Tuesday, October 26, 2021

Government owes BPC a whopping P98.6 million

The Minister of Mineral Resources, Green Technology and Energy Security Sadique Kebonang told Parliament that government owes Botswana Power Corporation (BPC) P98.6 million. 

“The debt will continue to exist as much as we continue to pay electricity and at the same time continue to consume the same,” he said. While government attempts to settle the outstanding debt the efforts are frustrated by the fact that electricity consumption continues to take place hence further increasing the debt. This is seen as adding to BPC’s woes as it battles to meet its production costs. 

“Where there is problem with cash flow obviously the institution will suffer,” said the Minister Kebonang responding to a question from Francistown South Wynter Mmolotsi.

The national power continues to struggle with consistent production of electricity as observed by power outages forcing it to augment the shortage by importing electricity from South Africa’s Eskom. Eskom, faced with its own challenges, reduced electricity it was availing to Botswana. The country’s electricity producing plant, Morupule B power station also does not help the situation with its constant breakdowns. The power plant is expected to be sold to the highest bidder.    

Parliamentary Committee on Statutory Bodies learnt recently that the Ministry of Health and Education were the main culprits owing BPC millions of Pula. BPC is contemplating taking stern measures to encourage prompt payment. “One option is for the Ministries to pay in advance. We will consider the possibility with the Finance Ministry,” revealed BPC official Rebecca Mogadla who appeared before the Committee.

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