14 Aug 2022

Parliament last Thursday passed the Hypothecation (Repeal) Bill 2022 which was tabled by Minister of Finance, Ms Peggy Serame.

Ms Serame said the objective of the bill was to repeal the Hypothecation Act which was enacted in 1977 to provide for securing of loans, advances and debts by hypothec granted movable property.

She explained that some provisions in the Hypothecation Act were now outdated and that the act required to be reviewed to cater for emerging issues.

She stated that the Movable Property Security Interest Act of 2022 had also harmonised all the secure transactions laws in Botswana, including the Hypothecation Act.

"This means that the provisions of the Hypothecation Act relating to the security interest in movable property has been catered for under the Movable Property Security Interest Act of 2022, hence the need to repeal the Hypothecation Act. The Movable Property Security Interest Act provides for the establishment of an online notice based collateral registration for registration and searching of all security interest in movable property. The act also provides for the creation, publicity, perfection, priority and enforcement of security interest in movable property," said the minister when presenting the bill for second reading.

Ms Serame said the bill contained three clauses, with the main clause 2 providing for repeal of the Hypothecation Act.

She, however, said any subsidiary legislation made under the repealed act should continue to be in force and effect as if made under provisions of the Movable Property Security Interest Act to the extent that it was consistent with such provisions. She added that loans and advances issued under the repealed act should remain valid as if made under the Movable Property Security Interest Act until such loans and advances ceased to be of any force.

"Any legal proceedings that were instituted or pending before the repeal of the act shall be continued or enforced in the same manner as they would have been continued before the repeal of the act," said the minister.

Kgalagadi North MP, Ms Talita Monnakgotla supported the bill, pointing out that repealing the Hypothecation Act would also assist in the fight against financial fraud and money laundering activities. Ms Monnakgotla said the repeal would also remove the duplication of laws and promote trade financing. Twenty-nine Members of Parliament voted in agreement with the bill at the third reading stage, with no objections.

Meanwhile, Parliament also on Thursday passed two more bills. The first was the Transfer Duty (Amendment) Bill 2022, which was tabled by Minister of Finance, Ms Peggy Serame.

Ms Serame said the objective of the bill was to amend the Transfer Duty Act by exempting Special Economic Zones (SEZS) licensed business from payment of transfer duty on immovable properties. Twenty-nine MPs endorsed the bill at third reading stage while no MP opposed it.

The second bill was the Access and Benefit-Sharing of Biological Diversity Bill 2022, which was tabled by Minister of Environment and Tourism, Ms Philda Kereng. Ms Kereng said the objective of the bill was to give effect to the Convention on Biological Diversity and the Nagoya Protocol on Access to Genetic Resources and the fair and Equitable Sharing of Benefits arising from their utilisation to the Convention on Biological Diversity.

She also said the bill provided for the establishment of administrative structures and processes for access to biological or genetic resources and associated traditional knowledge; to regulate access to biological or genetic resources and associated knowledge.

Furthermore, she said the bill aimed to protect the rights of local communities over biological or genetic resources and associated traditional knowledge; to provide for a fair and equitable sharing of benefits accrued from the utilisation of biological or genetic resources and associated traditional knowledge; and to provide for related matters. The bill was supported by 28 MPs at third reading while no MP opposed it. ends