21 Mar 2022

Access to gratuity advance by councillors is untenable due to budgetary constraints.

“If councillors are allowed to access advances from their gratuities it will result in deferral or abandonment of critical services that the communities expect from councils,” said local government and rural development assistant minister, Mr Sethabelo Modukanele in response to a parliamentary question recently.

He said access to gratuity advance would also aggravate the already volatile financial situation in councils.

Mr Modukanele said other than motor vehicle and residential property advances, councillors were eligible for emergency salary advance that covered serious illness of a councillor or family member, death of a councillor, spouse, child and parents as well as damage to property.

He added that the amount of advance a councillor could take varied depending on their net salary and minimum take home pay of P1 200.

That notwithstanding, he said various councils and their national association, the Botswana Association of Local Authorities, were allowed to engage local banking or financial institutions to secure loan facilities for councillors that would be repayable through their terminal benefits.

“Naturally, the private sector is a profit-making entity. Consequently, the initiative will come at a cost to councillors and the onus is on the negotiating parties to ensure that the terms and conditions, including the interest rates, are acceptable to all,” he added.

Mr Modukanele also informed MPs that gratuity for councillors was paid at the end of their term of office, therefore, a budget to cater for such payment was made during the last financial year of their term of office.

“I am aware that councillors have expressed the desire to access advances of their gratuities.

I also appreciate that they have a challenge in accessing their gratuities and my ministry has been addressing several motions and questions from various councils on the issue since July last year,” he said.

Maun East legislator, Mr Goretetse Kekgonegile, had asked the minister to update Parliament on progress thus far regarding access to advance payments against gratuity by councillors, owing to challenges they had been encountering to that effect.

Mr Kekgonegile also wanted to know if there were mitigating factors in place to ensure smooth accessibility. ENDS