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Rapula Okaile speaks on CMB and P500 million deal

Local based Capital Management Botswana (CMB) director, Rapula Okaile and his South African based counterpart, Tim Marsland are at the centre of an unending story relating to a P500 million worth deal which they struck with Botswana Public Officers Pension Fund (BPOPF) sometime in 2014.

But the unfortunate part of this story is the merry-go-round and piecemeal address to the conundrum. Their story is completely parallel to that of the people who allege they have misappropriated half a billion pula of pensions. They are confident that they executed their mandate as per their contract with BPOPF through the Botswana Opportunities Partnership (BOP), they point out that the assets are there to prove that they directed the funds to what was agreed upon.

This week, we tracked Okaile and put him on the spot, “Mr Okaile, where is the half a billion of pensioners’ money?” Before he responded to this question he quickly reminds this reporter that the Statutory Manager’s report on their company is a complete fabrication and they have applied to the court to have it reviewed and set aside because it characterised by falsehoods, bad faith, unreasonableness. “Back to your question, what I will narrate to you is the consistent facts I have given to authorities. And for the record, my partner Tim is a South African citizen and he is always willing to share what he knows about this issue,” said Okaile.

Okaile’s narration goes…

“In January 2014 the Request For Value Proportions (RFP) was made public through newspapers and websites. The RFP was open for six months ending June 27 2014. The reason the tender was open for six months was motivated by the fact that in private equity different funds have different fund raising periods and bidders were encouraged to submit at any time within the six months for consideration.  Thirty prospective bidders purchased the RFQ documents; thirteen of the thirty responded to the RFQ; the tender had a 3 staged evaluation process.

The RFQ evaluation on the basis of the scoring sheet disclosed on the tender, the minimum score was 70%

The technical due diligence was the evaluation of the information memorandum and interaction with the Fund manager and their portfolio companies. A minimum of 70% was required to pass this stage. There was also the legal due diligence. 15 bidders competed and were scored with the highest VPD achieving 72.8% and the lowest YMH attaining a score of 36.6%. CMB was number 2 and proceeded to the next stage of the evaluation with a score of 70.3%. Another company that proceeded to the next stage was African Alliance at 70.1%.  12 other companies did not proceed to the next stage.

The scores were tabled at the Finance and Investment Committee meeting of June and July 2014 to approve that stage 2 commences for three bidders being CMB, VPB and African Alliance. The second stage evaluation being the technical due diligence was submitted for considerations by the Finance and Investment Committee on their August 2017 sitting. On the second stage, scores for CMB, VPB, and African Alliance were 75.3%, 66.65%, and 54.12% respectively.

On the basis of the scores, the Finance and Investment Committee recommended to the Board for appointment of CMB for private equity mandate. The Finance and Investment Committee is responsible for the investment matters of the Fund. Through the investment of the BPOPF, the finance and Investment committee makes recommendations to the Board. The ultimate decision making rests with the Board of trustees. The decisions are made on unanimous basis, that is, all trustees have to agree for a recommendation to pass.

On the 21 August 2014, the Board of Trustees approved to commit BWp500 million to CMB for a private equity mandate. The approval was conditional on the successful legal due diligence. Once the LP has made commitment, it is obliged as per the contract to honour capital call (ie the request from the GP) within the agreed timelines. The Board of Trustees is not involved in the honoring of the capital calls. The first call was the BWP7.5 million for startup dated 5ht December 2014.

The second was BWP57.5 million for 40% Bramer Life (later rebranded to Bona Life) dated 26 June 2015. The third drawdown was BWP12.5 million for fund expenses including management fees and organizational expenses dated 3 March 2016. The fourth draw down notice was BWP 150 million for acquiring 15% of the issued capital of Wilderness Safari and related assets dated 5th April 2016. At the time of this draw down we raised an issue since Wilderness was listed and CMB mandate is unlisted investment.

However it should be noted that a private equity manager can buy listed investment if the intention is to gain critical mass to force a vote to delist the company. It was on the background of the intention to delist that we honoured the drawdown. The fifth drawdown notice was BWP150 million for acquiring Shereto Investment which controls 100% Kawena SA which in turn controls 100% of Kawena Services (Pty) Ltd.

The sixth draw down notice was BWP 100 million for acquiring 50% of Cell City Pty Ltd and underwriting the establishment of African Graduate Institute of Leadership and Enterprise with a view of acquiring 75% of AGILE dated 27 September 2016. On the 17th November 2016, the Board of Trustees resolved to commit BWP 380 million.

At this time CMB has drawn 95.5% of the initial BWP 500 million committed. Partnership Agreement was sent for Board consideration on 21 August 2014 and the Request for value proposition was made public on 27 January 2014.” Rapula says he joined CMB in March 2015 and started authorizing drawdown notices from 03 March 2016.

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BDP decides Balopi’s fate

22nd November 2021
Balopi

The Botswana Democratic Party (BDP) Central Committee (CC) meeting, chaired by President Dr Mokgweetsi Masisi late last month, resolved that the party’s next Secretary-General (SG) should be a full-time employee based at Tsholetsa House and not active in politics.

The resolution by the CC, which Masisi proposed, is viewed as a ploy to deflate the incumbent, Mpho Balopi’s political ambitions and send him into political obscurity. The two have not been on good terms since the 2019 elections, and the fallout has been widening despite attempts to reconcile them. In essence, the BDP says that Balopi, who is currently a Member of Parliament, Minister of Employment, Labour Productivity and Skills Development, and a businessman, is overwhelmed by the role.

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BDF-Namibians shootings autopsy report revealed

22nd November 2021
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The Botswana Defence Force (BDF)-Namibians fatal shooting tragedy Inquest has revealed through autopsy report that the BDF carried over 800 bullets for the mission, 32 of which were discharged towards the targets, and 19 of which hit the targets.

This would mean that 13 bullets missed the targets-in what would be a 60 percent precision rate for the BDF operation target shooting. The Autopsy report shows that Martin Nchindo was shot with five (4) bullets, Ernst Nchindo five (5) bullets, Tommy Nchindo five (5) bullets and Sinvula Munyeme five (5) bullets. From the seven (7) BDF soldiers that left the BDF camp in two boats, four (4) fired the shots that killed the Namibians.

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Gov’t confused over Moitoi’s UN job application

22nd November 2021
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The former Minister of Foreign Affairs and International Cooperation, Pelonomi Venson-Moitoi’s decision to apply for the positions of United Nations Special Representative of the Secretary-General (SRSG) and their deputies (DSRSG), has left the government confused over whether to lend her support or not, WeekendPost has established.

Moitoi’s application follows the Secretary-General’s launch of the third edition of the Global Call for Heads and Deputy Heads of United Nations Field Missions, which aims to expand the pool of candidates for the positions of SRSG) and their deputies to advance gender parity and geographical diversity at the most senior leadership level in the field. These mission leadership positions are graded at the Under-Secretary-General and Assistant Secretary-General levels.

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