12 Feb 2015

The Ministry of Finance and Development Planning (MFDP) has been given a total of P977 million for the 2015/16 financial year. 

Minister Kenneth Matambo presented the budget estimates for his ministry, which included P794 million as recurrent budget estimates and P183 million as development budget estimates. The budget proposal was approved by Parliament this week. 

The recurrent budget estimates were an increase of 4.7 per cent from the 2014/15 financial year, while the development budget estimates represent a 56.7 per cent increase. 

Mr Matambo said the proposed budget for development would be shared by three projects being the MFDP Computerisation which will use P31.5 million, the MFDP Consultancies and Research which will get P74.9 million, and the MFDP Facilities which will utilise P76.6 million. 

He said the MFDP Facilities included construction of revenue offices and staff housing at Charleshill, Hukuntsi and Shakawe at an estimated cost of P60 million, construction of staff houses at Machaneng at an estimated cost of P6.6 million, and design of Financial Intelligence Agency (FIA) office building at an estimated cost of P10 million. 

Mr Matambo told Parliament that FIA had become fully operational and started receiving, analysing and disseminating suspicious transactions in February last year. 

He said the FIA had procured a system called goAML, which is a web based reporting and analytical tool. “The acquisition of this system, together with scaled up training of banks and money transfer services companies targeting Compliance and Information Technology personnel, should enhance FIA’s work of analysing and disseminating the suspicious transactions,” said the minister. 

He also informed Parliament that the FIA hoped to commence a National Risk Assessment next month, which acts as a basis for policy formulation and development of an effective Anti-Money Laundering and Counter Financing of Terrorism. 

He said the project is expected to last for nine months. 

Debating the minister’s proposal, Nkange MP, Mr Edwin Batshu challenged Botswana Unified Revenue Services (BURS) to ensure that all people who were eligible to pay tax pay it. 

He called for strong punishment of people who are caught evading tax. He said avoidance of payment of tax cost the country a great deal in terms of development. 

“If all eligible people pay tax, it will strengthen government coffers and make our economy strong. government will then have finances to undertake developments and implement projects,” said the MP. 

Gabane-Mmankgodi MP, Major General Pius Mokgware said he was happy about the establishment of Financial Intelligence Agency because it was an important institution to curb financial crime. He said criminals who accrue money through fraudulent means and bring it to the country to clean it put our economy at risk. He cautioned Botswana to be careful when it accepted money from foreign organisations by ensuring that it is not dirty money.

The MP also asked government to develop systems of paying contractors who do work for government on time. He criticized government of taking long to pay companies, giving example of people who supply goats for LIMID programme. He said government takes up to three months to pay them. 

Shoshong MP, Mr Phillip Makgalemele said the budget should be presented in manner that would be easy for people in rural areas to understand how they would benefit from it. 

“The bread and butter issues should be presented in a way that they are understandable to the wider population,” he said. He complained about a lack of robust roadmap for Public Private Partnerships (PPPs) in Botswana an issue he was one of weakest links within our economy. 

“Government should partner with private sector to do some, like the construction of Rural Administration Centres,” said the MP .

He was worried at the pace at which privatisation was being implemented in Botswana. We have to come up with a robust plan and help PEEPA to fast-track all privatisation endeavours, he said. 

ENDS