Ram TKOs Mogae & Co in Choppies boardroom bout
Suspended CEO Ramachandran Ottapathu this week managed to claim back his company after he was sidelined by the board for four months. Ram also got the blessings of shareholders who have a composition of more than 50 percent as he brings new faces to the Choppies board and gets re-elected to serve as a director. With the board which was against him gone, Ram also stands a big chance of getting reinstated as CEO.
A Choppies boardroom could have been mistaken to a wrestling ring in few meetings prior to the Extraordinary General Meeting (EGM); a lot of war of words akin to arm grapping. The Choppies boardroom brawl which started few months had all the hallmarks of power play and ended this week with less bonhomie as the suspended CEO Ramachandran Ottapathu emerged the last man standing despite being against all odds.
Prior to the EGM Ram had proposed a clean-up of the company’s board, maybe bring new faces. “It is the combined view of Mr Ottapathu and the Board that the current Board requires strengthening by inclusion of additional independent non-executive appointees to it. It is for this reason that the Board (including Mr Ottapathu), have put forward the Proposed Resolutions, to allow the Shareholders to elect a strengthened Board (whether it includes current Directors or not) which will direct the proceedings and affairs of the Company going forward,” said circular seen by this publication last week.
In this week’s EGM, Ram had his wishes done as the board was changed and new faces, especially the ones he proposed, were brought on board save for Oabona Michael Kgengwenyane . Ram had proposed that Kgengwenyane, Tom Pritchard and Carol-Jean Harward be added as new faces to the Choppies board.
The shareholders backed Ram’s two choices, making a resolution to vote for Pritchard as a director of Choppies with 77.75 percent against 22.22 percent. Haward was added to the board with 51.25 percent against 48.72 percent. Kgengwenyane, proposed by Ram, was rejected by shareholders with 98.13 percent votes against him. Ram got 52.06 percent while and Ismail 55 percent.
Four of the previous board members chief financial officer Heinrich Stander, Wilfred Mpai, Dorcas Kgosietsile and Ronald Tamale failed to pass the 50 + 1 threshold and have subsequently stepped down from the Choppies board. Mpai made 47 percent of the votes, Kgosietsile 5.8 percent, Tamale 48 percent and Stander 48 percent. A choice proposed by certain institutional shareholders, Kenny Nwosu, could not pass the threshold too, with 48 percent of votes.
Before the EGM, on Sunday the outgoing Choppies board had met and decided that the EGM be adjourned for two weeks pending Ram’s disciplinary hearing. Ram is yet to face a disciplinary hearing for his suspension. Despite the anti-Ram board seeking to have the EGM postponed, the shareholders rejected the directors wish moving chairman Festus Mogae to approve voting of new board members.
Ram’s triumph
When Ram was suspended he was against the whole Choppies board, save for his friend and longtime business partner Farouk Ismail. Ram was being investigated, accused of mismanaging Choppies affairs and usurping the board in many decisions concerning the company.
Towards the EGM, it was all odds against Ram. His attempt to have an urgent EGM failed as the board stood against him. Even at the recent EGM the board had come with a spirited campaign to have shareholders disregard Ram. A legal report and a damning forensic report, both putting Ram’s managerial competence on the spotlight, were released.
When presiding on the EGM, Mogae gave Ram and his legal representative less than 30 minutes to respond to allegations leveled against the suspended CEO. This is despite the anti-Ram board taking almost the whole day presenting their grievances about Ram.
Mogae admitted that as the board they wanted to remove Ram as a CEO while he remains as a shareholder. He said they were getting tired of Choppies being all about one man, Ram. The former president gave a scenario of Choppies revolving around one person who would usurp the board in decision making.
“We tend to fight as to who is more important and who has more money. Choppies has been a disaster,” said Mogae as he tried to convince shareholders to adjourn the EGM. Mogae who was part of the ousted board that suspended Ram has announced that he will retire after the Annual General Meeting which is billed for November this year. The shareholders were not convinced by the Mo Ibrahim Award winner who said the suspended CEO was not doing things proper but rather decided to vote for Ram to remain as a board member. Mogae’s wish to have the EGM adjourned was also rejected by the shareholders.
Ram who stood before the shareholders, admitted to doing some things wrong, but said he was being scapegoated by the board. While he promised to wait for the disciplinary hearing so that he can clear his name, said he learned his lesson. "Well, mistakes were made and lessons have been learnt….I can tell you that this will not happen again in our lives. This company is great, we can make it greater," the suspended CEO told shareholders this week during an EGM.
Prior to the EGM, Ram only had Ismail’s back. The two together with Choppies employees hold about 46 percent of the retailer’s stake. He is currently faced with a forensic report findings, which he (Ram) called “not conclusive”, painting him as corrupt and lacking adherence to good governance. A legal report said Ram has dealt improperly when doing many business transactions like the acquisition of Pay Less and the transactions involving Fours Group.
All odds seemed to be against Ram given the damning information produced against him at the EGM but he was saved by shareholders who have a composition of about 53 percent of Choppies shares. The shareholders also want Ram to go before the disciplinary hearing to clear his name.
The aftermath of EGM – resignations
Meanwhile after failing to make it back into the Choppies board of directors at the Emergency General Meeting (EGM) on Wednesday, Chief Financial Officer (CFO), Heinrich Mathiam Stander decided to resign on Thursday. His resignation was handed to interim Chief Executive Officer (CEO) Farouk Ismail on the same day. The understanding is that after he was voted out of the board, he then decided to further resign as an employee of Choppies.
Stander received a vote of 48 percent at the EGM hence failing to clock the 50+1 mark. Those who could not get 51 percent or more were removed from the board. Indications are that those voted out, were considered to have been on Mogae’s team, and wanted suspended CEO, Ramachandran Ottapathu to face disciplinary hearing, but failed. Mogae has since indicated that he is retiring.
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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.