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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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.