19 May 2020

The Ministry of Finance and Economic Development is committed to ensuring that the funds set aside to provide relief to Batswana during the COVID-19 pandemic are effectively used, senior officials of the ministry have said.

Addressing a press conference in Gaborone today, permanent secretary, Dr Wilfred Mandlebe, secretary for development and budget, Ms Grace Muzila and director general of the Financial Intelligence Agency, Dr Abraham Sethibe, said their ministry was keeping a trace of companies that accessed funds from the COVID-19 Relief Fund.

They said a toll free number had been availed to the public to report any misuse of these public funds meant to alleviate the pressure brought to bear on the economy by the pandemic.

The ministry would also conduct an audit of COVID-19 Relief Fund transactions with a view of taking action if any dishonest activities could be traced.

Dr Mandlebe explained that the fund was established to provide wage subsidy so as to relieve workers from  economic effects of the pandemic, assist with a loan guarantee to affected businesses, fund the procuring of medical supplies and also the social safety net, in particular the food hampers to the vulnerable.

Of the P2.108 billion (P2 billion accessed from the government and P108 from private entities and individuals), over P467 million has already been disbursed, Mr Muzila said.

Of this, over P249 million had been used for the wage subsidy handled by the Botswana Unified Revenue Service (BURS), just over P150 million for food hampers, temporary staff salaries and associated transport costs handled by the Ministry of Local Government and Rural Development, Ms Muzila revealed.

A further P67 million was used by the Ministry of Health and Wellness for quarantine accommodation and meals, testing and contact tracing as well as temporary staff for COVID-19.

Dr Sethibe said the Financial Intelligence Agency was addressing concerns raised by the European Union (EU), which led to the continental body adding Botswana to a list of countries they would require enhanced due diligence in dealing with financially for perceived weak anti-money laundering protocols.

Stating that various pieces of legislation had already been passed to strengthen Botswana’s position in this regard, his unit was ensuring that they communicated efforts made to the relevant body in Europe in order to avert the situation. ENDS