12 May 2014

Chobe Enclave Conservation Trust (CECT) faces a tough financial period this year as the hunting ban takes effect.

This was said by the CECT manager, Mr Frank Limbo at the trust’s annual general meeting over the weekend (May 10-11). He noted that most of the operations of the trust were going to be affected because the main  source of income, hunting, was no more.

The 2013 budget utilisation notes indicated that the trust made over P4 million in 2013 from hunting and only over P430 000 from photographic concession fees. With the hunting ban now in place, CECT might have to look to Botswana Tourism Organisation for funding as hunting was their main source of income.

The manager’s report also indicated that 50 animals were killed in the 2013 wildlife quota, including 28 elephants. The wildlife quota generated an income of over P4 million.

The trust chairperson, Mr Amos Mabuku also emphasised in his remarks that around 90 per cent of the trust’s income was generated from hunting.

With the ban on hunting, he said photography has been ear marked as a replacement income generating project for trusts.

However if the 2013 financial reports by CECT were indication of what was to come, photographic concession fees fall short of generating enough income to sustain trusts at just under 10 per cent income generated in the year 2013.

Some of the issues that were picked up by the auditors regarding CECT’s management were that, the trust did not keep a proper detailed asset register and the auditors noted that they were not satisfied with the completeness and accuracy of VAT payable amount of P500 000 as the trust had not been filing VAT returns the whole year with the relevant authorities.

In his briefing, the auditor Mr Gogaisa Kelatlhilwe of Mazars also noted a sum of P111 000 that remains unaccounted for, a matter which was reportedly being handled by the police.

Members complained that having the trust’s offices based in Kasane was adding unnecessary expenses to the trust in the form of rentals.

However, the trust’s manager, Mr Limbo explained that this was done to be able to access internet services.

Mr Limbo added that the trust’s caravan which has not been in use for years would be refurbished to be used as CECT’s offices in the area.

The trust’s financial statements indicated that as of 31 December 2013, the trust had over P6 million in their account and investment property including Linyanti bush camp and Ngoma lodge worth over P19 million.

In the absence of hunting, the bank balance would drop dramatically according to the 2014 budget proposal. The trust has budgeted for income of over P1 million with a budgeted expenditure exceeding P4 million in this current financial year.

One of attendants at the meeting complained about the current rental agreement at Ngoma Lodge arguing that it was not profitable for the trust and must be reviewed.

He explained that with the current agreement, the lodge would have made a profit of P900 000 after 10 years which is far from covering the P7 million costs that were used as investment in the project. ENDS