Audit Exposes Millions Lost to Fraud, Waste

The government lost more than P15 million in public funds through systemic fraud, theft and other irregularities in the financial year ended 31 March 2023, according to Auditor General Keneilwe Senyarelo.

In her latest audit report, Senyarelo said only about P500,000 of the total losses has been recovered, while more than P14 million remains outstanding across various ministries and departments.

The Ministry of Finance accounted for the largest share of the losses, including a long-standing case dating back to 2016 involving P8.1 million at the Office of the Accountant General, which is still unresolved. The Auditor General said external forensic auditors have been engaged to investigate the matter.

The report also flagged P25 million in damages to government vehicles, of which P20 million remains unrecovered.

Special Funds anomaly

Beyond direct losses, Senyarelo raised concerns over irregularities in government investment and special funds. She said figures reflecting P2.3 million in investments from Special Funds were misstated, citing a P900.6 million payment to the liquidator of the Botswana Power Corporation-linked BCL mine from the Public Debt Service Fund, which she said was incorrectly recorded as an investment.

She added that there was no evidence supporting the classification of the transaction as an investment, as previously raised in earlier audit reports.

The Auditor General also reported that the Debt Participation Special Fund, with a recorded balance of P9.1 million, could not be fully verified due to missing documentation. Senyarelo further noted that several government-owned commercial entities were omitted from the Statement of Assets Held in Commercial Undertakings, including Tautona Lodge (Pty) Ltd, valued at P58.4 million, and Debt Participation Capital Funding Limited.

The Auditor General said the findings point to continued weaknesses in financial controls, record-keeping and accountability across government.

Unresolved De Beers, BCL financial entries

The Auditor General also revealed that government accounts still carry a significant financial shadow linked to De Beers and the now-defunct BCL Mine . The report discloses that the government paid P673,597,322 for undisclosed shares in De Beers, but the payment still has no proper accounting classification. It is currently parked in advance accounts because “an appropriate account is yet to be identified,” according to the report.

The audit shows a net advance balance of P917,228,211 for the Ministry of Finance, of which P885,541,752 is recorded under “Other Advance Accounts.” This consists of two major items: the P673,597,322 payment for the De Beers share purchase and P211,944,430 linked to BCL Mine and other liquidation advances.

BCL Mine was placed under liquidation in 2016. Government advanced more than P211.9 million to cover liquidation costs, but as of March 2023, there are no clear repayment terms on record, according to the Auditor General.

Together, the De Beers and BCL-related entries account for about 96.5 percent of the Ministry of Finance’s advance balance and remain unresolved years later.

The Government of Botswana currently holds a 15 percent stake in De Beers, while the remaining 85 percent is owned by Anglo American . The structure dates back to 2011–2012, when Anglo American increased its stake to 85 percent after acquiring the Oppenheimer family’s interest.

At the time, Botswana did not increase its shareholding, meaning its 15 percent stake has remained unchanged since then. There is no recent transaction confirming that Botswana has acquired additional De Beers shares. However, the new government has publicly confirmed that it is in talks to increase its stake, potentially to majority control. This follows Anglo American’s plan to sell or spin off De Beers. Anglo American said this week that it remains committed to divesting De Beers and continues to progress a formal sale process, with an update expected during the course of 2026.