Mmegi/The Reporter (Gaborone)

Botswana: Corporate Governance Lacking in Botswana

Gaborone — Outgoing Botswana National Productivity Centre (BNPC) Executive Director Tembo Lebang said corporate governance in the country is lagging behind made worse by appointment of ex-officio in quasi-government organisations.

Speaking at his retirement farewell party in front of the ministers of Presidential Affairs and Public Administration Lesego Motsumi and Local Government Lebonamang Mokalake and top government officials, Lebang did not mince his words about the poor state of corporate governance in Botswana.

Lebang, who has been a board member for several institutions during his illustrious career spanning over 20 years, said it was high time "the right people" were selected to serve as directors on boards in areas "they are passionate about".

"We need to move away from appointing public servants as ex-officials of boards of directors because we are punishing the poor souls."

The former Labour Commissioner and Deputy Permanent Secretary in the Ministry of Labour and Home Affairs said besides the tendency to put public servants, mostly permanent secretaries, in the wrong boards, there are also no corresponding incentives.

Unlike in countries like South Africa where board members are seasoned business leaders and get paid millions of Rand as board sitting fees, Botswana is lagging behind, hence board positions are taken as voluntary work.

"If we think we still have people who will sacrifice or continue to sacrifice their time and energy for free, we are wrong."

This, he said, coupled with their busy schedules and primary duties result in ex-officio board members often finding it unprofitable to attend scheduled board meetings.

Putting wrong people in business they don't buy, Lebang said, stifles efficiency and effectiveness in organisations that critically need their undivided loyalty and dedicated service.

Lebang said corporate governance, especially lack of it, affects productivity and he feels is one area he leaves a disappointed man because he was unable to change it during his tenure at BNPC.

Another process in Botswana that Lebang has always advocated for in various platforms is government's continued tendency to duplicate structures or creating institutions with overlapping functions.

Institutions like the BNPC itself, Citizen Entrepreneurial Development Agency (CEDA), Local Enterprise Agency (LEA), Botswana Development Corporation (BDC), Botswana Bureau of Standards (BOBS), National Development Bank (NDB) and other government departments are all in some measure created to assist SMMEs but fall under different ministries, different mandates, hence end up not having a coordinated assistance to SMMEs.

"I am equally worried about this because we seem to hide behind complementarity. If we made a mistake, let's correct it because SMMEs don't have time to be bored with our presentations that we exist," he said.

Lebang said, for example, BNPC charges SMMEs for its services rendered whilst LEA does not.

"SMMEs vary in nature and we should stop treating them as if one-size-fits-all because we will miss the point."

He also admitted that BNPC has not been able to assist SMMEs as envisioned.

Lebang raised worry at economic diversification and the role of PEEPA, which he said a lot has been agreed on the two but there remain no progress.


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