SPTC sidelined in multi-million Pula deal

ONALENNA MODIKWA
Staff Writer | Friday February 25, 2011 00:00

The council learnt about the deal, financed by the European Union (EU) through the media. This forced the mayor to write a letter seeking an audience with the Ministry of Finance to get an explanation. 'Though we are elated at the good news, we are however perturbed by failure on your part to officially inform the council or the mayor's office about the funds. This raises questions as to whether your office did not find it necessary to inform the council. Is council input in the utilisation of the funds necessary? If so we then request audience with the minister on the matter,' the letter said.

The government and the EU signed a Memorandum of Understanding (MoU) on January 21 for the allocation of the P640 million to diversify Selebi-Phikwe's economy away from reliance on copper-nickel mining. The money was disbursed as part of the national budget. A number of priority projects to be funded with the money include the expansion of Selebi-Phikwe Technical College, tourism infrastructure at Letsibogo Dam and a packaging and processing plant for horticultural produce and the improvement of the agro-business sector.                    

An official from the Ministry of Finance, Steven Kebakile said they acknowledge that a mistake occurred in not including the SPTC in the signing arrangement. He stated that the ministry has resolved that all proposals on how the money will be used should have an input from the council.

He said 10 percent of the money will be invested in Selebi-Phikwe diversification unit SPEDU as government is currently struggling financially as a result of the economic recession. The rest of the funds will be used to fund projects in education, environment and private sector development in the town. Meanwhile Selebi-Phikwe councillors said the fact that the government has not allocated money for the diversification of the town's economy might demoralise the EU. They called on the government to allocate funds for the diversification rather than watch the EU funding the project.