In 2020, Botswana National Sport Commission (BNSC) financial assistance for affiliates and associates increased by P4.6 million, up from P28.6 million in 2019 to P33.2 million in 2020, the Auditor General’s (AG) report for the period that ended 31 March 2020 shows.
BNSC is the national governing body for all sports in Botswana. According to the recently released AG’s report, in 2020 the Commission’s financial distribution to special projects was P56.6 million, which was P800 000 less than P57.4 million in 2019.
BNSC’s operating expenses in the year under review amounted to P54.6 million, comparison to P64.5 million in the prior year. The AG’s report shows that the Commission recorded a deficit of P4.52 million, down P126.31 million in the previous year.
“The Commission was funded by Government grants,” the report notes. “In the year under review, the Grant Income, including amortised grants, was P130.02 million (93.8 percent of total income). “Other income was derived from, among others, Stadium Income (P2 365 037), Rental Income (P1 527 535) and Sports Awards (P1 352 352).”
As reported in the previous year, the report again says the continued deterioration of the net equity position and a perennial precarious net liquidity position of the Commission continued to raise concern on the ability of the Commission to continue as a going concern.
“In addition, the COVID-19 pandemic had affected cultural and sporting events across the world and it was expected that the effect of this pandemic would be felt by the Commission in the years 2020-21 and 2021-22,” it says. “The ability of the Commission to continue was dependent on the continuous support of the Government of Botswana in supplementing the financial needs through revenue and capital subventions.”
No Lease Agreement for Orange and BNSC
Meanwhile, the AG’s report has noted that although the auditors engaged by the Commission to audit their books informed the AG that the Commission was leasing some booster place to Orange, the Commission did not avail to them any signed framework or signed lease agreement with Orange for lease of the booster.
“The lease agreement that the Commission was using to charge rentals expired in 2019,” the report says. “Therefore, the terms and conditions governing the lease of these properties were invalid. In response, Management stated that the Commission had submitted the lease agreement to Orange for signature in November 2019 who referred it to its legal team for perusal. The Commission indicated that it would continue to follow up the matter with Orange for completion.”