Botswana Public Officers Pension Fund (BPOPF) is picking up the pieces after their recent high profile court victory against Capital Management Botswana (CMB) and its Chief Executive Officer (CEO), Rapula Okaile.
In the judgement of the case which BPOPF were in pursuance together with Non-Bank Financial Institutions Regulatory Authority (NBFIRA), three Court of Appeal Judges; Justice Ian Kirby, Justice Singh Walia and Justice Jacobus Brand ruled that “the appeals of both the first appellant (BPOPF) and the second appellant (NBFIRA) are allowed.” They also set aside Justice Omphemetse Motumise’s judgement and replaced it to confirm appointment of Peter Collins as Statutory Manager of CMB.
In light of the appointment, BPOPF CEO Boitumelo Molefhe told Weekend Post in an interview this week following a press briefing in Gaborone that Collins has taken charge and BPOPF is banking on him to direct way forward. “We are now going to be guided by CMB new Statutory Manager Peter Collins; he is a very important and key person going forward for all of us,” Molefhe said.
She emphasised that “Collins is going to make recommendations for all of us and they will be looked at by Non-Bank Financial Institutions Regulatory Authority (NBFIRA) and if they agree with them they will be implemented.” The BPOPF CEO also said Collins will lead investigation into a proper inquiry on how they lost close to 500 million pula of pensioner’s funds that was invested in CMB.
“We need a proper inquiry (that will be led by Collins) into how on earth this whole thing happened and that are we likely to receive the lost assets, and which one, including finding out if we can recover further assets beyond Okavango Wilderness and Cell city,” Molefhe highlighted.
According to the pension Fund CEO, they drew some lessons from the whole circus that put 60 billion worth pension fund into risks. “We learnt that next time there should do a thorough due diligence and make sure that they know the customer very well before any partnerships agreements.”
Why BPOPF committed to increase assets: P500 million to P880 million
The BPOPF CEO further told this publication separately after the press conference that initially they had wanted to increase assets they invested at CMB from P500 million to P880 million because they felt it was reasonable. Molefhe explained the transaction: “it was at a time in which the relationship between us as BPOPF and CMB was in good health. They were compliant. They were doing the draw down and they were laying down the money, they were actually investing the money. So we thought it would make a lot of sense to increase the capital which under weighed the dividends and increase them.”
She further observed that they wanted to allow CMB to make that capital rising for the company so as to allow for additional money in which the Advisory board approved it about three months later and that was also done in accordance with the partnerships agreements, Molefhe pointed out. “But shortly after that they started breaching those agreements and that’s when we started reminding them that they have to comply and do their quarterly reports to see their valuations and that is when they disagreed and refused saying they won’t do that.”
Molefhe added: “That is when we went ahead and told them that because of the major breaches and even that additional capital of P880 million is now null and void because there were conditions that they should give the valuation reports and even the auditors were concerned about it asking why they are refusing the valuations.” Private equity, she said, when they come and raise capital with you they need to show you that they have a pipeline and you have to be confident in the pipeline.
Will BPOPF locate the assets and repossess them?
In terms of the assets the BPOPF CEO said, “I think for these two; Okavango Wilderness and Cell City — am still confident that we will repossess them because they were/are still subjects of the court that is they are under Statutory Manager, they were even frozen, there was no trading allowed on them. It is a lot of money to the tune of P150 million and the share keeps increasing and there is also dividend.”
BPOPF appoints new board chairperson Solomon Mantswe
According to BPOPF CEO the Pension Fund has dully constituted new board with 11 trustees. They have also “appointed Solomon Mantswe as Chairman of the board effective 1 July 2018.” He will serve for a 5 year contract. “New board under Mantswe supports us as was evident in the just ended court case. There is a very cordial relationship,” Molefhe told this publication.
CMB wanted to settle matter outside court
In an interesting twist of events, BPOPF CEO also mentioned to Weekend Post in the interview that she heard CMB had wanted to settle the matter outside court although she denied it in the press conference. When asked separately she said “there may have been some kind of attempts to settle the matter outside court. This happened after the matter was lodged before court.
In fact it happened recently, I just heard recently. I heard it was from the CMB side and not BPOPF. It is certainly cannot be from our side as we believed in this case and had great prospects of winning as it turned out.” She insisted on the matter: “From our side we could have engaged our legal team. We never talked about wanting to settle. You just can’t settle by street talk without following due process and rational.”
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.