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Two companies plying their trade within the supply of medicines and consumables in the health sector are accused of using citizens, mostly their workers as fronts, in their selfish bid to access lucrative tenders reserved for citizens.
Botswana Guardian has established that one company, owned Dr N, of Zimbabwean origin, is alleged to have facilitated for one citizen (names known), who is still working within some companies owned by Dr N himself, to be included as a sole shareholder in one company. The said company (names withheld), which now has listed Dr N as a former shareholder, has since managed to get contract worth millions of Pula, mostly from the Central Medical Stores (CMS), an enterprise under the Ministry of Health.
The said citizen, is also a former director of a company owned by Dr N. The company, in which he was a director (P.V) is one of the largest suppliers of pharmaceutical products to government and the private sector. Questions sent to both Dr N and the said national, regarding these allegations, were not responded to by press time.
Botswana Guardian had wanted to establish why the said citizen, appears as a sole shareholder for a company linked to Dr. N, while still working for companies owned by the latter. This publication has also wanted to understand the relationship between the citizen and Dr N, who spend most of his time in South Africa where he owns health group (Name withheld), also in the medicines and supplies sector .This week, Dr N was said to be in Botswana on a working visit.
Another company, as reported last week, B.E, which is owned by another big shot in the sector, an Indian national, is alleged to have used an immediate former manager at the company to register a company (names withheld) to win P37 million worth of tenders at the Central Medical Stores. “The company has a manufacturing facility which was divided into half and the newly registered company, given the facility to pass central Medical Stores inspections,” added another source. The the fronting manager confirmed she used to work for B.E as a manager but quit in 2022.
CIPA records show the said company was formed in 2022. She also confirmed that the start-up company uses a building owned by B. E. “But I am renting there as I am no longer working with them,” she said. The said citizens has denied she was used as a front for the company. “Who told you those things,” she asked this reporter. Botswana Guardian is in possession of purchase orders for at least two supply jobs from CMS to the fronting company. Meanwhile, the owner of B.E, on the other hand, has also confirmed the manager used to work for his company. He has however denied B. E is linked with the company in question.
Botswana Guardian has established that foreign companies supplying the Ministry of Health with medicines ad consumables have resorted to using citizens as fronts since the enactment of the Citizen Inclusion Act and the Public Procurement Act. “This is most common with companies supplying the Ministry of Health with Medicines and consumables,” said a source. A citizen entrepreneur, has in the past accused the ministry of not acting. “With fronting on the rampant Ministry of Health seems reluctant to investigate and award targeted citizens and are unable to deal with fronting. The Ministry of Trade, on the other hand, seems helpless as it has failed to investigate and curb fronting. With the Citizen Inclusion law in place many foreign companies are planning to put Batswana as fronts while resources of the country still leave the country to Bank accounts in Mauritius and other countries,” the source claimed.
Meanwhile, questions sent to Ministry of Health on the said allegations and how they are addressing issues of fronting, were not answered by Wednesday night. The questions were sent to them on the 5th of September 2024. Allegations of fronting by foreign companies comes amid a recently issued mouthwatering tender for the supply of Anti-Retroviral Therapy (ARV) drugs for government, which prioritises citizens. The tender closes next week.
*Names are withheld as investigations are continuing
Botswana Guardian has established that one company, owned Dr N, of Zimbabwean origin, is alleged to have facilitated for one citizen (names known), who is still working within some companies owned by Dr N himself, to be included as a sole shareholder in one company. The said company (names withheld), which now has listed Dr N as a former shareholder, has since managed to get contract worth millions of Pula, mostly from the Central Medical Stores (CMS), an enterprise under the Ministry of Health.
The said citizen, is also a former director of a company owned by Dr N. The company, in which he was a director (P.V) is one of the largest suppliers of pharmaceutical products to government and the private sector. Questions sent to both Dr N and the said national, regarding these allegations, were not responded to by press time.
Botswana Guardian had wanted to establish why the said citizen, appears as a sole shareholder for a company linked to Dr. N, while still working for companies owned by the latter. This publication has also wanted to understand the relationship between the citizen and Dr N, who spend most of his time in South Africa where he owns health group (Name withheld), also in the medicines and supplies sector .This week, Dr N was said to be in Botswana on a working visit.
Another company, as reported last week, B.E, which is owned by another big shot in the sector, an Indian national, is alleged to have used an immediate former manager at the company to register a company (names withheld) to win P37 million worth of tenders at the Central Medical Stores. “The company has a manufacturing facility which was divided into half and the newly registered company, given the facility to pass central Medical Stores inspections,” added another source. The the fronting manager confirmed she used to work for B.E as a manager but quit in 2022.
CIPA records show the said company was formed in 2022. She also confirmed that the start-up company uses a building owned by B. E. “But I am renting there as I am no longer working with them,” she said. The said citizens has denied she was used as a front for the company. “Who told you those things,” she asked this reporter. Botswana Guardian is in possession of purchase orders for at least two supply jobs from CMS to the fronting company. Meanwhile, the owner of B.E, on the other hand, has also confirmed the manager used to work for his company. He has however denied B. E is linked with the company in question.
Botswana Guardian has established that foreign companies supplying the Ministry of Health with medicines ad consumables have resorted to using citizens as fronts since the enactment of the Citizen Inclusion Act and the Public Procurement Act. “This is most common with companies supplying the Ministry of Health with Medicines and consumables,” said a source. A citizen entrepreneur, has in the past accused the ministry of not acting. “With fronting on the rampant Ministry of Health seems reluctant to investigate and award targeted citizens and are unable to deal with fronting. The Ministry of Trade, on the other hand, seems helpless as it has failed to investigate and curb fronting. With the Citizen Inclusion law in place many foreign companies are planning to put Batswana as fronts while resources of the country still leave the country to Bank accounts in Mauritius and other countries,” the source claimed.
Meanwhile, questions sent to Ministry of Health on the said allegations and how they are addressing issues of fronting, were not answered by Wednesday night. The questions were sent to them on the 5th of September 2024. Allegations of fronting by foreign companies comes amid a recently issued mouthwatering tender for the supply of Anti-Retroviral Therapy (ARV) drugs for government, which prioritises citizens. The tender closes next week.
*Names are withheld as investigations are continuing
