UDC gov’t axes 21 parastal CEOs
Staff Writer | Monday March 2, 2026 10:20
The executives have been shown the door in a bid to re-align state owned enterprises into financial shape. The dismissals, spanning various portfolio ministries, mark one of the most sweeping shake-ups of the SOE sector in recent years. The Ministry of Trade has recorded the highest number of exits, although with Mmegi counting changes to five of the ministries' SOEs.
At the dawn of his administration, President Duma Boko had put forward a cautious and measured approach toward executives appointed by the previous regime. The new government’s stated position then was that political affiliation would not be the primary consideration, provided those in office were able to execute their mandates competently and in line with national priorities.
Months later, it appears the government is of the view that most of the top executives are not worth their salt. Insiders have revealed that the shake-up is a result of mounting internal pressure in government to deliver tangible economic change, most of which can be driven through SOEs. Most of these SOES have also struggled with recurring losses, weak balance sheets, and audit concerns. Several parastatals have in recent years relied heavily on subventions and guarantees from the treasury to remain afloat, placing additional strain on the fiscus at a time of widening budget deficits.
The most recent bootings have been seen with contract non-renewals for executives in SOEs such as Botswana Oil, Botswana Tourism Organization, Air Botswana, Diamond Trading Company Botswana (DTCB), and Okavango Diamond Trading Company (ODC), to name but a few.
The removals come against the backdrop of a deteriorating fiscal environment, with the government under pressure to rationalise expenditure and contain contingent liabilities arising from underperforming public entities. Many fiscal specialists and Bretton Woods financial institutions have repeatedly indicated that SOEs must transition from being a drain on public resources to becoming efficient service providers capable of generating value.
While the government has not publicly detailed the specific grounds for each dismissal, sources within the public sector point to corruption, governance lapses, and failure to meet strategic targets as key considerations. In some instances, boards have been reconstituted, signalling a broader governance reset beyond executive management.
Some quarters in the public domain argue that decisive action was long overdue, citing persistent inefficiencies and allegations of political playing within certain entities.
The restructuring drive also aligns with calls from oversight institutions for improved corporate governance in parastatals. Over the years, audit reports have highlighted weaknesses ranging from irregular expenditure to delayed financial statements, issues that have eroded public confidence in some entities.
Last year, a compliance report carried out by the Botswana Oversight Accountancy Board (BAOA) found that 31 out of 45 SOEs were non-compliant with the prevailing codes of corporate governance, while emerging reports suggest political forces from the past administration captured some entities and are keen to hold onto shadow roles.
The country has 62 SOEs, which, by last year, were due to receive the bulk of the P16.2 billion set aside for grants and subventions in the 2025-26 budget. This is despite the fact that the majority of the entities are loss-making, weighed down by operational inefficiencies, lack of strategic direction, and over-reliance on government support, despite the fact that many enjoy monopolies in their area of focus, such as electricity.
The shakeup comes after the UDC coalition was criticised for being somewhat fearful of implementing sweeping changes. With President Boko treading carefully from the onset, some had expected some unelected bureaucrats who served under the previous administration to be axed. The expectation was that even non-political employees who serve in senior positions should have been sent home right away to allow the new administration to review staffing as it aligns the UDC’s priorities. They believed that top positions should be staffed with people who support Boko’s goals.
With some of the positions now being filled by party diehards, the observation is that UDC is finally entertaining cadre deployment, a policy which Boko rejected. Boko last year said that he has not fired some of the loyalists of the former regime because they were 'performing' well and that getting rid of them could destabilise governance. Boko admitted that initially, there were some senior officials on his kill list, but he was later made to realise that removing them could collapse the system.
He said they will not be reckless and fire people. He said if he fired everyone, he would not have anyone to work with. Boko also said he could not do cadre deployment because he has seen it destroy governments. The cadre policy and deployment strategy were adopted by the ANC when South Africa attained democracy in 1994, and they meant to have loyal party hands in strategic positions at various levels of government.
With party diehards pushing for the placement of their members in key roles, Boko said at the time that he did not want a situation where they would not operate on merit and competence but rather on affiliation. But now the dismissal of 21 top executives and their replacements afterwards show that the UDC government has finally adopted the cadre deployment.
Asked if the UDC has adopted cadre deployment in the recent shake-up, UDC chief executive Dr Patrick Molutsi told Mmegi in an interview that they don't have cadre deployment and that they have explained to Batswana that they only use merit when it comes to appointments. 'We are doing the shake-up same as we have been doing when in comes to Permanent Secretaries. We usually have political appointments in ambassadorial posts. We don't have that cadre deployment policy,' Molutsi clarified. He said party diehards who pushes for cadre deployments wants them to do what was done by the previous regime even if it is wrong. He said they will continue being careful when it comes to choosing leadership. Molutsi emphasised that the reason they choose some unlikely people in some positions is to show that they go for meritocracy rather than political affiliation.
SOEs: 1. Air Botswana-Trade 2. BDC- Trade 3. LEA- Trade 4. CEDA -Trade 5. BTO - Environment 6. BAC - Tertiary 7. DTCB - Minerals 8. BAMB - Agriculture 9. BOFINET - Communications 10. BOTSWANA OIL - Minerals 11. Bank of Botswana - Finance 12. BHC - Water 13. BDIH - Communications 14. Botswana Railways - Infrastructure 15. BSE - Finance 16. ODC - Minerals 17. CAAB -Trade 18. BURS - Finance 19. BQA - Tertiary 20. BNSC - Sports