Led by President Advocate Duma Boko, the Umbrella for Democratic Change (UDC) government has appointed Dubai registered Alvarez & Marsal Middle East Limited to conduct a forensic audit on ministries, government departments, State Owned Enterprises, and regulatory bodies. The forensic audit is already underway. Scheduled to cover a period of 10 years dating back to 2014, the audit will last for nine (9) months and cost government a whooping U$4 210 256 (P57 424 126.61).
On their website, Alvarez & Marsal caution: "We are the consulting firm known for asking tough questions, listening well, digging in and rolling up our sleeves. We are fact-driven and action-oriented. We move our clients forward, to where they need to be. We are A&M". Boko has moved swiftly to fulfil his administration's promise of transparency and accountability by commissioning the forensic audit to examine corruption risks, assess financial efficiency, and scrutinize the performance of State-Owned Enterprises (SOEs).
Addressing journalists on Thursday, Boko outlined the scope of the audit, emphasizing that no stone will be left unturned in the pursuit of accountability. "The purpose of this audit is to identify and assess corruption across government departments, develop a risk-based plan to combat it, provide data-driven tools to address it over time, and conduct a comprehensive study of the financial performance of all SOEs," he said.
Significance
The four-week (one month) preparatory phase, starting immediately (March 20th 2025), will focus on comprehensive mapping before the nine-month investigative phase begins. The process is expected to cost P57.4 million ($4 million) and will delve into government financials dating back to 2014. The decision to launch a forensic audit follows years of public concern over alleged financial mismanagement in government institutions. Previous administrations faced criticism for a lack of transparency in procurement processes, allegations of misallocated funds, and ballooning SOE losses. The audit's findings are expected to shed light on past financial dealings and determine whether individuals or entities should be held accountable. A key focus will be on the efficiency of government spending, with an emphasis on identifying weaknesses and loopholes that may have facilitated financial irregularities. Boko's administration hopes that the audit will also serve as a blueprint for improved financial governance going forward.
Accountability
A&M will conduct evaluation of effectiveness and efficiency of government structures, within ministries, departments, SOEs, and regulatory authorities; assess adequacy of systems to detect fraud and corruption, uncover financial mismanagement, waste and fraud; Identify their magnitude and responsible parties; refer cases of corruption or fraud to relevant investigations authority; Assess performance of regulatory authorities; propose solutions to address identified weaknesses to improve oversight; produce a forensic audit report outlining findings, evidence and recommendations; Risk ranking to be allocated to each identified issue; tailor solutions to avoid recurrence of the identified issues; provide a detailed performance evaluation of oversight bodies, to identify challenges to address them, Identification of potential fraud or corruption cases.
The forensic audit will be overseen by a steering committee chaired by former Bank of Botswana Governor Moses Pelaelo, alongside former Director General of the Directorate on Corruption and Economic Crimes (DCEC) Tymon Katlholo, retired Judge Mpaphi Phumaphi, businessman Monty Chiepe, and Aobakwe Moemedi. Their role will be to provide oversight, ensure transparency, and liaise with the forensic auditors.
Meanwhile, a working group led by Batlhalefi Moeletsi--with five other members--will be responsible for direct coordination with A&M's forensic team throughout the investigation.
The final report of the forensic audit will provide a detailed breakdown of any financial misconduct, naming individuals and entities where necessary. It will also outline recommendations for corrective action, including potential legal consequences for those implicated. With the launch of the Forensic Audit, Boko has pulled a masterstroke and placed himself in the spotlight as a leader willing to act on corruption. Many were beginning to doubt if the UDC government will ever deliver the promised investigation into malpractices, corruption and mismanagement of the past administration that has left public coffers dry.
Only time will tell if anybody fingered in the forensic audit will face consequences or whether the audit will become yet another document which will gather dust at government enclave like many others before. For now, Botswana watches as the wheels of accountability begin to turn.
BCL Mine Inquiry
Beyond the forensic audit, Boko also announced a Judicial Commission of Inquiry into the 2017 abrupt closure of the BCL (Pty) Ltd, the BCL mine in Selibe Phikwe and its subsidiary -Tati Nickel Mine near Francistown at the instruction of government.
Judicial Commission of Inquiry will start work mid-June 2025, and will look into serious allegations of capture, corruption into the affairs of state agencies among many other issues brought forward by whistle blowers. The inquiry will establish the role-played Presidents and Senior Government officials, and inquire into the interference by any previous heads of state, corruption, fraud, Irregularities and untruthfulness and perjury by officials.
The Judicial Commission of Inquiry will scrutinise the controversial closure of the mine, its assets and subsequent liquidation that has been marred in controversy of the years.
The collapse of BCL Limited saw around 7000 workers thrown on the streets without any terminal benefits, and a ripple effect on Botswana's mining sector. The inquiry aims to uncover the circumstances surrounding the mine's shutdown and determine whether there was any mismanagement or wrongdoing by the leadership at government enclave.
Commissioners will be led by Malcolm Wallis-retired Judge of the Supreme Court of Appeal in South Africa, assisted by Evidence Leaders Advocate Marco van Rooyen, local Senior Attorney Unoda Mack, Othusitse Mbeha, and Sambere, while the Secretariat will be manned by Portia Kebeng, Tshepo Kgaswane, Shathani Somolekae.
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Economic reliefs
To ease economic pressure, Boko also announced other major projects that include the reduction of water tariffs by 30% for domestic use (while increasing tariffs for state entities by 40%); upgrading the SHHA programme to Bonno Housing Scheme to include cadres in the D scale. The president highlighted the revamp of the land allocation system, aiming to streamline processes and ensure equitable access to land. "These initiatives underscore our unwavering commitment to good governance, economic justice, and the well-being of our people," Boko told journalists.
Boko also assured Batswana that his travels around the world are for their own benefit. He said his government is targeting to bring P10 billion Foreign Direct Investment (FDI) which will create thousands of jobs by the end of the year 2025.
He reiterated that International Diplomacy is crucial for Botswana's future development citing an offer for land in Guinea Bissau for Botswana to develop her own port, US engagement which will see the continuation of PEPFAR, and considerations for extending AGOA beyond 2025, the Walvis bay dry port in Namibia and the upcoming Trans Kalahari Railway line to access ports in that country.
