The Parliamentary Committee on Statutory Bodies and Public Enterprises has questioned the Botswana Meat Commission (BMC) for engaging marketing agent Global Protein Solutions (GPS) as an exclusive market agent for the commission.
GPS which has been exclusively marketing beef products produced by BMC in both Europe and Asia is believed to be receiving P23 million each year as part of the marketing deal.
BMC Chief Executive Officer (CEO) Dr Akanyang Tombale however has defended the deal describing it as “not exclusive” adding that it is unnecessary to have several agents. He stated that the GPS and BMC contract is three years.
BMC CEO said that GPS ig getting 3.5 percent commission in Europe and 1.6 percent in South Africa. BMC is believed to be paying commission to GPS in Euros for Europe services while is South Africa it pays in Rands.
Meanwhile whilst making his executive summary to the committee, Dr Tombale went on to state that despite the achievements of the Lobatse plant and its ability to carry all other BMC operations over years, it remains an old and possibly dilapidated facility which requires modernization and alignment to the greater objectives of BMC strategic plan. He also spoke of the Francistown export facility which he said is still unable to export to the European market, and achieves far less plant utilization.
At the same time, Dr Tombale said an estimate number of cattles in the country is around 2 million adding that BMC alone cover about 250 000 cattle.
“The commission still has high level of gearing within its balance sheet that impact negatively on cash flow and working capital,” he stated.
He futher said the availability of cash flow and working capital is still the most difficulty that BMC is faced with. He added that although BMC has proposed to pay farmers within 14 days of delivery to accommodate its long cash realixzation period.
“What is important is to establish the industry regulator and then move on to privatising the commission,” he stated.