The Botswana Meat Commission (BMC) has ended its contractual business relationship with its United Kingdom-based marketing company, Global Protein Solutions (GPS) Group.
Fresh information emerged last week that BMC made a decision not to renew a six-month contract it had extended for GPS since December 2018. The company was engaged on a three-year performance contract for two terms.
Information reaching this publication is that GPS has worked in partnership with BMC for 6 years since 2012, increasing cash realisations per KG of meat sold by 100 percent resulting in a 40 percent increase in cattle prices.
Contacted through a media inquiry to seek clarity on the matter, the BMC chief strategy officer Brian Dioka said: “We find your request to have probable grounds of incensing the principle of Non-Disclosure Agreement (NDA), of which BMC often observes around its active and non-active contracts.” He said for that reason the BMC will not be offering any official comment on the matter.
The GPS Group Managing Director Brian Perkin, last year wrote a letter to the former Minister of Agriculture and Food security, Patrick Ralotsia, raising concerns regarding the manner in which their contract had been handled.
He stated in the letter that the GPS received a letter by email giving the company 8 weeks’ notice that the GPS Sales & Marketing contract would be terminated as at December, 31 2018. He further stated that this was without the courtesy of any prior consultation, discussion or consideration of any transition plan. “Whilst this was a disappointment to GPS we highlighted that this was not only highly unprofessional but puts The BMC at serious risk from a number of perspectives notably cashflow and customer and market confidence. We immediately pointed out that a transition period of less than six months would be detrimental to the interests of The BMC and the farmers,” reads the letter.
In the same letter, GPS Group MD stated that they believe in the Botswana beef sector and are prepared to assist in the transformation period and, if invited, to become an investor in the transformed BMC. He said GPS will participate in the tender process underway and do not ask for special treatment.
“We are however, extremely concerned that the tender process will be rushed, not properly evaluated and a contract potentially awarded by an inexperienced management team given the actions over recent weeks,” he stated at the time.