29 Nov 2016

The Parliamentary Committee on Statutory Bodies and Public Enterprises has recommended that Botswana Railways (BR)  undertake a thorough forensics audit to iron out negative perception surrounding them.

The chairperson of the committee and also MP for Tati East, Mr Guma Moyo highlighted that he did not have confidence on the BR board whom he said were failing to give strategic guidence to the organisation.

Mr Moyo further stated that BR had poor systems of internal control and poor management that could lead to corruption and staff disgruntlement.

MP for Gabane Mmankgodi, Maj. Gen. Pius Mokgware concurred that there was need for the organisation to reassess their operations so as to know which direction to go.

He further stated that he believed BR did not have a dream of where they were going which he said could lead to disaster.

The MPs comments arose after BR CEO, Mr Dominic Ntwaagae failing to disclose the operational costs of the Namibia sea rail dry port.

The MPs had asked him to state whether they were making a profit or loss with the dry port and how much money was channeled towards staff salaries.

The committee further asked the CEO to state whether BR or government was paying rent for the dry port and how much was the rent.

Mr Ntwaagae highlighted that government of Botswana was paying rent worth P5 million per annum for the dry port, however, indicating that the staff salaries were paid by BR.

MP’s further probed the CEO on the 562 wagons that were acquired by BR of which the Auditor General had tabled an audit query that proper procurement process was not followed.

BR director of finance and corporate services, Mr Mao Segage noted that despite the audit query on the contention that they did not follow proper procedures they followed it.

The finance director stated that for the year 2014/15 BR was owed a total of P74 million adding that they communicated with their debtors regularly so that they settle the bill.

He highlighted that the BCL closure had a huge impact on BR because they transported 84 000 tons of coal per annum which amounted to P9 million.

However Messer’s Segage and Ntwaagae failed to account how much money in total was owed to BR further failing to state the cash flows, debts and profit made by the organisation.

Mr Ntwaagae stated that the organisation’s total travel budget was exceeded by P1 million because of the headquarters location which meant that there  would be a lot of travelling for meetings.

The CEO highlighted that there is potential in the envisaged Mosetse/ Kazungula railway line that needed to be tapped into.

He stated that Botswana and Zambia were in agreement that once the Kazungula bridge was completed, the railway line would be connected to the bridge because the bridge had a provision for railway line. ENDS