Inside NBFIRA, BPOPF appeal against CMB, Bona Life, Okaile, Collins
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Botswana Public Officers Pension Fund (BPOPF) has called for punitive actions to be taken against Capital Management Botswana (CMB) Chief Executive Officer (CEO) Rapula Okaile.
BPOPF is the appellant in a case where it, together with Non-Bank Financial Institution Regulatory Authority (NBFIRA) are appealing High Court Judge Justice Omphemetse Motumise’s ruling, handed down on 24 April 2018, in which he dismissed NBFIRA’s application to confirm the appointment of Peter Collins as Manager of CMB and did not confirm such appointment.
BPOPF in the case is the first appellant with Non-Bank Financial Institution Regulatory Authority (NBFIRA) being the second while on the other hand CMB is the first respondent, Bona Life the second and with the third being Okaile and Peter Collins is the fourth respondent. According to BPOPF as represented by Senior Counsels Advocates Panayiotis Stais and Stephen Vivian from South Africa, Okaile has been annoying and building up to self-aid in the case.
Stais stated in the appeal case court papers seen by WeekendPost that “BPOPF sought a punitive cost against Oakile. We submit that his conduct in this matter was vexatious and mounted to self-help.” The SA Advocate continued: “accordingly we submit that the appeal should be upheld with costs on the attorney and client scale, including the costs of two Counsels. The orders set in the notice of appeal.”
As such it is submitted in the appeal that the approach adopted by the court a quo in declining to confirm the appointment of Peter Collins, is central to the determination of the appeals outcome. In the highest court in the land, Justice Ian Kirby together with Singh Walia and Jacobus Brand are presiding over the appeal case.
Was BPOPF authorized to bring the counter-application?
Court papers indicate that both appellants (BPOPF and NBFIRA) appealed against the judgements for different reasons. In the counter application at the High Court, BPOPF sought an order placing CMB under statutory management. The order was sought in terms of section 46(1) of the Securities Act. “The court a quo dismissed the counter application on the basis that BPOPF did not have the written consent from NBFIRA that it required in terms of section 46(2) of the Securities Act.”
Justice Motumise also held that the letters from NBFIRA did not effectively ratify the conduct of BPOPF. Meanwhile Motumise also “granted the relief sought in a review application by CMB” and also “dismissed the conditional counter-application launched by Bona Life.”
The relationship between BPOPF and CMB
The appeal court papers also indicate that BOP is an en commandite partnership established in terms of the partnership agreement in November 2014. As at establishment CMB was the General partner of BOP, with a 1% partnership interest, and BPOPF was the only limited partner, with a 99% partnership interest. Moreover CMB was appointed by BOP as its fund manager.
Accordingly, “CMB was the face of BOP. CMB managed and controlled BOP. CMB carried on business on behalf of BOP. BPOPF was obliged to commit capital to BOP and honour capital calls made by CMB for further funds. A total of 477 million has been drawn down,” papers indicate.
In the second half of 2017, the papers state that a dispute arose between CMB and BPOPF. In September 2017, BPOPF issued a call for further funds and BPOPF refused to honour the call because it contended that the call was invalid. “BPOPF issued a notice on 1 December 2017 in terms which it terminated CMB as General Partner (which resulted in CMB automatic termination as fund manager) for cause. It replaced CMB with another entity, Viltry (Pty) Ltd.”
CMB then responded on 11 December 2017 by informing BPOPF that it had already removed BPOPF as limited partner on 28 November 2017 and disposed of BPOPF’s interest in BOP for 50 million. Court papers states: “BPOPF disputes this removal. It says that the call for funding was in breach of the partnership agreement.” It is understood that BPOPF explained to the court that it had set out the underlying basis for its complaint to NBFIRA in its 26 January 2018 letter.
“As the regulator of licensed entities such as CMB, part of NBFIRA’s role is to deal with complaints raised by regulated entities and affected parties,” papers highlight. They stated that “CMB has steadfastly refused to answer the logical question – to whom was the interest of BPOPF disposed and why did CMB only pay P50 million to BPOPF for this interest? Even if CMB was entitled to dispose of BPOPF’s interest in BOP (which is disputed), CMB was required to dispose of the partnership interest for a fair price to BPOPF.”
CMB, they further state that it was never subjected BOP to an independent valuation (as it was required and requested to do) and did not even attempt to explain the difference between its own valuation of BWP 447 million and the alleged on-sale for BWP 50 million and “accordingly there is currently an impasse.”
CMB contends that it has disposed of BPOPF’s partnership interest because of BPOPF’s failure to honour the invalid draw down notice. BPOPF disputes CMB’s right to do so and has removed CMB as General Partner and CMB disputes this and insists on its alleged right to continue acting as the General Partner.
CoA should uphold Motumise ruling, he did not err – Okaile
Meanwhile Michael Collins who is representing CMB and Okaile has requested the CoA to appeal Motumise’s decision insisting that he did not err. He submitted that “the court a quo did not err at all” and that “CMB is entitled to an order dismissing both NBFIRA and BPOPF appeals with costs.”
Judgement will be delivered next week.
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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries
Botswana Telecommunications Corporation Limited (BTC) has announced that its 3rd Francistown Marathon will be held on Saturday 20th April 2024 at Obed Itani Chilume Stadium in Francistown. The BTC Francistown Marathon is officially recognised by World Athletics and a Comrades Marathon Qualifier will offer race categories ranging from 42.2km, 21.1 km, 10km, 5km fun run, 5km peace run for children and has introduced a 5km and 10km categories for wheelchairs athletics.
BTC also used this opportunity to announce beneficiaries who received donations from proceeds made from the 2nd BTC Francistown Marathon that was held on April 23rd 203. BTC donated a play area, plastic chairs and wooden tables for pupils worth a total of thirty eight thousand, one hundred and three pula, fifty thebe each (P38, 103.50) to Monarch Primary School, Tatitown Primary School, Mahube Primary School and Gulubane Primary School. Ditladi and Boikhutso clinics each received a donation of benches, television sets and 10, 000 litre water tanks worth thirty seven thousan, eight hundred and ninety eight pula (P 37, 898.00). Additionally, BTC also donated seventy thousand pula (P70,000.00) to their marathon technical partner, Francistown Athletics Club (FAC) which will be used for daily operations as well as to purchase equipment for the club.
The BTC Francistown Marathon aligns seamlessly with BTC’s corporate social investment programme, administered through the BTC Foundation. This programme is a testament to BTC’s dedication to community development, focusing on key areas such as health promotion. The marathon, now in its third year, not only promotes a healthy lifestyle but also channels all proceeds to carefully chosen charities as part of BTC’s commitment to impactful and sustainable projects.
Speaking at the launch, the BTC Managing Director Mr Anthony Masunga stated that the marathon underscores BTC’s commitment to community upliftment and corporate social investment. He stated that “the annual event which has been in existence since 2016, having taken a break due to the covid and other logistical issues, is instrumental to the economic upliftment of the city of Francistown”. He congratulated all the beneficiaries for having been nominated to receive the donations, adding that “the donation of proceeds from the 2023 marathon aims to highlight BTC’s commitment and heart for Batswana and our continued impact in the different industries”.
He further stated that through this marathon, “we demonstrate our steadfast commitment to having a good influence on our communities, this event is a manifestation of our dedication to promoting education and a healthier, more active society”. He concluded by stating that “BTC looks forward to another successful marathon that will leave a lasting positive influence on the greater Francistown community and the country at large” he said.
Giving welcome remarks, the Councillor for Donga, Honourable Morulaganyi Mothowabarwa stated that “he is ecstatic that BTC is collaborating with the City of Francistown on yet another installment of the Marathon”. He continued to offer his support to BTC to enable this marathon to continue over the coming years, stating that the “CSI element is a welcome development that helps empower our communities”, he said.
The 3rd BTC Francistown Marathon is officially open for registrations and athletes may use the following platforms to register and pay; through Smega by dialling *173# and choosing opton 5, then choose Option 3 for the Francistown marathon, at any BTC store or by visiting the BTC website and clicking on the BTC Francistown Marathon and choosing the relevant options.
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Letsholo lauds President Masisi’s digitization in fight against corruption
Thapelo Letsholo, Member of Parliament for Kanye North, delivered a moving speech at the United Nations International Anti-Corruption Day commemoration, praising President Dr. Mokgweetsi Eric Keabetswe Masisi’s digitalization initiative in the fight against corruption. Letsholo highlighted the importance of embracing digitalization in governance as a crucial step in curbing corrupt practices.
According to Letsholo, the implementation of digital systems in government services can significantly reduce direct interactions between citizens and officials, which often serve as fertile grounds for corruption. By minimizing these opportunities for illicit activities, the efficiency and transparency of public services can be enhanced. Letsholo pointed to Estonia’s success in digital governance as an example, where public services have become more transparent, accessible, and efficient.
The MP commended President Masisi’s commitment to digitalization and E-Governance, emphasizing that it aligns with global anti-corruption standards. He called for full support and active participation from all sectors to ensure the success of this initiative.
Letsholo also stressed the importance of improving detection methods and refining whistleblower laws to effectively combat corruption. He highlighted the unseen and unspoken facets of corruption as its lifelines, emphasizing the need for robust detection mechanisms and a system that encourages and protects whistleblowers.
Addressing the societal role in fighting corruption, Letsholo focused on the crucial role of everyday citizens and civil servants who often witness corrupt practices firsthand. He acknowledged the existing reluctance to report corruption due to the perceived risks of repercussions. To change this narrative, Letsholo advocated for creating an environment where staying silent is deemed more detrimental than speaking out. He called for a cultural shift where the potential benefits of exposing corruption outweigh the risks, ensuring that whistleblowers are protected and feel secure in coming forward.
Letsholo called for collective responsibility and action in creating a system that not only detects and reports corruption but also supports those who stand against it. He expressed hope that under President Masisi’s digitalization initiatives, the future of governance in Botswana will be characterized by integrity, transparency, and accountability. Letsholo’s speech resonated with the sentiments of hope and determination that permeated the commemoration, emphasizing the need for unity in the fight against corruption.
In summary, Letsholo lauded President Masisi’s digitalization initiative in the fight against corruption, highlighting its potential to curb corrupt practices, enhance efficiency and transparency in public services, and align with global anti-corruption standards. He emphasized the importance of improving detection methods, refining whistleblower laws, and creating an environment where speaking out against corruption is encouraged and protected. Letsholo called for collective responsibility and action in creating a future characterized by integrity, transparency, and accountability in governance.
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FaR property assets value clock P1.47 billion
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.