Lax controls expose BMC to more losses
Keikantse Lesemela | Tuesday April 15, 2014 14:27
The report also states that the commission has a chronological report of losses in the past three years.
The total income for the group was P806.62 million, while expenditure was P1.1 billion.
“The total liabilities of the group and commission exceeded the total asserts by P374.04 million compared to P83.15 million in 2011 and P 437.99 million compared to P150.09 million.
“These conditions indicate the existence of a material uncertainty over the Groups and Commission’s ability to continue as a going concern,” reads the report.
Among the challenges indicated by the auditors include, non-reconciliation of inter-company balances and control accounts, on-review of useful lives and residual values of property and the absence of formal contract between BMC Lobatse and Gluckman Family Trading (PTY) Ltd. “Botswana Meat Commission remained exposed to financial losses while these control issues remain unattended.”
However, in the period, the revenue for the group increased from P659.16 million in the previous year to P766.92 million representing a 16.3 percent increase.
The livestock and meat costs were P617.38 million while production and administration costs were P363.28 million in the year under review, recording a significant increase of 21.5 percent and 16 .5 percent.
Meanwhile there have been discussions between BMC and investors from Europe, Africa, and Israel to privatise BMC.
However, officials have disclosed that they have been advised on what process to follow once the value of the business has been ascertained with all stakeholders on board.