MPs reject motion to save BMC�s sinking ship

Nnasaretha Kgamanyane | Wednesday August 6, 2014 17:04

When opposing the motion, MPs fired that BMC is a burden to government. Gaborone Central MP Dumelang Saleshando said government had attempted to rescue the parastatal on several occasions with no success.

He further said sensitive issues pertaining to finances could not be tabled before parliament within short notice as parliament had to be briefed on the terms and conditions of the contract. Saleshando argued that since BMC’s dismal performance in the market, there had been no official updates on developments. He said its imperative for parliamentarians to read the agreement document to assess whether BMC’s plea is valid.

MP for Tati East Guma Moyo opposed the motion on the ground that the decision would be based on public interest and not business transaction.

Moyo stressed that government cannot afford to keep pumping money into stagnant project instead of investing into viable businesses.

“This is nothing but re-capitalising BMC, which is technically bankrupt. Many businesses have struggled but were never rescued, why should we treat BMC differently?” he said. Moyo advised members of the house to demand to read the terms and conditions that BMC and the bank agreed on, before accepting the motion.

MP for Kanye North Kentse Rammidi said government’s rendered financial support was unnecessary as BMC has failed Batswana. “Lets remove the monopoly like we did with Botswana Tele Communications (BTC) when it did not perform well. Just like BTC, BMC will be unable to sustain itself afterwards. They will repeat the same mistakes knowing that government will finance them,” he said.

For his part, Matambo said BMC had stated that farmers are currently paid after 15 days although they were previously paid within 48 hours. Matambo pointed out that due to a challenge in attracting cattle from farmers who prefer cash on delivery or payment within a short time.”

Though farmers expect to be paid immediately, the nature of business is such that BMC realises returns from their finished product after five months. As a mitigating factor, BMC negotiated for two financing facilities with Standard Chartered Bank, both totaling P300 million,” he explained.

Matambo told parliament that one facility would be utilised to buy cattle, feed and medicine, whilst the other was required as working capital.