AG acknowledges DIS, Israeli contract
Oarabile Mosikare | Friday September 14, 2018 14:09
This came to light in the preliminary findings by the AG on the contract between OP and Dignia Systems for the acquisition of security equipment and surveillance platform with associated training. Besides alluding to internal processes, the AG is not disputing the legality of the contract or its existence. Again, the AG has not recommended any suspension nor cancellation of the contract.
Recently the spy boss, Peter Magosi made attempts to nullify a $22.6 million (P241 million) deal with an Israeli arms firm, but this is doomed to fail as his predecessor, Isaac Kgosi signed an ‘ironclad’ contract, which guarantees payment to the Israelis. Exclusive documents seen by Mmegi this week suggest Magosi will have an uphill battle to avoid paying the Israelis the outstanding balance of P118 million owed for various military equipment, including weapons and drones supplied as per the contract.
“The contract is not compliant (sic) with the provisions of the Public Procurement and Asset Disposal Board Act. The effective date of the contract is not stipulated. No indication that the Request for Quotation method was authorised by the Public Procurement and Asset Disposal Board,” some of the AG’s findings read.
The AG also said no invitation to tender was floated, which could have clearly stipulated the deliverables, meaning the deliverables are only known to the contractor.
The AG also said payment was effected before delivery and no advance payment guarantee has been provided by the contractor.
“The contract does not make provision for withholding taxes that are on each component of the contract. “There are no provisions for defect liabilities, warranties and quality assurance checks. “There are also no provisions for risk of loss exposing government to risk and possible loss in the event something happens to the goods whilst on transit before delivery.”
“It is understood that Magosi wanted to have the agreement renegotiated or re-drafted but the Israelis would have none of it.
“Dignia Systems refused and insisted on performance-based on original contract. Recently, the Dignia Systems lawyer, Unoda Mack wrote to Magosi that there is no clause in the agreement which empowers him to suspend the execution of the agreement and he has not referred to any.
“Accordingly, your purported suspension of its execution is invalid, unlawful and without basis in law,” Mack wrote. “It was the responsibility of the Government of Botswana represented by the Office of the President to ‘acquire all necessary procurement approvals prior to the signing of the agreement’ as provided under clause 9.1.2 of the agreement.
“By signing the agreement and making the first payment, the Government of Botswana was acknowledging that all procurement procedures have been duly complied with; the legality of the agreement/contract between the parties has not been questioned by anyone or any institution and there are no investigations in relation thereto as you seem to suggest in your letter.”
Asset managers, Bakang Seretse and Botho Leburu together with Kenneth Kerekang, an executive director of Botswana Energy Regulatory Authority (BERA), have been charged with money laundering.
The case involves the National Petroleum Fund’s P250 million that was transferred to the DIS for construction of fuel storage tanks before being diverted for the alleged purchase of military hardware from Dignia Systems.
Despite the AG acknowledging that there is a contract, Seretse, Leburu and Kerekang still stand accused in court.