09 Jun 2014

The Ministry of Infrastructure, Science and Technology is faced with a dilemma as construction companies have failed to collect retention money due to a number of reasons.

Appearing before Public Accounts Committee (PAC) on June 6, the permanent secretary in the ministry, Mr Dikagiso Mokotedi said some companies had failed to collect retentions either because they have had their contracts terminated or had deserted the projects.

Retentions amounted to 10 per cent of the total project costs and handed out in phases during construction and were to cover defects, if there were any. Mr Mokotedi said in the event the contractor failed to address the defects, the money could not be released. Some contractors upon realising retention would not cover defective costs abandoned the projects and never made claims.

Under the Public Finance Management Act, any amount not claimed within a period of five years should be returned to Consolidated Funds. Mr Mokotedi said government has the contractual obligation to engage a different contractor using the retention amounts.

Mr Mokotedi said actions were taken against contractors who act in an unprofessional manner. Talking about tender disputes, he said they have engaged professional adjudicators, and avoid conflict by guiding against corruption adding however a competitive environment would always have unhappy people.

MP Prince Maele who is a member of PAC asked the PS to clarify issues pertaining to performance of Chinese contractors, to which Mr Mokotedi said historically, Chinese construction companies have done well constructing solid buildings as the ones they build in their own country.

He said the first Chinese companies were robust and highly ethical but their standards have now gone down due to the environment created in Botswana.

The industry has to be regulated; hence Mr Mokotedi said they were coming up with legislation. Further, building regulations have to be reinforced and he said as it is, even a light wind could blow up houses. He said they were coming up with a law to ensure that they have the right people operating in the local construction industry sphere.

For his part, Selebi Phikwe West MP Gilson Saleshando asked if the ministry was satisfied with the level of research in the country, to which the PS said their role to ensure the environment was conducive by making policies and legislation such as the Research Science and Innovation Policy.

He said they were looking into setting the National Research Council which would manage the research fund yet to be established.

“Research in the country is not funded and further, Batswana are not encouraged to undertake further training hence the potential of the economy has not been fully realised.”

PAC chairman and Lobatse MP Nehemiah Modubule asked if the ministry was satisfied with the youth projects undertaken.

The PS said his ministry was doing all it could as it empowers youths in the construction industry with necessary skills and knowledge hence they have a high success rate.

He said they ensure the youths behave professionally to ensure they avoid pitfalls adding their model works because unlike the Youth Fund from the Ministry of Youth, Sports and Culture, they engage proven business people. “These are the youths who have realised their potential and have registered companies including passion to go into construction.”

“We are not giving out hand-outs but offer training and we treat them as business people who took initiatives by registering companies,” he said. Tonota North MP Fidelis Molao asked if the accounting officers have a forum where they could share ideas on how to assist the youths.

Mr Mokotedi said they had a forum adding policies and laws have been passed aiming at reducing unemployment amongst the youths.

He said since minor works were now undertaken by individual ministries, he has appealed to his counterparts to reserve 15 per cent of the total amount to youth owned companies.

With regard to maintenance, he said originally government took a decision to undertake new projects but maintenance plan was never made.

This has led to huge amounts being required and Mr Mokotedi said they were undertaking a pilot project through which they engage the private sector in maintaining senior secondary schools, an exercise they were undertaking with Public Enterprises Evaluation and Privatization Agency(PEEPA). ENDS