24 Feb 2016

The Vice President, Mr Mokgweetsi Masisi, has expressed concern about household debt.

Debating the Ministry of Finance and Development and Planning’s proposed 2016/17 budget on Tuesday, Mr Masisi said at household level, the country was swimming in debt hence a debt ridden economy.

He said that should be a big worry, hence the need for all public leaders to work together to address the issue.

“Flashes of caution have been provided by Bank of Botswana where they take us into their confidence and brief us comprehensively. We all know it as public leaders and would wish that while the minister did the best he can, get other leaders to champion this rather than champion people being impoverished by debt through consistent seemingly attractive and easy deductions from people’s salaries,” he said.

Mr Masisi, who is also Member of Parliament for Moshupa-Manyana, said while that happened, the problem would come back to them as leaders hence the need to rise up to that challenge and deal with it head-on.

Furthermore, he raised a concern about some companies, which he opined acted irresponsibly while mathematically they did not serve Botswana.

He argued that a lot of money made by such companies was externalised quickly, saying “we must face up these companies as a collective. This is by-partisan because the problem will be everybody’s problem. They are all our constituents and they become our responsibility.”

He added that he was hopeful that the finance ministry would also make sure that no government institution played an enabling or middle person role in enabling such, lest least of all the ministry through the Accountant General.

“This is an action that I feel strongly about and I think we must have it dealt with once and for all because I know your actions were genuine and in good faith in the beginning to enable deductions from  source. There needs to be a total revolution out of that and I hope and plead that members across the political divide will support this,” he said.

On other issues, the Vice President urged the finance minister to put in mechanisms to promote growth of the Botswana Stock Exchange (BSE).

He indicated that the turnover of just over a billion increase was a little worrying and would have hoped for a faster pace, particularly given long established determination to become a financial service hub for Southern Africa.

Mr Masisi also commended Statistics Botswana for their sterling job, particularly their generation of population projections 2011-2026.

He urged that the minister obligated line ministries and institutions that received government funding to respond to such data because it was generated to respond to planning needs.

He added that the Lands and Housing ministry must also be obliged in developing plots and settlements to respond and be in congruence with data that was generated for it to serve its purpose.

“If we go in a haphazard manner we will get ourselves into trouble,” he said.

Furthermore, he said the periodicity of data generation and its frequency must be strategically determined beforehand so that in developing the eleventh National Development Plan (NDP 11), fresh and relevant data was used.

“We must, to the extent possible use data that is fresh and relevant. And if we are developing plans in between we are therefore forced to use old data and that becomes quite a problem.”

Meanwhile, the Vice President welcomed putting up of revenue offices at various parts of the country as good intention.

However, he cautioned that there be accurate security which was also up to date with demands that were required nowadays.

“We cannot afford to lose money, the more banks are robbed the more are breaches to security of banking and the more we reduce confidence in our economy. Let us constantly be up to speed with that and not be afraid to expand whenever is necessary so that government can collect revenue. Let us open other offices and make them attractive and friendly for people to willingly and happily bring money,” he said. ENDS