12 May 2026
The Botswana Agricultural Marketing Board (BAMB) is facing growing scrutiny following a series of alarming audit findings that expose failures in financial accountability, governance and oversight involving hundreds of millions of Pula in public funds.
The latest Auditor General’s report for the year ended 31 March 2023 highlights unaccounted COVID-19 intervention funds, outstanding Strategic Grain Reserve (SGR) debt, missing reports and weaknesses in the management of public resources intended to safeguard national food security.
One of the most serious findings relates to P196,683,098 disbursed to BAMB on 8 October 2020 for the procurement of produce from local farmers to replenish the Strategic Grain Reserve during the COVID-19 pandemic. The funds were allocated as part of the government’s emergency response measures to strengthen food security and support farmers affected by the pandemic’s economic impact.
However, auditors found that BAMB failed to provide an expenditure report accounting for how the money was utilised. Under the Memorandum of Agreement, BAMB was required to maintain a separate account for the COVID-19 funds and prepare a separate expenditure report. Yet by the time the audit was conducted in October 2023, no report had been submitted.
“The absence of financial records impedes transparency and prevents confirmation that the funds were used for the intended COVID-19 intervention,” the report states.
Auditors warned that the prolonged delay in accounting for the funds undermines transparency, weakens financial oversight and increases the risk that the funds may not have been applied for their intended purpose.
The report also raised concerns over the absence of a dedicated Strategic Grain Reserve account despite substantial public funds being channelled towards grain reserve replenishment. According to the findings, a total of P107 million was disbursed to BAMB during the 2019/2020 and 2020/2021 financial years for SGR replenishment. However, at the time of the audit in October 2023, the Ministry of Agriculture was unable to demonstrate the existence of a separate SGR account.
Instead, auditors found that since inception, the funds had been deposited directly into BAMB’s account at a local commercial bank.
“The absence of a dedicated SGR account increases the risk of mismanagement or misappropriation of public funds, as it is unclear whether the funds were being used solely for the Strategic Grain Reserve,” the report states.
Auditors further warned that the arrangement reduces transparency and accountability in the handling of public resources. In another major finding, BAMB was reported to owe the Strategic Grain Reserve a cumulative P290,6 million arising from failure to comply with stock rotation settlement terms. Clause 7(b) of the Agency Agreement stipulates that when SGR stock is rotated, BAMB must purchase the stock at cost plus a 5% markup and settle payment within 30 days of the statement date.
However, auditors found that the obligation had not been met, leading to substantial debt accumulation.
“The prolonged non-payment raises concerns regarding the safeguarding of SGR resources, the recoverability of the debt, and the long-term sustainability of the Reserve,” the report noted.
The report further warned that failure to enforce contractual obligations undermines financial integrity, weakens accountability and exposes public funds to an elevated risk of loss. The Accounting Officer acknowledged the governance and management shortcomings identified during the audit.
“Poor governance, weak commercial management and ineffective debt collection contributed to the accumulation of outstanding debt, compounded by BAMB’s deteriorated financial position,” the Accounting Officer stated.
The Ministry has since committed to addressing the weaknesses identified. Further audit findings revealed that BAMB also failed to account for portions of a P28 million advance payment made in 2019 following the transfer of certain veterinary services. The advance included P15.6 million for feed subsidy for the 2015/16 financial year, P11.8 million for SGR maintenance for 2018/19 and P500,000 for the Livestock Advisory Centre (LAC) pledge for 2015/16.
While most of the SGR maintenance funds were accounted for, auditors identified an unaccounted balance of P172,568.29. In addition, the feed subsidy allocation of P15.6 million and the LAC pledge amounting to P500,000 were not accounted for.
“The failure to account undermines transparency over the use of public funds and prevents verification that the advance was applied for the intended purposes,” the report stated.
The audit also uncovered BAMB’s failure to submit quarterly reports to the Permanent Secretary as required under Section 4(c) of the Agency Agreement. These reports are intended to provide updates on all matters relating to the Strategic Grain Reserve, including policy issues and financial accountability. However, auditors found that no quarterly reports had been submitted.
“Failure by BAMB to submit quarterly reports, as required by the Agency Agreement, impedes oversight and increases the risk that SGR funds may not be used for their intended purposes,” the report stated.
The audit additionally noted that monitoring tools reportedly developed by the Ministry to strengthen oversight are yet to be confirmed.
Source: https://shorturl.at/w7ttj
