Known as the BCL Sysmin Re-employment Account (REA), the fund was created by a partnership between government and the European Union in 1991. The REA received repayments of loans by BCL and Tati for preferential credit extended by the European Union. In this way, the REA turned the debt into a grant towards the diversification of Selebi-Phikwe, with a list of projects drawn up which would be funded to ensure the town survived even if BCL Mine closed down. Auditor-General Pulane Letebele in her most recent report, notes that the funds are largely untouched, a revelation certain to frustrate thousands of Phikwe residents and businesses who have suffered since the collapse of BCL Mine in October 2016.
Mmegi is informed that the REA funds were placed in an interest-bearing account, which is supported by Auditor-General reports from previous years showing annual increases in the balances held. “According to paragraph 42 of the Memorandum of Understanding between Botswana Government and the European Union, it was expected that all funds under the REA should have been spent by January 2019, or preferably earlier,” Letebele said in her latest report. “The development projects report dated May 2020, reflected that a total of 10 projects had been approved under the REA but only seven projects were complete. “The remaining three projects would only require P18,889,010, which still leaves a balance of P690,434,887.” Mmegi has established that out of the total funds available, only the Platjan Bridge projects and some work on the Selebi-Phikwe Airport were funded from the REA. The Platjan Bridge, completed last year was funded from the REA at a cost of P135 million. However, authorities in Selebi-Phikwe say the bridge could open up an economic corridor through the town and upwards to the Kazungula Bridge, if a 30-kilometre stretch of road from the bridge to main roads, was tarred. According to available SPEDU records, an amount of P432 million is required to build the 30 kilometre road and the EU had 'in principle' agreed to fund the project subject to a strategic impact assessment. It is unclear if the funding from the EU would come from the REA or other sources.
