Training levy eludes security service sector

Cavin Kanoko | Thursday June 14, 2018 12:04

Whilst HRDC has continuously said there is low uptake of the training levy fund, the Security Association of Botswana (SAB) said it found it difficult to access the fund. 

It has been reported that the training levy collections reach hundreds of millions of pula, but have not been utilised over the years. 

At a general meeting held at the Big Five Lodge on Tuesday, the SAB said that most companies are unable to train their officers as required by the nature of their job because it is difficult to recover money spent on training of staff. 

SAB interim chairperson Gaolathwe Modongo said that this puts the effectiveness of the training levy fund in question.

“We are expected to train our employees but when we train them and go forth to claim we are turned down. 

We pay it, but to access it is very difficult. We are sent from pillar to post. At one time you will be told that the period for claiming has closed. Meanwhile, we would be struggling to pay the trainers who would be demanding payment for their services,” Modongo said. 

He indicated that the window periods used for claiming funds from the training levy do not favour them, stating that they would be expected to pay the trainers and cover the costs of training before they could make a claim.

Modongo stated that SAB members fail to understand why they are expected to undergo long processes to acquire their funds from the levy as they contribute as stipulated by the HRDC.

Furthermore, he said that this negatively affects the growth of their industry as most of the businesses run at a loss. 

“It puts a strain on our businesses because the profit margins are very low. At least, we should be allowed to invoice HRDC so that it pays the trainers directly,” he added. 

However, HRDC Fund officer Lulu Ngakane explained to Mmegi that they work within their financial year, which runs from April 1 to March 31. 

“Levy paying companies should submit their claims within that period or they forfeit their contributions. The non-levy paying companies gather all the required documents and wait for the HRDC to place an advert for them to place their claims,” she said.

Early this year, HRDC said in its annual report that only 17% of eligible payers had utilised the training levy fund during the 2016-2017 financial year. 

It also indicated that since inception, the levy has funded initiatives amounting to P242 million, with P6 million spent on funding training at the Department of National Internship Programme, about P1 million at medical internship training, P15 million at Botswana Chamber of Mines and P218 million at the Department of Technical and Vocational Education and Training.

For the 2016-2017 financial year, the net levy collection stood at P281 million.