PARLIAMENTARY STANDING COMMITTEE ON STATUTORY BODIES AND STATE ENTERPRISES 21/05/2026

Added: 2026-05-24

[00:02:26]Do you state enterprise? Guys, furniture.

[00:03:15]Parliament.

[00:03:21]Thank you chair.

[00:03:29]Thank you chair.

[00:03:32]Good afternoon everyone. My name isA.

[00:03:36]I'm a member of parliament for also a member of this committee. Thank you.

[00:03:42]Honorable Honorable Jeremiah, Member of Parliament for Shash West.

[00:03:54]Shash West.

[00:04:03]The reason you chairpon Thank you.

[00:04:40]>> Good afternoon. My name is General, Deputy Auditor General. Thank you.

[00:04:49]Sandra Williams from the office of the accountant general.

[00:04:56]>> Good afternoon from attorney general.

[00:05:03]Good afternoon.

[00:05:06]I'm the technical advisor to the committee.

[00:05:15]I'm now going to invite.

[00:05:26]I am the KT uh CEO facing officer.

[00:05:36]>> Good afternoon. My name is Kable Village Justice Ra. I am the director of strategy and project from Sid.

[00:05:45]>> Good afternoon, Miss Man. I am the CFO at CIDA.

[00:05:53]>> Good afternoon.

[00:05:54]James Murib. I'm the chief operations officer at CEDA.

[00:06:04]>> Good afternoon.

[00:06:21]Let me remind witnesses that these proceedings are are held under oath.

[00:06:28]You have been summoned to give evidence before this parliamentary committee of special bodies and state enterprises.

[00:06:34]The evidence you will give before this committee will be on oath or affirmation and must be truthful in terms of the oath or affirmation you you shall take before the giving of your evidence. You have the option to swear to the oath or on the Bible kind of Quran by putting your left hand on the Bible or Quran and with your right hand raised.

[00:06:59]Or you may opt to make an affirmation if you object to the first oath.

[00:07:05]Kindly indicate the option you are electing.

[00:07:10]>> I will use the Bible. Okay.

[00:07:13]Now >> I >> I >> full names >> do here by swear that >> do here by swear that >> the evidence I shall give before this committee >> the evidence I shall give before this committee >> shall be the truth >> shall be the truth >> the whole truth >> the whole truth >> and nothing else but the truth >> and nothing else but the truth >> so help me God >> so help me God >> thank I >> I full names justice >> do hereby swear that >> do here by swear that >> the evidence I shall give before this committee >> the evidence I shall give before this committee >> shall be the truth >> shall be the truth, >> the whole truth, >> the whole truth, >> and nothing else but the truth.

[00:08:14]>> And nothing else but the truth.

[00:08:16]>> So help me God.

[00:08:16]>> So help me God.

[00:08:19]>> Thank you.

[00:08:32]I I >> full names Godfrey >> do hereby swear that >> do hereby swear that >> the evidence I shall give before this committee >> the evidence that I shall give before this committee >> shall be the truth >> shall be the truth >> the whole truth >> the whole truth >> and nothing else but the truth >> and nothing else but the truth >> help me God >> help me God >> thank you I >> I >> full names >> James Robert Muribi.

[00:09:08]>> I >> I >> James Robert Muribi >> do hereby I swear that >> Do hereby swear that >> the evidence I shall give before this committee >> the evidence that I shall give before this committee >> shall be the truth >> shall be the truth >> the whole truth >> the whole truth >> and nothing else but the truth >> and nothing else but the truth.

[00:09:28]>> So help me God. So help me God.

[00:09:30]>> Thank you on behalf of the the body.

[00:09:54]On behalf of the statuary bodies committee, I welcome you to this committee. Your attendance is highly appreciated. Please note that this examination is part of the parliament's oversight responsibility. As a result, we welcome your cooperation and thoughtful responses to the members of this committee. I'm now going to invite the accounting officer to present his executive summary. Please limit your presentation to key issues only and highlights on the mandate financial performance governance or reports PP and other regulators reports 15 minutes.

[00:10:57]Thank you, honorable chair. Um um and uh good afternoon again members. Um the C citizen entrepreneurship development agency was established in 2001 by the government of Botswana and therefore it is a 100% owned uh governmentowned entity um with the soul as a developmental financial institution um with its core mandate being to promote and support citizen Entrepreneurship as a driver of economic growth.

[00:11:40]As a driver of economic growth, diversification, industrialization, and includes inclusive development.

[00:11:50]The agency affords affordable finance, business mentoring, technical training, credit guarantees, equity participation, and special purpose financing to citizen-owned enterprises across Botswana.

[00:12:13]We work across sectors whether it's manufacturing, technology and innovation, agri business, property and services, transport, logistics, hospitality, retail, mining and other emerging sectors.

[00:12:36]Our mandate focuses mainly on supporting small, medium, microenterprises, including special attention to youth, women, and people living with disabilities in order to unlock and help them have access to affordable financing by putting in place finance.

[00:13:08]If you look at our logo, we say we sustain, we develop and we finance. And therefore, the core mandate is to ensure that we help them create sustainable enterprises.

[00:13:22]The agency operates within a strong governance framework and compliance guided by the companies act FIA PP act international financial reporting standards audited financial statements Botswana Accountancy Oversight Authority BA the auditor general oversight and in terms of corporate governance we rely on king for guidance principles.

[00:14:05]They it is supported or we have built in our board charter relying on on particularly in king 4 and we also use subcommittee terms terms of reference which are also aligned to team four and use a delegated authority that comes from the main board.

[00:14:31]We've put in place enterprise risk management and internal control frameworks and we do have shareholder compact obligations with the government uh in particular uh driven through the ministry of trade and entrepreneurship.

[00:14:52]CEDA further aligns its strategy normally it's a fiveyear strategy with the operations of the government like we are aligned to the vision 2036 national development plan 12 and the Botswana economic transformation program which collectively emphasize private sectorled growth industrialization employment creation and inclusive citizen economic participation.

[00:15:27]In fact, I would like to say that CEDA sees ourselves as a key stimulus and participant to the private sectorled growth and economic diversification whilst creating sustainable employment.

[00:15:45]In terms of the audits that we've undertaken since 2001, citizen entrepreneurship entrepreneurial development agency CEDA has continued to strengthen its financial governance accountability and compliance environment through the successful completion of approval of audited financial statements.

[00:16:13]The agency has finalized and signed off financial statements for 2021 financial year, 2022 financial year and 2023 financial year which are publicly available through our website and can be found in other publications and portals um that we have.

[00:16:43]We are currently finalizing the 2023 2024 audited financial statements. In fact, where we are, Frack has actually um supported them for for approval by the board and we while at the same time we have commenced auditing on the 202425 financial year, we are more than confident that we will be up to date by the end of the calendar year 2020 uh six in terms of um the audited financials.

[00:17:22]I'd like to draw the attention to the committee that one would wonder why we are not up to date as a financial institution in terms of the financials.

[00:17:32]There was a challenge that we had. Um it was a matter between venture partners Botswana which was given the mandate to run the CEDA venture capital fund where VPP was not willing to share the financial information at the end of the contract which in turn implied the agency had to reconstruct the financials and this took us back 5 years and I'm happy to where we are. We are just two years behind in terms of getting to um where CEDA needs to be.

[00:18:14]The audited financial statements continue to reflect the AY's evolving transition from a traditional lending institution into a broader development, finance and industrialization platform with growing emphasis on sustainability, portfolio rehabilitation, resource mobilization and subsidiary growth and the strategic investments aligned to Botswana's economic transformation agenda.

[00:18:48]The financial statements also provide transparency of the agency's loan book, performance, revenue generation, impairments, areas, management, governance controls and overall the financial position. These processes are undertaken within the framework of the IFRS and in particular when we manage our uh we use FRS9 in terms of uh how we look at um our financials the oversight by the board finance and risk committee audit committee and external audit require external audit um are in line with the statutory governance and obligations.

[00:19:39]We have been in the last financial year we did undergo audit by BA. particular items that came to the four were in particular um the issue around governance that CEDA was operating without a board and other matters that were raised were very much aligned to um um the governance around the institution. Um the other issue that was raised was around ensuring that the CFO and the CEO are executive directors meaning they must have seats in the board as part of what the audit picked up.

[00:20:26]Internal audit continues to exercise its functions and has identified a lot of control weaknesses on recurring findings. The executive management has now put measures to enhance governance, accountability and control discipline, organizational footprint, subsidiaries, strategic investment and major contracts. CIDEA continues to expand its institutional footprint and operational capacity in line with its mandate to drive citizen entrepreneurship.

[00:21:07]The agency currently operates 14 nationwide branch network with recent expansion initiatives including the opening of branches in Shakaw, Zabong and lastly to as well as relocating the moni the modernization and monetization of the Kaboni branch which has moved into the BHC building to improve accessib ibility and operational efficiency and customer service delivery. We take customer experience at the heart of what we do.

[00:21:48]From the people perspective, being a a DFI and a financial institution requires that our services are driven by the human capital.

[00:21:59]From an operational capacity point of view, CEDA has approximately 322 substantive employees who we have supported by 93 service officers. The 93 service officers are the former Chachma employees and we've managed to retain 93 employees in the process. We also offer internships, graduate trainees, bring a broader workforce and complement to approximately 461 personnel.

[00:22:40]Our female representation currently stands at 59% reinforcing the AY's inclusion within the workplace.

[00:22:51]The agency maintains a relatively moderate vacancy rate of approximately 5.6%.

[00:22:58]With recruitment currently focused on critical governance, finance, operation and risk management and service delivery roles.

[00:23:08]Chairman as part of government supported programs CIDA has administered chachma initiative jointly with LEA. At inception, the program had engaged 176 temporary employees to support the roll out and the operational delivery across the branches and customerf facing functions.

[00:23:31]Currently, we have 93 officers that remain supporting the branch operations.

[00:23:38]In particular, we are getting ready for the audit that is or the review that is coming that will include CEDA for from is Malik that we need to improve our KYC. We also use these officers and are training them and giving an opportunity to understand operations in terms of collection support, documentation and customer service activities.

[00:24:08]The agency continues to implement cost containment and operational efficiency measures including targeted recruitment, zero overtime or budgeting and productivity optimization digitization. We run a um an online platform called Kay Kapakai that enables our customers wherever whenever to be able to submit their applications.

[00:24:37]The workforce planning aligned to operational requirements and fiscal sustainability objectives.

[00:24:46]As part of sustainability, the diversification of revenue stream, CEDA has successfully launched CEDA insurance brokers and we have been given the mandate to run Lemaultural Market which was established in 2024 and we currently are reviewing the model in order to align it into an aggregator model that will enable every single farmer to have beneficiation out of the model.

[00:25:23]The agency also sees overseas CEDA venture capital fund which currently is not operational. However, the services that were offered by CEDA venture capital are currently being offered through the main stream CEDA. This is because there is a matter before before before the adjudicator.

[00:25:54]Um where we are still talking to um a matter to be decided upon in terms of whether uh uh Venture Partners Botswana owes CEDA um amounts that relate to this particular transaction. I will not go very much uh into detail because it's a matter that is still before um um review.

[00:26:23]CEDA's four subsidiaries being the insurance brokers the let's say market and um 100% owned. We have another subsidiary by virtue of the financials called Tashub which ceda owns 87%.

[00:26:46]This was a technical ownership because our mandate or our intention is never to own more than 50% of any venture but it was meant to assist the institution to stay afloat.

[00:27:02]CEDA holds equity stakes in associate companies including Africa Wild Lodges 21% shareholding and global lubricants 25% shareholding.

[00:27:15]The agency um used to has also shares in the companies that are now under liquidation which are United Refineries at 18%.

[00:27:29]And we now also have um Nosad Capital.

[00:27:35]Nosad Capital, we are a shareholder on behalf of the Botswana government.

[00:27:42]In the last financial year and the current financial year, CEDA has embarked on one major project which is the biggest contract we currently have which is the upgrade of the system from into we currently use SAP and we are moving into SE SAP called S4 HANA that will actually help improve security protocols, ability to integrate with systems, ability to automate functionalities, data layer, data layer offers and consolidated functionality for financial and cost management for easier reporting. This will come at a cost of 25 million on software and 5 million on on hardware and >> okay >> in um as I come to the summary chair. Thank you. over the same the the agency has created has between 2021 and 2026 CEDA deployed approximately 2.37 billion in the Botswana economy and the annual domestic investment stood at approximately um 449 in 2021 347 in 2022 and 409 in 2023 and 334 2024 and 336 in 2025 and we for 493 in 2026.

[00:29:29]We are on a trajectory and are anticipating to do 950 million in the current financial year and that is the budget that has been approved by FRA and over the same period the agency has managed to create to finance 6,616 businesses and has created 11,926 jobs and has sustained a further 500 5,250 existing jobs. CIDA has also continued to prioritize inclusive financing targeted at empowerment of youth, women, and persons with disabilities with the agency having deployed over 282 million in the same period and creating 1,748 jobs. loan book and this is the pain point of the agency. CIEDA's developmental mandate continues to expose the agency to elevated and heightened credit risk.

[00:30:38]As at the period reporting period, the AY's total loan book exposure to stood at approximately 2.43 43 billion and the areas and and and and and um and and non-performing loans created were sitting at 1.6 billion uh creating an active book of about 800 million 843 million per the NPL for the agency stood at 83.8 8 mill% um I'm happy to say as at the quart quarter ending December we had successfully managed to bring it down to 66%. And we have all intents and purposes put in pies strategies to bring this down uh to below uh 30%.

[00:31:40]there. To address portfolio quality challenges, we have outsourced collections, loan restructuring and segmentation. In particular, we've looked at Peway, which had several structural challenges that put the industries in Pigway into into challenges. One in particular is that there was a statutory instrument that was meant to create um um opportunities for them and create a market um of take market particularly from government and that statutory instrument has not yet been put in place and therefore the restructure is put in place to actually address that. Chairman, I would love to conclude by stating that our stakeholders continue to be um the union, our employees, um the ministry of trade and entrepreneurship, office of the president and the councils, the municipalities are particularly our strategic partner where we use to disseminate information on the programs and what we have in for Batswana and we work with developmental financial institutions, commercial banks and regulatory oversight bodies and we have industry association and we are members of um the SADC DFRC and African association of African Developmental Financial Institution ADFI which help us to stay up to date into in terms of what is actually happening in the DFI space. Chairman I would love to conclude by saying we have all the required personnel internal audit regulator requirement and we have appointed a DPO and um we are working with AML and and and and FIA to ensure Botswana's compliance in terms of um the regulations and the audits that come uh to ensure that Botswana remains um in good standing. Thank you, Chairman.

[00:34:15]Yes sir.

[00:34:15]>> Um I think the intention our local businesses Starting capital banks.

[00:35:25]A difference. A clear difference between the what is required by the commercial banks and what is required by Of course, we have some strategic priorities.

[00:36:00]Strategic priorities have been delayed or suspended because of funding.

[00:36:12]The small and microenterprise cements. Our local level um how I think you have talked about non-performing loans at 1.6 6 billion if I to listen and you talking about a book loan near 2.3 billion 2.4 or 2.4 billion then nonperforming 1.6 billion struggling to collect What plans are in place to improve revenue collection?

[00:37:53]Loan. Is it a loan facility?

[00:37:57]C E M AF citizen entpreneur mortage assistance equity fund.

[00:38:14]The property Colle My last question is struggling in terms of creating a job opportunities.

[00:39:21]Ally, the technical and vocational graduates, they are struggling even to set up businesses. And do you have specific programs graduates? They struggling this special cohort and vocational graduates for the country because do you have special packages?

[00:40:24]so that we can benefit from this the the education that we we educated our people. I think Honorable acting CEO for the presentation.

[00:40:50]Uh audit findings highlight recurring and unresolved issues for the period under review.

[00:41:01]What interventions have the agency put in place to address the root cause?

[00:41:20]Okay. Uh the I mean why has the agency UNC failed to submit the 2023 annual report as per the company's act section 212 requirements.

[00:41:39]The accounts submitted to this committee are drafts.

[00:41:47]signature.

[00:41:52]What timelines do you submit to this committee on bringing the financials up to date?

[00:42:08]9 million which remain unresolved for a long time dating back to 2007.

[00:42:16]When does the agency expect to have cleared this receipts up to date since 2007 and what contributing factors have led to the AY's nonadherence to the set timelines for audit completion and sign off.

[00:42:48]Uh the other questionable like it organization project 11,9 figure The reason why I'm asking this question I'm asking this question in relation to The last thing that's the reason why And lastly, recently, just two days back, recently appeared on TV promoting a poetry program.

[00:45:01]Could you give clarity on how this project will benefit a general I mean the general public follows. Thank you. Honorable for your submission, right?

[00:45:49]compiance requ banks.

[00:46:12]Um application projection.

[00:46:42]You are setting this business for failure.

[00:47:04]Most of people who failed to pay back their loans truly Um, strict or stringent as you are, when it comes to um, school, scrutinizing applications.

[00:48:02]Consistency With regard to your board of directors status your board of directors What is the status regarding the appointment of board of directors?

[00:49:18]Please, do you really have a succession plan?

[00:49:23]either give board of directors, senior management those gaps.

[00:49:48]Okay.

[00:49:49]>> I would I would like to understand what plans uh do you have to address delays in review your policies and procedures across all your branches.

[00:50:11]Last but not least, why has the agency been operating without a data protection officer which is a violation of the data protection actable finisher?

[00:50:55]about 10 recommendations negative negative findings on your oversight of risk.

[00:51:05]one it um secondly legal compliance um one would want to know besides or not withstanding the lack of port corum what can you do um to implement good governance in these areas as management of ceda what is it that you can do or what are you going to do um to implement good governance Please provide timelines um for resolving the recommendations.

[00:51:48]Are there suspicions of fraud in CEDA?

[00:51:56]And if it's true, yes or no? What steps have you taken to ensure timely investigation of such?

[00:52:17]Well, hello letter.

[00:52:38]Can you confirm to this committee in this final thank you?

[00:53:10]Um auditing uninsured projects across all branches.

[00:53:45]What measures have you put in place to address control uh weaknesses such as missing documents documentation and an unassigned loan appraisals and underutilized uh SAP P system.

[00:54:11]Um, what is the management doing to improve oversight and accountability of projects?

[00:54:25]Thank you.

[00:54:31]Okay.

[00:55:10]Thank you.

[00:55:19]Thank you very much chair. Um in particular there's the first question that talks to um commercial bank and I think in line with also because you've also touched on it honorable a different type of risk appetite and our risk appetite um takes care of even a start up her company a green field or a brown field. We play in both areas and therefore because of that risk appetite um Finance Project preparatory finance.

[00:56:42]blended finance where the promoter pays 50% and we pay 50%.

[00:56:50]This Most of the projects don't come ready or bankable already.

[00:57:11]A lot of training in terms of how do you make it a bankable and a sustainable project?

[00:57:27]So, We have a huge risk appetite and the risk appetite is very clear and visible in terms of how our non-performing loans are sitting.

[00:57:48]Initially, CEDA focused more on startups than having a blend of both startups and existing growing businesses.

[00:58:01]expansion startups would come in and help in terms of that.

[00:58:18]It's either it gives finance your guarantor in the case where you fail to pay. we guarantee the bank that we will pay them and therefore that's also part of the reason why we had um a high NPL rate in terms of that ma we are looking forward to ensuring and growing Batswana businesses whether it's an idea we help you develop it we help you finance it and we help you Can we build entrepreneurs?

[00:59:08]We do build entrepreneurs. um honorable chair in the sense that we've selected and we continue to have companies that are called mentors so that they can mentor and this is at the full cost to CEDA to mentor you as an entrepreneur so that with a person who's got the technical skill and the technical ability to ensure that your business reaches the promised land that you have actually envisioned.

[00:59:49]Uh the collections strategy um renal what you call a road to recovery um strategy. The road to to recovery strategy which was implemented in the last half of the last financial year has helped CEDA improve on its collections.

[01:00:12]In fact we as at December we had collected 426 million pula and this explains why CEDA how did CEDA manage to sustain and continue to fund without very little government subvention. Um we were offered a government survention CFO of 289 million and we only got 170. In fact in the whole financial year from March to um to to to from April to March 2026 uh the we got only 70 million and the 70 million only came in April. The 77 million only came in April. So we financed this entire book using the collections that we have revamped. And what we've also done, we've put in place measures to ensure that we actually um are collect. It is not enough chair. I must say that there is also technical ability that we need to put in place.

[01:01:31]Um our collections we only see it a month in default deal because our system current the previous system we could only run end of month.

[01:01:46]Now with S SAP S4 HANA the improvements that it will help is that we will be able to go to points where we run end of day.

[01:01:59]are from end of month where we only see what transactions have happened at the end of the month. We go into end of day.

[01:02:07]So we actually see realtime transactions and are able to see this customer has actually not been able to pay. The other challenge was more also in terms of the structure of how we were set up.

[01:02:24]We had hunters and relationship managers that created a gap in understanding the customer's business. Now what we've put in place is a process that we call credto grave and grave does not mean business grave means you see it to the end of the facility that you've offered the customer.

[01:02:51]So the hunter also becomes the gather the gatherer and also maintains the relationship with the customer because he's built that intimate knowledge about the business at the beginning and at the very very first start and that's how that relationship model will actually help improve in our monitoring uh and and mentoring services that we offer the customers and in addition uh that will also improve improve on the collections that we we we we will do and on the CIF um I'm going to ask um Mr. Muribabi to assist me in terms of the CIF fund.

[01:03:37]>> Thank you C once more. Uh just to give a brief background of how CMF came into being. Uh the honorable MP did highlight the fact that it came into being as a result of the realization that uh prop Batswana properties were being taken over by commercial banks in the event that uh the properties had been offered as security and therefore when they failed to repay the commercial banks the commercial banks take them over and then they fall into uh in some instances into foreign hands. So we were tasked with the responsibility to try and rescue some of these uh uh properties take them over into our book so that uh uh they do not get sold in execution. To get to the answer of the question the question was whether the sim portfolio is performing properly. uh what actually happens is that uh in in the event that a property is not performing at the bank what would happen is that uh once the uh that particular customer is served with papers they approach CEDA and then we make a consideration of whether h what structure of a loan or equity we have to put into the the the business.

[01:05:06]So what would normally happen is that a lot of the properties that we have taken under CF have been financed on account of the fact that to a great extent the interest rates that are charged by CEDA are quite low as compared to where the that particular applicant would have been coming from.

[01:05:28]So you generally find that their installments are relatively low when they come to CEDA and hence why they are able to pay. Uh property is one of the best performing portfolios in our uh portfolio uh because uh rentals have generally been stable and have been appreciating over time. So even the portfolio under CMF in short it's currently performing uh relatively well compared to the other sectors. Thank you Mr. Chairman.

[01:06:08]Um chair chairman I was we were also asked to clarify on what we're doing around um technical and vocational graduates.

[01:06:19]um we are getting there and it's still it's still works in progress. One thing that I can say with with certinity is that in we've developed a product called youth farm model along the students of Buang Enterprises, Buang University um will actually benefit from this whether he studied poultry. We are ready to give them a head start um as part of Lema.

[01:06:59]Um we will be also getting graduates out of um uh the university and any other uh university in order to actually afford them an opportunity not to look for employment but to look for an opportunity to become an employer.

[01:07:19]We the technical people who are um what we are doing is we've gone to the mining houses and said to them um what are the key roles that we can actually work with you in particular what industries where we will be able to create take these vocational training trained students to come and start up businesses that will actually help them. Uh in particular uh Leon is still in the pot is being cooked. We are hoping before the end of July we would have put in we have already built a relationship with Marupula Koleri and we'll be building logistics. The value chain around logistics is the auto mechanics that will actually service those logistics those logistics companies and that will actually go a long way in creating employees employers that come out of the vocational training and it's very strict. It is meant for youth women and people living with disabilities. How simana h we you fall outside the sphere and therefore we are very deliberate around creating um uh employees and employers out of the youth in order to reduce uh the high unemployment rate that uh our institutions continue to turn. Um most of our students come out thinking and believing they need to find a job.

[01:09:13]We are saying you need to come up with an idea and when you come up with an idea your h project preparatory fund that will help to make your idea a bankable business. So we've put in that in place.

[01:09:37]youth farm model.

[01:09:45]We also have a program also for for the textile industry and that will also be targeting um um uh h the youth and the graduates that come out of the vocational uh training institutes and um we are looking um um to say when we have arrived H the entire country uniforms must be done by these entrepreneurs and the challenge that we know they have because our research shows that it's in the importation of the raw material that is required and therefore CEDA comes in with a model that actually helps them to get cheaper madilla at the Aoro affordable to to to to them and we do it in a trusted fashion.

[01:10:48]Have I left anything out of sorry we've built put in um um a department within our collections.

[01:11:22]We've built in a strategy erroring the road to recovery and in the road to recovery re we have teams that are dedicated to looking at these businesses and are not normal collections but it has not been accelerated in a way that we try and understand Why this customer is paying me that we have noted as don't pay because they don't want to pay.

[01:12:02]It's not necessarily that they can't afford to pay.

[01:12:06]It is because they believe it's government money and therefore I do not have to pay. And that is I think one of the greatest pain points and that is why I said chair we through you we've managed to collect 426 million and that is not out of legal litigation it is out of uh pushing the very same uh Bana and this is at December >> h the forensic audit um the forensic audit chair through you. Um, CEDA was one of the institutions that the forensic audit focused on. We have not received the report and uh we believe it is with the relevant authorities but I can confirm that it was under the forensic audit. Uh CFO, you will help me clear off the unresolved unclearared receipts that um um the audit has found and continues to show >> uh through you chair. Thank you very much CEO. Uh it is a project that we actually uh undertaking.

[01:13:21]uh we as early or as late as yesterday that was a a topic of discussion with the finance risk and audit committee. uh we were duly guided to make sure that we actually form a a a small committee to make sure that we we follow up with the banks because this would necessarily be payments that have actually been made through the banks but without the proper references.

[01:13:53]So it is something that we are actually undertaking to make sure that we assign uh specific officers to clear off this uh 9 million bullet that the honorable MP has actually been speaking to. So uh in a nutshell we it is under consideration uh sir and it will be resolved uh as soon as uh as soon as possible possibly within uh the next uh 3 months or so because we are looking at finalizing our our next audit which is for 2024 2025.

[01:14:36]Thank you sir.

[01:14:41]Thank you. Um going to the next one in um do projects actually create employment and do we really look into what impact our projects that we finance have? Chair, I would like to confirm that one of the key items that we check for projects that we fund is its impact on job creation. It is a key item in terms of that and therefore um if it does not create jobs does it help to sustain the jobs and that is what we look for in any project that we finance.

[01:15:28]H some pro even the property projects I can tell you they will put in accountant property manager who'll be looking after these um um properties but lo and behold he's a oneman show once uh the funds have been dispersed and I would like to talk to and I think we have gone over to them and said We know the reason where you are was as a resultant of the economic downturn that has happened to the damines over the period. Now we need to look and say how do we help you to remain and repay remember these are public funds and we want them repaid.

[01:16:21]How do we help you to remain a sustainable business?

[01:16:27]Hore during the peak and the best period a two-bedroom unit in was 5 6,000 pa today you will probably get it at 2 and a half thousand how do we help you to say how do we reduce your installment so that it is affordable to the reality on the ground problem um the entrepreneurs once they get there they give up and they do not communicate they just let it.

[01:17:01]But what is important is for you as an entrepreneur and I encourage that they must come and be upfront and say how can you help me and our developmental mandate requires that we help you to to remain sustainable.

[01:17:22]Um the poultry suit the poultry suit is looking after the microenterprises.

[01:17:31]We've actually not only looked at the challenges that have besieged the we are working on the polyuit to ensure that 6 weeks to 8 weeks will be a thing of the end in the future because we are assisting Batswana to build hatcheries. The one is in a good example. I say it because she has allowed me to talk about it. It will be expanded to be able to actually increase its capacity to serve um communities. We are bringing breeds that um will be aligned to h the market in Botswana in terms of its resistance and its ability to withstand the heat and within 32 days as opposed to the ones that we used to that take six weeks.

[01:18:43]Um We we we will be very surprised and that's why we are saying can actually become a commercial business and therefore we should help increase and commercialize through the poultry suit.

[01:19:14]We talk logistics, we talk abaturs because we want feed. We also talk market access access.

[01:19:24]Um and and and we can say with certainty as the only market with a three and a half million population but in fact Botswana is sitting at the very center of SAD and therefore self-sufficient in terms of poultry South Africa still imports from Brazil.

[01:19:50]Angola imports from Brazil. Why can't we closer to these countries be able to create and create an industry that will better serve these countries?

[01:20:04]So the poultry suit is meant for microenterprises, small and medium enterprises, a community of poultry farmers.

[01:20:21]So that and we reduce the cost of slaughter and we not only work with you to build the abato, we work with Bobs to certify so that can actually you can actually take it into the retail with certification meet the minimum or the best standards and in fact what we produce as Batswana will be export quality. So that's the poly suit chair. Um seems to be very strict guidelines that were revised label in 2020.

[01:21:17]They relaxed um the requirements um very much and we believe we can further um relax the requirements under the poultry suit.

[01:21:35]The assets that we finance are actually um the assets and if you just come and look for working capital, we work we will work to find mechanisms to work with you even on an unsecured but on um a session based business and therefore h the requirements have much been relaxed and we continue to relax them as we go.

[01:22:00]We are reviewing um the the guide CEDA guidelines and um we believe we will be sending them for approval um through through the board then the ministry and then we can go to market and implement them so that is to revitalize theme market because normally is the cornerstone of an ailing economy and we believe CEDA has been created to be that backbone and therefore we will exercise that mandate to ensure that we do that.

[01:22:39]Um in terms of strict application no consistent consistency uh chair I would like to say if you register your company today and it has all required documentation in terms of sea you can come to CEDA will fund you and that's why we are able to do startups. So it is not how long the company has been in the shelf, it is whether it meets the minimum requirements that have been set and put in place by the sea and the regulations.

[01:23:13]And therefore in fact sometimes because it's a shelf company it creates problems.

[01:23:33]And why is your tax compliance certificate because you've actually had this company for the last 3 years and therefore you must comply with the law.

[01:23:42]But high we actually know that it's new and li is very quick to give you a a tax clearance because it's a startup. So we are happy um to to work with startup companies.

[01:23:59]Um chair I would like to confirm that the board of directors is in place. It's a full board and um with Mr. as as as the chairman of the board of directors and we have all the necessary skills in that particular board. Um that uh started its job in March.

[01:24:23]Um appointment of the board chair is not a prerogative of management. It's of the shareholder and therefore succession plan in terms of the board.

[01:24:37]But what I can say I've noticed what uh the shareholder has done the shareholder has always ensured that there is one representative of the shareholder. In our case, we have an employee of the Ministry of Trade and Entpreneurship who sits as part of the board and has actually helped in terms of carrying forward a memories of what has happened and transpired in the past and he's still a member of the new board.

[01:25:10]Uh succession planning in terms of management, we have a succession plan put in place. Um you can rest assured that uh CEDA's policy in terms of employment says you start within and with with trying to find the right skills within the organization and then if you can't then it's only when you go outside. So we we are very much interested and we are have a succession plan in place in terms of employment.

[01:25:51]Um the delays in policies and procedures across branches chair um it is an audit finding that has reaced.

[01:26:04]uh we've put in a management control in terms of holding people accountable to ensuring that um they close the items within stipulated time. In fact, um the executive takes the accountability for the branches that are not compliant and we have put in place required um mechanisms that encourage compliance and encourage that these must be closed. And I think um the internal auditor has actually come out in her report to say even though these are evident there is traction that she's happy that she sees and I think that for me um um I want to see CEDA um closing this and we having a turnaround time on how when and how how long we must close this these these items that are opened.

[01:27:12]uh why we did not operate with without why we operated without the DPO chair. Um um it's um it's one of the things that we have corrected. It shouldn't have happened.

[01:27:34]It is illegal to operate without a DPO because it's a requirement of the law and I confirm that we have corrected that and we have a DPO in place.

[01:27:50]Uh, honorable furniture did ask um about uh BA the report um and the 10 items that were picked um under BA. Um the number one item that BA had picked up was there was no board of directors.

[01:28:16]I can confirm that the board is there.

[01:28:20]uh annual reports not being prepared.

[01:28:26]We I'm happy to say that the 2023 annual report that was not prepared has been prepared. We are now looking at the 2324 annual report that um C CFO has spoken to that it has passed the finance risk and audit committee and therefore we will have them. I can confirm and and and say uh to um the honorable house that ceda intense h by the 31st of December we must be up to date in terms of our financials. The auditors have confirmed that they will be soon be starting um they've started the 2425 financial year and as soon as that is done um and they started it uh last year November they believe they will be they'll be done by June end of June and then they will start the 25 26 which we believe should be done by the end of the calendar year 2026 and we would be very happy to be very compliant in terms of that. The financials were largely unsigned because the financials there was no board of directors to sign off the financials. In fact, the 2023 20 the 24 finan the 2022 23 financials were completed as far back as November last year and they stood there without sign off because of lack of um the relevant authorities that could sign.

[01:30:21]We have put in place and are reviewing the board charter. It has taken a very long time to review the charter and we admit to that and we can confirm that it will be um reviewed and approved uh by the shareholder in in a couple of months.

[01:30:56]The CEDA the agency being a stateowned enterprise the BA raised an issue that the board is not permitted to remove directors without shareholders approval.

[01:31:09]The CEDA being a state-owned enterprise, all the board members are appointed by the shareholder and it goes without saying that the shareholders um must agree on who must run uh its own organization such as CEDA. And therefore this finding though relevant in terms of king three and king four we find it very difficult to say you can operate as a board outside your shareholder being government. So that also has been shared with the ministry and I think it's not really peculiar uh to to to cedar the rest of the items that were picked no performance evaluation no review of finance and audit function in fact um fra has now even evolved from being a finance and audit function committee to become a finance risk and audit function so that we have actually moved a step ahead into the times in terms of ensuring that uh we reach the necessary compliance. Uh chair, I take also that uh I need to talk to the question around uh suspicions of fraud and I can confirm that there are fraudulent activities that happen in CEDA. I can't quantify them and um we work tirelessly with the DCEC uh in terms of ensuring that any fraud that we detect is reported to the right relevant uh authorities. Not only the CC uh the police, the serious crime, we work with them in terms of these type of fraudulent and suspicions of fraud that come through um the the the the institution. We do have a dedicated team that works around the clock to make sure that they investigate uh within the right turnaround times. It is led by Mr. Mha sitting right there.

[01:33:33]Um that ensure that h we close these issues as quickly as possible.

[01:33:44]Honorable finisher will we be giving them the money?

[01:33:53]I must say that h I am not able to answer it because chachma funds were coming out of government but I have seen that government has not been able to have the funds readily available to actually pay those approved facilities and therefore I think uh we cannot not say it will not happen.

[01:34:25]Neither can we say it will happen as a ceda. We are merely acting on behalf of government in terms of the product.

[01:34:40]Chair, honorable sombo asked a pertinent question that gives me sleepless nights even today around uninsured properties.

[01:34:54]Um we sit with um book of assets valued at 11 over 11 billion per and we've got less than um a billion per insured properties. Yet we have an exposure of 2.4 billion per in terms of financed money out there.

[01:35:22]We have gone to resuscitate a clause that we used to have um that we took out um for I I'm unable to understand why we took out um previously the the agency used to say if you don't insure we'll insure because at the end of the day we are insuring um by force debiting your account to ensure that the asset that is standing as collateral is finest. Um, one incident that happened or one or two incidents that happened is that when we had not forced debited the customer, the property burned down and the guy said you said you will force debit me if I don't pay and therefore it is your fault. And we sort of took in order to manage that risk, we took out that um that that clause. We have now put back that clause because we've considered insurance brokers that can actually manage the process on our behalf and will ensure that these properties and these assets are insured from time to time.

[01:36:34]Um the missing documents and unutilized subsystem I think uh CFO you also answered it yesterday. Please um can you assist in terms of that in terms of set >> Oh, it's Mr. Maria. Okay. Thank you.

[01:36:56]>> Um on the issue of the control uh controls uh where signatures and uh uh yeah actually where the L are not signed. The L is the loan h appraisal reports. Uh that is part of what uh the the cleanup that the co just spoke to where we are undertaking an a an evaluation of all uh matters or reports that relate to the past and we have done an exercise as part of the transition to the uh SAP S4 HANA to clean up our portfolio to ensure that everything that uh uh related to the previous years is signed within uh h and put on our on our files.

[01:37:51]So that is currently an ongoing exercise which we intend to close by the 12th of February, sorry the 12th of June.

[01:38:05]Thank you co chair. The last one being what is management doing in in terms of improving oversight on projects?

[01:38:14]Uh the first one I've already talked to in terms of cre um uh restructuring um uh the organization in terms of what we will do in terms of um um cred to grave uh that we are putting in place.

[01:38:32]Every officer that has a relationship responsibility will actually be in charge of his portfolio, its performance and ensuring that it meets the minimum um uh u requirements in terms of per portfolio performance. And it's something that we will not do overnight, but we believe we will actually achieve the desired results within the shortest possible time. And we've put this into the contracts of the new financial year to ensure that that happens. What we've also ensured chair is that and I I'm I'm I'm the first to admit that the oversight was not happening. Um h the the the the officers would see the project at inception. The next time they see it is when it is an NPL. But what we have done and sometimes we've done is as the executive management of CEDA we've now adopted certain branches and we have ensured that we also do visits and we try and understand if our officers understand portfolio management. We have not ended there. We've put in a program that ensures that portfolio management training happens and it's done as by a reputable organization that has experience in training institutions around portfolio management and chair I hold that we believe uh areas will go down because of the system changes that we are putting in place. As for HANA, we are putting in place uh human capital that we will upskill and retool in order to become the officers of the future where we use the cred to grave methodology of managing portfolios and holding people accountable for the portfolios that they manage. Chair, I thank you very much. I hope I have not left anything outside of the questions asked.

[01:40:45]>> Supplementary.

[01:40:48]Supplementary.

[01:40:59]Hello.

[01:41:01]Hello.

[01:41:28]merchandise.

[01:41:31]Merchandise of percentage.

[01:41:48]people living with disability.

[01:42:05]Advertising market honorable chair, this is will be my last question. Yes.

[01:42:34]>> Um honorable chair and CEO CEO CEDA is funded by tax revenue from all citizens regardless of political affiliation.

[01:42:51]But the hol even the the culture that has been now came to be associated with ceda it has turned itself to be a recruitment arm for the ruling party and this it has become a culture everybody now to remain a true and even even in perceptions.

[01:43:38]Hi is a a national empowerment economic empowerment agency not a political a recruitment organ of any political party.

[01:44:02]and negative on your shoulder.

[01:44:19]Part foreign.

[01:44:50]Yeah. Yeah.

[01:44:55]associated history but that is the culture and the norm that has been established.

[01:45:28]It is a question in order.

[01:45:42]I also said it's a perception and how are they how are they ensuring a perception is a c Honorable chair, honorable chair, now you are becoming a gatekeeper which would be dangerous for you.

[01:46:17]>> Yes, >> you are becoming a gatekeeper which would be dangerous for you.

[01:46:21]Remain a chair.

[01:46:23]>> Remain a chair. Be neutral.

[01:46:35]Mamachech.

[01:47:04]joint venture between.

[01:47:11]What are the requirements a joint venture with CEDA? Um understanding 50% Please.

[01:48:09]Thank you.

[01:48:22]So, we're cut off.

[01:48:49]Can you see for you got into office.

[01:50:08]Thank you.

[01:50:17]Thank you.

[01:50:26]the former CEO. I understand.

[01:50:40]Secondly, on full pay.

[01:51:13]Honorable How you the previous Thank you.

[01:52:06]>> Thank you. Thank you, chair. Um I think I think um honorable finisher let me start about uh the suspended CEO. I think it's beyond me. Um it's it's a shareholder decision um and uh and or board decision and I um I'm constrained in order to understand or comment on it.

[01:52:40]Um thank you.

[01:52:44]Um and um the decisions of the shareholder I must say are the decisions of the owner of the organization and are not necessarily the decisions of the management. The management implements what the dire board of directors and the shareholder wants to put in place. Um and um I'm not an attorney at law. Um I think the atonies will explain further that uh what benefits go with the suspended CEO in terms of the law.

[01:53:15]Remember we must always operate within the confines of the law and CEDA will always adhere uh to the confines of the law with your permission on um the suspended CEO and uh any suspension that may happen now and in the future.

[01:53:38]Um, there was a question about Chama being a political product. I think Chachma was put in place before my time and I'm I'm I'm not um privy to understand it as um a political I know it was a product that was meant for Batswana but I also reviewed it and I saw that it was not creating sustainable businesses and um I was happy that uh the president did say let this become a grant.

[01:54:15]because this basically was just going to balloon the NPL book of of CEDA because most of and to to follow up those type of loans 3,000 2,000 5,000 pa will cost us more than than than to um to to to to collect.

[01:54:42]So I I I I I'm I'm I'm I'm saying um I'm happy that Chama came to an end because it was going to be a nightmare for anybody who take the seat that I am at.

[01:54:57]Um um you asked honorable Arun around underfunding.

[01:55:09]I am happy I'm I'm sad to admit that yes there are projects that were underfunded and they are badly performing and the customers have come up and said those c some customers sit back and say ah ga but those that are passionate about their business have come up and said you've underfunded me I'm going into trouble and we are looking on how to actually help resuscitate and build those businesses in particular. A particular uh part of the country is Cipia Piguay area. Um we are looking to assist them to even become um uh businesses or manufacturers particularly in manufacturing that can actually be of export so that we don't look at the business from a government uh h supplier point of view. But I I I concur h chair that there were uh instances where CEDA has underfunded and the businesses went into into trouble.

[01:56:21]Uh um the other one was asking if CEDA is a recruitment arm of the ruling party.

[01:56:37]I emphatically say no chair. CDA is an institution for Batswana and any Motswana has every single right to access the funding from the institution.

[01:56:54]Any product is available to any moana and we are happy to fund such. There are perceptions you are right. Um and we continue to show our and we will not even ask you whether you are um um uh BDP, BCP, BNF, UDC when you come and apply for a facility. We just want to see your and we will support and grow your business as long as it's a bankable project.

[01:57:34]Um thank you chair. Sorry.

[01:57:39]>> Oh, James. Um, the requirements for um >> yes, the guidelines do provide for a joint venture. Uh they may be I'm going to take them deep.

[01:57:55]There are two ways. There are instances where you can go into a joint venture with a nonitizen.

[01:58:02]The requirement of the guidelines simply state that uh the non-citizen should be able to bring to the table uh a commensurate amount of uh uh capital that uh the citizen partner is bringing to the table. But in place of money, they could also be bringing with them technology or any other skills that may not be necessarily be available as well as an opportunity in terms of market. Now the second aspect partnership might occur in an instance where CEDA invests in a business with a an applicant where the applicant requests that CEDA should come and join them in the business as a partner and therefore become an equity holder as well. In that in that instance uh an evaluation of the business would be done to determine how much uh the value of the business is and then once that has been determined CDA will then put the equivalent of that money on the table to start up the business. If there are any shortfalls emanating from uh the fact that the development of that business requires additional money, CEDA would either then extend further funding in the form of loans, guarantees or whatever might be required in that instance. Uh it would take me the whole day to go through what is required. But we do have a a full checklist of what needs to be done and what needs to be submitted in order for a business uh that goes into a joint venture or partnership has to submit in order for it to go the the whole way >> through your chair. Where can Mana find that checklist? Is it on your website or one has to get to offices? We have it both at our offices and uh on our website.

[02:00:08]Uh because of the nature of the business, they are normally there is normally some complicate there. They're not easy businesses to understand and I would advise that the best place to visit would be our offices so that a a discussion uh detailed ensues so that there's a clear understanding on what the the both parties need to do.

[02:00:47]Yes chair.

[02:00:50]In terms of the funded businesses, um youth we have managed to fund to date 282 million by value, 1,829 by number of businesses funded.

[02:01:07]For women, we have funded up to 632 million bulah and um 6,396 women have benefited and women um have benefited in either as an individual business or in clusters.

[02:01:30]And you you you can tell from um the clusters that they have done. People living with disabilities, we've funded 12 million and 59 businesses have been funded in that in that sector.

[02:01:47]Um the there was an issue around the branding that we have. Um it's it's it's I I must state that during let me give an example of um when we were doing um the um um the the coco um uh I think we only pro procured less than 50 jackets. The rest is existing employees who've always had those jackets over period of time.

[02:02:26]But branding is a critical component of what makes any organization visible and it carries a lot of mileage in terms of money. you are a free advertising post and therefore it's very important to always brand the teams because it's it's it's it's actually cheaper than uh if I would air that advert in a newspaper every week or air it um consistently.

[02:02:58]I'm sure the entire winter period h people who will be coming to work who've always had those jackets and those that have just I'm one of the beneficiaries of a new jacket because I'm as new as as they are. I was not there the last win two winters because they were there two winters ago. So it is it is it is um one part of the important part of doing branding and marketing of CEDA. Uh CFO will you assist me in terms of our budgetary in terms of the budget on branding is 4.8 million. Uh obviously it covers the wide spectrum of branding across the organization. There was also a question on consultancy. We are looking at 20 million ing merchandise.

[02:04:04]We try as much as we can to buy from our existing customers. Um and it is when we evaluate when it's a large order it's it's part of the evaluation exercise to say if you are a CADA client you earn more mileage in terms of that.

[02:04:24]>> There was a question on uh consultancy and its budget uh the budget we're looking at 20 million. Uh let me underscore the fact that uh most of the items that are actually under consultancy are technical uh uh consultancies really uh you've got as was being uh indicated by the CEO implementation of uh the sub forana uh consultancies around those kind of things which are very intricate and very technical in their nature. So there is a very small list of people who can actually take such a technical uh consultancies. Thank you chair chair. I must I must add to to to that in terms of the other consultancy research. Um um it's we do inhouse first and then if we don't have the technical skills we then go outside. We even partner with universities um as part of what we can do because and we understand that one of the challenges is that uh the professors say they do not have fund to take on these um um innovation and we are working currently on building anou with um B and Bang in terms of saying what innovative ideas can we partner with you that we can realize as as as businesses and they do the research if um they are successful would actually um be given the funds to fund those type of researches Please.

[02:06:46]forchech.

[02:07:38]mineral development development company.

[02:07:45]Thank you very much.