Corruption and Mismanagement in Botswana: A Best ... - See also

CORRUPTION AND MISMANAGEMENT 509Congress (ANC), and subsequently the Premier of that Province, haspublicly stated that his organisation had investigated potential threatsto South Africa and, apart from the Botswana airbase, had found thatthese were non-existent. He believed that the United States must beinvolved in the projected utilization of so large a facility, though he alsonoted that Washington had denied such claims. Sexwale reportedlysaid that the base had affected the ANC's strategic thinking on militarythreats in the region.26 The rationality and prudence which oncecharacterized the choice and implementation of policy in Botswanaseem absent from Project Eagle.THE NATIONAL DEVELOPMENT BANK (NDB)The NDB was established 'for the purpose of promoting theeconomic development of Botswana', and to this end was meant 'toprovide financial assistance', and to conduct its business 'in the mannerbest suited for the efficient and economical utilization of its funds'.27 Itwas, in the words of the Minister of Finance in i99i, 'an essentialvehicle for channelling loan financing from Government and externalsources to the agricultural sector and other development activities ofhigh priority'. It had long been, Mogae emphasized, 'a pillar of ourfinancial system'. 28By late I 993, however, its near bankruptcy was obvious. The NDB'saccumulated losses had by March totalled P4 I I million. Outstandingloans amounted to P9I-3 million, of which over one-third were inarrears, most for more than six months. The Government's equityposition was a negative PI 56 million. In addition, the Small BorrowersFund, administered by the NDB for the Government, had at the sametime accumulated losses of P32-4 million; 70 per cent of its accountswere in arrears, almost all in excess of six months.29 By November, theNDB was losing P450,ooo a month. At a press conference, Mogae saidthat the NDB was owed more than P6o million in arrears, and that theessential problem entangling the Bank was the near refusal of borrowerseven to service their loans.30The NDB's collapse was neither sudden nor accidental. The Ministerof Finance in his i99i budget speech had noted the Bank's 'overly26 Ibid.27 As quoted by Tshepo Motswagole, 'Why Should We Reveal All on NDB?', in Mmegi, i iMarch I994.28 'Budget Speech, I 99 I ' by Festus Mogae, Gaborone, i 8 February I 99 I, p. I I.29'Budget Speech, I994', pp. 9-IO.30 Radio Botswana press conference, reported in the Midweek Sun, i9 January I994.