A Chinese contractor who is in partnership with President Mokgweetsi Masisi’s sisters allegedly paid the ruling Botswana Democratic Party (BDP) a 5% kickback from the more than P500 million tender the company won from Water Utilities Corporation.
This emerges from records in the form of annexures, raising questions about the BDP’s influence on government tendering process.
The annexures which are part of court documents in which President Masisi’s sisters and his nephew are embroiled in a legal dispute over control of the company that bagged the WUC tender allege that BDP received a bribe from the Chinese director of the company.
Masisi’s nephew Olebile Joseph Pilane who was a director of G & M Building Services (Pty) after being offered shares by businessman Haushi Li alleges that the Chinese director paid BDP 5% of the contract sum (5% of more than 500 million).
This is contained in a letter that Pilane addressed to Li.
The letter dated 2021 and entitled “Tianyuan Construction/G&M building Services Joint Venture” is also copied to Phadi Masisi Mmutle who happens to be Pilane’s paternal auntie.
The letter states that “Our several meetings in where you directed us to pay Mrs Phadi Masisi Mmutle 5% off the company’s contract sum on behalf of the B.D.P (The Botswana Democratic Party in the event we win Goodhope 2.2 cannot be agreed to.”
Pilane added:“We must remind you your payment to the B.D.P (enclosed is your cheque pf the 06/10/20200 as what you term as a goodwill gesture will be viewed as a bribe. G&M Building Services will not be a party to this act.”
Giving some of the reasons as to why he was against G&M Building Services making payment to the ruling party, Pilane explained that: “Mrs Phadi Mmutle is not in any structure of the BDP and cannot make demands on its behalf.”
“Finally, when you offered me these shares it was on the understanding that I deliver any of the three (3) Water Utilities tender, fairly and within the parameters of the law.”
According to a letter of award signed by Water Utilities Corporation’s Chairman of the Board Tender Committee, “based on the combined technical and financial scores, it is recommended that the tender for the Works Contract for the Construction of Goodhope Sub-District Water Supply Scheme Phase 2.22-Contract 2 be awarded to Tianyuan Construction/GM &Joint Venture at a total Cost of P549, 699,654.79(14% VAT inclusive).” Taiynuan is another company owned by Li.
The letter states that the estimated duration of the proposed project is 31 months comprising 18 months for Construction of civil works including design and construction of EMT works for Contract 1 and 2, 12 months Defence Notification Period and 1 month Project Closure.
The Chairperson the Board Tender Committee who only appended his signature and did not disclose his full names added that “The Project will be funded from the NDP 11 budget under the Ministry of Land Management Water and Sanitation Services.”
The Chairperson recommended that; “Management be granted permission to award the Works for the Construction of Goodhope Sub-District Water Supply Scheme Phase 2.2-Contract 2 to Tianyuan Construction/G&M Joint Ventures at a total cost of P549,699,654.79 (15% VAT inclusive).”
The letter by the Board Tender Committee Chairman also recommended that “The Corporation Secretary be authorized to sign the contract with Tianyuan Construction/G&M Venture on behalf of the Corporation.”
Documents show that another company, Pre Con Construction which is also owned by Li won a tender for the “construction of Goodhope Sub-District Water Supply Augmentation Scheme Phase.”
One of the documents in the form of performance certificate from Pula Consultants written to the Ministry of Mineral, Energy and Water Resources and Li shows that the contract value for the tender was “P105,526,250.00.”
