Uproar over ODC P100m tender
The Okavango Diamond Company (ODC) is being accused of blatantly disregarding Botswana’s Citizen Economic Empowerment (CEE) policy in its recent tender for the Design, Development, and Implementation of the Okavango Diamond Company (Pty) Ltd ERP System.
The tender is estimated to be worth over P100 million. Industry insiders and citizen-owned companies are crying foul, alleging that ODC’s tender process is riddled with corruption, favouritism, and a blatant disregard for legal procurement requirements.
According to multiple sources, the ERP System tender lacked a crucial mandate which requires foreign companies to subcontract a portion of the work to citizen-owned businesses. This omission is not just a technical oversight –but a direct violation of the Public Procurement Act, which explicitly requires such measures to ensure the participation of local businesses in major projects.
It is alleged that ODC’s failure to uphold these regulations may be more than just negligence. There is growing suspicion that the tender is being manipulated to favour certain foreign companies with pre-existing ties to the decision-makers at ODC.
“This isn’t just an issue of oversight – it reeks of corrupt dealings,” a whistle-blower with close ties to the process, said, choosing however, to remain anonymous.
“It’s clear that some powerful individuals are bending the rules to line their pockets and ensure their friends are awarded this lucrative contract,” the whistle-blower said.
The implications of ODC’s actions are far-reaching, extending beyond this tender alone. Botswana’s Public Procurement Act was designed to uplift citizen-owned businesses, creating opportunities and fostering economic empowerment for Batswana. By skirting these requirements, ODC undermines the very foundation of this policy and betrays the trust of the nation.
An executive from a citizen-owned company said it was shocking that a state-owned entity like ODC would blatantly disregard a law designed to benefit the people of this country.
“This is not just about losing out on a business opportunity it is about being systematically excluded from economic advancement in our own country.
“If ODC remains silent or dismisses these concerns, it will set a dangerous precedent for future tenders, effectively signalling that Botswana’s procurement laws are mere suggestions rather than enforceable mandates,” a citizen contractor said.
“Given Botswana’s vision of empowering citizen-owned businesses, ODC’s actions raise serious questions about whether the company genuinely supports this vision or if it prioritises foreign interests and cronyism over national development.
“The public deserves answers, and ODC must be held accountable for its failure to uphold the principles of fair and equitable business practices.
“If these allegations of corruption and collusion prove true, it will not only be a slap in the face of citizen-owned companies but also an affront to the very spirit of Botswana’s economic empowerment policies,” the citizen contractor continued.
The actions of ODC stand in stark contrast to global initiatives championed by institutions like the World Bank, which advocate for transparent and fair procurement processes as a means to combat corruption and foster sustainable development. The World Bank’s Procurement Framework emphasises the importance of accountability, fairness, and integrity in procurement, recognising that these principles are essential for ensuring that public funds are used efficiently and equitably.
By disregarding these values, observers argue that ODC not only jeopardises its credibility but also undermines Botswana’s commitment to international standards of transparency and good governance.
Botswana has long prided itself on maintaining a relatively high ranking in Transparency International Corruption Perceptions Index (CPI), which measures perceived levels of public sector corruption worldwide. However, cases like ODC’s questionable tender practices threaten to tarnish the country’s reputation as a beacon of transparency and accountability in Africa.
“Given Botswana’s aspirations to maintain a corruption-free public sector and attract global investments, ODC’s actions serve as a wake-up call for the urgent need to enforce stricter compliance with procurement laws.
“If ODC and similar entities are not held accountable, the erosion of transparent practices could set Botswana back in its quest for economic empowerment and sustainable growth.
“It’s imperative for the government, civil society, and international partners to demand greater transparency and integrity in the country’s procurement systems to safeguard Botswana's reputation and ensure that citizen-owned companies receive the opportunities they rightfully deserve,” another source added.
It is argued that transparency within government and state-owned enterprises like ODC plays a crucial role in attracting Foreign Direct Investment (FDI) to Botswana. Botswana has historically been seen as a stable and investment-friendly destination. For Botswana to remain competitive in the global market and continue attracting substantial FDI, senior officials must lead by example in enforcing transparency and accountability, a source within ODC said.
The source added that this commitment will not only reassure foreign investors but also help foster a thriving domestic business environment, where citizen-owned companies can grow alongside international counterparts, ultimately contributing to Botswana’s economic empowerment and sustainable development goals.
Another citizen contractor also commented on the need for lifestyle audits saying there is a pressing need for a comprehensive lifestyle audit of the senior managers, particularly those involved in procurement activities.
“Such audits are essential to ensure that these officials are not using their positions to launder money or convert illicit gains into assets like farms or properties. This step would serve as a preventive measure against corruption, making it significantly harder for corrupt practices to go undetected.
“The lifestyle audit would involve scrutinising the financial records and asset declarations of these individuals to identify any discrepancies between their official income and their actual standard of living. For instance, if a manager’s lifestyle appears excessively lavish compared to their salary, it could raise red flags requiring further investigation”.
Approached for comment, Dennis Tlaang, Specialist Public Relations and Communications at ODC advised that the tender is currently under evaluation, and as such, they are unable to provide further details until the evaluation process is completed.
“Following the award, the tender will enter a formal cooling-off period during which any concerns or complaints may be submitted and addressed in accordance with the prescribed procedures,” Tlaang said. He explained that regarding the empowerment of citizen-owned businesses, ODC remains committed to supporting local enterprises. Where applicable, he said, ODC reserves certain tenders exclusively for citizen-owned companies.
Tlaang indicated that information on these tenders, as well as awarded contracts, can be accessed through the tender section of ODC’s website. He pointed out that in the case of this specific tender, open international bidding was employed as one of the legally sanctioned procurement methods. “ODC continues to prioritise the empowerment of citizen-owned businesses and is actively exploring additional avenues to support local enterprises beyond the scope of public procurement.
“Our commitment to Botswana's economic development remains central to our operations, and we are always seeking ways to contribute positively to the growth of citizen-owned businesses,” Tlaang said in response to a questionnaire sent to him.