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    HomeOpinionsPress ReleaseInefficiencies at BPC are impacting on Morupule Coal Mine's financial obligations towards...

    Inefficiencies at BPC are impacting on Morupule Coal Mine’s financial obligations towards workers in its supply chain

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    Botswana Mine Workers Union (BMWU) finds itself yet again in the middle of
    another institutional tug of war, this time, between Botswana Power Corporation
    (BPC), Morupule Coal Mine (MCM) and BR-BB Joint Venture (Pty)Ltd, in respect
    of the non payment of BR-BB JV employees terminal benefits following its
    services contract termination by MCM.


    On the 12 December 2024, Morupule Coal Mine terminated its services
    agreement with its subcontractor BR-BB Joint Venture, citing cash-flow
    challenges. Before termination of the contract, BR-BB JV had raised concerns
    with MCM over its monthly payment defaults, which had culminated in the
    subcontractors inability to pay its workers. As of 18th April 2025, the amount owed
    workers by BR-BB JV is approximately over 9 million pula. MCM is yet to fulfill its
    termination obligations at the instance of BR-BB JV such that the subcontractor
    has failed to honor its employment obligations to employees in the form of
    terminal benefits. MCM has deferred its responsibility for the settlement of this
    liability to Botswana Power Corporation.


    On the 31st of March 2025, in her parliamentary brief on the power supply
    challenges in Botswana, The Minister of Minerals and Energy, Honorable Bogolo
    Kenewendo, highlighted the operational and technical inefficiencies which has
    run the state-owned power distribution facility into escalating debt. She pointed
    out to the impact which Morupule Coal Mine has felt from the non-payment of
    the huge sums of money amounting to over seven hundred million pula, (P700
    000 000) owed by BPC which have resulted in the non-production of coal at the
    mine and the intermittency of electricity generation at BPC power plants.
    During a tripartite meeting between Morupule Coal Mine, BR-BB JV and the
    Union, it became apparent that the subcontractor will not get paid by Morupule
    Coal Mine, until BPC honors its payment obligations. This essentially means,
    workers will not get paid their terminal benefits until the inefficiencies at BPC are
    resolved.


    On the face of it, Morupule Coal Mine is under no obligation to cause the
    payment of terminal benefits of workers who are in the supply chain, as they are
    not directly employed by it. This situation is similar to that of Minergy Coal Mine
    and BCL, where a state-owned enterprise, due to mismanagement and
    inefficiencies, squandered its finances, got liquidated and the workers walked
    away empty handed.


    MCM and BPC are both state owned enterprises. The Government of Botswana
    through the Ministry of Minerals and Energy, should request cabinet to issue a
    directive for the settlement of BR-BB JV employees terminal benefits. After all,
    the inefficiencies at BPC are attributed to Government in so far as it responsibility
    in appointing the leadership of these SOE’s and approving tenders awarded
    companies responsible for managing the technical and maintenance
    operations of these facilities.


    We call on the Government of Botswana through MCM and BPC to pay the
    terminal benefits of BR-BB Joint Venture employees which are overdue.


    ISSUED BY THE GENERAL SECRETARY’S OFFICE
    Mbiganyi Gaekgotswe
    General Secretary
    +267 75 327 760
    Email: gaekgotswe@gmail.com

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