After a great deal of reflection and thought, I am compelled to write this letter because of the frustration, hassles and the challenging conditions that face the business community on a daily basis. More importantly, I refuse to remain silent when I see things falling apart.
After private discussions with many members of the business community, I felt that I needed to speak out because many of them are not confident that they can put their points across or, in the case where they are foreigners, are terrified to speak because they feel that they will be targeted for future harassment.
I have always held the view and believed that the greater the number of laws, rules and regulations and harsher the penalties coupled with discretionary powers to levy them, put in place for certain offences, the greater the opportunity and the breeding grounds for corruption to take root.
Worldwide, there seems to be a direct correlation between these.
I am not sure if the Ministry of Trade is aware of the daily problems and challenges that business people face in virtually every area of the country with the manner in which Local Authorities implement, administer and interpret laws relating to the Trade Act. There is always a fanfare about how much Botswana wants foreign investments and how the impediments and barriers to doing business here are being removed.
Let the reader be the judge.
I have chosen but a small selection of examples from many parts of the country just to show that this is not confined to one locality nor is it limited in its scope.
The Trade Act and the related regulations governing business is a mine field for any entrepreneur and a haven for those officials who love to bully and make life difficult for business to take root and thrive. The major problem is that these laws and regulations are so clumsy that they can and are interpreted to mean one thing in the morning yet something different in the afternoon, and the interpretation and implementation from one Council to another differs widely.
Let me start by giving you real cases and examples of how we have degenerated from the sublime to the ridiculous, simply because some officials at the Councils wield so much power and authority that they have been literally been granted carte blanch to interpret and enforce the law. These examples are hard to believe but they are all true cases.
┬À┬á┬á┬á┬á┬á┬á┬á┬á A business with a motor spares license was fined for selling spanners ÔÇô because according to the council spanners are classified as tools (hardware) and not as spares.
┬À┬á┬á┬á┬á┬á┬á┬á┬á A building material hardware shop was fined for selling safety boots, helmets and overalls because these items are classified as ‘clothing’ so they require an additional licence to sell clothing which the hardware shop did not have.
┬À┬á┬á┬á┬á┬á┬á┬á┬á A filling station was threatened with a fine because they were selling oils, brake fluids and the like; because the license stated that they had a petrol filling station license and it said nothing about the sale of oil and lubricants.
┬À┬á┬á┬á┬á┬á┬á┬á┬á Shops are fined for not displaying their licenses in a spot near the entrance of the shop. Yet the law says the license must be displayed/exhibited in a ‘prominent place in the premises’ (Trade Act). What is ‘prominent’ is open to interpretation, so if you have your license on the wall of your office (you’d think that your office is a prominent enough place for you) nope that’s not good enough for the Council because they will charge you for not displaying it in a ‘prominent’ place.
┬À┬á┬á┬á┬á┬á┬á┬á┬á I know of cases where shop owners have been fined P1000 for ‘not displaying’ the license ‘in a prominent place’ yet the Act stipulates a fine NOT EXCEEDING P500. Ahem.
┬À┬á┬á┬á┬á┬á┬á┬á┬á The Council officers confiscate goods sold ‘in contravention of the license’ ÔÇô do they give the business owner a record of those goods thus confiscated? Where are they accounted for and where do these goods go to?
┬À┬á┬á┬á┬á┬á┬á┬á┬á It is common now for a group of officials sometimes numbering 10 (Bye laws, licensing officials, Police, Labour, Immigration, etc.) to descend on a premises. The license holder is bombarded with terse and intimidating questions that have him/her gasping for answers. It is almost like an inquisition or a witch hunt. The rude, arrogant, intimidating and at times the xenophobic attitude of these officials is unbelievable, worse still it seems they derive great pleasure from the harassment.┬á
┬À┬á┬á┬á┬á┬á┬á┬á┬á Lately there was a circular to shops from a Council Licensing committee that shops should have a ‘proper fitting room and parcel counters as failure to do so will lead to the suspension of a license for a period of one month’. Where in the Act or in the Regulations does it speak of the lack change rooms/ parcels counters, leading to suspension?
┬À┬á┬á┬á┬á┬á┬á┬á┬á Some Councils now insist for the renewal of a license the following documents are needed; a certified copy of my Omang (Citizens) must be certified by the Omang office, so tough luck if you live in a remote village that does not have an Omang office nearby; Passport for foreigners (Of course the copy must be certified by your Embassy even if it is not located in Botswana but located in Johannesburg);Certificate of Incorporation (certified by the Registrar of Companies (sorry if you don’t have an office nearby, jump into a bus/taxi); approved building plans (even if you are renting from the landlord and the building has been in existence for 30 years or so); Title deeds for the land (even if you don’t own it and are renting it from a landlord ÔÇô and oh yes they have to be certified by the Deeds registry). Does this madness know no bounds?
┬À┬á┬á┬á┬á┬á┬á┬á┬á The Health Inspectors (sorry. Ahem, Environmental Health officers) will refuse to renew your license if say three tiles are missing from the toilet walls. But just visit the facilities at the same Council’s own offices and loos, or even the Council Schools or Abattoir then show me a health clearance certificate!
┬À┬á┬á┬á┬á┬á┬á┬á┬á I believe some Councils insist that one should surrender the old expired license in exchange for the new license.
┬À┬á┬á┬á┬á┬á┬á┬á┬á I won’t even mention the issues relating to hawkers and vendors ÔÇô that will fill a whole page.
┬À┬á┬á┬á┬á┬á┬á┬á┬á For foreigners and their headaches and problems with Work and Residence permits ÔÇô no comment because this was succinctly and adequately covered by the Hon. T. Khama (MP) recently.
I could go on and on, but I just mentioned a small selection of examples to show the reader what it is to be like to be in business today ÔÇô not fun. Ask any shop owner anywhere in Botswana and you will hear their own little horror story.┬á
Even more disturbing in all this are the allegations that these bullying tactics and threats of high fines and penalties are just a precursor for negotiating a private settlement on the side.
Many foreign shop owners from the East will confide in you, if they trust you, that on a regular basis they become the targets of overzealous and corrupt officials who carry out inspections with a view of finding any fault no matter how small, which they pounce upon threatening severe penalties.
In many cases these threats of heavy penalties are just a ruse to obtain a back hander to supplement their income. Not surprising some of these officials visit premises on weekends for inspections! Now the chickens have finally come home to roost.
We have to remember that while BEDIA the Ministry and other Government agencies talk to and court investors about locating to Botswana the bottom line is that those very same investors will go directly and talk to business people who have already established here to hear from them first hand of the conditions on the ground. I can assure you that after facing so many irritations in business the message that new investors will get will be very negative.
Let me be clear, I do not have any problem with enforcing compliance to the law, what I object to is the manner in which it is being done. Remember you guys are paid from Council/public coffers so you have security of employment, but think of the poor employee who could lose his job as a result of the Councils heavy handed attitude towards his employer who in the final analysis may decide that ‘this the final straw that breaks the proverbial camel’s back’ and say ‘thanks guys I don’t need this, I am leaving’.
During my term as BOCCIM President I had discussions with former Ambassador Joseph Huggins about the possibility of new investments into Botswana, his words were; ‘yes, but your actions belie your words’ ÔÇô in other words our stated policies are very good on paper but our actions and implementation speak a different language. He further said that ‘investment money will always gravitate to where it is made to feel welcome’.┬á┬á
Are we welcoming enough?
