Former Zimbabwean Vice President Phelekezela Mphoko’s son and non-executive director of Choppies Zimbabwe, Siqokoqela, has been charged with 170 counts of fraud after allegedly making unauthorised cash pick-ups of up to $52,000 from Choppies retail outlets in Zimbabwe.
This ongoing court case has also been linked to his ongoing shareholder dispute with other Choppies shareholders in Botswana. Siqokoqela, 40, has already appeared before Bulawayo magistrate Sithembiso Ncube and was remanded to September 14 on $200 bail. The case was expected to go for trial this week but was postponed to next week after it emerged that some files were not duly served on the defence.
Furthermore, Siqokogela’s wife, Nomagugu, 36, was charged with 49 counts of extortion. She is accused of swiping-for-cash at 15 supermarkets and threatening to have managers of Indian origin sacked if they refused to give her cash, which is scarce in Zimbabwe. They are both represented by Professor Welshman Ncube of Mathonsi Law Chambers.
Siqokoqela, being a shareholder and director of Nanavac Investments Private Limited trading as Choppies Zimbabwe, is accused of deceived employees that he was entitled to receive certain amounts of money and services. Choppies Zimbabwe is represented by Ottapathi Ramachandran who is the group CEO for Choppies Distribution Centre Private Limited and Choppies Enterprises.
Siqokoqela is a shareholder and one of the six directors of Choppies Zimbabwe. He is currently disputing the shareholding structure as presented by Ramachandran and other directors. Siqokogela is claiming that the 51% he holds has capital interest while the Botswana based Choppies directors point out that he only has 7% economic interest.
THE SHAREHOLDING DISPUTE EXPLAINED
Choppies was approached by Raj Modi who is currently deputy Trade Minister in Zimbabwe to buy 7 stores from him. At the time he had won 7 Spar outlets. After agreeing on a price to buy the business from Modi, Choppies had the task of looking for a local partner to satisfy the Zimbabwe law at the time which stipulated 51 percent for locals and 49 percent shareholding split for locals.
Siqokogela who was by then working for Capital Management Botswana (CMB) as a clerk approached Choppies and promised to deliver a local partner in Zimbabwe, who was his father Phelekezela Mphoko. At the time Mphoko was Zimbabwe Ambassador to South Africa and had indicated that he will be retiring in six months’ time and relocating to Zimbabwe. Choppies proceeded by acquiring a $20 million loan in Zimbabwe and pumping in P5 million from its Botswana operations.
This was in 2013 and 8 stores were opened to start the business. Today Choppies Zimbabwe operates 35 stores, employs 2200 employees with 85% of the products sold in outlets sourced locally. At this stage Mphoko (who had returned to Zimbabwe in December 2013 as a retiring diplomat) still had 7% economic interest and 51% shareholding in Choppies Zimbabwe to satisfy the country’s regulatory environment then.
The other Choppies shareholders remained with 93% economic interest and 49% shareholding for voting rights. Communication between Choppies Distribution and Mphoko indicates that he was given shareholding on silver plate, he did not contribute a dollar, furthermore he was not holding any political office at the time he was given the shares. Choppies Distribution Centre was given the full control to operate the business.
HOW MPHOKO’S SON CAME INTO THE PICTURE
Siqokogela was somewhere between 2014 and 2015 given a job as a Business Development Manager in Choppies Zimbabwe. There were a number of political twists in Zimbabwe at the time and his father, Phelekezela was later appointed Vice President of the Republic of Zimbabwe in 2015. This then forced Choppies shareholding to push him to step down as director because of his political office, although there was a bit of resistance, he ultimately resigned. However he continued getting his 7% economic interest.
Government changed in Zimbabwe in 2017 after Robert Mugabe was removed from the Presidency and Emmerson Mnagagwa ascended to power. With some of his changes, the 51/49 percent legal instrument was no longer applicable and Mphoko was informed by other shareholders that the shares arrangement needed to be fixed.
There is back and forth communication on this subject, with the Mphoko side avoiding deliberating or engaging on it until he was removed from the Vice Presidency. This is where Mphoko’s son started getting involved on the matter indicating that they were not agreeable to the proposals from the other shareholders.
With cash running dry in Zimbabwe and Phelekezela having retired with no consistent income, the war for the control of Choppies Zimbabwe economic interest was inevitable. Weekend Post gathers that the Choppies CEO, Ramachandran was instructed by Choppies chairman, Festus Mogae fly to Zimbabwe and lay fraud charges against Siqokogela after they discovered that he was cashing money from Choppies outlets. The Zimbabwe Commercial Crimes Unit has slapped him with 170 charges. At no point during this business relationship were the Mphokos signatories to the bank.
During this tiff with Mphoko junior, Choppies found itself in accusations of money laundering and false investigations being linked to their business. Choppies Zimbabwe has a restraining order against Siqokogela so that he does not enter the outlets or come near employees. It has also emerged that the other shareholders have an option to buy 44% of his shares for $1. The company has two classes of shares – the economic interest and voting rights shares.
Former Umbrella for Democratic Change (UDC) Member of Parliament for Gaborone North, Haskins Nkaigwa has confirmed his departure from opposition fold to re-join the ruling Botswana Democratic Party (BDP).
Nkaigwa said opposition is extremely divided and the leadership not in talking terms. “They are planning evil against each other. Nothing much will be achieved,” Nkaigwa told WeekendPost.
“I believe my time in the opposition has come to an end. It’s time to be of value to rebuilding our nation and economy of the country. Remember the BDP is where I started my political journey. It is home,” he said.
“Despite all challenges currently facing the world, President Masisi will be far with his promises to Batswana. A leader always have the interest of the people at heart despite how some decisions may look to be unpopular with the people.
“I have faith and full confidence in President Dr Masisi leadership. We shall overcome as party and nation the current challenges bedevilling nations. BDP will emerge stronger. President Masisi will always have my backing.”
Nkaigwa served as opposition legislator between 2014-2019 representing Botswana Movement for Democracy (BMD) under UDC banner. He joined BMD in 2011 at the height public servant strike whilst Gaborone City Deputy Mayor. He eventually rose to become the mayor same year, after BDP lost majority in the GCC.
Nkaigwa had been a member of Botswana National Front (BNF), having joined from Alliance for Progressives (AP) in 2019.
Botswana has received assistance worth over P100 million from Japanese government since 2019, making the latter of the largest donors to Botswana in recent years.
The assistance include relatively large-scale grant aid programmes such as the COVID-19 programme (to provide medical equipment; P34 million), the digital terrestrial television programme (to distribute receivers to the underprivileged, P17 million), the agriculture promotion programme (to provide agricultural machinery and equipment, P53million).
“As 2020 was a particularly difficult year, where COVID-19 hit Botswana’s economy and society hard, Japan felt the need to assist Botswana as our friend,” said Japan’s new Ambassador to Botswana, Hoshiyama Takashi.
“It is for this reason that grants of over P100 million were awarded to Botswana for the above mentioned projects.”
Japan is now the world’s fourth highest ranking donor country in terms of Official Development Assistance (ODA).
From 1991 to 2000, Japan continued as the top donor country in the world and contributed to Asia’s miracle economic development.
From 1993 onwards, the TICAD process commenced through Japan’s initiative as stated earlier. Japan’s main contribution has been in the form of Yen Loans, which are at a concessional rate, to suit large scale infrastructure construction.
“In Botswana, only a few projects have been implemented using the Yen Loan such as the Morupule “A” Power Station Rehabilitation and Pollution Abatement in 1986, the Railway Rolling Stock Increase Project in 1987, the Trans-Kalahari Road Construction Project in 1991, the North-South Carrier Water Project in 1995 and the Kazungula Bridge Construction Project in 2012,” said Ambassador Hoshiyama.
“In terms of grant aid and technical assistance, Japan has various aid schemes including development survey and master planning, expert dispatch to recipient countries, expert training in Japan, scholarships, small scale grass-roots program, culture-related assistance, aid through international organizations and so on.”
In 1993, Japan launched Tokyo International Conference on African Development (TICAD) to promote Africa’s development, peace and security, through the strengthening of relations in multilateral cooperation and partnership.
TICAD discuss development issues across Africa and, at the same time, present “aid menus” to African countries provided by Japan and the main aid-related international organizations, United Nations (UN), United Nations Development Programme (UNDP) and the World Bank.
“As TICAD provides vision and guidance, it is up to each African country to take ownership and to implement her own development following TICAD polices and make use of the programmes shown in the aid menus,” Ambassordor Hoshiyama noted.
“This would include using ODA loans for quality infrastructure, suited to the country’s own nation-building needs. It is my fervent hope that Botswana will take full advantage of the TICAD process.”
Since then, seven conferences where held, the latest, TICAD 7 being in 2019 at Yokohama. TICAD 7’s agenda on African development focused on three pillars, among them the first pillar being “Accelerating economic transformation and improving business environment through innovation and private sector engagement”.
“Yes, private investment is very important, while public investment through ODA (Official Development Assistance) still plays an indispensable role in development,” the Japanese Ambassador said.
“For further economic development in Africa, Japan recognizes that strengthening regional connectivity and integration through investment in quality infrastructure is key.”
Japan has emphasized the following; effective implementation of economic corridors such as the East Africa Northern Corridor, Nacala Corridor and West Africa Growth Ring; Quality infrastructure investment in line with the G20 Principles for Quality Infrastructure Investment should be promoted by co-financing or cooperation through the African Development Bank (AfDB) and Japan.
Japan also emphasized the establishment of mechanisms to encourage private investment and to improve the business environment.
According to the statistics issued by Japan’s Finance Ministry, Japan invested approximately 10 billion US dollars in Africa after TICAD 7 (2019) to year end 2020, but Japanese investment through third countries are not included in this figure.
“With the other points factored in, the figure isn’t established yet,” Ambassador Hoshiyama said.
The next conference, TICAD 8 will be held in Tunisia in 2022. This will be the second TICAD summit to be held on the African continent after TICAD 6 which was held in Nairobi, Kenya, in 2016.
According to Ambassador Hoshiyama, in preparation for TICAD 8, the TICAD ministerial meeting will be held in Tokyo this year. The agenda to be discussed during TICAD 8 has not yet been fully deliberated on amongst TICAD Co-organizers (Japan, UN, UNDP, the World Bank and AU).
“Though not officially concluded, given the world situation caused by COVID-19, I believe that TICAD 8 will highlight health and medical issues including the promotion of a Universal Health Coverage (UHC),” said Hoshiyama.
“As the African economy has seriously taken a knock by COVID-19, economic issues, including debt, could be an item for serious discussion.”
The promotion of business is expected to be one of the most important topics. Japan and its partners, together with the business sector, will work closely to help revitalize private investment in Africa.
“All in all, the follow-up of the various programs that were committed by the Co-Organizers during the Yokohama Plan of Actions 2019 will also be reviewed as an important item of the agenda,” Ambassador Hoshiyama said.
“I believe that this TICAD follow-up mechanism has secured transparency and accountability as well as effective implementation of agreed actions by all parties. The guiding principle of TICAD is African ownership and international partnership.”
Directorate on Intelligence Services (DIS) Director General, Brigadier Peter Magosi is said to be hell-bent and pushing President Mokgweetsi Masisi to reshuffle his cabinet as a matter of urgency since a number of his ministers are conflicted.
The request by Magosi comes at a time when time is ticking on his contract which is awaiting renewal from Masisi.
This publication learns that Magosi is unshaken by the development and continues to wield power despite uncertainty hovering around his contractual renewal.