Chinese Companies Receive P3.3 Billion As Payments

| November 26, 2014 | 0 Comments

The Minister of Finance and Development Planning, Mr Kenneth Matambo has told Parliament that since 2010, payments amounting to P3.3 billion have been made to Chinese companies by ministries following approval of tenders by the Public Procurement and Asset Disposal Board.

He said the ministry neither had a policy nor need to collect data on domestic investments undertaken by specific companies using income generated locally.

However, the minister stated that government always encouraged foreign investors to re-invest their profits locally but the decision to re-invest remained the prerogative of the company taking into account its business needs.

Nevertheless, Mr Matambo said it should be noted that income generated locally was taxed and every company that had paid tax was free to pay dividends to their shareholders, including those outside Botswana.

He said Botswana abolished foreign exchange controls in 1999 with the objective to attract direct investment to Botswana. He stated that information held by the Bank of Botswana on external transactions including repatriation of profits was recorded solely for purposes of compiling balance of payments.

Mr Matambo said the data was aggregated and not categorised to show whether the repatriated funds were by Chinese owned companies. MP for Selebi Phikwe West Mr Dithapelo Keorapetse had asked him to state in Pula terms how much had been paid to Chinese companies in the last five years.

He also asked him to state how much of the amount had been invested in the domestic economy of Botswana and how much had been repatriated outside the country.

Source : BOPA

Source : Botswana Daily News

Category: Governance

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