DM model review uncovers rot
Innocent Selatlhwa | Monday August 11, 2025 10:41
The DM model was initiated and implemented by the government as a procurement initiative to execute some projects of the second Transitional National Development Plan, or TNDP (2023-2025). It was however marred by controversy, leading to the newly elected Umbrella for Democratic Change (UDC) halting most of the projects under the model.
According to the team, which was led by attorney Kabo Motswagole, the DM model, as applied in Botswana, is a bespoke contract rather than an internationally recognised procurement framework. “Its implementation was neither piloted nor supported by adequate feasibility analysis. It lacks legal clarity and was introduced without thorough stakeholder consultation or institutional readiness assessment,” the team stated.
They also state that the model failed to deliver set objectives. According to the task team, initially intended to resolve persistent challenges in public project delivery such as cost overruns, delays, and poor quality, the DM model has instead exacerbated the challenges.
“The cost of DM projects increased substantially from the initially projected P13 billion to approximately P56 billion, significantly impacting the government’s fiscal standing, and diverting resources from other priority areas. Both the National Planning Commission and the Ministry of Finance estimate that cost overruns due to the DM model will amount to between 40%-60% of the cost of implementing the 12th National Development Plan (NDP12),” they wrote.
Motswagole and team also established that Development Managers were engaged through processes that deviated from the Public Procurement Act, often bypassing competitive tendering and legal safeguards. “Key changes to the scope of work from project management (EPCM) to full engineering and construction (EPC) were made irregularly, undermining contractual integrity and transparency,” they stated.
The team further established that the Catalyst Project Team (CPT), established to oversee implementation, operated without a clear legal mandate and also reported minimally to line ministries. “It led to a hollowing-out of government functions, displacing established institutions, including the Ministry of Finance, National Planning Commission, and the Public Procurement Regulatory Authority. The CPT was found to lack the capacity to monitor projects effectively and often approved major expenditures without referencing the TNDP – Public Investment Programme,” they noted.
Furthermore, it was also revealed through the report that seven of the nine DMs engaged are majority foreign-owned, and prequalification requirements such as financial thresholds effectively excluded local companies. “As many foreign professionals work without proper registration or work permits, it means they circumvent both tax obligations and professional regulatory frameworks,” they stated.
The task team found that the project allocation under the DM model lacks transparent criteria. They established that several DMs were assigned projects beyond their sectoral competencies, resulting in slow progress or idle construction sites. Site visits confirmed that despite significant disbursements, many projects remain inactive or are progressing at a suboptimal pace.
The review further revealed systematic breaches of multiple national policies and laws, including the Citizen Economic Empowerment Policy, the Competition Act, the Public Financial Management Act, and the Financial Reporting Act. “Risk transfer to DMs, a central premise used to promote the model, was more hypothetical than practical. DM model risk pricing mechanisms left the government heavily exposed,” they found.
The Task Team recommendations:
To eliminate inefficiencies and unjustified cost escalations, the task team recommends that government should implement independent financial audits, ministerial approval for cost escalations, and real-time expenditure monitoring.
To address the eroded credibility in public procurement, they recommend future engagements with DMs must be based on transparent, competitive bidding processes with publicly disclosed evaluation criteria.
To ensure infrastructure quality and sustainability, they call for a robust quality assurance framework to be institutionalized, and regulators enforcing professional licensing requirements, and conduct independent quality audits.
Given the urgency for real-time tracking of project progress, financial disbursements, and contract compliance, they call on the government to introduce a centralized digital project monitoring system.
Should the government consider it prudent to continue with the DM model, the task team said the model must be redesigned to align with national development objectives, and best international practices.
“To reclaim government’s fiscal, legal, and other control of the construction processes ceded to DMs, it is recommended that the CPT be dissolved with notices for termination sent to the respective members of the CPT as an end of contract formality,” they state.
Further, the team calls for existing DM contracts to be terminated through structured negotiations, with priority given to completing ongoing works where contractors are mobilised on-site to minimise disruption and protect public funds.
To restore credibility in government institutions, the task team says the Ministry of Finance, and National Planning Commission, technical departments in line ministries must execute their functions in national development planning, and project management as envisaged in their formal mandates.
The team also recommends investigations. “To address consequence management, it is recommended that the matter of DM Fees (DM Fee, Professional Fees, Disbursement, DM Risk aspects) be referred to relevant investigative authorities,” they wrote.