Suspended Choppies CEO who is also one of the company’s major shareholders, Ramachandran Ottapathu, has made a proposal that the company’s Board be strengthened at the highly anticipated upcoming extraordinary general meeting (EGM).
Ram in his capacity as a shareholder has further proposed that Oabona Michael Kgengwenyane, Tom Pritchard and Carol-Jean Harward be added as new faces to the Choppies board. On the other hand, certain institutional shareholders with further consent from the Choppies Board have suggested that Goleele Mosinyi and Kenny Nwosu be enacted to the retailer’s board of directors.
According to a Circular released by the Botswana Stock Exchange(BSE), Ram’s proposal suggest a complete clean-up of the entire Choppies Board as shareholders are allowed the discretion to elect a strengthened board of directors. Ram also suggested the strengthened Board may include the current directors or not, it all to the discretion of shareholders at the EGM to decide who is fit to be appointed to the board. This is despite all the old directors, save for Mogae, offering themselves for reappointment.
Ottapathu, Farouk Ismail and Choppies employees collectively own 46 percent of the company stock while institutional investors owns about 26 percent, while the rest is owned by the public. “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 communication seen by this publication last week.
Choppies current board included former president Festus Mogae, acting CEO and shareholder Farouk Ismail, executive director Ottapathu, chief financial officer Heinrich Stander, Wilfred Mpai, Dorcas Kgosietsile and Ronald Tamale. In a cleanup, according to the proposal prior to the company’s EGM, none of these heads will be spared except maybe for the executive directors.
While Ram proposed a fresher board, Choppies long-term chairman Mogae announced on the same circular that he will be stepping down before the EGM. Mogae who turns 80 years next week Wednesday attended only two board meetings out of the four in the last financial results which were published Choppies in 2017. According to the Choppies circular, Mogae had notified shareholders at last year’s Annual General Meeting of the company at which the 2018 Audited Financial Statements are received and approved by shareholders. The former state leader will retire just before the upcoming EGM.
On 4 September the shareholders will hold an at the Grand Aria Hotel and Conference Centre situated at Plot 32943, Block 3, WestGate, Gaborone, Botswana on 4 September 2019 at 10h00. This week Choppies published a circular for its shareholders on the BSE and this communication comprised of important information in connection with the audited annual financial statements of the group for the year ended 30 June 2018. This circular also contained a notice convening an extraordinary general meeting.
At the 4 September EGM Ram’s proposal of electing directors will be considered. A forensic investigation conducted by Ernst & Young Advisory Services (Proprietary) Limited, an auditing firm based in South Africa which probed certain transactions to which the group was party in Botswana, South Africa and Zimbabwe will be presented. Also a Legal Report issued by Desai Law Group into certain matters which were referred for investigation, analysis and advice, and which involved a number of commercial agreements to which the Group was party in Botswana during past years will be presented before shareholders.
Also to be discussed is Ram’s suspension which is said to be pending disciplinary charges and investigations. According to the latest circular by Choppies, Ottapathu has not had an opportunity to respond in writing to their respective contents nor have disciplinary charges been put to him after he was suspended. The Board is however in the process of instituting such disciplinary proceedings and Ottapathu has reserved his rights in respect of such proceedings, according to communication by the retailer.
According to Choppies circular, if disciplinary charges are put to Ottapathu as arising from the Legal Report or the Forensic Report, he will be afforded the right to defend himself fully. “Such right includes, but is not limited to, the right to respond to the Legal Report and the Forensic Report so that his side is on record. Mr Ottapathu has been afforded the right to record a written reply to the Legal Report and the Forensic Report, which reply shall be circulated on X-News and SENS (JSE news platform) by the Company on or before 27 August 2019,” said the Choppies circular.
As according to the Choppies constitution, the existing board members have offered themselves for reappointment to the board, save for the outgoing chairman Mogae. Other new members have been nominated by shareholders to join the board. One of the resolutions to be considered is resolution 1 is to resolve to reappoint Farouk Ismail as a director of the company by ordinary resolution in accordance with the provisions of clause 20.3 of the company’s constitution.
According to Choppies constitution, Wilfred Mpai can also be retained as a director by ordinary resolution 2. Ordinary Resolution 3 to be considered at the EGM is that Dorcas Kgosietsile also be retained. Ronald Tamale (ordinary resolution 4), Heinrich Stander (ordinary resolution 5) and Ram are also up for reappointment to the board. Suggested to join the board are; Kgengwenyane, Pritchard, Harward, Mosinyi and Nwosu.
Botswana Democratic Party (BDP) and some senior government officials are abuzz with reports that President Mokgweetsi Masisi has requested his Vice President, Slumber Tsogwane not to contest the next general elections in 2024.
The impacts of climate change are increasing in frequency and intensity every year and this is forecast to continue for the foreseeable future. African CEOs in the Global South are finally coming to the party on how to tackle the crisis.
Following the completion of COP27 in Egypt recently, CEOs of Africa DFIs converged in Botswana for the CEO Forum of the Association of African Development Finance Institutions. One of the key themes was on green financing and building partnerships for resource mobilization in financing SDGs in Africa
A report; “Weathering the storm; African Development Banks response to Covid-19” presented shocking findings during the seminar. Among them; African DFI’s have proven to be financially resilient, and they are fast shifting to a green transition and it’s financing.
COO, CEDA, James Moribame highlighted that; “Everyone needs food, shelter and all basic needs in general, but climate change is putting the achievement of this at bay. “It is expensive for businesses to do business, for instance; it is much challenging for the agricultural sector due to climate change, and the risks have gone up. If a famer plants crops, they should be ready for any potential natural disaster which will cost them their hard work.”
According to Moribame, Start-up businesses will forever require help if there is no change.
“There is no doubt that the Russia- Ukraine war disrupted supply chains. SMMEs have felt the most impact as some start-up businesses acquire their materials internationally, therefore as inflation peaks, this means the exchange rate rises which makes commodities expensive and challenging for SMMEs to progress. Basically, the cost of doing business has gone up. Governments are no longer able to support DFI’s.”
Moribame shared remedies to the situation, noting that; “What we need is leadership that will be able to address this. CEOs should ensure companies operate within a framework of responsible lending. They also ought to scout for opportunities that would be attractive to investors, this include investors who are willing to put money into green financing. Botswana is a prime spot for green financing due to the great opportunity that lies in solar projects. ”
Technology has been hailed as the economy of the future and thus needs to be embraced to drive operational efficiency both internally and externally.
Executive Director, bank of Industry Nigeria, Simon Aranou mentioned that for investors to pump money to climate financing in Africa, African states need to be in alignment with global standards.
“Do what meets world standards if you want money from international investors. Have a strong risk management system. Also be a good borrower, if you have a loan, honour the obligation of paying it back because this will ensure countries have a clean financial record which will then pave way for easier lending of money in the future. African states cannot just be demanding for mitigation from rich countries. Financing needs infrastructure to complement it, you cannot be seating on billions of dollars without the necessary support systems to make it work for you. Domestic resource mobilisation is key. Use public money to mobilise private money.” He said.
For his part, the Minster of Minister of Entrepreneurship, Karabo Gare enunciated that, over the past three years, governments across the world have had to readjust their priorities as the world dealt with the effects and impact of the COVID 19 pandemic both to human life and economic prosperity.
“The role of DFIs, during this tough period, which is to support governments through countercyclical measures, including funding of COVID-19 related development projects, has become more important than ever before. However, with the increasingly limited resources from governments, DFIs are now expected to mobilise resources to meet the fiscal gaps and continue to meet their developmental mandates across the various affected sectors of their economies.” Said Gare.
Letlhakeng:TotalEnergies Botswana today launched a Road Safety Campaign as part of their annual Stakeholder Relationship Management (SRM), in partnership with Unitrans, MVA Fund, TotalEnergies Letlhakeng Filling Station and the Letlhakeng Sub District Road Safety Committee during an event held in Letlhakeng under the theme, #IamTrafficToo.
The Supplier Relationship Management initiative is an undertaking by TotalEnergies through which TotalEnergie annually explores and implements social responsibility activities in communities within which we operate, by engaging key stakeholders who are aligned with the organization’s objectives. Speaking during the launch event, TotalEnergies’ Operations and HSSEQ, Patrick Thedi said, “We at TotalEnergies pride ourselves in being an industrial operator with a strategy centered on respect, listening, dialogue and stakeholder involvement, and a partner in the sustainable social and economic development of its host communities and countries. We are also very fortunate to have stakeholders who are in alignment with our organizational objectives. We assess relationships with our key stakeholders to understand their concerns and expectations as well as identify priority areas for improvement to strengthen the integration of Total Energies in the community. As our organization transitions from Total to Total Energies, we are committed to exploring sustainable initiatives that will be equally indicative of our growth and this Campaign is a step in the right direction. ”
As part of this campaign roll out, stakeholders will be refurbishing and upgrading and installing road signs around schools in the area, and generally where required. One of the objectives of the Campaign is to bring awareness and training on how to manage and share the road/parking with bulk vehicles, as the number of bulk vehicles using the Letlhakeng road to bypass Trans Kalahari increases. When welcoming guests to Letlhakeng, Kgosi Balepi said he welcomed the initiative as it will reduce the number of road incidents in the area.
Also present was District Traffic Officer ASP, Reuben Moleele, who gave a statistical overview of accidents in the region, as well as the rest of the country. Moleele applauded TotalEnergies and partners on the Campaign, especially ahead of the festive season, a time he pointed out is always one with high road statistics. The campaign name #IamTrafficToo, is a reminder to all road users, including pedestrians that they too need to be vigilant and play their part in ensuring a reduction in road incidents.
The official proceedings of the day included a handover of reflectors and stop/Go signs to the Letlhakeng Cluster from TotalEnerigies, injury prevention from tips from MVA’s Onkabetse Petlwana, as well as bulk vehicle safety tips delivered from Adolf Namate of Unitrans.
TotalEnergies, which is committed to having zero carbon emissions by 2050, has committed to rolling out the Road safety Campaign to the rest of the country in the future.