Parastatals a big let down - Tibone

GOTHATAONE MOENG
Staff Writer | Friday February 10, 2012 00:00

 

In his response to Finance and Development Planning Minister Kenneth Matambo's budget speech, Tibone said yesterday that having accrued only P107 million during the 2010-2011 financial year, parastatals were letting government down.

'It is comparable to what Choppies (chain store), a single entity, delivers to its shareholders in a year. I find that disappointing,' he told the House. Presenting the budget for the 2012-13 financial year last week, Matambo said the commercial public enterprises had performed satisfactorily.  The minister said at the time that the highest dividend was from Botswana Telecommunications Corporation (BTC) at P57 million, which was 20 percent higher than the dividend paid the previous year.

According to Matambo, the other parastatals that paid dividends were Botswana Development Corporation (BDC) P28.7 million; National Development Bank (NDB) P12.3 million; Botswana Telecommunications Authority (BTA) P5.9 million; and Botswana Savings Bank (BSB), P3.2 million.

Yesterday Tibone also said the government should consider investing in agriculture more aggressively to help accelerate economic diversification.  He said government must invest in agricultural infrastructure as well as equipment. He said currently, available agricultural equipment, such as tractors, is not adequate. Charges by private tractor owners are also too exorbitant for ordinary farmers.

'As I understand, the agreement with government is that private tractor owners should charge P400, but as it is the minimum charge, at least in my district, is P600, and it's on a take it or leave it basis,' he said. The MP said with more investment in the agricultural sector, the sector could increase its contribution to the gross domestic product (GDP) from the three percent it contributed to at least 10 percent. He said investment in this sector would also increase employment, and move the country towards food self-sufficiency, as well as possibly reduce dependence on schemes like Ipelegeng for poverty eradication. He said in his opinion, there is a relationship between the dependence on Ipelegeng and lack of investment in other sectors of the economy, such as agriculture. 'If we were to invest in agriculture, I foresee a reduction in Ipelegeng employees,' he said.

The legislator said investing in this sector would also help graduate farmers from subsistence farming to commercial agricultural production, adding that completed dams such as Lotsane should be utilised for horticultural purposes.

On poverty eradication, Tibone said the programme would not succeed without channelling more funds into rural areas, which he called 'the hosts of poverty'.