The past week saw yet another opening of a new mine in the country. The Boseto Copper mine which is owned by Discovery Metals near the village of Toteng marked the first of its kind in the North West district. HE Lieutenant General Seretse Khama Ian Khama, when officially opening the mine reminded those in attendance that diversification of the economy still remains government’s primary objective. I couldn’t agree more. Ours is an economy entirely dependent on minerals ÔÇô especially diamonds. Yes, we have performed better in terms of productive use of rents from such minerals in providing infrastructural and human development when compared to other mineral-endowed economies on the African continent. But that should not cloud the reality which confronts our country at the moment and going forward.
Ironically our mineral wealth has also created problems elsewhere in our economy. In particular, agriculture has seen its contribution to the nation’s GDP progressively decline over years. From being the highest contributor to the nation’s coffers at independence and shortly thereafter, agriculture now accounts for less than 5% of our GDP. Sadly, we are a nation that cannot feed itself. But the sorry state in which the agricultural sector finds itself is best brought to surface by the mess currently penning out at the Botswana Meat Commission (BMC).
The BMC used to be the key driver of our economy. We inherited it from the departing colonialists and since then it has come to occupy the centre stage of our economic activities. It brought pride to many Batswana who could sell their livestock to the commission. Not only that, the BMC provided life to a dying town of Lobatse. Its financial position was sound. It provided jobs. And beyond that, the BMC provided revenue to government. In short, the corporation represented among a few successful stories of public enterprises in many African countries.
Fast forward to 2012 and rarely the commission is not in the news for all the wrong reasons. Just over the past week alone, private newspapers were awash with depressing stories about financial sustainability of the commission. To illustrate the point, on its Friday 07 September 2012 edition, Mmegi newspaper headline reads ‘How they milked BMC.’ The Sunday Standard of yesterday carried a headline: ‘EU throws out BMC beef in cattle doping scandal’ (09 ÔÇô 15 September, 2012)
The Mmegi story narrates how the top leadership of the commission sought to defraud it of millions. Actually, the newspaper report paints a conspiracy on those who were entrusted with resuscitating the ailing corporation but having ended up siphoning cash that could have provided a much needed lease of life to the company. How sad for men/women who were supposed to bring stability to the BMC following the recent unceremonial departure of its CEO, David Falepau, to end up acting in that manner.
Although this is a public corporation, we were never furnished with reasons why the former CEO was dismissed. All that we have gathered so far is that an arrangement was hatched and agreed upon by those in charge together with Falepau barring him from divulging information relating to his departure/sacking. Talk of keeping the nation in the dark by those with power!
These are but some of the disturbing developments emanating from a once flourishing public enterprise. However, what proved to be the final nail in the coffin for BMC was the reported story of how the EU rejected almost 2000 tonnes of our first consignment since resumption of beef export to the lucrative European market. I don’t want to narrate the importance of EU market to our beef sector. This is where we make the bulk of our money so much that once we are deregistered ÔÇô which was the case over the past couple of months ÔÇô the industry suffers profoundly. But here we are at it again, unashamedly risking the very life support-system of our beef industry and agriculture generally.
The recent media reports about the BMC mess points to larger systemic and structural problems in which various stakeholders in the beef production sector failed to effectively coordinate their efforts. Here I would like to express my opinion on what needs to be done to restore the fortunes of the corporation. I do acknowledge that there might be various mechanisms through which such vision could be realized but I am only interested in issues of corporate governance and leadership here.
On the subject of leadership, I should say that when the current Minister of Agriculture, Christian De-Graff, ascended to the throne there was widespread optimism that finally someone with relevant credentials has been given the post. Why should we have doubted his appointment when he has been such a successful commercial farmer? Undoubtedly, he was the right man for the job considering his background but I don’t think he has provided sound leadership to steer the lost ship in the right direction. As the ultimate authority in charge of the beef industry, the minister has been missing-in-action when it comes to issues paralysing BMC. At best he has been too slow to act on shenanigans emanating from the same corporation. At worst, he has chosen to look elsewhere hoping that the mess will come to pass. I hope I am wrong to suggest that the goodwill he enjoyed when he took charge is losing steam.
Although at the broader level the Minister was expected to offer leadership and guidance to the industry at large, the Board of Directors (BoD) for the BMC was supposed to offer specific direction towards achievement of the corporation’s goals. Unfortunately, the BoD has not been useful in that regard. Typical of other BoD in our economy, the BMC one has also been short on imagination. The question that comes to my mind is: why should we expect them to act any differently? The truth is that they are appointed not because they can offer the corporation any sense of direction; rather, they are there to serve their own interests at the expense of other key stakeholders. In that regard, they lack accountability. Conflict of interest is nothing to worry them, and transparency does not even exist in their vocabulary. These are core issues of good corporate governance which appear non-existent in their world of business, at least considering what newspapers have uncovered at the BMC. What is happening at the BMC is a classic case of corporate governance turned up-side down.
But leadership is about accountability. Someone has to take charge and provide direction particularly in current challenging periods as is the case with the BMC. The minister and BoD have to act in the best interest of Batswana to safe our cattle industry. I am waiting patiently to see what action President Khama will take against those who are doing everything in their power to kill our cattle industry, enrich themselves and even drag the name of our beloved republic in the mud. Unless HE does something, diversification of the economy will only remain a pipe dream.
*Molefhe teaches Public Administration at the University of Botswana.
