19 Nov 2024

The government will introduce cost saving measures aimed at curbing losses of billions of Pula the country has been experiencing.

Delivering the State-of-the-Nation Address (SONA) in Gaborone yesterday, President Advocate Duma Boko said Botswana had lost billions of Pula to wastage, due to poor management or negligence ‘let alone subtle and clear cut corruption’ adding that consequently the Ministry of Finance would at the appropriate time announce cost cutting and saving measures.

Among them, Mr Boko mentioned the implementation of wastewater treatment plants.

He pointed out that water bills for senior schools exceeded P300 million per annum, saying by implementing wastewater treatment plants, water substitution and recycling could significantly reduce those costs.

“This estimate excludes savings from fixing leaks in pipes and storage tanks,” he said, further saying expansion of those measures to other institutions such as the Botswana Defence Force, prisons service, police and hospitals could also further reduce expenses.

President Boko further stated that government would ensure fair pricing for basic goods and services in an effort the deal with procurement costs.

“No mark up on procured goods will exorbitantly exceed the price of the goods from the supplier,” he said adding that establishing standard pricing for essential items will control procurement costs.

Furthermore President Boko said government was planning to explore opportunities to empower local youth to develop and manage IT systems, including assess the cost of government IT systems and implementation, maintenance, and licensing as well as reducing reliance on expensive external providers.

He said implementing a pay-per-transaction model for system development, where service providers received payment based on usage, such as with the driver’s licensing system, would incentivise system developers to maintain high service standards and ensure the system’s sustainability until fully paid off.

Meanwhile the President said the Development Manager Model would also be reviewed to ensure fiscal sustainability, saying the application of the model may have resulted in inflated projects construction costs.

In regards to rental properties, he noted that government was not paying market value for rented buildings, therefore saying a review of rental agreements and re-negotiations will yield substantial savings.

He mentioned that government was to review some agricultural programmes, mentioning among them Temo Letlotlo, Thuo Letlotlo and Maja-a-Ikgorosa programmes to ensure value for money.

The President said the state owned enterprises wastage has to be minimised by strengthening Public Private Partnerships (PPPs) to attract external investment including equity-based investment.

He noted that government would implement grid-connected solar systems for institutions such as farms to produce their own power.

He said that would leverage impact funds, to finance solar initiatives, and thus reduce the need for direct government funding.

For artisan workshops and facilities management, President Boko said government would develop low-cost workshops for artisans to provide services to government institutions, creating jobs and supporting local economies.

He further encouraged the private sector involvement and participation in infrastructure projects, such as roads, where investments generate revenue, adding that the SADC House model was a successful example of such partnerships.

Lastly he mentioned that government would conduct a thorough review of existing budgets to identify essential expenditures.

He said this included assessing each project to determine which should be government-funded and which could be self-financing. Ends