DIS ignored valuers in Tautona Lodge purchase

Goitsemodimo Kaelo | Tuesday July 28, 2026 12:22

He insists the purchase was driven by strategic national security considerations despite government property valuers advising against the deal and valuing the property below the purchase price. The matter resurfaced before the Public Accounts Committee (PAC) on Monday, where legislators questioned Magosi over the purchase, the delayed inclusion of the property in government books, and the handling of revenue generated by the lodge.

However, the committee's toughest questions centred on the purchase price.

PAC member, Shima Monageng, questioned why the DIS proceeded with the acquisition despite a valuation report advising against buying the property. He further argued that the property was acquired above its market value.

'The purpose of a valuation report is to guide the buyer. The report clearly recommended that you should not buy because government would end up competing with private businesses. Why did you ignore that advice? Why did you purchase above the market value, and why did you use people who were not qualified property valuers?' Monageng asked.

Magosi defended the decision, saying the valuation did not adequately consider the strategic importance of the property from a national security perspective.

He explained that intelligence assessments indicated that Gantsi would become increasingly significant due to anticipated mineral development and the possibility of future infrastructure projects, including pipelines that could transport water or oil into Botswana.

'When we decided to buy the land, we were looking at its strategic impact,' Magosi said.

'Our assessment showed that because of the mineral deposits in the area and the probable future intention by government to bring water or oil through pipelines into Botswana, Gantsi will require more land.'

He added that Gantsi is largely surrounded by farms, making land increasingly scarce.

'As part of our mandate, we advise government on future needs. We wanted to establish a land bank for government. We also required a secure location for operations that cannot be conducted in public, as well as a training facility,' he said.

The property is said to have been purchased for P52.1 million, while the total amount paid reached P58.2 million after adding 12% Value Added Tax (VAT) amounting to about P6 million.

Monageng, however, disputed the explanation from Magosi that the price went higher because of VAT.

The MP argued that market valuations normally are inclusive of VAT, insisting that if anything buyers should negotiate prices below market value rather than above it. 'The value of the property should include VAT. Normally buyers negotiate below the market value, not above it,' Monageng said.

Responding to further questions, Magosi said the valuation had been provided by the Ministry of Lands but insisted the valuers did not appreciate the security considerations that informed the acquisition.

'The adviser did not understand the need to buy,' the intelligence agency’s boss said.

Despite Magosi's explanations, PAC members remained unconvinced, with the committee continuing to question whether the DIS had complied with government procurement principles and whether taxpayers obtained value for money in one of the state's most scrutinised property acquisitions.

During the previous hearing, the PAC had recommended that Tautona Lodge be recorded as a government asset and that all income generated from its operations be processed through normal government financial systems.

Responding to questions on progress, Magosi said they have been engaging the Accountant General's office to regularise the property's status, although some outstanding requirements have delayed the process.

The DIS Director explained that one of the major stumbling blocks has been obtaining an independent audit of the lodge's financial statements.

He revealed that they approached three audit firms, but only one submitted a quotation of about P60,000, while the others declined the assignment.

'They all said they could not audit us because of the amount of money we generate. They felt we might not be able to pay them because Tautona Lodge runs independently,' the committee heard.

The DIS head said it has since referred the matter back to the Accountant General for guidance on appointing private auditors.

The Accountant General's office told PAC that it had requested several documents before the property could officially be entered into government books.

These included the 2023-24 financial statements, a valuation report, proof of payment for the acquisition, company registration documents together with share certificates, and the title deed.

Magosi said all the requested documents had been submitted except the title deed, which only became available last Friday.

'Once we have the complete documentation, we will begin the process of recording the property in the government's accounting books,' the Accountant General's office said.

Meanwhile, the PAC also learnt that Magosi and other DIS officials bought cattle from the owner of Tautona Lodge following the purchase of the Lodge.

Magosi said he bought 30 cattle which were in the farm before arrangements were made to remove them. He told the hearing that he did not find any conflict as this was done openly.