Gaetsaloe’s zigzag exit from BDC
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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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DPP drops Kably threat to kill case
The Botswana Democratic Party (BDP) Chief Whip and Member of Parliament for Letlhakeng/Lephephe Liakat Kably has welcomed the Directorate of Public Prosecution (DPP)’s decision not to prosecute BDP councillor, Meshack Tshenyego who allegedly threatened to kill him. However, the legislator has warned that should anything happen to his life, the state and the courts will have to account.
In an interview with this publication, Kablay said he has heard that the DPP has declined to prosecute Tshenyego in a case in which he threatened to kill him adding that the reasons he received are that there was not enough evidence to prosecute. “I am fine and at peace with the decision not to prosecute over evidential deficits but I must warn that should anything happen to my life both the DPP and the Magistrate will have to account,” Kablay said.
Connectedly, Kably said he has made peace with Tshenyego, “we have made peace and he even called me where upon we agreed to work for the party and bury the hatchet”.
The DPP reportedly entered into a Nolle Prosequi in the matter, meaning that no action would be taken against the former Letlhakeng Sub-district council chairperson and currently councillor for Matshwabisi.
According to the charge sheet before the Court, councilor Tshenyego on July 8th, 2022 allegedly threatened MP Kably by indirectly uttering the following words to nominatedcouncilor Anderson Molebogi Mathibe, “Mosadi wa ga Liakat le ban aba gagwe ba tsile go lela, Mosadi wame le banake le bone ba tsile go lela. E tla re re mo meeting, ka re tsena meeting mmogo, ke tla mo tlolela a bo ke mmolaya.”
Loosely translated this means, Liakat’s wife and children are going to shed tears and my wife and kids will shed tears too. I will jump on him and kill him during a meeting.
Mathibe is said to have recorded the meeting and forwarded it to Kably who reported the matter to the police.
In a notice to the Magistrate Court to have the case against Tshenyego, acting director of Public Prosecutions, Wesson Manchwe cited the nolle prosequi by the director of public prosecution in terms of section 51 A (30) of the Constitution and section 10 of the criminal procedure and evidence act (CAP 08:02) laws of Botswana as reasons for dropping the charges.
A nolle prosequi is a formal notice of abandonment by a plaintiff or prosecutor of all or part of a suit or action.
“In pursuance of my powers under section 51 A (300 of the Constitution and section 10 of the criminal procedure and evidence act (CAP 08:02) laws of Botswana, I do hereby stop and discontinue criminal proceedings against the accused Meshack Tshenyego in the Kweneng Administrative District, CR.No.1077/07/2022 being the case of the State vs Tshenyego,” said Manchwe. The acting director had drafted the notice dropping the charges on 13th day of March 2023.
The case then resumed before the Molepolole Magistrate Solomon Setshedi on the 14th of March 2023. The Magistrate issued an order directing “that matters be withdrawn with prejudice to the State, accused is acquitted and discharged.”
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DPP seizes prosecution duties from Police
Directorate of Public Prosecution (DPP) has finally taken over prosecution from the Botswana Police Service (BPS). The police have been prosecuting for years, but the takeover means that they will now only focus on investigations and then hand over to the DPP for prosecution.
Talks of complete takeover began as far back as 2008, but for years it seemed implementation was sluggish. However, the Minister of Justice, Machana Shamukuni, revealed that the complete takeover is expected to be completed soon.
During a presentation to the Committee of Supply by Shamukuni this week, it was revealed that the project has been implemented in 22 police stations nationwide, including Maun, Selebi-Phikwe, Palapye, Francistown, and Kasane. He further stated that the project has been allocated P3,000,000 for the 2023/2024 financial year to facilitate the opening of more satellite offices for the DPP.
Shamukuni said the Lobatse station is scheduled for a complete takeover by the end of May 2023, while the Kasane DPP satellite office has been established and became operational as of February 1, 2023.
“As reported previously, preparations are at an advanced stage to open a satellite office in Tsabong to curtail expenses, as well as frequent long-distance trips to these areas, as it is currently serviced by the Lobatse DPP office,” Shamukuni said.
Shamukuni said that the takeover strategy is to enable a seamless and gradual takeover of prosecution from the BPS without overwhelming and overstretching the thin resources at its disposal.
According to Shamukuni, the implementation of the prosecution takeover project has increased the workload of the 211 prosecutors in the DPP establishment.
Furthermore, the Justice Minister said DPP statistics show that the DPP has a total of 11,903 cases and dockets as of January 2023. He indicated that this is a significant increase in the number of cases being handled by the DPP, considering that in November 2021, the DPP had just over 8,471 files.
“Out of the total case load, 8 382 are cases pending before various courts while 3521 are dockets received from law enforcement agencies of which 1 325 are awaiting service of summons while the rest are being assessed for suitability of prosecution or otherwise” said Shamukuni.
He further stated that The DPP has consistently maintained an 80% success rate in matters completed at court.
“As at the end of January 2023, the success rate stood at 82.3% against a target of 90% whilst the average performance in respect of turnaround time for conclusion of cases at court stood at 17.5 months against a target of 18 months,” he said.
BACKLOG OF CASES – LAND TRIBUNAL
Meanwhile, Minister Shamukuni has revealed that Gaborone land Tribunal is experiencing a backlog of cases. Before parliament this week, Shamukuni revealed that a total 230 appeals were completed for the period of April 2022- December 2022 and only 76.5% of them were completed within set time frame.
The minister said that the Gaborone division has experiencing a backlog of cases due to manpower constraints and he further indicated that presiding officers from other divisions have been brought in to expedite case disposal.
He further indicated that the land tribunal is a specialized court that has been empowered to resolve appeals arising from land boards. “It has been mandated to determine appeals from the decisions of Physical planning committees of Districts Councils” said Shamukuni.
Land Tribunal relocated to the Ministry of Justice from Ministry of Land and Water Affairs in November 2022.
“An amount of P37, 842,670 is requested to cover salaries, allowance and other operational expenses for the Department of the land Tribunal,” alluded Shamukuni
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BCP, AP stalemate in 7 constituencies
When the Botswana Congress Party (BCP), Alliance for Progressives, Botswana Labour Party (BLP), and conveners reconvene next week, the controversial issue of allocation of the seven constituencies will be the main topic of discussion, WeekendPost can reveal.
Not only that, but the additional four constituencies will also dominate the talks. The idea is to finally close the “constituency allocation phase,” which has proven to be the most difficult part of the ongoing negotiations.
Earlier this year, the two parties announced that the marathon talks would be concluded by February. Even at a media briefing last month, BCP Secretary General Goretetse Kekgonegile and Publicity Secretary Dr. Mpho Pheko were optimistic that the negotiations would be concluded before the end of February.
However, it is now mid-March and the talks have yet to be concluded. What could be the reasons for the delay? This is a question that both Kekgonegile and Pheko have not responded to, as they have ignored the reporters’ inquiries. However, a senior figure within the party has confided to this publication as to what is delaying the highly anticipated negotiations.
“We are reconvening next week to finalize constituency allocations, taking into account the additional four new ones plus the outstanding seven,” he explained. It later surfaced that Gaborone Central, Gaborone North, Mogoditshane, Tswapong North, Francistown West, Tati West, and Nata Gweta are all contested by both BCP and AP. This is because the other 50 constituencies were allocated by December of last year.
The three parties have failed to find common ground for the Bosele Ward by-elections. Are these constituencies not a deal breaker for the talks? “None of the constituencies is a deal breaker,” responded a very calm BCP official.
In Bosele Ward, AP has yielded to BCP, despite most of its members disapproving the decision. On the other hand, BLP has refused, and it will face off with BCP together with Botswana Democratic Party (BDP) and Umbrella for Democratic Change (UDC).
The decision by BLP to face off with BCP has been labelled as a false start for the talks by political observers.