Monday, October 25, 2021

Gov’t “volte face “on proposed BSB, BotswanaPost merger

Government has confirmed its change of tack on the long awaited merger of BotswanaPost and Botswana Savings Bank (BSB) as well as BotswanaPost’s subsidiary Botswana Couriers and Logistics.

The decision to merge the three government entities kick-started over 4 years back after the then Minister of Transport and Communications appointed the Board of Directors of Botswana Post and Savings Group Limited which was is the holding company for the three companies.

The establishment of the holding Company was a move which was expected to pave the way for the failed merger.

In December 2013, the Botswana Postal Service Amendment Bill was passed in Parliament following approval by cabinet, two occurrences that were also marked as building blocks for the collapsed merger.

This week, Minister responsible for Transport and Communications Kitso Mokaila confirmed the decision adding that the merger is being considered only to amalgamate BotswanaPost and BC&L and not going ahead with merging BSB. Mokaila also confirmed that the Botswana Post and Savings Group Limited also fall away.

“BSB remains a bank supervised under the Ministry of Finance and cannot be under the Ministry of Transport and Communications,” said Mokaila.

Mokaila revealed that the Ministry had engaged KPMG Botswana to review the new decision of amalgamating the entities. He further stated that the proposed Botswana Post and Savings Group Limited merger did not meet most of the Banking License requirements at the Central Bank, Bank of Botswana (BoB).

Mokaila further stated that the initial Board of Directors for the then proposed Botswana Post Holding Company will also be reserved paving way for the new one which he will appoint soon for the new  amalgamated BotswanaPost and BC&L merger.

The outgoing board at the time was led by Puma Matlhware and the board chairs were also filled by Rutang Moses, Shirley Segokgo, Juliana White and Othusitse Lebuletswe including Baitshepi Tebogo, Mmoloki Tibe and Sherman Selepe.

The reversed merger was also instituted after though public consultations coordinated by Public Enterprises Evaluation and Privatization Agency (PEEPA) and the exercise commenced in the fiscal year 2009/10 and it is expected to conclude in the fiscal year 2014/15.

RELATED STORIES

Read this week's paper