BURS in P15m suit over explosive audit report

BURS is locked in a legal battle with a South African audit firm over unpaid invoices and reputational fallout, Botswana Guardian has learnt.BURS had engaged a South African firm - Alchenmy Africa, for Information Technology Audit Services.On 16 August 2022, BURS issued an Invitation to Tender for the provision of External Information Technology Audit Services. This tender was never awarded.On 28 December 2022, BURS reissued the same tender for the provision of External Information Technology Audit Services. This tender was never awarded.On 8 August 2023, BURS again reissued the same tender for the provision of External Information Technology Audit Services.This tender was awarded to the Alchenmy and Hardpro Joint Venture on 10 October 2023. The value of the award was P16, 288, 228, 80, and BURS set the project duration at four months.BURS has since paid part of the award amount and was left with an outstanding balance of P9 million, which is the cause of the dispute.Botswana Guardian has seen various communications between the firm and other players at the Finance Ministry, Auditor General, BURS, and, by extension, the Office of the President.In one document labelled “the Intervention Request directed to the VP (BURS Operational Close-out Course Correction Appeal, 02 December 2025),” on 10 November 2025, the Vice President, Ndaba Gaolathe, phoned Alchemmy Africa (Auditors) to apologise for the delay in resolving the BURS Political Escalation and the settlement of the outstanding invoice.The VP further advised that he had spoken with the Commissioner General of BURS and directed her to settle the outstanding invoice amicably.The CG was relieved of her post shortly after, and an interim CG was appointed. The VP also instructed the Auditors to engage the Permanent Secretary of the Ministry of Finance regarding clarification of the BURS Audit Findings and Recommendations.According to the document, the Auditors only managed to reach these officials at the end of November, whereupon: The PS stated that the Ministry of Finance was not aware of the Political Escalation or of the contracting of services to BURS.The facts, however, are that the PS was the first recipient of the Political Escalation Report and the first person the Auditors engaged to facilitate an introduction to the VP on 13 June.Senior members of the Ministry also attended the June engagement between the VP and the Auditors, and the newly appointed CG at BURS confirmed the escalation and advised that he had to consult BURS staff involved in the Audit to familiarise himself with the matter before reverting to the Ministry on the settlement of the outstanding invoice."We cautioned him that some of those named in the Political Escalation may be part of that process and could attempt further diversion of the operational resolution."Communications further indicate that on the afternoon of 24 December 2025, BURS issued a notice to the Auditors stating that they deemed the matter closed and would not honour any outstanding invoices.Botswana Guardian has established that following these developments, the auditors made a decision to sue BURS. Through its lawyers in South Africa, they have engaged a reputable law firm in Botswana to facilitate the filing of the application.The Auditors feel they have no option but to pursue legal action to recover their substantial commercial investment in the BURS Project and to demand financial reciprocity for damages incurred.To this end, the auditors, on the advice of their South African legal advisor, took the matter to court. According to the claim, the Auditors’ financial losses are P9 million being outstanding invoice; P6 million - the Auditors were forced, through threats, misdirection, and delays, to extend the four-month contracted audit project to sixteen months, carrying the cost of this additional effort without any financial reciprocity from BURS; Interest and legal costs; and the Auditors also suffered significant reputational damage due to their involvement in this project and are currently securing specialist advice to quantify this loss.The company has argued that the interim CG took five weeks to familiarise himself with the matter and disregarded the Auditors’ caution regarding further influence and misdirection by compromised Audit participants listed in the Political Escalation.Issuing the Notice on 24 December, one day before Christmas, conveyed a deliberate message of contempt and disdain, consistent with the treatment the Auditors endured during the Audit Project, the company said in its argument.The Acting CG has been accused of completely ignoring the VP’s directive for an amicable operational settlement of the outstanding commercial obligations with the Auditors.Documents obtained by this publication show that the Political Escalation directed to the VP was well received and acknowledged by him, but all assurances and commitments given to the Auditors came to nothing.“Our role as whistleblowers exposing and reporting Gross Negligence and Administrative Incompetence at BURS, and exposure of taxpayer data to internal fraud has been ignored or diverted.The Auditors also suffered significant reputational damage due to their involvement in this project and are currently securing specialist advice to quantify this loss, reads one of the letters to the Finance ministry by the auditors.Insiders at the tax agency have revealed that the auditors’ issue, as outlined in detail in the Political Escalation of 23 May 2025, essentially boils down to five individuals at BURS who were assigned to the Project Office and Steering Committee.These five individuals are said to have consistently and deliberately misdirected, delayed, and, without sanction, caused the demise of the Audit Project.There are fears that if the matter is not resolved the outcome could be a gross dereliction of political governance and oversight in reforming a failing and crucial parastatal of Botswana, a clear signal that future International Independent Auditors appointed by the Government of Botswana or its parastatals will not be able to conduct truly independent audits, nor will they be assured of political oversight protection if their findings and recommendations face the same interference experienced by this Auditor at BURS.Another letter written to the Auditor General has recommended that lifestyle audits be conducted on the group of five at BURS.In a telephone interview this week, Alchemmy Africa Director and Lead Auditor Lans Malherbe confirmed their intention to sue. Malherbe expressed frustrations over the entire issue and the failure to resolve it.However, he was constrained to discuss the matter further as their lawyers are working on it in liaison with a local firm in Botswana.

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BURS in P15m suit over explosive audit report