The revelations were made in Parliament this week when Trade and Entrepreneurship minister, Tiroeaone Ntsima, responded to a question on the rot at development finance institution. He revealed to legislators that the agency lent millions of pula to its current landlord in 2017 instead of purchasing property to house its headquarters. “CEDA moved to its current premises (Four Thirty Square, Plot 54350, Philip Matante Road, CBD in 2017 on a five-year lease,” Ntsima told Parliament. “The agency is on a monthly rental of P485, 430.00 excluding VAT with annual escalation at eight percent. The total rental amount paid on the building over the past five years is P42 882 452.54 up to December 2024.”
The minister revealed that building is owned by Estate Property Investments (Pty) Ltd., a 100% citizen-owned company. According to Ntsima, the company was granted a loan amounting to P30 million in September 2017 for finishing the building and the loan was fully repaid in August 2022. In another CEDA spending, the minister revealed that the agency purchased an executive house for the CEO at Extension 11, Gaborone, from the Botswana Development Corporation (BDC). He disclosed that the acquisition was done in a public auction at a price of P9.6 million including VAT, auctioneer’s fees, transfer fees and valuation costs. “As CEDA was a participant at the public auction sale, it did not engage any estate agent to do the transaction on its behalf, instead a senior CEDA employee was the one representing the agency in the bidding duly authorised by the board of directors,” he said. Ntsima also told Parliament that the agency spent P3.2 million to refurbish the property including re-roofing, fixing the flooring, rebuilding parameter walls that had been damaged by overgrown trees, and other structural works that needed to be carried out.
The minister was responding to a question from Lobatse Legislator, Kamal Jacobs who had asked amongst others the amounts CEDA spent on Pula Steel and returns gained. In response, Ntsima revealed that CEDA initially invested P7 million for a 35% stake in Pula Steel and issued a debenture instrument of P13 million taking the total CEDA investment P20 million. “BCL then came on board, nine percent of the CEDA shareholding and paid a consideration of Pl.8 million to bring the CEDA shareholding to 26% and therefore, a total investment of P18.2 million from the initial P20 million,” the minister said. Ntsima pointed out that CEDA has not earned any financial returns on the investment as Pula Steel was prematurely closed before it could start generating returns for the shareholders. “The company is currently under liquidation.
However, when it was operational, the employment created in Selebi-Phikwe by Pula Steel was 155 employees,” he said. Jacobs also asked about the CEDA forensic audit report and whether it will be released. The Lobatse Member of Parliament also wanted to know the real reason(s) the report was being kept top secret and what measures CEDA has taken relating to whistleblowing and corruption prevention at the agency. “The DCEC is currently conducting criminal investigations on allegations of corruption at the CEDA. DCEC cannot share any report or findings of ongoing investigations until charges have been drawn up,” Ntsima said. The minister added that a Corruption Prevention Audit was carried out on the operations of CEDA in 2013 in terms of Section 6 (f) of the Corruption and Economic Crime Act. He indicated that the Audit was carried out for purpose of examining the practices and procedures at CEDA to identify gaps, opportunities, and risks of corruption with a view to making recommendations for improvement. “On completion, Corruption Prevention Reports are usually presented to the leadership of the affected organisation. Release of issues of administrative reforms therefore remains a prerogative of the organisation and in this case CEDA may release the contents. “In this regard, a Compliance Division was established within CEDA as implementation of the recommendations contained in the Corruption Prevention Audit Report,” he said.
However, Ntsima said the report’s full recommendations cannot be made public as it contains individual’s names and companies who would otherwise have to be consulted to give consent. The revelations come at a time when CEDA CEO, Thabo Thamane, is on suspension as the Directorate on Corruption and Economic Crime (DCEC) conducts criminal investigations in relation to allegations of corruption allegedly at the agency.