Only a week ago the Botswana Federation of Trade Unions (BFTU)-owned office complex once again appeared in local newspapers under the "in the matter between" advertisements stating that the House would be auctioned to the highest bidder on March 22. However, BFTU secretary general Gadzani Mhotsha said they are determined to save the property. "We are not panicking yet and we are doing all we can to find funds to deal with the problem," he told Mmegi yesterday. He would not disclose who had bailed them out but confirmed that they are holding "talks with some people".
Mhotsha explained that though it is now fully occupied Babereki House is not generating enough funds to repay the loan and interest incurred as envisaged. He said that the problem goes back to the time of construction. He said the project was delayed and tenants who had wanted to rent space were forced to look elsewhere. "By the time the construction was completed we had already incurred interest," he said. Mhotsha added that BFTU secured funds last year to settle around P2.5 million in interest but by then the rate had gone up again to around P300, 000. "We are paying something every month but it is not enough," he said. The BFTU secretary general revealed that BFTU affiliates have contributed much towards the building but the property still cannot generate enough revenue. Efforts to get a comment from the National Development Bank (NDB), the project financiers, were futile.
