24 Nov 2021

China State Construction Engineering Corporation was awarded one tender in the past 10 years by the Public Procurement and Asset Disposal Board (PPADB) competing as a joint venture with Consolidated Contractors Company (Kuwait).

The tender was worth over P1 billion, Minister of Finance and Economic Development, Ms Peggy Serame told Parliament.  

Ms Serame stated that the project was the construction of the Gaborone to Boatle road to dual carriageway standard.

She said the amount paid for the project, which was completed on November 7, 2020 amounted to P1.1 billion.

Ms Serame stated that the project was awarded inclusive of Value Added Tax (VAT) which meant that the total amount of the tender awarded to the joint venture included 12 per cent VAT at an estimated amount of over P128 million.

“I am, however, constrained by the law to disclose the tax paid by this taxpayer to the BURS. In terms of Section 32 of the Botswana Unified Revenue Service Act, Section 5 of the Income Tax Act and Section 65 of the Value Added Tax there is a general obligation of secrecy and confidentiality regarding tax matters of individuals and corporates,” she said.

She further said the Citizen Economic Empowerment Policy of 2013 made it mandatory for foreign contractors to sub-contract works to 100 per cent citizen-owned contractors and that the scheme offered price preference depending on the percentage of works sub-contracted to citizens.

The percentage on the works sub-constructed to citizen-owned contractors, she said, was 30 per cent of value of works which translated to P320 million.

She highlighted that there were no exchange controls in Botswana after they were abolished to promote investment and that companies were free to invest and repatriate profits after meeting all the legal requirements.

Selibe Phikwe West MP had asked for an update on the PPADB facilitated government tender bids won by or awarded to Chinese Company, China State Construction (including direct appointments) in the last 10 years. ENDS