Former President Lt Gen Ian Khama bagged close to two thousand square meters of Botswana Power Corporation (BPC) vacant land on the cheap in what appears to be a back door deal – Sunday Standard investigations have revealed.
Khama, then president, paid P2,8 million for the upmarket Extension 9 plot – a steal compared to its valuation of P3,7 million at the time of the sale.
Concessional pricing apart, Khama did not have to go through a competitive bidding process as is law in the sale of public assets.
Indications are that the curious bargain basement deal may have come at a cost to the BPC plan to unlock the value of its vacant land around the country.
Documents passed to the Sunday Standard reveal that when the BPC board resolved on 21st April 2017 to sell Plot 2425 to Khama, the power utility company had just received proposals from property developers to help unlock the value of its vacant plots.
Khama got the BPC plot although he was not part of the competitive bidding process which closed on 1st March 2017 and was exclusive to property development companies.
Besides, the Request for Proposals (RFP) was for the development and not the sale of the vacant BPC plots.
BPC had on 27th January 2017 flighted an advert inviting property developers to submit RFQs on how they can unlock the value of BPC undeveloped plots. The advert which stipulated the deadline for submissions as 1st March 2017 stated in part:
“Botswana Power Corporation (BPC), as the National Power utility of the Republic of Botswana has operations in towns and major centres around the country. The Corporation conducts business from both owned and rented premises.
“Some of the properties owned by BPC are undeveloped plots while some of the developed plots have been identified to be underutilized- thus having redevelopment potential. The Corporation has decided to unlock development potential of the properties in question and use them as one of its revenue earners. The Corporation currently does not have financial capacity to undertake the potential real estate investments. Thus, Botswana Power Corporation seeks to appoint reputable property/real estate professionals to assist in realization of its investment objective.
“The BPC now invites eligible competent, experienced and reputable companies in the property/ real estate industry to indicate their interest in providing the above-mentioned services. “Interested companies must provide information indicating their capability, experience and qualification to perform the services. Interested companies are also required to submit detailed proposals indicating their licensing and registration to carry out that line of business, clear understanding of the assignment, description of similar assignments, relevant experience, firm profile, at least three references from customers / employers where similar services have been offered in the past 3-8 years and availability of competent and experienced personnel to carry out the required services.
“Bidders are invited to tender for the required services by responding through a detailed Request for Proposal (RFP).
Clarifications pertaining to this call for expression of interest may be obtained from the Manager Property Services email address: [email protected] or Phone: +267 3603347 Cell: + 267 76 29 29 29 during office hours [07:30 to 16:30 hours Monday to Friday].
The tenders should be deposited in the TENDER BOX situated in the Botswana Power Corporation, Supply Chain (Procurement) Office, Nkrumah Road, Gaborone, Botswana by 1st March 2017 on or before 10:00 Hrs”
According to the Deed of transfer, dated 25th August 2017, former BPC Chief Executive Officer Stefan Schwarzfischer on 4th may 2017 granted Bone Motau of Collins Newman & Co the power of attorney as the conveyancer.
Collins Newman & Co were both Khama and BPC lawyers.
Through the deal, Khama who had bought a plot from BHC in the same neighborhood in 1974, got the second bite in procuring real estate property while the waiting list for ordinary citizens was more than five years behind.
In a bid to ensure that all citizens have an equal chance at procuring public real estate property, the BHC allows individual or married couple to buy only one house from the state-owned enterprise country wide.
Khama bought the BPC land to extend the adjacent plot 2412 he had previously bought from BHC.
