Category: Sunday Standard

The Botswana Meat Commission (BMC) has slaughtered significantly more cattle at its Lobatse plant this year despite continued disruption to the livestock sector caused by Foot and Mouth Disease (FMD).

The plant processed 12,378 cattle between January and July 2026, an increase of 6,892 head compared with the same period last year.

The rise comes as restrictions on cattle movement and other disease-control measures continue to disrupt supply chains and limit the movement of livestock in affected areas.

Lobatse Mayor Aron Mosimanegape Ganakgomo said the continued threat of FMD placed greater responsibility on farmers and livestock owners to comply with movement restrictions and cooperate with veterinary authorities. The increase in slaughtering comes as the BMC pushes ahead with several projects at Lobatse, although some remain some distance from completion.

The new cattle entrance is 95 percent complete, while the Meat Value Addition and Secondary Processing Plant is 63 percent complete. The Lobatse Tannery is 89 percent complete and is expected to be commissioned in September.

The projects are intended to expand processing capacity and allow more livestock products to be processed locally. The tannery, for example, could increase the domestic processing of hides, rather than leaving them as a largely unprocessed by-product.

For the beef industry, however, the immediate challenge remains FMD. The government has allocated P97 million towards containing the outbreak, including vaccination and other interventions, while movement restrictions have been imposed in affected areas.

The stronger slaughter numbers at Lobatse therefore come against a difficult operating backdrop. Whether the increase can be sustained will depend partly on the availability of cattle and the extent to which disease-control measures continue to restrict movement.

With Botswana’s beef industry already facing disease and market-access pressures, the performance of the Lobatse plant offers a useful measure of how much activity remains possible under the current constraints.

Botswana’s heavy spending on HIV/AIDS has failed to translate consistently into better health outcomes across the country. This is the finding by the World Bank which raises questions about resource allocation, programme management and the efficiency of the country’s HIV response by Botswana.

The assessment is contained in the World Bank’s Botswana Health Public Expenditure Review. It warns that Botswana’s health system is suffering from low efficiency, with the HIV/AIDS programme providing some of the clearest evidence of weaknesses in the way public resources are converted into health outcomes. According to the report, there is a weak correlation between HIV expenditure at district level and actual results, including HIV awareness, condom use, the proportion of people receiving treatment and HIV prevalence. The World Bank says the findings raise the possibility of inefficiencies and disparities in the implementation of HIV programmes across districts, despite Botswana’s substantial investment in the fight against HIV/AIDS.

‘With higher investment in HIV programs, one would expect greater HIV awareness, more people on treatment, and lower HIV prevalence. However, this link does not seem to hold true across all districts in Botswana,’ the report states. The finding is striking because Botswana has long invested heavily in combating HIV/AIDS making the disconnect between expenditure and outcomes a major concern for policymakers. The World Bank points to Kweneng and Greater Gaborone as examples.

The two districts recorded some of the highest HIV expenditure, yet their performance on key indicators was far from exceptional. The report says they recorded average levels of HIV awareness and treatment coverage, while condom use was among the lowest reported.

The report identifies several possible explanations, including poor resource distribution, differences in programme management effectiveness, varying local health determinants and inconsistencies in data quality. The World Bank also found that Botswana spends more on HIV/AIDS programmes than its regional peers, suggesting significant room to improve efficiency. Evidence from the National AIDS Spending Assessment (NASA), according to the report, shows that Botswana’s spending on key inputs per patient receiving antiretroviral treatment is higher than in countries including Zambia, Mozambique and South Africa. This means Botswana is spending more to achieve outcomes that should warrant closer scrutiny of procurement, treatment protocols and the design of its HIV services. The World Bank recommends examining procurement arrangements for antiretroviral medicines, including the possibility of pooled procurement, reviewing patient testing guidelines and reassessing the HIV/AIDS Basic Services Package.

The report also warns that Botswana’s HIV response remains vulnerable because of its dependence on external funding.In 2019/20, external sources accounted for 37 percent of total HIV/AIDS expenditure, compared with 61 percent from domestic public sources.The United States President’s Emergency Plan for AIDS Relief (PEPFAR) alone accounted for 30 percent, 32 percent and 33 percent of total HIV/AIDS financing in the 2017/18, 2018/19 and 2019/20 financial years respectively.

The World Bank calculates that replacing PEPFAR funding would require Botswana to increase its own expenditure by about 50 thebe for every P1 currently spent on HIV/AIDS. With Botswana facing slower economic growth, fiscal pressures and declining mineral revenues, the report warns that such a burden could prove difficult to sustain.

The World Bank further questions the government’s ability to translate approved HIV/AIDS budgets into actual funding. On average, only 68 percent of the approved HIV/AIDS budget under the Ministry of Health was released during the period reviewed. This compares sharply with the National AIDS and Health Promotion Agency (NAHPA), which received about 96 percent of its allocated funding over the same period. The discrepancy, according to the World Bank, creates serious challenges for effective budget execution and ultimately service delivery. Ironically, despite weak releases, overall HIV/AIDS budget execution averaged 93 percent during the period under review.

The report says NAHPA’s lower execution rate was partly linked to its practice of sub-warranting funds to other implementing organisations, potentially creating inefficiencies where additional funding depends on performance reports.

Fresh information suggests that the Directorate on Corruption and Economic Crime (DCEC) case against former minister Noah Salakae, Tau Grading (Pty) Ltd, its directors and lawyer may be deeply personal as key players with a tangled history collide in court.

It has emerged that the lead investigator in the corruption case acted as a lawyer for the accused persons before joining the DCEC to investigate them.

The revelation is just one strand in an increasingly tangled web of lawyers, politicians, vehicles and alleged favors.

At the heart of the storm is Thabo Malambane, DCEC deputy Director General and attorney.

Malambane is part of the team that investigated corruption allegations against Salakae, Tau Grading founder Rudy Lemcke, Chief Executive Officer (CEO) Hugo Lemcke, Chief Accountant Seby Jose, Permanent Secretary Ken Ketshajwang and lawyer Mompati Sepego.

The state alleges that Tau Grading bribed Salakae with P1.6 million, a Toyota Fortuner, as well as bush clearing services for the award of the P1.5billion Ghanzi-New Xade road construction project.

Before joining DCEC, Malambane allegedly acted as a lawyer for Salakae and Tau Grading.

Malambane was part of the team that investigated allegations that Tau Grading bribed Salakae with a Toyota Fortuner. The allegations followed revelations that Salakae had been using a Fortuner purchased by Tau Grading.

Sunday Standard investigations have uncovered another intriguing vehicle link, suggesting that Malambane also benefited from a similar favour by Tau Grading.

A few weeks before joining the DCEC, Malambane drove around in a Toyota Hilux double cab bearing registration B111BPD.

A Sunday Standard ownership search with the Department of Road Transport and Safety (DRTS) revealed that the car is registered under Maun Quarries.

A further CIPA search revealed that Maun Quarries shareholders are Christian Rudolf Lemcke and Hugo Johannes Lemcke.

The cross directorship between Maun Quaries and Tau Grading suggests that the two are sister companies.

In another curious development, it emerged that around the time Tau Grading allegedly allowed Salakae to use its Toyota Fortuner in the run up to the 2024 parliamentary elections, the company also provided his political opponent, BDP candidate John Thite with a Toyota Hi-lux twin cab.

Both men were competing for the same parliamentary seat. Both benefited from vehicles provided by Tau Grading. Among those who backed Salakae’s candidacy was Malambane.

Whatever happened between Salakae, Tau Grading and Malambane is now the subject of fierce speculation. But one thing is beyond doubt, the relationship has turned bitter. In Parliament last week, Salakae launched a blistering attack on what he called ‘ a notorious senior officer’ at DCEC. He accused the officer of sponsoring corruption allegations against him. Then came another broadside. At a kgotla meeting in Ghanzi, Salakae made reference to ‘ the young officer from DCEC’ and vowed to take him on in court,

The extraordinary public confrontation has transformed what might otherwise have been a straightforward corruption investigation into a much wider controversy.

On Friday, the controversy branched off into a political scene as the Broadhurst Magistrates Court was packed to the rafters by two busloads of Salakae’s political supporters.

Hundreds of supporters who drove the more than 600km overnight from Ghanzi arrived in court Friday morning wearing T-shirts emblazoned with Salakae’S face on the front and ‘ eseng mogo Salaka’ (Don’t touch Salakae) written across the back. The dramatic show of support suggested the corruption case hsas already become deeply political.

All the key players in what promises to be a brutal marathon trial share a deeply entangled history.

THE 2013 MURDER CASE

In February 2013, while he was still Principal Magistrate in Ghanzi, Malambane sparked a national outcry when he granted unconditional bail to two murder suspects-Tshiamo Kalalelo and Mmika Mpe-less than 14 days after they were arrested for the gruesome murder, robbery and rape of their employer, Johanna Reinette Vorster.

Hours after Malambane granted them bail, the two accused were re-arrested in a separate stock theft case.

In protest, Malambane demanded answers why the matter was secretly moved from his docket in Ghanzi to a court in Gaborone without his consent. Viewing this as administrative overreach and an assault on his judicial independence, Malambane boycotted all cases before his court until he received an explanation.

He was subsequently summarily dismissed from the bench for gross misconduct and insubordination after he refused an order from the Acting Chief Justice to resume his judicial duties. He unsuccessfully challenged his dismissal at the Court of Appeal (CoA) in 2021.

Incidentally, attorney Charles Tlagae, who is part of the current Tau Grading defence team, was the family lawyer for the slain Reinett Vorster and her husband Leon Vorster at the time.

THE TAU GRADING CONNECTION

After his dismissal from the judiciary, Malambane stayed in Ghanzi and continued to practice as a private lawyer. Sunday Standard is informed that Tau Grading was one of his major clients over the years. Tau Grading employees have indicated that Malambane has represented the company as a lawyer.

SALAKAE and TAU GRADING

The relationship between Salakae and Tau Grading dates back to 2013, when current General Manager John Motsumi introduced him to Head of Finance Jose Seby.

Motsumi would then become Salakae’s Campaign Manager in the 2014 general elections, which he successfully contested against then Member of Parliament (MP) Johnny Swartz.

Salake lost to John Thiite by only 176 votes in 2019. At the time, both candidates maintained a close relationship with Tau Grading and continued to enjoy its support.

In October 2024, just two weeks before the general elections, Tau Grading borrowed Salakae a Toyota Fortuner for use during his elections campaign. The same courtesy was extended to his opponent, John Thiite, who was also lent a Toyota Hilux Double.

However, sources have indicated that Salakae returned the Fortuner to Tau Grading in September 2025.

THE BNF WINDFALL

Salakae’s prosecution is widely viewed as a continuation of the factional fights within the ruling Botswana National Front (BNF). The Ghanzi North MP is regarded as a fierce critic of some close allies of President Duma Boko. Reference is routinely made to Salakae’s explosive letter announcing his resignation from the BNF Central Committee, in which he alleged that the party was run by Boko’s bodyguards. Meanwhile, Salakae’s loyalists shot salvos at the BNF leadership during the Monday kgotla meeting. Councillor Soso Saidoo has been summoned for a disciplinary hearing after he publicly declared that the charges against Salakae were fueled by internal party politics and described BNF Vice President Moeti Mohwasa as ‘evil.’

Sunday Standard is informed that the BNF is also a beneficiary of Tau Grading’s benevolence. Party insiders have revealed that Tau Grading paid for over 20 buses to transport activists to the party national congress in Palapye and further paid for transport (10 buses) and food (P100,000) at the BNF national conference in Jwaneng. However, Tau Grading General Manager John Motsumi has denied any knowledge of such funding.

‘I am not aware of any funding of that nature from Tau Grading to BNF,’ he said in response to questions from Sunday Standard.

In politics, yesterday’s executioner can become tomorrow’s accused. That is what makes the possible addition of former minister and Permanent Secretary to the President Eric Molale to the Noah Salakae corruption case so politically intriguing.

On the surface, it is another corruption prosecution involving a multibillion-pula government tender. Beneath that, however, lies a story stretching back more than a decade, a story involving a dismissal letter, a defiant magistrate and the long memory of Botswana’s public institutions.

Today, Salakae and several co-accused stand before the courts over allegations linked to the P1.5 billion Ghanzi-New Xade road project. Prosecutors allege that Tau Grading and its officials offered Salakae a P1.6 million cash bribe, a Toyota Fortuner and bush-clearing services in exchange for influence over the award of the contract. The allegations remain untested in court and all accused persons are presumed innocent.

The case has already become politically charged. Salakae has publicly accused a senior DCEC official of pursuing him for personal reasons and later directed his criticism at Deputy Director Thabo Malambane, a former magistrate who rose through private legal practice to become one of the most senior anti-corruption investigators.

Yet if Molale is ultimately added to the charge sheet, the spotlight may shift from Salakae’s allegations to a far older chapter.

For it was Molale who signed the letter that ended Malambane’s judicial career. The story begins in Ghanzi in 2013. Then Principal Magistrate Thabo Malambane found himself at the centre of national controversy after granting unconditional bail to two men accused of the murder of Ghanzi farmer Reinett Vorster. The decision provoked outrage. Matters escalated when the suspects were subsequently re-arrested on separate charges and a related case was transferred from Ghanzi to Gaborone without Malambane’s approval. Viewing the move as interference with judicial independence, he boycotted court proceedings and demanded answers from his superiors.

The standoff ended badly. The Acting Chief Justice ordered him to return to work. Malambane refused. The dispute quickly evolved from a disagreement over judicial independence into a confrontation over authority itself. Government concluded that Malambane’s conduct amounted to insubordination.

On April 2, 2014, President Ian Khama decided to dismiss him. The man tasked with delivering the decision was Erik Molale. In a letter signed in his capacity as Permanent Secretary to the President, Molale informed Malambane that Khama had considered his explanations and determined that his refusal to obey a lawful order constituted gross misconduct justifying summary dismissal. The letter ended Malambane’s career on the bench with immediate effect.

At the time, few would have imagined that the paths of the two men would cross again in such dramatic fashion. Malambane remained in Ghanzi after his dismissal and established himself as a private attorney. Years later he would re-emerge in public service, joining the Directorate on Corruption and Economic Crime and eventually rising to become deputy director.

Molale, meanwhile, went on to become a cabinet minister before retiring from public service.

Now fate appears to have brought them back into the same story. The corruption investigation that has engulfed Salakae and Tau Grading originated within the DCEC before being handed to the Directorate of Public Prosecutions. The prosecution recently informed the court that another suspect is expected to be added to the case. Sources indicate that person is likely to be Molale.

Whether Molale is eventually charged, and whether any charge can be sustained, remains a matter for the prosecution and ultimately the courts. The evidence, not history, will determine guilt or innocence. Salakae’s supporters have sought to portray the case as a product of personal vendettas. So far, they have offered no evidence linking the charges to the alleged personal differences between Malambane and the accused persons.

Yet the symbolism surrounding Molale and Malambane is impossible to ignore. Twelve summers ago, one man signed a letter ending the other’s career. Today, the man who received that letter occupies a senior position in the institution whose investigation may help place the retired former Permanent Secretary and cabinet minister before a criminal court. Is Malambane finally having his revenge?

Botswana’s business community expects the economy to recover modestly this year, but the outlook remains clouded by weak demand, constrained government spending and high financing costs.

The Bank of Botswana’s June Business Expectations Survey shows firms expect national output to expand by 2.1 percent in 2026, following a 0.7 percent contraction in 2025. Growth of 1.3 percent is expected in the second quarter and 1.8 percent in the third quarter.

Despite the expected recovery, businesses remain cautious about near-term conditions. Firms in construction and real estate, finance, retail, accommodation, transport and communication, and manufacturing were pessimistic about the second quarter.

The concerns extend into the third quarter, with pessimism reported among retail, accommodation, transport and communication, construction and real estate, and agriculture firms. Mining and quarrying businesses were neutral.

The survey points to Botswana’s weak fiscal position as an important drag on activity. Lower government revenue, partly linked to weaker diamond export earnings, has constrained cash flows and limited government spending. Businesses also cited the exchange rate as a concern because of the economy’s heavy reliance on imported inputs.

Cost of finance was identified as the biggest factor hurting business operations during the second quarter. High borrowing costs, collateral requirements and cautious bank lending were cited as constraints. Some firms are responding by relying more heavily on retained earnings: their share rose to 53 percent from 50 percent in the previous quarter, while preference for loans fell from 43 percent to 28 percent.

The outlook improves further ahead. Firms are optimistic about conditions over the 12 months to June 2027, particularly in manufacturing, construction and real estate, retail and related services.

Export-oriented firms are already more positive, suggesting the weaker pula may be improving their competitiveness. Overall, the survey presents a recovery that remains tentative.

Botswana’s wheat production is falling further behind the needs of the country’s milling industry, leaving millers increasingly dependent on imports to keep factories supplied.

Bokomo chief executive Werner de Beer said wheat production had declined by 10 percent, with local output unable to make a meaningful dent in demand.

The scale of the gap is stark. De Beer said Botswana’s annual wheat harvest was estimated at about 6,500 tonnes, against monthly industry milling requirements of roughly 14,000 tonnes.

Maize faces a similar imbalance. Botswana produced about 1,500 tonnes last year, while millers collectively process around 16,000 tonnes a month, he said.

Local maize and wheat production therefore accounts for only about 10% of the market, according to de Beer, leaving the industry reliant on imports.

Millers source most maize from South Africa, while wheat supplies come from countries including Brazil, Lithuania, Germany and Mexico. De Beer said tariffs in South Africa and supply disruptions linked to the war in Eastern Europe had made diversification necessary.

‘The only bright spot in the local grains sector is sorghum,’ he said, adding that domestic production was sufficient to meet demand.

The dependence on imported grain leaves Botswana exposed to international prices, freight costs and geopolitical disruptions, with changes in any of these factors potentially feeding through to food prices.

Millers are nevertheless trying to make local grain more competitive. Under an agreement involving farmers, millers, input suppliers and government, locally produced grain is bought at the regional SAFEX price plus an 8% premium. Millers also subsidise half the transport costs for farmers in remote production areas such as Pandamatenga and the Tuli Block.

Standard Chartered Bank Botswana expects its pre-tax profit for the six months to June 2026 to rise by between 16 percent and 26 percent, according to a cautionary announcement issued to the Botswana Stock Exchange.

The bank expects unaudited consolidated profit before tax to increase by between P22 million and P36 million from the P140 million reported for the corresponding period in 2025. This puts the expected half-year profit before tax in a range of approximately P162 million to P176 million.

The announcement does not give reasons for the expected improvement, leaving details on the bank’s underlying performance to its full half-year results.

Standard Chartered Botswana said the results for the period ended June 30 will be published before the end of September, when shareholders and investors will receive a fuller picture of the bank’s performance.

The cautionary notice was issued in line with Botswana Stock Exchange listing requirements, which require companies to alert the market when there is reasonable certainty that expected profit or loss before tax will differ by at least 10 percent from the previous corresponding period.

The bank stressed that the figures contained in the announcement are unaudited and that the final results may differ from the current estimates. Investors have consequently been advised to exercise caution when trading in the company’s securities until the full results are released.

For now, the bank’s guidance points to another period of profit growth, but provides little indication of whether the improvement came from stronger lending, investment income, lower costs or other parts of the business. Those details will only become clear when the full results are published.

Financially hamstrung Botswana Fencing Federation (BFF) remains determined to expand its international footprint and build a stronger pathway for local fencers. The BFF missed both the recent Commonwealth Games and the Junior World Championships due to an acute lack of funds. Despite these challenges, the federation continues to find ways to give some of its athletes some international exposure.

This year, two senior fencers, Koketso Masena and Aobakwe Modise, were sent to the World Senior Championships in Hong Kong. Two others, Katlego Poonyane and Modise, represented Botswana at the African Championships in June.

BFF Public Relations Officer, Thabile Pilane says the federation was encouraged by the exposure gained. This is despite being unable to send full teams which include coaches to the events. While acknowledging that sending individual athletes instead of teams was not ideal, she says the federation was determined to improve its representation at future competitions.

‘It is not completely bad because we managed to have some exposure internationally, although we sent one person instead of a team. In future we would like to try and send a number of players.’

Despite the financial challenges, the federation continues to organise local competition to keep its athletes active and competition ready. ‘We managed also to have a tournament around March. That is how we keep our players active, so that they are always ready to compete. At any point in time, we can pick from the rankings for these international games when we get the proper funds and the support that we need,’ Pilane says.

With no sponsors on board, the federation currently relies largely on parents and individuals willing to provide financial assistance. ‘We have willing individuals and parents, but it is not stable to run a federation like that.’

‘Our federation is in dire need of sponsors to enable it to grow and gain the recognition it deserves and be part of the strong codes for Team Botswana,’ the BFF PRO emphasises.

Pilane says that while the federation’s mother bodies have supported them, assistance often comes at the last minute, making long-term planning difficult. The federation has since intensified efforts to secure partnerships and sponsorships. Among those recently approached is the Embassy of China in Botswana.

‘We approached the Embassy of China to Botswana because there is another tournament in Hong Kong coming up. We want to take the junior team that didn’t manage to go to the Commonwealth, so that they get that experience and exposure,’ she explains.

In the interim, the BFF is also preparing to host an international local tournament on 19 September 2026 in Gaborone. Athletes from other countries are expected to participate. The competition will cater for junior, senior and cadet categories.

While funding setbacks continue, the federation’s message is one of perseverance: keeping athletes active, seeking partnerships and creating opportunities so that Botswana fencing can eventually compete internationally with full teams and the support structure it deserves.

As the BFF moves towards its elective Annual General Meeting, Pilane says the current committee is still committed to advance the interest of the federation. She says as the committee, they acknowledge that there are still shortcomings, particularly in its efforts to move Botswana up from its current tier to the top tier. Despite these, they remain committed to building on the progress made through a number of initiatives planned for the future.

Bakang Seretse and his companies, Khulaco Proprietary Limited and MandB Properties, have applied to have Court of Appeal President Tebogo Tau and Justice Isaac Lesetedi recuse themselves from a pending appeal over interest earned on restrained funds. They argue that the two judges have already expressed views that create a reasonable apprehension of bias.

The application arises from a dispute over who is entitled to interest generated from millions of pula that were frozen under the Proceeds and Instruments of Crime Act before being released following the collapse of the state’s forfeiture case against Seretse and his companies.

At the centre of the matter is an Appeal in which the Attorney General is challenging a High Court judgment by Justice Zein Kebonang that awarded Seretse, Khulaco and MandB Properties interest accrued on restrained funds.

Seretse argues that Tau and Lesetedi should not sit on the appeal because they recently formed part of a three-judge panel that delivered judgment in a separate but related case involving the same P42 million payment made to Khulaco under a contract linked to the National Petroleum Fund.

According to the application, the July 31 judgment, authored by Justice Edwin Cameron and concurred in by Tau and Lesetedi, contained findings that characterised the transaction and Seretse’s conduct in strongly negative terms. Seretse points to passages in which the court referred to ‘sticky fingers’, suggested that ‘a monstrous heist was in the making’, and stated that a ‘whiff of fraud’ lingered around the transaction.

He argues that those findings went beyond procedural issues and amounted to judicial conclusions about his honesty and the legitimacy of the underlying transaction.

Seretse contends that the remarks are difficult to reconcile with an earlier Court of Appeal judgment delivered in 2022, which dismissed the state’s forfeiture appeal and accepted that the P42 million payment had a contractual basis.

‘The cumulative effect of those findings was to judicially characterise me as having participated dishonestly in a transaction involving the appropriation of Government monies,’ Seretse states in his affidavit. He argues that because the present appeal concerns funds connected to the same underlying transaction, a reasonable and informed observer could conclude that Tau and Lesetedi have already formed views on issues that may arise in the matter. The Attorney General opposes the application.

The Attorney General argues that the recusal bid is not based on dissatisfaction with an unfavourable judgment but on concerns about the appearance of impartiality.

Seretse and Co maintain that the test is not whether the judges are actually biased, but whether there is a reasonable apprehension that they may not approach the pending appeal with an open mind.

The dispute stems from lengthy litigation over funds linked to the National Petroleum Fund. The Directorate of Public Prosecutions previously sought forfeiture of assets connected to Seretse and his companies, but both the High Court and the Court of Appeal dismissed those efforts. After the restrained funds were released, a fresh dispute emerged over interest that accrued while the money was held in interest-bearing accounts.

In the recusal application, Seretse asks that Tau and Lesetedi step aside and that the matter be reassigned to a differently constituted Court of Appeal panel.

A report by the Southern African Development Community (SADC) Board has detailed how millions of dollars are being lost at the regional bloc’s secretariat.

The audit report has exposed deep financial management failures, weak controls, procurement irregularities and a persistent running into millions of dollars as well as inability by secretariat to implement the regional bloc’s decisions.

The findings which are contained in the SADC Board of Auditors’ report for the financial year ended 31 March 2026 reveal a systemic breakdown in governance, execution and accountability that is costing the regional bloc significant value for money. The report which was addressed to the Council of Ministers shows that at the centre of the crisis is a chronic failure to implement decisions as approved budgets and programmes are repeatedly delayed, partially executed or not implemented at all.

The report shows that out of 252 Council of Ministers decisions requiring action, only 88 were fully implemented by 3 June 2026. This represents just 35 percent completion. A further 41 percent were only partially implemented, while nearly a quarter had no recorded implementation status.

The report which was prepared by Chairperson of SADC Board of Auditors Thomas Makiwa who is the

Auditor General of Malawi and his team says the report ‘includes information on the internal control deficiencies that were identified as root causes of the matters reported as well as the possible impact on the accounts and objectives of SADC.’According to the report ‘Addressing these deficiencies will help the organisation (SADC) to perform better.’

The report warns that implementation performance is deteriorating with an increasing backlog of unresolved decisions that continue to accumulate year after year.

The March 2026 Council meeting shows that only one of out of the 84 decisions was fully implemented while 51 had no implementation status at all.

Across the region, only 22 percent of 1,235 decisions from the March and August 2025 meetings were fully implemented with several member states recording zero implementation. This means large portions of approved regional priorities are not translating into action on the ground and the associated funding is not delivering intended results.

The audit also highlights procurement practices that raise serious concerns about transparency and value for money.

In sampled air-ticket contracts worth US$778,450, two travel companies dominated the awards. Blueberry Travel/Voyage secured seven contracts worth US$494,230 while Above and Beyond Travel received three contracts worth US$195,080.

Together, the two firms accounted for 89 percent of the total value US$689,310. The report raised questions about concentration of awards and competitive fairness. Auditors said management was unable to provide sufficient documentation explaining why contracts repeatedly went to the same suppliers, making it difficult to independently verify whether procurement rules were consistently followed.

While management denied any preferential treatment, the absence of clear documentation and the repeated concentration of awards point to weak oversight and potential inefficiencies that could be inflating costs, the report notes.

SADC’s financial position is also under growing strain with total liabilities standing at US$88.05 million, of which US$86.93 million is payable on demand.

The report says this creates significant liquidity pressure as the Secretariat may struggle to meet short-term obligations without additional funding or improved cash management.

Compounding the pressure, Eswatini and South Africa have requested refunds of approximately US$32 million in unused contributions linked to the SADC Mission in Mozambique. These refund claims further tighten available cash resources and increase strain on the Secretariat’s already fragile liquidity position.

The Reserve Fund which is intended as a financial buffer is also below required levels. It stands at US$16.48 million against a minimum requirement of US$20.56 million leaving a shortfall of US$4.08 million.

This weakened buffer reduces the Secretariat’s ability to absorb shocks or cover unexpected costs, increasing dependence on member state contributions, the report says.

The audit further flagged an unresolved US$8.44 million portion of a US$17.25 million claim submitted by South Africa’s National Defence Force for SAMIDRC deployment costs.

Auditors said the documentation provided was incomplete, meaning a significant portion of the claim remains unsupported and unverified. This has raised concerns about potential overstatement of liabilities and delayed financial reconciliation.

In another example of inefficiency, the EU-funded ECESPA peace and security programme has absorbed only 17.1 percent of its US$13.84 million budget, leaving more than US$11 million unspent.

At the current pace of implementation, auditors warn the programme risks closing with large unutilised funds. This reflects weak execution capacity, poor planning and delayed delivery of donor-funded initiatives.

The findings portray the Secretariat as an institution where millions are not being lost through a single act of fraud, but through systemic inefficiency, weak execution, poor documentation and chronic delays in implementation.While management has pledged reforms, including improved monitoring systems, procurement changes and stronger financial controls, auditors say many of the weaknesses remain unresolved.

The secretariat had not responded to Sunday Standard queries at the time of going to press.