BAMB grapples with mounting debt
Pauline Dikuelo | Monday May 18, 2026 06:00
By February this year, only six percent of the debt had reportedly been recovered.
According to Scheepers, who joined the BAMB in January, nearly P27 million of the outstanding debt is linked to a single company that allegedly collected grain from Pitshane silos without adequate guarantees or payment arrangements in place.
She explained that despite the company’s continued failure to settle its accounts, little action was taken at the time.
“Upon taking over, we realised that there was an audit company engaged to collect these debts, but the recovery rates have been low,” Scheepers said, adding that recovery efforts have remained weak since 2023.
She further disclosed that BAMB has undertaken a comprehensive review of its debt book in an effort to reconcile outstanding amounts and strengthen accountability.
However, meetings with the external auditors reportedly exposed inconsistencies between records held by BAMB and those maintained by them.
Scheepers also said the review also uncovered serious weaknesses in the drafting and monitoring of contracts. She noted that some agreements contained limited liability and indemnity clauses, making debt recovery difficult.
“Contracts were poorly drafted, which weakens recovery rates for BAMB. There was also poor monitoring of contracts,” she stated.
While attempting to recover money owed to the organisation, BAMB is simultaneously under pressure to clear debts owed to farmers and suppliers.
Scheepers said the parastatal is currently selling consignment stock and using the proceeds to meet operational obligations.
“We are selling consignment stock and using the revenue to pay our bills,” she said.
The CEO explained that BAMB intends to complete the reconciliation process relating to the P66 million owed to farmers and suppliers, stressing the importance of maintaining relationships with suppliers who continue to provide stock to the organisation.
Scheepers also emphasised that she has now introduced tighter financial controls at the institution.
She said every payment transaction is being closely scrutinised before approval and that all irregular transactions uncovered so far have been reported to the Directorate on Corruption and Economic Crime (DCEC), the Directorate of Intelligence and Security (DIS), and the Serious Crime Squad.
“I am checking every payment before I sign. I am not going to sign easily. I will not continue the culture of bleeding BAMB,” she said.
In a bid to stabilise its financial position, BAMB has reportedly approached Access Bank Botswana for a loan facility.
The funds are expected to assist the organisation in settling debts owed to farmers and repaying obligations linked to its previous lender, Bank Gaborone. BAMB has reportedly used some of its buildings and grain stock as security for the facility.
Scheepers said the organisation currently has approximately P17million remaining, which management intends to utilise cautiously.
BAMB operates offers services including grain trading, retail operations, milling plants, and feed mill production.
Meanwhile, the latest Auditor General's report for the year ended 31 March 2023 also highlighted unaccounted COVID-19 intervention funds at BAMB, outstanding Strategic Grain Reserve (SGR) debt, missing reports and weaknesses in the management of public resources intended to safeguard national food security.
One of the most serious findings relates to P196,6 million disbursed to BAMB on 8 October 2020 for the procurement of produce from local farmers to replenish the Strategic Grain Reserve during the COVID-19 pandemic.
The funds were allocated as part of the government’s emergency response measures to strengthen food security and support farmers affected by the pandemic's economic impact.
In another major finding, BAMB was reported to owe the Strategic Grain Reserve a cumulative P290.6 million arising from failure to comply with stock rotation settlement terms. Clause 7(b) of the Agency Agreement stipulates that when SGR stock is rotated, BAMB must purchase the stock at cost plus a five per cent markup and settle payment within 30 days of the statement date.
However, auditors found that the obligation had not been met, leading to substantial debt accumulation.