Parly Approves BMC's P100M Bailout
Tsaone Basimanebotlhe | Monday September 21, 2020 13:38
The BMC has long been facing financial problems and therefore the money will be used to clear debts for feedlotters and small, medium and large scale farmers amounting to P24 million and P76 million respectively.
However, the Committee noted it had observed that for years the BMC has been failing to sustain itself, therefore regularly depending on supplementary budgets.
“In this regard, the Committee advises the Ministry to implement the BMC turnaround strategy and wean BMC off government assistance,” the report states.“The Committee has agonised aggressively over the BMC request, considering the fact that the supplementary (budget) does not meet the criteria. We however found it imperative for the BMC to pay the farmers who have to bear the brunt of the BMC inefficiencies and our decision to approve the funding is based solely on protecting these farmers.”
On other issues, the Ministry of Transport and Communications’ request for a short-term funding requirement for Air Botswana, amounting to P100 million to sustain its operations and the consequent achievement of a (learner) structure was also approved.
It is understood that Air Botswana has been grounded due to COVID-19 movement restrictions since April 2020.
Therefore, the national carrier has experienced a decline in its revenue streams to sustain itself, including on its most profitable route of Gaborone-Johannesburg.