BPOPF roars, CMB says bring it on!
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Capital Management Botswana (CMB) says it is unfazed by suggestions that it is being investigated for misappropriation of Botswana Public Officers Pension Funds (BPOPF) monies. The troubled company has through its attorney, Gabriel Kanjabanga insisted that every dealing it had with BPOPF was done in the true spirit of the contract between the two parties.
The CMB management says it has tried in vain to demonstrate and account for the funds committed in the Botswana Opportunity Partnership (BOP), the vehicle that bonded them with BPOPF. “As a private Equity organization there is a limited partner and the General Partner. In this case, BPOPF is the Limited partner and had committed 880 Million Pula to a Fund called BOP. The initial commitment was P500 Million before CMB demonstrated that they had a very good pipeline and potential to invest the funds with good assets.”
According to CMB, there is no hiding from the fact that the following investments were made in the spirit of the contract with CMB: Wilderness Safari at the tune of P150 Million; Kawena Holdings with a cash injection of P150 Million; AGILE University got P50 Million; Cell City t/a GoldWing got a P 50 Million; while Bona Life was given P 50 Million. CMB directors are adamant that the Share Certificates and Shareholders Agreement were availed.
THE KAWENA STORY
However, in the statutory managers’ last report, Kawena, the biggest retail and distributor in SADC was said to be unaccounted for. Kawena Distributors (Pty) Ltd, formerly Manica Mineworkers Suppliers (Pty) Ltd commenced its business operations in 1987. Manica companies have been entrenched in Mozambique for over 100 years. Kawena is a wholly owned subsidiary of Sherewa Investments (Pty) Ltd. The Sherewa Investment Group looks after various businesses in the Southern African region, operating in South Africa, Mozambique and Zimbabwe.
Their core business, Kawena Distributors, has earned the trust of the Mozambican mine-workers through product and service delivery, stretching back almost 30 years and is widely considered an institution in the country. Over the years Kawena diversified, leveraging off the relationships forged with various ministries, principal suppliers and extensive infrastructural networks within Mozambique.
Kawena now has four major business units that encompass: Kawena Distributors, Sherewa Trading, Pemba Business Park and Procurement and the Kawena/ OK Zimbabwe partnership. Since BPOPF has announced that it is all systems go through the statutory manager to locate “missing assets”, it will be interesting to see if this publicly visible company will not share information with the authorities.
BONALIFE VS CMB
According to CMB, they were Bona Life asset Managers. Bona Life had to manage the liability part as CMB managed the asset. According to them this combination emanates from the fact that in an annuity business which Bona Life is involved in, clients purchase annuities with a promise that they will be paid back with interest and this effectively creates a liability. This has to be matched with concomitant assets. “And that would be where CMB gets in to find suitable assets. CMB managed to get three assets namely: Manor Squad in Durban at P60 Million with a return of 10%; BDC flats for 13.5 Million; and Storage Solutions for P60 Million. The total assets aggregate to P133.5 Million.”
According to CMB it became apparent that Regina Vaka (CEO of Bona Life) was not interested in acquisition of tangible assets to meet the liability profile, the business became insolvent to the extent that she requested for recapitalization of P100 Million from CMB. “CMB could not agree to the model of taking funds from clients and putting them in the bank to earn a lesser interest than the one promised annuitants did not make economic sense. Ms Vaka opted to report CMB to the Regulator (NBIFRA) as if CMB was running Bona Life. She continued to report CMB to DCEC for an allegedly missing P133.5 Million which was later accounted for with ease.”
CMB TROUBLES WITH BPOPF
According to CMB management the focus moved to BPOPF since there is an alleged P400 Million missing. “The Courts have been consistent with the fact that the assets for P450 Million have been bought, eliminating issues of misappropriation of funds at the time. The point of contention is to do with those P450 Million assets being disposed for P 50 Million. Effectively CMB is to account for P400 Million worth of assets. This will be very easy to account for in the manner that there is Wilderness Safari at P150 Million; Kawena P150 Million; Cell City at P 50 Million; and Bona Life P 50 Million.”
AGGRIEVED BY THE COURTS
CMB management says Judges in local courts across the country should always reveal their connections to litigants and lawyers. “These links can be social – they may have been law school classmates or share common friends – political, financial or ideological. In some instances the two may have mutual investment interests. They might be in-laws. While it’s unavoidable that such relationships will occur, when they do create a perception of bias, a judge is duty-bound to at the very least disclose that information, and if it creates an actual bias, allow a different judge to take over.”
Could CMB have found themselves sandwiched by politically connected big shots in their case? The Court of Appeal has ruled for all to read. Meanwhile CMB management has one big fear – they posit that experts in the field are of the view that once the assets are muscled from CMB there is a chance that they could be disposed at close to nothing leaving pensioners with peanuts. CMB is also concerned that the DCEC made sure they are stripped of all their sources of funds so that they cannot afford any legal representation.
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DCEC granted warrant to arrest Khama twins
The Directorate on Corruption and Economic Crime (DCEC) has been granted permission to apprehend the former Minister of Environment, Wildlife and Tourism, Tshekedi Khama, and his twin brother Anthony Khama.
Information gathered by this publication suggests that the DCEC is actively searching for the Khama brothers, this is in connection with events that transpired whilst Tshekedi was Minister of Environment. The duo is currently in exile in South Africa together with their elder brother, and former President Lt Gen Ian Khama.
Approximately two weeks ago, the corruption-busting agency discreetly filed for an arrest warrant that was approved by the Broadhurst Magistrate Court for the two to be taken into custody, according to a highly placed source within the government enclave.
DCEC is also said to have filed an affidavit signed by a high-ranking officer known to this publication. Reports indicate that after being presented with details of the case, the Broadhurst magistrate issued the agency an arrest warrant.
It is also believed that the agency has been conducting extensive investigations into the supposed suspects for quite some time. Furthermore, Weekend Post has it on good word that the DCEC has been looking for methods to summon the two for questioning but has been unsuccessful.
According to unconfirmed reports, DCEC met with attorney Victor Ramalepa, who refused to accept the summons, saying that he is not their attorney. Furthermore, it is believed that DCEC has enlisted the assistance of the Botswana Police Service (BPS) in flagging the suspects’ names in the International Criminal Police Organisation INTERPOL.
Responding to WeekendPost enquiries, DCEC spokesperson Lentswe Motshoganetsi said, “I am not in good position to confirm or deny the allegation,” adding that such allegations may fall within the operational purview of the DCEC.
When contacted for comment, Ramalepa briefly stated that he is unaware of the purported arrest warrant. “I know nothing about the warrant and I haven’t been served with anything,” he said.
Meanwhile, former president Lt Gen Ian Khama recently issued a statement stating that DIS is intensifying the harassment and intimidation of him, family, friends and office employees.
“It is reprehensible for state officials and agencies to abuse government resources to terrorise their own citizens for personal gain,” said the former president in a statement.
He also stated that his brother TK’s staff and security were ordered to falsely implicate him. “Their desperate tactics will never work, it only serves to motivate me more to pursue regime change and free Botswana from tyranny,” he said
This comes after the corruption busting agency wants to interview the alleged suspects as they are still hiding in South Africa since last year.
Despite the hostility between government and Khama family going unabated, last month, Masisi extended an olive branch to Khama in political rally, indicating that he hopes the two of them settle their differences, of which the former responded by welcoming the gesture.
Khama further said his brother, Tshekedi, will facilitate the reconciliation of his behalf. Many have indicated that Masisi did not say what he said in good faith, and was only scoring political brownies since he was in Khama’s territory in Shoshong.
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DCEC’s Tshepo Pilane still has his mojo
Tshepo Pilane silenced his critics after being named the head of the Directorate on Corruption and Economic Crime (DCEC) in May of last year and served his opponents humble pie. Many believed he would only last for a month, but almost a year later, he is still standing.
Pilane, a trained soldier whose appointment surprised both the general public and some officers within the DCEC walls, has never glanced back in his duty to steer the DCEC ship forward.
It is alleged that immediately after his appointment the man embarked on a nation-wide trip touring the DCEC offices across the country in order to confirm and reaffirm the DCEC’s mandate. Sources from inside the DCEC claim that Pilane won the hearts of many DCEC employees due to his humility and plain message; “people at the top of the DCEC will come and go but the mandate of the DCEC remains relevant and unchanged.”
Pilane was appointed the Acting DCEC Director General at a time when the organisation was undergoing turbulence through court proceedings in which the suspended Director General Tymon Katlholo had interdicted the Directorate of Intelligence and Security (DIS) from accessing the DCEC premises. At the time, the DIS had raided the DCEC offices in the absence of Katlholo claiming to be looking for high profile corruption cases allegedly held by Katlholo.
At the time Pilane was Head of the DCEC Intelligence Division holding the position of Senior Assistant Director General reporting directly to the Deputy Director General Operations Ms Priscilla Israel. Contrary to his detractors, Pilane who is a reserved and humble person by nature won the support and backing of many DCEC officers due to his unassuming nature.
In a recent questionnaire sent to the DCEC regarding Pilane’s term in office, the DCEC was resolute on its commitment towards the fight against corruption. When quizzed on allegations of rife corruption since he took over, Pilane through his Public Relations (PR) office stated that the corruption landscape in Botswana remains unchanged as the DCEC continues to receive reports on allegations of corruption with sectors such as procurement (tenders and supplies), Transport (licensing and certificates), and land (dubious allocation and collusion) still leading issues reported. This trend has been consistence in the DCEC database for more than 10 years.
When further quizzed on accusations that suggest that due to the infighting at the agency, particularly at the top management, Investigations of cases has dropped significantly the DCEC claimed ignorance to the matter, stating that they are not aware of any “infights” at the DCEC “at the top management”, further stating that, investigations of cases has increased significantly, contrary to the allegations raised. “The DCEC is currently seeking new ways of expediting the investigations in order to fast track its enforcement role,” said the DCEC Head of Public Relations Lentswe Motshoganetsi. He further stated that the DCEC is in pursuit of high profile cases involving money and assets valued over P900 million. Three companies are involved in the scandal and two cases have already been committed to court while on one, investigations are about to be completed.
When WeekendPost inquired about Pilane’s roadmap, the DCEC stated that in the past, anti-corruption interventions were reactive, particularly in dealing with national projects that involve large sums of money. It was further started that in most instances investigating such matters takes a long time and in most instances, the money looted form Government in never recovered. As a result, the DCEC has taken a deliberate stance to attach its officers from the Corruption Prevention Division to be part of the implementation of these projects before, during, and after implementation.
The DCEC cited the Economic Stimulus Programme which, although meant to grow the economy and uplift Batswana from poverty, yielded incidents of corruption and poor workmanship. To date, the DCEC is still grappling with cases as some projects were not done, or were completed with defects beyond repair. Currently the DCEC is involved at the Ministry of Education conducting project risk management in the Multiple Path Ways Program at Moeng College and Maun Senior School. This intervention will spread to other sectors of the economy as part of the DCEC’s corruption prevention strategy.
Of recent, the DCEC has been in the media for all the wrong reasons following leakage of high profile cases and allegations claiming that the executive management is at war with each other more particularly with some within the agency harbouring ambitions to dethrone Pilane from the Directorship.
Although the infighting was denied by Pilane’s Office, he acknowledged that leakage of information is a problem across Government and stated that it is a pain at the DCEC. He however stated that Staff has been cautioned against leakage of investigation information and that they have roped in the Botswana Police to assist in investigating incidents of leakage. He further stated that they have increased continuous vetting and lifestyle audits for DCEC employees in order to enforce discipline.
Pilane’s term comes to an end in May 2023 after serving the DCEC for a year on acting basis. It will be in the public interest to see who will be given the baton to continue the anti-corruption journey if Pilane’s contract is not renewed. The DCEC has seen arrival and departure of Director Generals having alternated the top seat five times in less than seven years.
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Botswana firms ICC support amid arrest warrant for Russian President
The Parliament is set to discuss proposed amendments to the laws related to the International Court Court (ICC). This development coincides with reports that the ICC has issued an arrest warrant for Russian President Vladimir Putin for his alleged role in the conflict in Ukraine.
It is not clear if this is a coincidence. For the fourth time, last year Botswana voted against Russia during the UN General Assembly’s condemnation of Russia’s attack on Ukraine.
The country’s continued support for the ICC is expected to irk other African countries that are still questioning the credibility of the ICC and those have also sworn alligence to Russia.
It has been reported that the Minister of Justice, Ronald Shamukuni, is expected to table the Bill regarding the amendments to the laws concerning the ICC in the Parliament soon.
The Bill seeks to criminalize various international crimes, including genocide, war crimes, and aggression. It also proposes to repeal and replace the 2017 Rome Statute of the ICC with amendments.
The latest Government Gazette indicated that the 2017 Act has some legal and constitutional implications. The proposed amendments seek to address these issues.Therefore, the Bill seeks to replace the 2017 Act with a new statute that will retain some of the provisions that do not conflict with Botswana’s Constitution.
The Bill aims to ensure that the obligations of Botswana as a State Party to the Rome Statute of the ICC do not conflict with the country’s Constitution.
The proposed Act will include addition of the crime of aggression which was not there in the 2017 Act. The proposed Act will remove clauses that conflict with Botswana’s Constitution such as article 17 of the Rome Statute of the ICC which provides that official capacity as Head of State shall in no case exempt a person from criminal responsibility under the ICC Statute.
The import of this provision (which the new law seeks to repeal) is that Botswana Courts will be constrained by section 41 of the Constitution to try a sitting President but the International Criminal Court will not be so constrained.
The proposed Act will also result in the amendment to the extradition Act which will provide for instances where Botswana is unable to extradite, for the Director of Public Prosecution (DPP) to instead prosecute on behalf of the foreign country (ICC) where it is determined that there is sufficient evidence to prosecute and sharing of suspected proceeds of crime and confiscated property with other countries.
“In this regard, the amendment to the Mutual Assistant in Criminal Matters Act empowers the DPP to enter into agreements for the reciprocal sharing of with a competent authority in a foreign country,” reads the note in part.
The Bill also includes a clause dealing with conspiracy which provides that a person who conspires in Botswana to commit an offence, in or outside the territory of Botswana, or who conspires outside Botswana to commit an offence in Botswana commits an offence and is liable to the same penalty as the penalty for the actual offence.
Other provisions of the Bill include those relating to superior orders not being a defence as well as the responsibilities of commanders and other supervisors. Furthermore, the Bill deals with issues such as jurisdiction which allows for proceedings to be instituted against a person under certain circumstances, where an act of constituting an offence under the Bill is committed by any person outside the territory of Botswana.
The Bill also provides that the limitations on certain criminal offences will not be applicable to the offences under the Bill. This means that the Prescriptions Act and other statutory limitations will not be applicable to the offences under the Bill. Other provisions of the Bill include the establishment of regulations and the powers of the Minister to make amendments to laws.
The latest developments involving the ICC have raised concerns about Botswana’s continued support for the court. Some of the countries that are critical of the court include Uganda and Kenya. They believe that the court only targets African countries for its alleged involvement in war crimes. In 2016, South Africa decided to withdraw from the ICC. South Africa was the second African nation to withdraw from the court after Burundi.
The decision by South Africa followed a controversy in 2015 when Sudan’s President Omar Al-Bashir was invited to the country despite an ICC warrant for his arrest. Yoweri Museveni, the Ugandan President, at that time commended South Africa for its decision to withdraw from the court.