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Botswana Meat Commission employee washing slaughtered cattle
BotswanaBusiness

BMC a clear candidate for liquidation, says BAOA CEO

1 Mins read

In 2019, the Botswana Government kick-started the privatization of the Botswana Meat Commission (BMC) with the decision to retain the Maun Abattoir as a government entity for strategic purposes. The proposed budget for the process of privatizing BMC along with the Lobatse and Francistown Abattoirs was P8.7 million. This amount was going to the engaged consultants while transaction advisors pocketed P4.2 million.

However, in August 2020 Botswana Gazette reporters established a fallout between the government and the privatization consultants – who were jointly contracted for P12.5 million – somewhat disrupted progress and as a result, only half of that amount was paid. One of the consultants, Minchin & Kelly, which alone was contracted for P8.3 million, has slapped the Public Enterprises Evaluation and Privatisation Agency (PEEPA) with a letter of demand for the balance of an unpaid invoice.

BMC MANAGEMENT MEETS PRIVATIZATION CONSULTANTS
BMC Management Meets Privatization Consultants from Minchin & Kelly and Deloitte. Photos by BMC

An investigation by this publication and Botswana Gazette has found that the government and the privatization consultants have had a fallout so serious that the government took a decision to terminate the contracts of the consultants, Minchin & Kelly as well as Deloitte. Mogegeh has confirmed the termination but said the decision to halt the contracts was taken in July 2020 due to budgetary constraints.

As BMC continues to bleed millions of pula, Botswana Accountancy Oversight Authority (BAOA) identified the dying BMC as a clear candidate for liquidation. BAOA as the audit profession in Botswana and gives investors and all stakeholders accurate information for the protection of their investments reported that BMC in its current situation cannot be privatized.

BMC is a clear candidate for liquidation and its financial situation it can’t be privatized,

said Botswana Accountancy Oversight Authority CEO, Duncan Majinda
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