12 Feb 2020

Bank of Botswana has 10 directors who are heads of department with executive policy and operations responsibility for specialised departments.

Minister of Finance and Economic Development, Dr Thapelo Matsheka said those departments included banking and currency, banking supervision, finance, financial markets, human resources, internal audit services, information communication and technology, payments and settlements, protective services, research and financial stability.

Dr Matsheka said nine out of 10 directors have opted to be on fixed term contracts of five year duration, ‘with the exception of one director whose contract is for three years.’

The minister noted that good governance depended on having institutional capacity and arrangements for the bank to formulate and ensure effective implementation of sound policies and administrative controls with each head of department assigned clear areas of responsibility.

He further noted that the appointment of directors on contract or otherwise had no adverse implications for corporate governance.

“On the contrary, fixed term contracts afford more effective performance management, allowing both the bank and the directors, the flexibility to terminate the contract as circumstances may dictate,” said the minister.

Dr Matsheka said they further facilitate the monitoring of efficiency and effectiveness in the performance of respective mandates, as directors were cognisant of the fact that non-performance might result in non- renewal of the contract at the end.

The MP for Selibe Phikwe West, Mr Dithapelo Keorapetse had asked the minister to state the number of directors at Bank of Botswana, the number of those who were employed on contracts. The duration of those contracts and the affairs and implications on corporate governance. ENDS