African Energy seals Sese disposal deal
Thursday, January 15, 2015
Under this deal, FQM will purchased 51 percent stake in the power project located in the central district for $8 million (P76 million). A statement from the Botswana Stock Exchange (BSE) listed company states that all conditions precedent to the conclusion have been met. “FQM will now purchase an initial 51 percent stake in African Energy Holdings and will become project manager for the Sese project,” reads the statement.
Under the agreement, FQM can earn 75 percent interest in the Sese project through an investment of $20 million (P170 million) and other loan arrangements.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...