DCEC probes BPC tenders

DAVE BAAITSE5 years ago517 min
  • Same company benefits P200 million worth of tenders this year
  • BPC allegedly losing money through cracks in tendering processes
  • DCEC investigates tendering deals within the corporation
  • The cash strapped parastatal now unable to pay salaries

The Directorate on Corruption and Economic Crime (DCEC) has launched an investigation on the cash-strapped Botswana Power Corporation (BPC) after one company allegedly benefited tenders worth close to P200 million last month alone.

According to documents seen by this publication, Dibanisa Proprietary Limited with its Director Kabelo Molefi, who is the 100% sole shareholder, was on 25th May 2020 named a successful bidder in the BPC tender no. 3811/19 supply of various mini-subs to Gaborone and Francistown warehouses.

Together with another company Moonkells GA, Dibanisa will supply Mini- sub 315kva Complete with RMU in both Gaborone and Francistown at the value of P10, 431.654.10. According to the tender documents, Dibanisa will supply other three mini-subs coded 3222, 3223 and 3225 alone with the total tendered amount of P 23, 427,783.29.

In yet another tender, BPC tender no 3600/19 supply and delivery of ring main units to Gaborone warehouse dated 11th May 2020, the tender was awarded to Dibanisa (Pty) Ltd as the successful bidder. The company supplied 75 three way SF6 ring main unit at a total of P6, 863,205.26.

On the 20th May 2020 Dibanisa (Pty) Ltd and others were listed as successful bidders in BPC tender no 3805/ 19 supply and delivery of various transformers to Gaborone and Francistown warehouses.

In the said tender three companies namely; Dibanisa (Pty) Ltd, Robville and Monkells all benefited with Dibanisa alone pocketing close to P17, 573, 529.60.

Dibanisa (Pty) Ltd and its Director, Molefi also benefitted from two other tenders which were awarded on the 19th May 2020, being tender no 3591/19 supply and delivery of preformed line products to Gaborone and Francistown warehouses and tender 3590/19 supply and delivery of lines fasteners to Gaborone and Francistown warehouses.

According to information from Companies and Intellectual Property Authority (CIPA), Dibanisa (Pty) Ltd was re- registered in October 2019.

According to impeccable sources, these are not the only tenders that Dibanisa was awarded at Botswana Power Corporation since the beginning of this year, something that has caught the eye of the corruption busting agency.

It is alleged that the company has benefited close to P200 million from the parastatal.

Close sources say investigations are already at an advanced stage but could not divulge more for fear of interfering with investigations.

Meanwhile the DCEC has confirmed that investigations have been initiated to find out the reliability of the procurement practices at the beleaguered institution.

โ€œThe DCEC has received allegations of corruption from the institution you have alluded to. However I cannot discuss details of the said allegations as I am bound by the Corruption and Economic Crime Act from doing so,โ€ said Lentswe Motshoganetsi, DCEC Public Relations Officer.

โ€œNevertheless, some of the allegations are still under investigation; some have been referred to the DPP for advice; while some have been closed due to insufficient evidence.โ€

Last week a local newspaper reported that the cash strapped Botswana Power Corporation (BPC) has โ€œsquashedโ€ the P500 million government rescue package which was meant to tide them over until the end of the COVID-19 pandemic, and is now unable to pay salaries.

BPC which is technically insolvent entered the COVID-19 period with its on-going concern status dependent on a government bail- out.

The P500 million government lifeline was however sucked into the black-hole in the parastatalโ€™s balance sheet.

It was also reported that the Government P500 million rescue package and the 22% increase in electricity tariffs was based on optimist projections that Morupule B would be operating at 50% capacity with two of its four units on stream.

The report also indicated that BPC failed to identify the cash flow crunch ahead of time and leaked millions of pula from the unplanned wholesale importation of expensive electricity.

BPC is also believed to be losing money through cracks in its processes and a Minister has been implicated in a corrupt business deal with the corporation which is believed to be haemorrhaging the ailing parastatal.