11 Dec 2013

Parliament has passed the Botswana Postal Services (BPS) (Transition) Bill that was presented for second reading by the Minister of Transport and Communications, Mr Nonofo Molefhi.

Presenting the draft bill for second reading, Mr Molefhi said the purpose of the bill was to make provisions for BPS to apply to the Registrar of Companies to be registered as a company and to continue existing, as if it had been incorporated under the Companies Act.

The bill continued to the committee stage and was passed after the third reading, without any amendments.

The objects of the bill, Mr Molefhi said were to allow BPS to apply to the Registrar of Companies to be registered as a public company under the Companies Act, henceforth confirming that it shall exist as if it had been incorporated under the Companies Act.Clause 4 of the bill provides that the date which BPS was registered as a company shall signify that the financial interest of the government in BPS was to be held by the minister responsible for transport and communications in trust for Botswana.


In this provision, the minister has been empowered to acquire, hold, dispose of and otherwise deal with the financial interest of the government in the company, and to enter into any agreement or arrangement necessary or incidental to any activity mentioned in the bill.

Clause 5 provides for the envisaged company to pay all taxes imposed by the Income Tax Act, Value Added Tax Act and the Customs and Excise Duty Act.In addition transactions or occurrences are provided for where the provisions of the Income Tax Act and Transfer of Duty Act do not apply in respect of the company as at the conversion date.

Clause 6 provides that the company shall not be exempted from applying to any relevant authority for a licence engaged in any activity specified in its constitution. Clause 7 provides for the provision for the company to borrow money in order to implement its mandate with the approval of the minister responsible for finance in accordance with its constitution on such terms, and conditions, and in such sums as it may require. Clause 8 makes transitional provisions for savings for certain acts done, or arrangements entered into, before the conversion date.

Clause 9 provides for a provision that excludes reference to certain terms used in any act from including a reference to the company, whilst Clause 10 repeals the BPS Act. ENDS