In 1997, the then World Bank President James Wolfensohn, in his address to the Board of Governors said: ‘We have seen how corruption flourishes in the dark, how it prevents growth and social equity, and how it creates the basis for social and political instability’.
Again in 2000 Hope R and Chikulo B C stated that corruption in Africa has reached cancerous proportions. In fact, so pervasive is this phenomenon in the region that it has been labelled the ‘AIDS of democracy’ which is destroying the future of many societies in the region.
The corruption problem in Africa reflects the more general, and now legendary, climate of unethical leadership and bad governance found throughout the continent.
Corruption has manifested itself in different forms – inter alia considerable lack of exemplary ethical leadership by politicians and senior public officials where personal interests take precedence over national interests.
In many instances conflict of interest and wide spread existence of personalism result in significant loyalty towards one master thereby creating a recipe for ‘vampire’ mentality.
Despite the devastating effects of corrupt practices that rocked many African states coupled with economic mismanagement that gave rise to an intellectual movement called ‘Afro-pessimism’, Botswana stood out as an example of economic development, functioning governance, and multi-party liberal democracy and as an exception that confounds generalisations.
Botswana’s exceptionality thus attracted considerable scholarly attention with some calling it developmental success story with Stedman referring to it as the ‘Switzerland of Africa’. Niemann referred to the diamond industry in Botswana as the state’s “best friend” because of the impressive rate of economic growth resulting from this natural resource.
In his book Samatar argues that Botswana has eluded the rampant corruption and mismanagement that bedevil most Third World countries, something that compelled Monageng Mogalakwe (2003) to question Samatar’s analysis and wondered as to whether this was just another addition to a list of accolades on Botswana’s miracle.
Although the rate of corruption in Botswana as compared to other countries within the continent has always been deemed too low, the volcanic eruption of corruption scandals that rocked the country in the early 1990s and some that are now beginning to unfold has left political observers and commentators with no option but to welcome Botswana on board.
That ‘This is Africa’ (TIA) and there is nothing so special about Botswana after all and it is just another semi-democratic country in the region with rampant existence of corruption, extra-judicial killings, limited freedom of expression and to use Kenneth Good’s expression “a liberal authoritarian state” with too much centralised power and weak executive accountability.
Commenting on the budget speech Member of Parliament for Gaborone West South, Botsalo Ntuane said that there is a developing trend by some people close to power, to loot the government. He cited instances where some ministers own companies that tender for the supply of government goods and services, (Mmegi, 14th Feb 2010). It has now become a way of life where disclosure of assets and liabilities is done only to the President. Such circumstances haven prompted other people to question the research methods used and the validity of the good ratings previously given by different institutions on Botswana.
This situation has not been helped either by the current political soap opera that has been making rounds in our local print media which has brought about behind the scene deals that has eluded Botswana for a long time. Though tasty, they are however, not nutritious for they have exposed allegations of possible money laundering, conflict of interest and abuse of public funds involving DeBeers and BDP leadership.
It is alleged that Debswana, a company partially owned by Botswana Government, has for the past three decades been running and maintaining slush funds to finance BDP election campaigns and to pay lavish entertainment for ruling party big wigs and their friends.
That former President Mogae also personally benefited from the slush funds on a number of occasions (Sunday Standard 24th Jan 2010). De Beers according to Sunday Standard is also understood to have bought former President Ketumile Masire, out of State House to the tune of P4 Million.
This they did through channelling the money through Claremont Corporation to former President Masire’s company G.M. Five (Pty) Ltd which has recently been placed under the hammer by National Development Bank (NDB) with 2000 herds of cattle and a Massy Ferguson tractor to be sold at Chobokwane Farms (Gazette, 24th February 2010).
It is also alleged by the Sunday Standard edition of the (31st Jan 2010) that when President Ketumile Masire took over the country’s presidency he was no longer credit worthy and by 1998 his debts to Standard Chartered Bank, National Development Bank, BAMB and other sundry liabilities had ballooned to millions.
Sunday Standard describes the situation as a ‘bomb that could explode anytime. Since Masire’s financial situation worsened De Beers got worried and fortunately Dr Lawrence Schlemmer rescued the situation and recommended a change of leadership within the BDP.’
In response to the allegations raised against him by Sunday Standard Sir Ketumile Masire reassured Batswana that the modest support that was extended to his farming business by De Beers did not in any way materially compromise government subsequent bilateral dealings with the company.
Although acknowledging that this was a private business arrangement, Sir Ketumile stated that this was not a secret and with a perfect vision of hindsight, he would not enter into such an arrangement (Sunday Standard 31st January 2010). According to Sir Ketumile Masire, this would not conform to today’s more rigorous guidelines for good governance. As if to suggest absence of such during his tenure in office and hence used the loose loop holes within the system to his advantage.
It is understood that former President Ketumile Masire would not leave the State House knowing that his creditors would be waiting for him and as such De Beers put together another bail out plan that would ensure that the President retires in peace, (Sunday Standard, 31st January 2010).
Botswana Government at the same time in 1998, had developed Presidential (Pensions and Retirement Benefits) Act. The Act states that a former president of Botswana must be given, among others, a ‘furnished residential house in Gaborone, or such housing allowance as may be determined by the President’.
Former President Masire subsequently moved to his retirement house in October 2002, four years after construction and at a roof- wetting reception thanked former President Festus Mogae, Parliament and the nation ‘for arranging a package’ for them in their retirement days. Masire told the gathering that when he considered retiring, he had made no arrangements for government to provide for him, and had expected to live like any other Motswana.
Sir Ketumile summed it all by expressing his gratitude and stated ‘Let me thank Batswana who always go out of their way to recognise me in various ways, a warm handshake, an enthusiastic wave, a broad smile, a hilarious hello, (BOPA, 28th October 2002).
Ironically Gazette News Paper of the 21st February 1994 reported that former president Ketumile Masire once confronted Lekgomethe Outsa Mokone at the National Assembly, accusing him of making the country ungovernable through his writings and advised him to stop writing lies about him.
Mokone had written a story on the corrupt practices at the National Development Bank that incriminated several big guns in the Government Enclave.
NDB was established as a vehicle for channelling loan financing from Government and external sources to the agricultural sector and other activities of high priority. By late 1993 NDB was near bankruptcy and had accumulated losses totalling P 41.1 Million, outstanding loans amounted to P91.3 Million, of which over one third were in arrears, most for more than six months.
The government equity position was a negative P15.6 Million, (Good K, 1994). By November 1993, according to Good, NDB was losing P 450 000.00 a month and at a press conference held in 1993, the then Vice President Festus Mogae, said that NDB was owed more than P60 Million in arrears, and that the essential problem entangling the Bank was the near refusal of borrowers to service their loans, (Good K, 1994).
This situation had compelled the government to write off bad debts on a number of occasions and as early as 1982, it had written off P36 Million and P31 Million in 1988. NDB had also sanctioned the re-scheduling of loans simply on an across the board basis, without regard of an individual possible capacity to repay what was still owed, (Good K, 1994).
According to Good (1994), the BDP big guns reaction to exposures faulted NDB and said the following… ‘The thing is NDB never reminds us to pay and we forget’, ‘we are human too’, ‘It is just that accounts at NDB are in a mess’. The former President Sir Ketumile whose name also appeared on the debtors list owing P 546, 000.00, it is alleged by Good (1994) that on settling his debt Sir Ketumile said ‘ I had a problem like all farmers of sometimes being in arrears.’
Good further claims that another reaction to the exposure was to attack those who sought to investigate the role of the ruling elite in the NDB’s collapse and that Former President Masire declared that it was ‘ unethical’ and that the ‘media should refrain from witch hunt’. Similarly another lending institution Botswana Agricultural Marketing Board (BAMB), was practically bankrupt.
Its accumulated losses were reported to have jumped from some P 3 Million in 1989 to over P21.5 Million in 1992. Losses that incorporated bad debts exceeded P10 Million. (Good, 1994). A company with which President Masire was associated, G. M Five (Pty)Ltd held an outstanding loan with the Marketing Board of P 57, 676.00 in September 1993, dating back to December 1986 and said never to have been serviced, (Good, 1994).
Despite the eulogy that Botswana has received, it is evident that corruption and mismanagement has reached epidemic proportions. Ethical political leaders should have both the moral credibility and the ability to inspire society and influence institutions to pursue the goals of ethical and accountable governance in the interest of national development.
Weak systems should not be abused and manipulated for personal gains to advance one’s personal financial interests and tastes at the expense of national interest. If such prevails that becomes a breeding ground for ‘vampires’ where the rulers and their associates loot the country’s wealth as they wish.
And with a perfect vision of hindsight, I would not venture into any business which I would operate with a remote control knowing fully well that Botswana is a high risk area, especially in the agricultural sector, although I am fully aware that the people who venture into are our hope. Retrospectively, Was the media unethical?
The episode continues……..
Thabo Seleke is a Lecturer of Public Policy in the Department of Political and Administrative Studies (University of Botswana). He writes in his personal capacity.
