding
Spira Tlhankane | Thursday June 5, 2025 12:17
Appearing before the Public Accounts Committee (PAC) yesterday, Permanent Secretary in the Ministry of Finance Tshokologo Alex Kganetsano confirmed that indeed they received a proposal from an investor to build clinics and schools. He disclosed that the investor was proposing to put funds into the project and rent out the clinics and hospitals to government after completion. He said they made clear from the beginning that the financial implications in the deal were huge and that is why they had to send it back.
Kganetsano told PAC that the Finance ministry made it clear that government was not at a stage where it could borrow money to fund the project. He said as the caretakers of the country’s coffers they were brought in on the deal at the initial stage because they had to advise on the financials. “The initial proposal brought to our attention came from the ministries of Local Government and Health and that was before clinics were transferred to the local government. We told them that they should go and scale down and see to it that whatever they settle for will ultimately be accommodated within their budget,” the accounting officer further told PAC. He pointed out that at the moment they are still waiting as the sourcing ministry engages with the investor. He said they are still waiting for their final agreement after the parties settle.
“They will come to us and say this is what we have settled for and ask us as the Ministry of Finance what is our advise given the financial implications. We are not there yet,” he said. Kganetsano said he knows about the project and had to reveal everything before the committee because he had sworn an oath. He said the Ministry of Local Government shouldn’t have refused to give the PAC details about the proposed deal because the latter are the sourcing ministry. Moti’s African Hero Project, proposes to finish the million pula project in one to two months, 20 times faster than the current Botswana brick and mortar construction concept. African Hero is a socio-economic development initiative created and executed by Zotex Holdings (Pty) Ltd. Zotex belongs to the Moti Group, a superset of companies, based in Johannesburg, South Africa. African Hero indicated in the deal that there is potential to resell after 17 years and recover costs from a new owner, with the government entering into a new lease-to-own arrangement.
The proposed deal was supposed to last for 17 years and be a lease-to-own arrangement. The company wanted to deliver ready-made clinics and schools made from renovated shipping containers. The Moti deal issue didn’t just end at the PAC but also led to a heated debate at Gaborone City Council where Gaborone Mayor, Oarabile Motlaleng, pointed out that Moti is their previous sponsor and that the Umbrella for Democratic Change (UDC) is not apologetic about having him as their investor. He told a Botswana Democratic Party councillor that UDC is going to give tenders to investors from foreign countries. “It is clear, it is evident, we are talking about an investor. There is a man called Moti, we are talking about a man who plans to be an investor right here in our country. He has been there before, we are as the UDC not hiding Moti played a part when we asked for his help in the past,” he said.
The mayor emphasised that the UDC has endorsed Moti’s proposals. Meanwhile, the PS also revealed that even though there is provision for direct appointment in the Procurement Act, government’s position is that it prefers open bidding, a model which President Boko is clearly against. In various public platforms President Boko emphasised that he will use his executive powers to do away with tendering regulations which he says are outdated and delay projects. As tenderpreneurs protest his direct appointments pronouncements, the Head of State says his administration will be dominated by direct appointments and choosing from the best companies. Last week in Tlokweng village, he further noted that the normal tendering procedure is corrupt, and the whole practice makes him angrier.