14 Aug 2016

Smartswitch Botswana has been providing the coupon system service for the past seven years and the contract expired on March 31, 2012 and has been extended while tendering process was on-going.

Answering a question in Parliament, Assistant Minister of Local Government and Rural development, Ms Botlogile Tshireletso said the coupon system was introduced in 2007/2008 financial year and was awarded to Smartswitch Botswana  but did not start until April 1, 2009.

Ms Tshireletso said the system was recognised as a best practice by the United Nations and was given a UN Award at the UN Public Service Forum and Awards in Manama, Bahrain in 2013.

“Smartswitch Botswana does not owe my ministry any monies, rather some funds close to P50 million that were loaded into beneficiaries’ accounts, under the management of the company have not yet been utilised due to network connectivity issues.

My ministry is currently working with Smartswitch Botswana to come up with the best option to retrieve these funds and I have accordingly constituted a Task Team to work with Smartswitch Botswana on this matter,” she said.

Ms Tshireletso said the tender for Smartswitch Botswana (PTY) Ltd would end on September 30, 2016 while preparations and negotiations for the new contract were in process. She however noted that the tendering process was almost complete and the next contract would be awarded after preparations and negotiations for the new contract had been concluded.

Parliament heard that there were still some villages that were using the old food basket despite the introduction of the coupon system because of unavailability of network in some areas.

Furthermore, the assistant minister said the other reason was that as the contract was coming to an end, the roll out was discouraged so as to avoid merchants expenditure on procurement of Point of Sale Devices, which they would use for a short period, hence not cost effective.

Member of Parliament for Gaborone North, Mr Haskins Nkaigwa had asked the minister to state when the coupon system was introduced and which company was given the tender, and how long the company had been doing the job and why the job had not been given to the same company all these years.

Mr Nkaigwa also wanted to know if the minister was aware that the company owes government close to P50 million and what was being done to recover the money.

He further asked when the tender for the company would come to an end, how the next contract would be awarded and why there were still districts/villages that use the old food basket despite the introduction of the coupon system. ENDS