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Gaetsaloe’s zigzag exit from BDC

Botswana Development Corporation (BDC) this week announced they have parted ways with their Managing Director Bashi Gaetsaloe. BDC Head of Strategy & Corporate Affairs, Boitshwarelo Lebang issued a brief statement confirming Gaetsaloe has left the organisation to pursue other opportunities.

 “BDC confirms the departure of Bashi Gaetsaloe from the employ of BDC as Managing Director to pursue other opportunities with immediate effect, the Corporation wishes to thank Bashi for his contribution to BDC and wish him well in his future endeavours,” reads a statement from Ms Lebang. Gaetsaloe who was appointed to the helm of the Government investment arm in April 2014, then a cash strapped organization with a stake in liquidating companies and failed national investment projects.

Gaetsaloe developed a 5 year strategy to return the wholly state owned government entity to profitability. Just half way through into the strategy, the former KPMG boss announced an over P200 million profit as of June 2016, making 100% growth in profits compared to over P100 million registered in 2015. However fast forward towards the completion of his strategy the BDC shareholder, Botswana Government is of the view that in a nutshell Bashi’s leadership failed to support the national course of industrialization and generation of new jobs.

Weekend post has established that Bashi Gaetsaloe was asked to resign, terminating his stay at BDC just two months before his contracts ends in March this year. “It’s what you call constructive dismissal. They asked him to resign otherwise they were going to fire him,” shared a highly placed source this Thursday.  This publication has established that contrary to public perception that the wholly owned government arm was making skyrocketing profits and satisfying its shareholder with dividend pay-out since Gaetsaloe’s takeover, Government is not convinced.

“His main undoing was that he had not made any money for BDC. He was just selling off what he termed non-performing assets and divesting from some minor industries then declaring revenue generated from these transactions as profits,” said a source close to the BDC Board.

DID HE RESIGN OR WAS HE PUSHED?

Gaetsaloe resigned from BDC on 14 January 2019 but was later slapped with a dismissal letter on 15 January 2019. He had written a resignation letter dated 14 January 2019 to Minister of Investment Trade and Industry, Bogolo Kenewendo but was asked to wait on the resignation.

In his letter Gaetsaloe indicated that, “I am proud of the work I have accomplished at BDC over the past 5 years.   I have led my team to claw this business back from imminent collapse to the successful enterprise we are today.  The business I inherited in 2014 had been losing about P100M a year for 5 years, was cashflow insolvent, with a heavily contaminated loan book, and had a reputation in tatters.

In 5 short years, I have built a strong, ethical and profitable business with cumulative profits of P784 Million, a fully funded pipeline, and over 1200 new jobs created.  While there is still much to accomplish, I am proud of what has been accomplished to date and believe these successes belong to all of BDC’s stakeholders.”

He had wanted to serve a three (3) months’ notice period working closely with the Board to ensure a smooth transition and handover period. “I believe very much in the role that BDC can and should play in the future growth and success of this country.  I am honored for the opportunity to lead this company and stand ready to assist in any way that I can to ensure its continued growth,” he said.

WHERE TO FOR GAETSALOE?

Bashi Gaetsaloe who couldn’t not be reached for comment is said to be heading for Barclays Bank top post, one of the country‘s leading money spinning corporate organisation. Though no statement released yet from the bank, Gaetsaloe is rumoured to be joining Barclays as Managing Director replacing Reinette Van Der Merwe whose contract is coming to an end.

Commercial banks have been under pressure from their regulator Bank of Botswana to localise their executive managerial positions, particularly CEO/MD positions. Observers submit that with Van de Merwe, a South African, leaving there is no way Barclays would replace her with another expatriate so they are under pressure to appoint a local.

“He didn’t make money for BDC, that’s why Public Accounts Committee rejected his P1 billion cash injection capital proposal, just disposing off some assets and declaring that as profits does not spark confidence, so government couldn’t risk that, Luckily for him he had already started negotiations with Barclays, of which we are yet to witness closing a deal,” said another source close to the echelons of power.

IN COMES LEKAUKAU?

Reports further suggest that the likely candidate to replace Gaetsaloe is former Standard Chartered Chief Executive Officer Moathodi Lekaukau. He joined BDC last year as Chief Investment Officer. A,t BDC‘s financial results presentation late last year Moathodi Lekaukau who is one Botswana‘s highly qualified and experienced corporate executives shared that the investment House has already closed in on 1 international deal, which entails acquiring a significant stake in a telecommunications company in Nigeria.

"This is a consumer based mobile operator business in a much bigger economy, the company is one of the top five in Nigeria, so we are looking at impressive returns here," shared Lekaukau. The former Standard Chartered Bank Chief Executive continued to reveal that his investment drive landed him in Ghana where BDC is closing in on another lucrative deal with a leading company in Ghana’s energy sector " the deal is almost 80 % complete, these are high revenue companies in bigger markets with vibrant economic activity, so we have no doubt we will get satisfactory return on investment".

He further shared that the state owned enterprise is also currently conducting some due diligence in Uganda with a view to invest in the country's emerging oil industry "we are in talks with a Businessman in Uganda who is looking at setting up an oil refinery plant" highlighted Lekaukau.

The former captain and Stanchart house resigned from Botswana’s oldest bank in 2017, he is viewed by commentators and observers as the most likely to take up the driving seat at Fairscape Precinct. Recent financial results for the year ended June 2018 indicate that BDC Group registered a 39 % increase in Profit before Tax after raking in P187 million compared to P135 million realised in 2017. The Group’s asset base grew by 5 % to P4.1 billion from P3.9 billion last year. At company level BDC gathered P244 million in Profit before Tax compared to P206 million recorded in 2017, mirroring 18 % increase.

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Khan: Boko, Masisi are fake politicians

18th January 2021
Masisi & Boko

While there is no hard-and-fast rule in politics, former Molepolole North Member of Parliament, Mohamed Khan says populism acts in the body politic have forced him to quit active partisan politics. He brands this ancient ascription of politics as fake and says it lowers the moral compass of the society.

Khan who finally tasted political victory in the 2014 elections after numerous failed attempts, has decided to leave the ‘dirty game’, and on his way out he characteristically lashed at the current political leaders; including his own party president, Advocate Duma Boko. “I arrived at this decision because I have noticed that there are no genuine politics and politicians. The current leaders, Boko and President Dr Mokgweetsi Masisi are fake politicians who are just practicing populist politics to feed their egos,” he said.

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Ookeditse rejects lobby for BPF top post

18th January 2021
LAWRENCE-OOKEDITSE

Former Botswana Democratic Party (BDP) parliamentary hopeful, Lawrence Ookeditse has rejected the idea of taking up a crucial role in the Botswana Patriotic Front (BPF) Central Committee following his arrival in the party this week. According to sources close to development, BPF power brokers are coaxing Ookeditse to take up the secretary general position, left vacant by death of Roseline Panzirah-Matshome in November 2020.

Ookeditse’s arrival at BPF is projected to cause conflicts, as some believe they are being overlooked, in favour of a new arrival. The former ruling party strategist has however ruled out the possibility of serving in the party central committee as secretary general, and committed that he will turn down the overture if availed to him by party leadership.

Ookeditse, nevertheless, has indicated that if offered another opportunity to serve in a different capacity, he will gladly accept. “I still need to learn the party, how it functions and all its structures; I must be guided, but given any responsibility I will serve the party as long as it is not the SG position.”

“I joined the BPF with a clear conscious, to further advance my voice and the interests of the constituents of Nata/Gweta which I believe the BDP is no longer capable to execute.” Ookeditse speaks of abject poverty in his constituency and prevalent unemployment among the youth, issues he hopes his new home will prioritise.

He dismissed further allegations that he resigned from the BDP because he was not rewarded for his efforts towards the 2019 general elections. After losing in the BDP primaries in 2018, Ookeditse said, he was offered a job in government but declined to take the post due to his political ambitions. Ookeditse stated that he rejected the offer because, working for government clashed with his political journey.

He insists there are many activists who are more deserving than him; he could have chosen to take up the opportunity that was before him but his conscious for the entire populace’s wellbeing held him back. Ookeditse said there many people in the party who also contributed towards party success, asserting that he only left the BDP because he was concerned about the greater good of the majority not individualism purposes.

According to observers, Ookeditse has been enticed by the prospects of contesting Nata/Gweta constituency in the 2024 general election, following the party’s impressive performance in the last general elections. Nata/Gweta which is a traditional BDP stronghold saw its numbers shrinking to a margin of 1568. BDP represented by Polson Majaga garnered 4754, while BPF which had fielded Joe Linga received 3186 with UDC coming a distant with 1442 votes.

There are reports that Linga will pave way for Ookeditse to contest the constituency in 2024 and the latter is upbeat about the prospects of being elected to parliament. Despite Ookeditse dismissing reports that he is eying the secretary general position, insiders argue that the position will be availed to him nevertheless.

Alternative favourite for the position is Vuyo Notha who is the party Deputy Secretary General. Notha has since assumed duties of the secretariat office on the interim basis. BPF politburo is expected to meet on 25th of January 2020, where the vacancy will be filled.

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BDP cancels MPs retreat

18th January 2021
President Masisi

Botswana Democratic Party (BDP) big wigs have decided to cancel a retreat with the party legislators this weekend owing to increasing numbers of Covid-19 cases. The meeting was billed for this weekend at a place that was to be confirmed, however a communique from the party this past Tuesday reversed the highly anticipated meeting.

“We received a communication this week that the meeting will not go as planned because of rapid spread of Covid-19,” one member of the party Central Committee confirmed to this publication.
The gathering was to follow the first of its kind held late last year at party Treasurer Satar Dada’s place.

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