Chinese contractors won P3.3 billion worth of tenders-Matambo

Chinese contractors have won tenders worth billions of Pula from the government of Botswana over the past five years, parliament heard on Tuesday. According to the Minister of Finance and Development Planning Kenneth Matambo since 2010 payments amounting to P3.3 billion has been made to Chinese companies by different government ministries.

Matambo said the tenders were given to the companies following approval by the Public Procurement and Asset Disposal Board (PPADB). He pointed do out that despite that government has no policy or any mechanism used to collect data on domestic investment undertaken by specific companies using income generated locally."Government does always however encourage foreign investors to re-invest their profits locally," he said, adding that despite that the decision to re-invest remains the decision of the company taking into account its business needs.

The minister told parliament that the said companies have however paid tax and after that they were free to pay dividends to their shareholders. "Botswana abolished foreign exchange controls as means of attracting Foreign Direct Investment to Botswana," Matambo explained in his response to a question from Member of Parliament for Selibe Phikwe West Dithapelo Keorapetse. The MP had wanted to find out how much money was paid to Chinese companies in the last five years and how much of this amount has been invested in the domestic economy of the country.