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New broom Glaum facing BCL heap of muck

A less known but old company from the South African city of Cape Town, Sanek Trust Recovery Services, this week assumed the heavy task of managing the insolvent mine of BCL and provisional liquidation of  Tati and BCLI.

BCL creditors and the nation waited in anticipation for the man who is going to replace Nigel Dixon-Warren who was fired abruptly, and Trevor Glaum is now at helm. Leading a company established in 1970, Glaum has a bigger challenge of liquidating a 63 year old mine whose abrupt liquidation was a matter of controversy since BCL was placed under liquidation which stalled for three years.

No much information of how Glaum or his company Sanek landed the role of BCL liquidation but on Wednesday this week outgoing liquidator Nigel Dixon-Warren wrote a communication that was spread to creditors and other stakeholders announcing that he is stepping down. Furthermore Dixon-Warren announced the takeover by Glaum of Sanek. Dixon-Warren announced that Sanek’s Glaum will be the sole liquidator of the controversial BCL liquidation starting from Wednesday this week following his (Dixon-Warren)’s resignation on Tuesday of the same week.

Glaum will also be a jointly co-provisional liquidator of BCL Investments or BCLI with Stephen Gore of Sanek. BCLI is an investment arm owned by BCL Limited. BCL limited also owns the BCL mine.Dixon-Warren also reminded that on the 26 July 2019 the Court of Appeal issued a provisional order that the estates of BCL and BCLI should be inter alia wound up as one company, in terms of section 468 of the Companies Act.

The matter has been referred back to the High Court to determine the time periods before which the order will become final. Glaum together with Sivalutchmee  Moodliar, his colleague at Sanek, are co-provisional liquidators of Tati mine which is owned by BCL Limited with a stake of  85 percent.

Political interference

When handing over BCL to Dixon-Warren in October 2016 the then vice president Mokgweetsi Masisi who is now the state leader pleaded that the man be given a chance without any interference.  However Dixon-Warren found himself caught in a political storm as his liquidation fees caught the attention of legislators who felt he was getting too much or was out to rip government off. Dixon-Warren’s call for resignation came as a backlash coming from across the entire political divide agreeing that his head be chopped.

A political pressure started by an MP coming from an area with people who are affected by the closure of the mine who asked how much the Dixon-Warren was earning for BCL liquidation, and then it reached a minerals minister who also felt the liquidator was a liability. The BCL closure and its liquidation has become a huge political project and Glaum’s character will be tested beyond measure as politics became the demise of his predecessor.

Financial position of BCL

In the Tenth Status Report to the creditors the outgoing BCL liquidator Dixon-Warren said the financial position of BCL since 26 October 2016 was at P108 923 527. This is the money reflected 19 days after BCL was closed.  “On 28 February 2019 the level of funding in the estate went down rapidly to P78.5 million and the rate continues to diminish. Government of Botswana is the lead creditor in this liquidation with and its claims against BCL account for a total of P1.35 billion or 94 percent of the proven claims,” Dixon-Warren.

Minister of Mineral Resources, Green Technology and Energy Security Eric Molale recently told Parliament that government has already spent  P600 million on liquidation since the process began in 2016.Glaum will see himself out of the total recurrent budget estimates for the financial year 2019/2020 which is P733 061 670 and represents an increase of P327 127 210 or 81 percent from this year’s allocation of P405 934 460 because the significant increase is mainly due to BCL funding for rehabilitation.

This means the mine will continue to gobble a lot from government fiscal budget in this coming financial year. In his report to creditors Dixon-Warren said for the Phase 1 of the project of rehabilitation around P50 million and P100 million is needed, hinting that more money from the government until winding off.

Legal battles waiting for Glaum

Glaum got into an office which is not without a headache or stress. The hot seat of being a BCL liquidator also comes with burning litigations being thrown from all places as the mine was closed down abruptly while overlooking at many underlying legal issues. Standing tall before Glaum is the fight for the sale of Nkomati and Tati mines with Russian mining giant Norilsk.

Another impending legal tussle waiting for Glaum and Sanek is the one with a Zimbabwean mining company RioZim. The outgoing liquidator Dixon-Warren reported to the creditors recently  that he already has commenced recovery proceedings against RioZim in Zimbabwe for P340 million owed to BCL. In this court application BCL alleges that it is owed P340 million for some minerals sold to its Zimbabwean counterpart RioZim. In this application BCL seeks to attach RioZim refinery or have it put under the hammer.

“The replacement liquidator will need to apply to the High Court of Zimbabwe to be recognized as a foreign liquidator in order to continue with this litigation. Thereafter, the replacement liquidator will need to file security with the Zimbabwean Master in order to be allowed to proceed with the litigation,” Dixon-Warren who is handing over to Glaum advised creditors in his last liquidation report.

Glaum will also have to put on his legal amour and lock horns with construction and building materials giant PPC which is said to have failed to adequately rehabilitate the waste rock dump over which it was granted a lease by BCL. This litigation is on-going.  According to documents, the quantum of this claim has yet to be finally determined but will amount to several million Pula, according to Dixon-Warren.

BCL should also sue Air Liquide for failing to deliver equipment pre-liquidation to a subsidiary of Tati and as a consequence of this failure substantial storage costs have been incurred by the BCL Group, the BCL is claiming P20 million for any incurred damages or liabilities. Outgoing BCL liquidator said these goods which Air Liquide failed to deliver are stored in Belgium, South Korea and France.Air Liquide deals supplies industrial and specialty gases to the steel, automotive & fabrication, food & beverage, mining, petrochemical, pharmaceutical and glass industries.

Glaum leads BCL as it will go on head-on with Barclays Botswana for what the previous liquidator in the last creditors report being the Twelfth Status Report said the bank for three years failed to return a sum of P1.4 million which was incorrectly paid to the BCL pre-liquidation account. Glaum may also decide to go to court as Dixon-Warren suggested in the creditors report the bank has ignored several attempts by BCL to have the money recovered or the account in question closed.

Sale of the mine

Selling BCL mine has been a daunting task for Dixon-Warren who said many fear investing on an old mine which will come with a lot of uncertainties. Glaum inherits that problem of the mine which remains unable to get a buyer. Many investors are reported to be at qualms with the P2.8 billion which should be set aside for Environmental Rehabilitation Liability even in the event of a closing plan when the mine goes for closure. The sum of P2.8 billion was seen as an environmental rehabilitation and reclamation obligation by a report carried out by Dixon-Warren in 2015 and this amount remains an obligation few buyers would be willing to accept given the present value on site at BCL.

However there are reports that there has been interest shown from around the world. In an interview this year, Dixon-Warren did not want to divulge names of who he met as interested in buying the mine. Dixon-Warren said he has dealt with a number of international companies who have the skills, expertise and finance for BCL, but “none of them has made any offer after undertaking initial assessments of information. It doesn’t take much to assume who those big companies might be.”

Glaum and Sanek

As Glaum and Sanek take over the ruins that is left of the legendary BCL it is not clear whether the company has what it takes to handle the mine. Sanek is an acronym for Suid Afrikaanse Nasionale Ekseketeurskamer. In its website Sanek touts itself for being able to manage liquidation of a large property, Glen Anil, which was listed on the Johannesburg Stock Exchange (as it then was) found itself in financial difficulty and was wound up.

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29 SEPTEMBER 2023 Publication

29th September 2023

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BMD disapproves homosexuality

26th September 2023

The newly elected Botswana Movement for Democracy (BMD) Executive Committee led by Pastor Reverend Thuso Tiego has declared their disapproval of homosexuality saying it is anti-Christianity and Botswana culture.

Speaking at a Media Briefing this past week, BMD President Tiego said Botswana has been a country that respects culture hence endorsing homosexuality will be catastrophic.

“Our young generation grew up being taught about types of families, if homosexuality is passed, at what age will our children be introduced to homosexuality?” he rhetorically asked.

He continued: “If we are going to allow homosexuality then the next day, another person will come and say he wants to practice bestiality. What are we going to do because we have already allowed for this one (homosexuality) and at the end it will be a total mess.” Bestiality is sexual relations between a human being and an animal

This according to Tiego will give those people an opportunity thus disrupting known Botswana beliefs. He however dismissed any notion that the decision to condemn homosexuality should not be linked to the top two of the committee who are men of cloth. “This is a decision by the whole committee which respects the culture of Botswana and it should not be perceived that because we are clergymen we are influencing them, but even if we do, politics and religion are inter-related.”

Of late the church and the human rights organization have been up in arms because of the high court decision to allow for same sex marriages. Ministries ganged up, petitioned parliament and threatened to vote out any legislator who will support the idea. The ruling party, BDP which was to table the amendment in the constitution, ended up deferring it.

BMD President further revealed that he is aware of what really led to the split of the party and he is on course to transform as they approach 2024 elections.

“There are so many factors that led to split of party amongst others being leadership disputes, personal egos and ambitions, toxic factionalism and ideological difference just to mention a few, but we are transforming the party and I am confident that we will do well in the coming elections.

In addition, Tiego is hopeful that they will take the government as they feel it is time to rebrand Botswana politics and bring in fresh blood of leaders.

He further hinted that they are coming with positive transformation as they eye to better the lives of Batswana.

“When we assume government, we promise to be transparent, free and fair electoral processes and encourage pluralism as way of getting back to our roots of being a democratic country as it seems like the current government has forgotten about that important aspect,” Tiego explained.

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North Korea diplomats in suspected illegal ivory trade

26th September 2023

Reeling under the increasing barrage of stinging international sanctions, the isolated North Korean regime is reportedly up to its old trickery, this time in a more complicated web of murky operations that have got the authorities of five southern African countries at sixes and sevens as they desperately try to tighten their dragnet around Pyongyang’s spectral network of illicit ivory and rhino horn trade.

It is an intricate network of poaching for elephant tusks and rhino horns that spans Botswana, Mozambique, South Africa and Zimbabwe, with the main sources of the contraband being Botswana and South Africa.

The syndicate running the illegal trafficking of the poached contraband is suspected to be controlled by two shadowy North Korean government operatives with close links to one Han Tae-song, a disgraced North Korean career diplomat who, while serving as the second secretary at his country’s embassy in Harare, Zimbabwe, was expelled in 1992 after he was fingered as the mastermind behind a similar illegal ring that was busted by the country’s authorities.

This disturbing tale of malfeasance by North Korean state actors is as real as it gets.

Recent reports indicate that authorities in the source countries are jointly battling to plug holes created by the shadowy syndicate which allegedly has on its payroll, park rangers, border officials and cross-border truck drivers.

Even more disturbing are allegations that some wildlife officials are conniving in misrepresenting numbers of retrieved rhino horns and ivory from poachers and getting kickbacks for their involvement in the pilfering of ivory and rhino horns from government stockpiles especially in South Africa.

In a shocking and well-orchestrated movie-style heist in South Africa, thieves in June this year made off with 51 rhino horns after breaking into a very secure government stockpile facility of the North West Parks Board (NWPB).

While some suspects from South Africa and Malawi were nabbed in a government sting operation, none of the rhino horns – 14 of which were very large specimens that can fetch serious money on the black market – were recovered.

A report of the heist said the police were lethargic by eight hours in responding to an emergency alert of the robbery which was described by North West police spokesperson Brigadier Sabata Mokgwabone as “… a case of business robbery…”

Thabang Moko, a security analyst in Pretoria says the military precision in the burglary, delays in police response, and failure to recover the stolen rhino horns is dubious. “This development lends credence to suspicions that some government officials could be part of a shadowy syndicate run by foreign buyers of rhino horns and ivory,” Moko says.

It is understood that in light of the rhino horns heist in North West, South Africa’s Minister of Environment, Forestry and Fisheries, Barbara Creecy on 1 August, shared her concerns to her counterparts in Botswana, Zimbabwe and Mozambique calling for greater regional cooperation to combat the illegal wildlife trafficking which she believes is being masterminded by the Far East’s buyers of the ill-gotten horns and ivory.

It is believed that foreign kingpins involved in perpetuating the illegal trade are mainly North Koreans vying against Vietnamese and Cambodian buyers in the quest for dominance of the illicit trade in rhino horns and ivory sourced from southern Africa.

Creecy’s concerns, which she also shared to South Africa’s state-run broadcaster SABC, echoed Moko’s worries that the North West heist may have been an inside job.

According to Creecy, there was a need for the International Criminal Police Organisation (Interpol)’s greater involvement in joint investigations by affected countries as there were indications of ‘local knowledge’ of the North West job and that syndicates, “Higher up the value chain actually recruit park rangers to the illegal ivory trade network.”

Botswana’s Environment and Tourism Minister Philda Kereng is on national record admitting that poaching was a source of headaches to her government, especially considering that the daring poachers were making successful incursions into secure areas protected by the Botswana Defence Force (BDF).

This came after poachers gunned down two white rhinos at the BDF-protected Khama Rhino Sanctuary in August 2022 despite Kereng putting the time frame of the killings between October and November 2022.

Kereng hinted at the existence of Asian controlled syndicates and acknowledged that the surge in poaching in Botswana is driven by the “increased demand for rhino horn on the international market” where in Asia rhino horns are believed to be potent in traditional medicines and for their imagined therapeutic properties.

Botswana has in the past recorded an incident of a group of an all-Asian reconnaissance advance team teams being nabbed by the country’s intelligence service in the Khama Rhino Sanctuary.

Masquerading as tourists, the group, with suspected links to North Korea and China, was discovered to be collecting crucial data for poachers.

Also according to reliable information at hand, an undisclosed number of wildlife parks rangers were arrested between September 2022 and January this year, after information surfaced that they connived in the smuggling of rhino horns and ivory from Botswana.

One of the rangers reportedly admitted getting paid to falsify information on recovered horns and ivory which were smuggled out of the country through its vast and porous eastern border with South Africa, and making their way to their final destination in Mozambique via back roads and farmlands in South Africa and Zimbabwe.

“We are aware that in the past year, some rhino horns and ivory illegally obtained from Botswana through poaching activities and shady deals by some elements within our wildlife and national parks department, have found their way out of the country and end up in Mozambique’s coastal ports for shipment to the Far East,” a Department of Wildlife and National Parks (DWNP) source says.

Independent investigations reveal that two North Korean buyers, one of them only identified as Yi Kang-dae [confirmed to be an intelligence official in the country’s state security apparatus], acting on behalf of the disgraced Han Tae-song, financed the entire operation on two occasions between 2022 and 2023, to move at least 18 rhino horns and 19 elephant tusks from Botswana, including pay-offs – mostly to border patrol and customs officials for safe passage – along the knotty conduit across South Africa’s north western lands, then across south-eastern Zimbabwe into Mozambique.

According to a trusted cross-border transport operator in Zimbabwe, the rhino horns and elephant tusks were illegally handed over to smugglers in Mozambique at an obscure illegal crossing point 15km north of Zimbabwe’s Forbes Border Post in November 2022 and February this year.

The end buyers in Mozambique? “It is quite an embarrassment for us, but we have solid evidence that two North Korean buyers, one of them who is linked to a former notorious diplomat from that country who has been in the past involved in such illegal activities in Zimbabwe, oversaw the loading of rhino horns and ivory onto a China-bound ship from one of our ports,” a top government source in Maputo said before declining to divulge more information citing ongoing investigations.

 

Yi Kang-dae and his accomplice’s whereabouts are presently unclear to Mozambican authorities whose dragnet reportedly recently netted some key actors of the network. Han Tae-song currently serves as North Korea’s ambassador to the United Nations in Switzerland.

North Korean diplomats have in the past used Mozambique as a final transit point for the shipment of rhino horns to the Far East.

In May 2015, Mozambican authorities nabbed two North Koreans, one of them a Pretoria-based diplomat and political counsellor identified as Pak Chol-jun after they were caught in possession of 4.5kg of rhino horn pieces and US$100,000 cash.

Pak’s accomplice, Kim Jong-su, a Taekwondo instructor also based in South Africa, was fingered as a North Korean spy and returned to North Korea under suspicious circumstances on the heels of Pak’s expulsion from South Africa in November 2016.

A security source in Zimbabwe closely following current developments says there is a big chance that Han Tae-song may have revived the old smuggling network he ran while posted in Zimbabwe in the 90s.

“The biting international sanctions against North Korea in the past decade may have prompted Han to reawaken his network which has been dormant for some time,” the source says. “There is no telling if the shady network is dead now given that Han’s two front men have not been nabbed in Mozambique. More joint vigilance is needed to destroy the operation at the source and at the end of the line.”

North Korean diplomats have, as early as October 1976, been fingered for engaging in illegal activities ranging from possession of and trade in ivory pieces, trade in diamonds and gold, the manufacture and distribution of counterfeit currencies, pharmaceuticals, and the sale on the black market, of a paraphernalia of drugs, cigarettes, alcohol and other trinkets on the back of protracted and biting international sanctions against the reclusive state for its gross human rights abuses against its own people and flagrant nuclear tests.

These illegal activities, according to a US Congressional Research Service (CRS) report, have raked in at least US$500m annually for the Pyongyang regime. Other global studies estimate that North Korea’s illegal earnings from the black market are around $1bn annually, and are being channelled towards the country’s nuclear weapons programme, while ordinary North Koreans continue to die of mass starvation.

In February 2014, Botswana, citing systematic human rights violations, severed ties with North Korea with the former’s president Mokgweetsi Masisi (then vice president) calling North Korea an ‘evil nation’ on 23 September 2016, at a United Nations General Assembly forum in Washington, USA.

Botswana has close to 132,000 elephants, more than any of its four neighbouring countries, namely Angola, Namibia, Zambia and Zimbabwe, according to a 2022 Kavango Zambezi Transfrontier Conservation Area (KAZA TFCA) Elephant Survey.

The rhino population in Botswana has significantly dwindled, with poaching a leading cause of the decimation of the country’s rhinos. Despite dehorning and relocating its diminishing rhino population from the extensive Okavango Delta to undisclosed sanctuaries, Botswana has since 2018, lost 138 rhinos to poachers.

The sharp spike in rhino poaching in Botswana came after the country’s government made a controversial decision to disarm park rangers in early 2018.

In a statement delivered in November 2022 to the Convention on International Trade in Endangered Species (CITES) CoP-19 in Panama, the Botswana government instead blamed the surge in poaching to a shift of foreign-sponsored organised poaching organisations from South Africa to Botswana.

“This increase in rhino poaching in Botswana coincided with a decline of rhino poaching in South Africa from 2018 to 2020, suggesting a displacement of the poaching syndicates from South Africa to Botswana,” the statement reads. “The recent decline in rhino poaching in Botswana (2021 and 2022, relative to 2020) coincides with the increase in rhino poaching in Namibia and South Africa, further suggesting displacement of the poaching syndicates across the sub-region.”

According to the Botswana government, as of 13 November 2022 the country has secreted its shrinking rhinos (only 285 white rhinos and 23 black rhinos) in undisclosed locations within the country’s borders.

South Africa has close to 15,000 rhinos. Between January and June 2022 alone, poachers killed 260 rhinos in South Africa for their horns. The country is home to the majority of Africa’s white rhinos, a species whose existence remains under threat of extinction due to poaching.

The major threat posed by foreign state actors including those from North Korea, to southern Africa’s rhino and elephant population remains grim as the bulk of the rhino horns and elephant tusks reportedly continue finding their way to the Far East, where China is being used as the major distribution centre.

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