Jun 24, 2021
BotswanaPost Signs Shareholder Compact Image 1
BotswanaPost Signs Shareholder Compact Image 3
BotswanaPost Signs Shareholder Compact Image 2

The Minister of Transport and Communications, Honorable Thulagano Merafe Segokgo representing the government of Botswana recently signed Shareholder Compact Agreements with Board Chairpersons of 3 State owned organisations: BotswanaPost, BOCRA and Bofinet. The Shareholder Compact is a performance monitoring tool that aids to ensure state owned entities operate within set objectives with strict adhere to the outlined agreements made between the shareholder and a state-owned entity such as BotswanaPost.

The Shareholder Compact forms part of an initiative by government to improve performance of public enterprises sector in Botswana. This is because performance contracting has been identified as one of the instruments for monitoring performance by the government.

Signing the Shareholder Compact is one of the ways that BotswanaPost shows that it subscribes to good corporate governance and the strict adherence to the overarching corporate governance principles of fairness, transparency, accountability, and responsibility.

The Shareholder has an expectation on state owned entities to be agile in making sound business decisions to execute their duties to meet obligations of becoming profitable. So as not to constantly rely on the shareholder.

The shareholder compact is aligned to other administrative tools that speak to the mandate, objectives, and functions of BotswanaPost and powers of the Board. It outlines the company’s strategic plans with set performance targets and states parameters within which the shareholder’s and BotswanaPost’s relationship operates.

As an oversight body tasked with the responsibility of overseeing that the business objectives are met, the BotswanaPost board has a key function of providing guidance and leading the organization in meeting its objectives.

It is anticipated that the signing of the shareholder agreements will assist in monitoring performance, reinforce accountability, and provide oversight. The signing of the shareholder compacts is also expected to provide a road map for these organizations to deliver as per their mandates, enhancing service delivery, instilling good corporate governance and proper utilization of state resources. Thus, ensuring that the company can execute its mandate to meet the public’s expectations by ensuring operational efficiencies to enable access to quality, efficient and effective service delivery of products and services that the company is mandated to provide.

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