Gov’t defends placement of sovereign wealth fund under presidency

Mophuting-Dikoloti was responding to a question from Leader of Opposition (LoO) and Member of Parliament (MP) for Maun North, Dumelang Saleshando in Parliament Saleshando had enquired why the fund is under the ministry of State President rather that of finance and how were the board members selected among others. In response, the minister said the wealth fund is not only a cash pool but also an asset management entity. “The fund is not only a cash pool but also an asset management entity.

If it was a cash only entity, then yes it would be at the finance ministry. But the diverse nature of its cash and non cash portfolio means it will require the convening power of the presidency,” she said. She emphasized that the fund’s placement enables stronger inter ministerial coordination adding that sometimes it may need inter ministerial collaboration as the president may assign.

On the issue of appointments, she said the was appointed in line with international standards. “The appointment adhered to the principle of merit, transparency and professional competency as required by the Santiago principles,” she said. Addressing the appointment of the Chief Executive Officer (CEO), the minister said the process was rigorous and merit based.

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“The CEO was selected based on his expertise running the largest fund in Botswana. If he can protect, preserve and grow pension funds, then we feel he can also manage the SWF,” she said. On funding, the minister indicated that the wealth fund would not rely solely on cash injections.

“The initial focus is on asset transfer rather cash,” she highlighted. She further highlighted that future capitalization from the fund will include; “ring fenced mineral revenues, dividends from SOE’s and returns on investment, while preserving the principal,” Mophuting-Dikoloti said. ‘A man’s country is not a certain area of land, of mountains, rivers, and woods, but it is a principle and patriotism is loyalty to that principle’.- George William CurtisAccording to the report carried in this publication, the fraudsters operating the so-called “dark fleet” have selected Botswana’s flag as their cover of choice. This is a direct assault on our country’s most valuable asset, the good name.For decades, Botswana has…

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