Privatise BMC – Tombale

SHARE   |   Monday, 19 September 2016   |   By Phillimon Mmeso
Privatise BMC – Tombale

The financial problems currently besieging state-owned Botswana Meat Commission (BMC) can be as easy as privatising it, declares Chief Executive Officer (CEO), Dr Akolang Tombale. “Privatise BMC and let it compete,” said Dr Tombale when appearing before the Parliamentary statutory body. Tombale said part of the problems leading to the company’s poor performance is that they are operating on social welfare basis, resulting with loss making operations in Francistown and Maun abattoirs.

Francistown plant though the newest plant of the three has not performed well, failing to even reach least 85% of its capacity utilisation since its commissioning. It has long been de-listed from the European Union market and was only re-listed in August 2016. Though re-listed again Francistown, according to the BMC report, has lost Zone 4 (a) which is Boteti area. Though Lobatse plant is doing well it is very old and possibly dilapidated and requires modernisation and alignment to the greater objectives of BMC strategic plan, said Tombale. “As part of restructuring and modernising BMC we will need P2 billion and have not asked government for assistance for now,” said Tombale after being questioned if they have submitted their proposal to government.

According to its 2014 Audited Financial Report, BMC has a total deficit for the year of P9 million (2013; a surplus of P26 million and P28 million respectively). The total liabilities of the group and commission exceed the total assets by P109 and P248 million respectively. Chairperson of the Parliamentary statutory Body, Samson Moyo Guma labelled BMC as bankrupt.