22 Mar 2016

Following the public offering of Botswana Telecommunications Corporations Limited (BTCL), members of the Botswana Police Service were encouraged to purchase shares, the Minister of Defence, Justice and Security, Mr Shaw Kgathi told Parliament on Friday.

Mr Kgathi said the purchasing of shares was done using part of the officers’ accumulated savings as an investment portfolio.

He said the Botswana Police Service, in 1999, established a welfare scheme titled Botswana Police Savings and Loans Guarantee Scheme, which was constituted under Regulation 68 of the Police Act.

The objective of the scheme, which was open to all police officers, was to promote savings and investment. 

Through this scheme, officers were also able to access personal and home loans at negotiated lending rates from identified financial institutions.

Members’ monthly contributions were deducted from their monthly earnings and such contributions were invested with different financial institutions.

Therefore, Mr Kgathi said the purchase of shares was considered a viable investment and wealth diversification opportunity for members of the Botswana Police  Service because the savings were held in a call account that earned a small amount.

As at February 2016, the police had facilitated the purchase of over P30 million worth of BTCL shares for members.

It was expected that each member would enjoy the shares dividends paid out on regular basis. 

Selebi Phikwe West MP, Mr Dithapelo Keorapetse, had wanted to know what informed the decision of the BTCL shares purchase and what the transaction entailed.

He had also asked how going forward the police would deal with the issue of the company’s floating shares. 

Mr Keorapetse had also wanted to know how the shares were going to be sold to police officers. Ends.