- Auditor General raises alarm
The Auditor General has raised alarm regarding unaccounted funds in connection with the multimillion-Pula
North-South Carrier (NSC) project. The NSC is a pipeline spanning hundreds of kilometers, transporting raw water from Botswana’s northern region to its southern counterpart.
The project is implemented by the Ministry of Land Management, Water and Sanitation Services. According to the Auditor General’s latest report, the initial estimated cost of connecting Kanye village to the North-South Carrier was P680 million. However, during implementation, this cost was revised to P924 million. “However, the tender was awarded at a sum of P704 080 715. At the time of audit in August 2022, the cumulative amount paid for the project was more than P1.2 billion which exceeded the contract price by P517 604 866 (74 percent),” the report notes.
Regarding the North-South Carrier project covering Mogodi Hill to Pitsane, the report says it was scheduled to commence on 24 September 2014 and was scheduled for completion on 13 December 2015 at a cost of P132 million. “During the course of the project, the Ministry delayed to pay the contractor an amount of P5 million which resulted in the contractor suspending works. Upon resumption of work, the contractor claimed extension of time costing P600 000, which was inclusive of demobilisation and remobilisation,” the report notes. With regards to the NSC – Mmamashia to Kanye, the report states that there was an increase in consultancy service fees without approval. The report reveals that the supervising consultant was awarded the tender for the supervision of the Mmamashia- Kanye NSC on October 15, 2010, at a contract price of P15 million. However, this contract amount was later increased to P23 million on June 18, 2014, as per PPADB form 3.
The total amount paid up to the completion of the project amounted to P76 million, excluding invoice number
100, which was paid in January 2023. This represents a significant increase of 228 percent from the initial contract
amount. In its letter dated February 2017, the report says the then Public Procurement and Disposal Board (PPADB) did not approve the Ministry’s request to increase the consultancy fees from P23 million to P35 million on the basis that it was in excess of the allowable 25 percent variation threshold as per PPAD Regulations, the report further shows.
It says PPADB advised the procuring Ministry to obtain authorisation from the Ministry of Finance with a clear
justification. “There was no evidence that authorisation for an increase of the contract price was sought as advised by PPADB. I am not aware of approval on the price increase by the Ministry of Finance. Interest amounting to P982 443 paid to the contractor as a result of late payment,” states the then acting Auditor General, Keneilwe Senyarelo.
According to the report, on enquiry, management indicated that project funds got depleted before the
payment could be made. The report says the ministry also failed to account for sales proceeds. “The contractor auctioned a total of seven vehicles from the North South Carrier Project in Kanye, with proceeds amounting to P719 226. There was no evidence that the funds received were transferred or deposited into the
Government Accounts,” it says.
