…as gov’t announces rigorous cost saving measures
President Duma Boko has announced plans to review Temo Letlotlo, Thuo Letlotlo and Maja-a-ikgorosa agricultural programmes to ensure value for money.
Introduced during former President Mokgweetsi Masisi’s tenure, the programmes were launched last year to boost agricultural productivity and enhance rural livelihoods. The Masisi administration reportedly allocated over P500 million to these initiatives between October 2023 and now.
The reviewing of these programmes is one of the new administration’s cost cutting measures as announced by Boko when delivering the State of the Nation Address (SONA) on Tuesday.
Boko said it is their considered view that the country loses billions of Pula to wastage, due to poor management or negligence, let alone subtle and clear-cut corruption. He indicated that the Ministry of Finance will at the appropriate time announce rigorous cost saving measures including the reviewing of these agricultural programmes.
Boko added that by implementing wastewater treatment plants, water substitution, and recycling, they can significantly reduce water bills to government institutions. He highlighted that water bills for senior schools alone exceed P300 million per annum.
As for procurement cost, Boko revealed that his government will ensure fair pricing for basic goods and services noting that no mark up on procured goods will exorbitantly exceed the price of the goods from the supplier. “Establishing standard pricing for essential items will control procurement costs.”
Boko revealed that they will also assess the cost of government IT systems, including implementation, maintenance, and licensing.” We will explore opportunities to empower local youth to develop and manage these systems, reducing reliance on expensive external providers. Implementing a pay-per transaction model for system development, where service providers receive payment based on usage, such as with the driver’s licensing system.”
Boko said this will incentivize system developers to maintain high service standards and ensure the system’s sustainability until fully paid off
Further, the president indicated that the Development Manager Model (DMM) will be reviewed to ensure fiscal sustainability noting that its application may have resulted in inflated projects construction costs.
As for rented properties noted that currently government is not paying market value for rented buildings noting that a review of rental agreements and renegotiations will yield substantial savings.
Boko added that his government will also minimize wastage within State Owned Enterprises, strengthening Public Private Partnerships (PPPs) to attract external investment including equity-based investment.
The new government will also Implement grid-connected solar systems for institutions to produce their own power with the president adding that they will also leverage Impact Funds, to finance solar initiatives, reducing the need for direct government funding.
He added that they will also develop low-cost workshops for artisans to provide services to government institutions, creating jobs and supporting local economies.
As for private sector involvement, Boko said they will, “Encourage private sector participation in infrastructure projects, such as roads, where investments generate revenue. The SADC House model is a successful example of such partnerships.
In conclusion the president said they will conduct a thorough review of existing budgets to identify essential expenditures. Assess each project to determine which should be government-funded and which can be self-financing.
