Connect with us
Advertisement

Ram falls in Choppies battle with Mogae

Choppies Enterprises Chief Executive Officer (CEO), Ramachandran Ottapathu has suffered a major setback after his gambit to have former President Festus Mogae removed as the retail giant’s board chairman was met with a suspension on his part.

Choppies Board, under the tutelage of Mogae resolved Wednesday to suspend Ottapathu as the CEO of the Botswana Stock Exchange (BSE) listed company.  According to Ottapathu, the suspension came in the disguise of a recommendation from a certain law firm in South Africa, owing to the recent troubles facing the retail giant. The Choppies supremo however believes what triggered suspension was a proposal he had submitted to the company board to have Mogae removed as Board chairman, and also have new faces with relevant retail experience in the board.

“At his age, he need to know the impact on his productivity level. He was sick also. He has been missing a lot of board meeting until last year September,” Ottapathu said of Mogae this week.  The suggestion reportedly irked Mogae and the rest of the board, save for Farouk Ismail, who then moved swiftly to have Ottapathu suspended.  Choppies board, which is constituted of seven member, including Ottapathu himself had majority to effect the decision, as only Ismail opposed the resolution.

“I came up with suggestions to the board at the request of the shareholders to have restructuring of the board; issues around chairman’s independence. This was not started by me, but when I suggested changes, some people in the board got annoyed,” narrated Ottapathu.
“They gave me an option, you resign now or we are going to suspend you.  I was not prepared to do that. This is the company I started, and they did not even have a replacement. Before I received my suspension letter it was on the social media.”

Ottapathu spoke highly of Ismail, who has since been appointed Acting CEO, noting that the latter is the only one who understands the Choppies business because they are always in touch.  “Farouk [Ismail] is the only person who knows intimately and knowledgeably about the business in the board. None of them have ran one day of their own business and made money for themselves,” he said.  He was however not kind to other Choppies board members, saying none of them have ran a profitable business before.

“He [Ismail] spends time with me. He makes appointments with me, so that he gets every information about the company. That is why is he does not have any doubt about any transaction or any activity we do,” said Ottapathu.  “Other board members, including the chairman, when they get free time, if at all he gets it, he walks in [my office] and meet me for about 30 minutes or one hour. That’s not what you expect from a chairman. It does not happen anywhere in the world.”

The Choppies chief said if it all the decision to suspend him has anything to do with personal vendetta, the decision to suspend him was not in the interest of the company. “They have been reckless. They do not have the interest of the company at heart that one is for sure, because someone reasonably thinking cannot do this.” Ottapathu said one of the key reasons he wanted the board restructured was the verity that the company was growing, therefore creating necessity for change.

“This is one of the fastest growing company in the region. We needed retail or relevant experience in governance, and in the audit committee and in other areas,” said Ottapathu. “I did discuss with the chairman two years ago about relinquishing the power. He said give time, I will think about it, and I will make the right decision. But he did not do that.” Choppies was founded by Ismail in the 1980s and was joined by Ottapathu in 1992. Ever since then, the duo built the company into a dominant player in the country and the South African Development Committee (SADC) region.

Ottapathu said he has since engaged his lawyers to write to company lawyers requesting them to demonstrate valid reasons relating to his suspension.  He also indicated that in the coming days he will meet with the company’s important shareholders to brief them on the new developments.  Ottapathu, Ismail and Choppies employees collectively owns 46 percent of the company stock. Institutional investors owns about 26 percent, while the rest is owned by the public.

Ottapathu is of the opinion that the Choppies board, which had he said played no role in building the business, are behaving they were they do because they have nothing to lose. “For them they have nothing to lose. They lose this position of board, the can sit in another board. I do not have any other thing to do in my life. I do not want another entrepreneur to have the same experience that is why I am going to fight it until the last end. I want to set it as a example to make sure it does not happen in another board room.”  

At its heart is a battle for control of Choppies Enterprises Ltd – an investment holding company listed, but currently suspended, on both Botswana Stock Exchange (BSE) and the Johannesburg Stock Exchange (JSE). 
The group which operates 260 stores in Botswana, South Africa, Zimbabwe, Zambia, Kenya, Tanzania, Mozambique and Namibia, and employs more than 17 000 people.

Mr Ottapathu joined Choppies in 1992 when it was a single insolvent store in Gaborone. Now, over 50% of Batswana shop regularly in its stores and Choppies is a much-loved household name – or it was until the Choppies Board put Mr Ottapathu on “precautionary suspension” this week and replaced him with the Deputy Chair, Mr. Farouk Ismail.

Continue Reading

News

Woman swindled out of P62 000 by fake CID officers

17th June 2021
Motube

Botswana Police Service (BPS) has indicated concern about the ongoing trend where the general public falls victim to criminals purporting to be police officers.

According to BPS Assistant Commissioner, Dipheko Motube, the criminals target individuals at shopping malls and Automated Teller Machines (ATMs) where upon approaching the unsuspecting individual the criminals would pretend to have picked a substantial amount of money and they would make a proposal to the victims that the money is counted and shared in an isolated place.

“On the way, as they stop at the isolated place, they would start to count and sharing of the money, a criminal syndicate claiming to be Criminal Investigation Department (CID) officer investigating a case of stolen money will approach them,” said Motube in a statement.

The Commissioner indicated that the fake police officers would instruct the victims to hand over all the cash they have in their possession, including bank cards and Personal Identification Number (PIN), the perpetrators would then proceed to withdraw money from the victim’s bank account.

Motube also revealed that they are also investigating a case in which a 69 year old Motswana woman from Molepolole- who is a victim of the scam- lost over P62 000 last week Friday to the said perpetrators.

“The Criminal syndicate introduced themselves as CID officers investigating a case of robbery where a man accompanying the woman was the suspect.’’

They subsequently went to the woman’s place and took cash amounting to over P12 000 and further swindled amount of P50 000 from the woman’s bank account under the pretext of the further investigations.

In addition, Motube said they are currently investigating the matter and therefore warned the public to be vigilant of such characters and further reminds the public that no police officer would ask for bank cards and PINs during the investigations.

Continue Reading

News

BCP walks out of UDC meeting

15th June 2021
Boko and Saleshando

Botswana Congress Party (BCP) leadership walked out of Umbrella for Democratic Change (UDC) National Executive Committee (NEC) meeting this week on account of being targeted by other cooperating partners.

UDC meet for the first time since 2020 after previous futile attempts, but the meeting turned into a circus after other members of the executive pushed for BCP to explain its role in media statements that disparate either UDC and/or contracting parties.

This content is locked

Login To Unlock The Content!

Continue Reading

News

Katlholo wins against DPP

15th June 2021
DCEC DIRECTOR: Tymon Katlholo

The Director General of the Directorate on Corruption and Economic Crimes (DCEC), Tymon Katlholo’s spirited fight against the contentious transfers of his management team has forced the Office of the President to rescind the controversial decision. However, some insiders suggest that the reversal of the transfers may have left some interested parties with bruised egos and nursing red wounds.

The transfers were seen by observers as a badly calculated move to emasculate the DCEC which is seen as defiant against certain objectionable objectives by certain law enforcement agencies – who are proven decisionists with very little regard for the law and principle.

This content is locked

Login To Unlock The Content!

Continue Reading
Do NOT follow this link or you will be banned from the site!