25 Nov 2018

Minister of Mineral Resources, Green Technology and Energy Security, Mr Eric Molale says the money lost from the National Petroleum Fund (NPF) through the implied money laundering case has not yet been fully recovered.

He informed Parliament that P144 million was transferred from the 2018/19 budget of the Directorate of Intelligence and Security.

Minister Molale said the balance and other transactions were a subject to the ongoing criminal investigations and the court case scheduled to commence on November 23, 2018.

He said the main reason for the recent fuel price hikes was to reduce the under-recoveries or price deficit for all petroleum products (petrol, diesel and illuminating paraffin).

He said the NPF was currently not coping with its payment obligations due to among others the current retail petroleum pump prices which were significantly lower that the landing costs of fuel in the country.

He noted that the average pump price deficit as at October 2018 stood at 183.38 thebe per litre, citing that it was the main cause of the adjustments.  

Mr Molale said the length of time taken without adjusting the levy from the current 13.5 thebe per litre to make it commensurate with its obligations was also another reason the NPF was not coping with its payment obligations, adding that the NPF levy was last reviewed from nine thebe to 13.5 thebe per litre on 6 December 2014.

Also, he said, government had accumulated significant debt to the oil companies since under-recoveries were paid in retrospect, as the accounts were first audited and became due for payment.

Mr Molale said the current situation where government owed the industry large sums of money was not good for the economy, adding that it had a negative effect on the operations of local oil companies as it exposed the country to the risk of fuel supply interruptions and consequences like retrenchments which must be avoided.

On the other hand, he said that the auditor general was commissioned by Parliament to audit the NPF and that the report had not been shared with either himself or the ministry.

MP for Gaborone North, Mr Haskings Nkaigwa had asked the minister to update Parliament on the status of the NPF, and to state whether the money lost had been compensated.

Mr Nkaigwa also wanted the minister to state the reasons for the recent fuel hikes, and what the audit findings of the fund were. ENDS