Author: Daily News

Minister for State President, Defence and Security, Mr Moeti Mohwasa, says the Presidential Commission of Inquiry into the closure of BCL Limited will operate with full independence, transparency and accountability. Answering a parliamentary question recently, Minister Mohwasa said the commission was established to investigate the circumstances surrounding the liquidation of the copper-nickel mining giant, whose collapse devastated the economy of Selebi-Phikwe and affected thousands of Batswana. He explained that the commissioners were appointed in strict accordance with the provisions of the Commissions of Inquiry Act. He emphasised that great care was taken to select individuals of unassailable integrity with relevant expertise in judicial, administrative, legal, financial and environmental matters and who had no direct or indirect interest in the BCL liquidation. “Appointments were thoroughly vetted for conflicts of interest. The Commission also reflects regional and professional diversity to reinforce public confidence,” the minister said. Mr Mohwasa stated that public sittings would be the default, with proceedings publicly noticed to allow Batswana to follow the process and a complete public record of evidence, submissions and exhibits would be maintained, subject only to lawful redactions for witness protection or national security reasons. He added that witnesses and affected parties would have the right to legal representation and the Commission would operate free from any executive direction or control in its investigations, witness selection or final findings. Mr Mohwasa revealed that the Terms of Reference (ToR) were drafted following rigorous consultations with legal, financial and environmental experts and were reviewed by senior counsel specialising in liquidation law and public inquiries. The expansive ToR, which were published in the Government Gazette for public and parliamentary scrutiny, he said covered the lawfulness of all liquidation actions, conduct of directors and Cabinet members, allegations of corruption, fronting and tender irregularities, environmental disaster risks, as well as asset accounting and possible pilfering. The minister confirmed that the ToR underwent expert legal review to ensure that they were comprehensive and capable of producing actionable recommendations. Mr Mohwasa emphasised that the Commission enjoyed statutory independence under the Commissions of Inquiry Act, granting it the powers of a court of record, including the authority to summon witnesses, compel the production of documents and punish contempt. “The chairperson, retired judge Mr Wallis, brings unquestioned judicial independence to the role. All government departments and public officers have been formally directed to cooperate fully without seeking political guidance. The Terms of Reference explicitly authorise investigation into the actions of former Presidents, Cabinet members and senior officials,” he added. Again, Mr Mohwasa said funding for the Commission would be administered independently by its secretariat, while the total budget was still being finalised due to detailed planning for an inquiry of such scale and complexity and would be made public once completed. “Strong safeguards have also been put in place to protect witnesses from intimidation. The Commission may hold closed sessions, grant anonymity where a reasonable fear of reprisal is demonstrated and refer any interference to law enforcement for prosecution. Witnesses may also receive legal support at the Commission’s discretion,” the minister said. Mr Mohwasa described the Commission as a watershed moment in the nation’s commitment to accountability, transparency and justice. “The people of Selebi-Phikwe and all Batswana deserve answers about what happened to this strategic national asset, who was responsible and what lessons must be learned,” he said. He called on all stakeholders to cooperate fully and set aside partisanship in the national interest. He said the Commission was expected to begin public hearings in the coming weeks. MP for Selebi Phikwe West, Mr Reuben Kaizer, had raised concerns regarding the commission’s composition, operations and protections.

Botswana’s petroleum supply and national energy security are currently stable despite sharp increases in global crude oil prices triggered by escalating conflicts in the Middle East. In a recent statement delivered in Parliament, Minister of Minerals and Energy, Ms Bogolo Kenewendo, detailed the impact of geopolitical developments on international fuel markets and outlined the measures that government had taken to safeguard local supplies. 

Minister Kenewendo said Brent crude oil prices had risen dramatically in recent weeks with average prices having surged 38.1 per cent from US$69.37 per barrel in February 2026 to US$97.23 per barrel by 26 March, 2026. She said daily prices climbed from US$77.74 at the start of March to US$107.81 on March 26, with peaks reaching US$119.50 per barrel on March 9, levels not seen in four years. 

The minister attributed the spike to attacks on shipping and energy facilities, threats to tanker traffic through the Strait of Hormuz, higher war risk insurance premiums, disrupted maritime routes, elevated freight costs and speculative trading. 

While some international interventions, such as strategic reserve releases, provided limited relief, she said the overall market remained volatile. She indicated that following the latest update, Botswana’s fuel reserves provided a reasonable buffer.

 She said strategic stocks stood at 10.56 days of consumption, up slightly from 10 days the previous week, while commercial stocks increased to 24.1 days from 20.8 days previously. The total volume of fuel stocks held by importers and wholesalers, she said was 43.5 million litres, comprising 31.5 million litres of diesel and 12 million litres of petrol, a modest decrease from 46.8 million litres. An additional 32.2 million litres, including 12.8 million litres of diesel and 19.4 million litres of petrol, she said were in transit to Botswana. 

However, she said the figures excluded product held at retail sites. Parliament heard that Botswana Oil Limited alone held 33.1 million litres, consisting of 8.9 million litres of ULP 95 and 24.2 million litres of diesel while government strategic storage capacity currently stood at 62.5 million litres, equivalent to approximately 18.9 days of prevailing national consumption. 

Ms Kenewendo highlighted ongoing projects to bolster strategic reserves, including the Francistown depot which was being expanded by 60 million litres, while a new strategic storage depot was under construction at Ghanzi with 30 million litres capacity. Upon completion of the two projects, she said national strategic storage would increase to 152.5 million litres, equivalent to 46.2 days of cover. She added that plans were also underway for the Tshele Hills facility with a capacity of 187 million litres, which would ultimately bring the total strategic stock cover to 102 days. 

To counter potential disruptions, she said government had implemented several proactive steps, including engagement with suppliers and strengthened supply planning, expedited leasing of coastal storage facilities in Mozambique and Namibia to diversify import routes, increasing monthly procurement volumes to build buffer stocks and continuous monitoring of global supply dynamics for early intervention. 

“These actions aim to enhance resilience against logistical and geopolitical shocks,” she said. 

The minister noted that the drop in commercial stock volumes partly stemmed from higher international prices, as traders had shifted from contract arrangements to more expensive spot selling, which included additional premiums, which had created financial pressure on local importers.

 She further told Parliament that Botswana imports refined petroleum products and their prices had risen sharply, with Unleaded Petrol 95 (ULP 95) increased by nearly 60 per cent from US$79.70 to US$127.29 per barrel and diesel rose by 91 per cent from US$91.18 to US$173.93 per barrel, while illuminating Paraffin surged by 111 per cent from US$90.97 to US$191.87 per barrel. To protect consumers, she said pump prices had not been increased since the escalations began, adding the National Petroleum Fund (NPF) had been used to cushion the impact.

 However, Ms Kenewendo warned that the fund was no longer in a position to continue absorbing such under-recoveries, meaning that future price adjustments may become necessary. She cautioned that the cost of importing fuel itself could evolve into a security of supply concern if the situation persisted.

 The minister emphasised that government, through the Botswana Energy Regulatory Authority (BERA), continued to monitor international price movements daily. 

She said while the global outlook remained challenging, current stocks and planned deliveries provided short- to medium-term stability.

 Nonetheless, she said government was committed to safeguarding national energy security. Commenting on the statement, Leader of the Opposition, Mr Dumelang Saleshando, asked the minister to provide Parliament with expected dates for the completion of the Francistown depot expansion. 

He recalled that the country faced fuel shortages in 2021 due to a regional crisis and noted that Botswana had yet to fully establish adequate strategic reserve depots. 

Mr Saleshando further inquired whether government would develop an inter-ministerial response to protect citizens from fuel price hikes, warning that increases would affect food prices and taxi fares. 

He asked if it would not be ideal for government to come up with a coordinated strategy to shield vulnerable sections of the economy and those at the margins from the impact of rising fuel prices.

Vice President and Minister of Finance, Mr Ndaba Gaolathe, has tabled the Standard Chartered Bank Botswana Limited Loan Authorisation Bill No. 7 of 2026) in Parliament, seeking a P750 million facility to secure the continued delivery of essential public services. Presenting the Bill recently, Minister Gaolathe emphasised that the loan was a temporary bridge designed to address immediate liquidity challenges and ensure that government obligations, including civil servant salaries and critical infrastructure projects, remained uninterrupted amid a constrained fiscal environment. He said the P750 million facility had been contracted to finance critical budget and related expenditure, including eligible infrastructure projects, as well as to support the financing of fiscal deficits arising from approved budgetary allocations. “In my previous addresses to Parliament, I have indicated that the Ministry of Finance undertakes cash management on a daily basis. This involves closely monitoring the balances in the Government Investment Account (GIA) and making difficult decisions on which obligations can be met at any given time,” he said. He explained that the resources would go directly towards sustaining the functioning of government and honouring existing commitments made to the nation. “This is about ensuring that the essential services upon which citizens rely are not disrupted,” he said. He described the process as more than a routine administrative exercise, but rather a constant balancing act where priorities must be set under constrained conditions. Mr Gaolathe noted that SACU revenues, now the country’s largest source of income, were received only on a quarterly basis. “This means that in between these inflows, government obligations continue to accumulate. Suppliers must be paid, services must be delivered and commitments must be honoured,” he explained. However, he said when SACU revenues were eventually received, they often fell short of the total accumulated obligations. “This recurring cycle places strain not only on government operations but also on businesses and citizens who depend on timely payments. It is precisely this reality that necessitates interventions such as the loan facility being sought,” he said. He added that the facility provided the breathing space the country urgently needed to keep government functioning while continuing to work towards restoring fiscal stability and economic recovery. The minister said the financing arrangement, also from Standard Chartered Bank Botswana Limited, amounts to P750 million, with key terms including a fixed interest rate of 10.7 per cent, a tenure of five years with a 2.5-year grace period, an upfront fee of 1.5 per cent and an interest rate ratchet of 0.5 per cent. He further said the ministry found the terms reasonable and aligned with current market conditions. He highlighted the ratchet provision, which linked the cost of the loan to the country’s credit ratings. “Should the country experience a downgrade, the interest rate would increase by 0.5 percentage points. Conversely, if the country’s credit rating improves, the interest rate would decrease by 0.5 percentage points,” he explained. He said such a feature created direct incentive for maintaining sound economic management, as improvements in the country’s fiscal position and credit rating will translate into lower borrowing costs for government. Mr Gaolathe emphasised that it had never been government’s intention to continuously rely on borrowing. He said the clear and deliberate strategy was to pursue fiscal consolidation with the objective of reducing the structural budget deficit over time. “Borrowing is not our destination, but a temporary bridge,” he stated, adding that the focus remained on restoring balance to the fiscus, strengthening revenue performance and ensuring that future financing was directed primarily toward productive investment and critical infrastructure projects that drove growth and supported economic diversification. “This is about moving the country from survival to sustainability and ultimately prosperity,”he said. Debating the Bill, Nkange MP, Mr Motlhaleemang Moalosi said he was not opposed to it, but was worried that government was not doing enough to collect revenue. Mr Moalosi pointed out gaps in revenue collection efforts, noting that many retail giants still did not provide swiping machines, raising questions about whether they were paying the required taxes. He urged the minister to hold the Botswana Unified Revenue Service (BURS) accountable and ensure that it fully executed its mandate. He cited Ghana, where every business, from micro enterprises to large corporations, paid taxes, with officials conducting regular compliance checks from shop to shop. Mr Moalosi further argued that the leakage in tax collection needed to be tightened to ensure that more money circulated within the country’s economy. He also expressed concern over government’s proposal for additional programmes such as the revised Ipelegeng, which he argued would require more funding at a time when the country faced serious financial challenges. He warned that such programmes could be stalled if the economy did not recover as expected.