She said of the loan, P39 million is secured through a mortgage bond over the company's plot. She said the buildings at Tribal Lot 13143 in Palapye, which belong to the company, are valued at over P37 million. Somolekae pointed out that the company owns the plant, machinery and equipment valued at P119 million, adding that a Deed of Hypothecation over the plant secures the loan. "Therefore, the loan carries a moratorium to the end of July 2012 and repayment will start at the end of August this year," she said.
Lobatse MP Nehemiah Modubule had requested to know why the Botswana Development Corporation (BDC) granted Palapye Seven Star Steel Plant an unsecured loan and whether repayments had already begun.Meanwhile, Somolekae further revealed that BDC has so far spent P5.7 million on the Riley's Hotel project in Maun. The project, she said, was initially tendered at P12.9 million in 2008. "BDC is currently working towards going for tender for the project as the scope was reviewed to include other facilities such as conference rooms," she said. Modubule had wanted to know the amount spent on the hotel project.
