BCL liquidator smiles all the way to bank
The government is set to allocate more than P500 million as the purchasing cost for BCL houses to the liquidator, according to Vice President and Leader of the House, Slumber Tsogwane.
Tsogwane disclosed to Parliament that a total of 1 576 properties are available for government acquisition, remaining after sales to individuals and private entities. The acquisition cost for these properties amount to about P515 million.
The properties, valued at a total of P1, 330, 380, come with an additional requirement for the government to reimburse the Liquidator for land survey costs, totalling P541,500.
In response to a question from Member of Parliament for Gaborone Central, Tumisang Mangwegape-Healey, Tsogwane provided insights into the government's decision to purchase BCL houses.
He explained the total number of properties to be acquired, projected costs, property valuations, the rationale behind the acquisition, and why the government, as BCL's largest creditor, is opting to buy the houses rather than offsetting the purchase price against the owed amount.
Tsogwane clarified that former BCL employees, who had expressed interest in acquiring housing, were unable to secure funding. Due to tight timelines in the liquidation process, the government decided to intervene and remove housing properties from the liquidation, aiming to prevent potential buyers in the open market.
This move also aimed to protect former BCL employees from missing the opportunity to acquire the properties and safeguard Selebi Phikwe township from decay due to unoccupied houses.
Once the government acquires these properties, former BCL employees and other citizens will have an opportunity to purchase them. The decision reflects a responsible and accountable government that cares for its citizens, Tsogwane said.
He emphasised that the liquidation process is a judicial one, and while the government cannot dictate procedures to the Liquidator, it intends to offset the acquisition costs against funds advanced to the Liquidator, pending agreement.
Tsogwane recounted that when BCL Group of Companies entered provisional liquidation in October 2016, the Liquidator gained control of the company's assets, including housing properties in Selebi-Phikwe. To support former employees and prevent vandalism, the government entered an arrangement with the Liquidator, paying rentals for the BCL houses from February 2019 to August 2023, totalling about P109.6 million.
Starting May 2023, the Liquidator initiated judicial processes and extended offers to former BCL employees, with the offers expiring between August and November 2023. As of now, the Liquidator has received three acceptance letters from former employees, none accompanied by funding proof.
In September 2023, the government expressed interest in acquiring all unsold housing properties. Private entities, government ministries, and departments have also shown interest, with 12 acceptances from private entities and an expression of interest from the BCL Hospital purchasers for five housing properties. The Liquidator is determined to proceed with the sales concerning the accepted offers.