Wilderness gives ‘tax haven company’ slice in its Botswana paradise
Mountbatten Limited, a company incorporated in a commonly regarded tax haven jurisdiction of British Virgin Islands, is home and dry in buying Wilderness Holdings’ safari camp known as Xigera Camp in the tourism paradise of Okavango Delta, WeekendPost has established.
This publication understands that, Wilderness Holdings through its subsidiary Okavango Wilderness Safaris has offered to sell its offspring company, Great Explorations (Pty) Ltd, to Mountbatten― a deal which will see the tax haven based foreign corporation owning the Xigeria Camp which is based on Botswana soil. Technically, Xigera Lodge will move from the Botswana tax regime to a regarded tax haven, simply meaning the country will lose on tax revenues of a lodge build on its paradise’s soils to an offshore company in an apparent tax avoidance endeavor.
The country where Mountbatten is registered, the British Virgin Islands, is regarded by many investigators and tax experts as a hub for tax avoidance. The Caribbean Islands is regarded as a tax haven due to the absence of most major forms of taxation in the territory. This has led to the British Virgin Islands being included on most recognized lists of tax havens. The 2016 Panama Papers revealed that over 50 percent of shell companies were set up in the British Virgin Islands.
According to Organization for Economic Co-operation and Development (OECD), a tax haven is a jurisdiction that seeks to make itself attractive to businesses and business owners seeking more favourable tax treatments than those available in their country of origin or residence. A tax haven can also mean a country that offers foreign individuals and businesses little or no tax liability in a politically and economically static environment. Tax avoidance, despite it robbing countries of tax revenue, is not illegal, tax evasion is the one regarded as a crime.
One of the directors of Mountbatten is Michael Tollman who was director of Wilderness Safari Investment and Finance Pty Ltd thirteen years ago and has been Wilderness Holdings Limited deputy chairman since 2010, according to investigations by WeekendPost. Wilderness Safari Investment and Finance Pty Ltd is a subsidiary of a selling company, Wilderness Holdings Limited.
This means Tollman, being a board member of Wilderness may have been involved in the decision making of his own company, Mountbatten, buying Great Explorations. Wilderness is the grandparent company of Great Explorations which owns Xigera Camp. The CEO of Wilderness, Keith Vincent, is currently director of Great Explorations.
Mountbatten, the company on the verge of buying 100 % shares offered in Great Explorations, is a giant hospitality corporation which owns hotels and lodges in the United Kingdom, Ireland, Switzerland, Guernsey and the United States of America. Tollman is also a director of Mountbatten’s holding company The Travel Corporation. He is a member of the wealthy Tollman family which owns a huge worldwide property and hospitality empire. His cousin Brett is the CEO of The Travel Corporation.
Brett’s father Stanley was once a director of top English Premier League team Chelsea. The former Chelsea director’s reputation took a nosedive in 2008 after he pleaded guilty to one count of tax fraud and agreed to pay more than $105 million to the U.S. government in back taxes and various fraud penalties.
Speaking on behalf of Mountbatten because Tollman was abroad and requested her to respond to our questions, Bonnie Jennings told this publication that it remains an anticipation that Mountbatten Limited will acquire the shares in Great xplorations. However Jennings did not comment on Mountbatten being registered in the British Virgin Islands or whether she understands the nature of a business being taken from a certain tax regime to an offshore investment or a tax haven.
Responding via email from South Africa, Jennings said there can never be a case of tax avoidance against Botswana by Great Exploration or Xigera Lodge. She said: “Great Explorations (Pty) Ltd will continue to be based in Botswana and will operate in exactly the same manner as it has before and shall continue to pay tax in accordance with the laws of Botswana, as it has done to date,” said Jennings.
Wilderness Commercial Director and Chief Sustainability Officer Derek De La Harpe confirmed that they have sold Xigera camp to Mountbatten. He also confirmed that Mountbatten director sits on the board of Wilderness. He however did not want to comment on the issue of Mountbatten being incorporated in a regarded tax haven but forwarded our inquiry to the Caribbean islands based entity.
Competition Authority investigating the merger
The Mountbatten acquisition of Great Explorations has also caught the eye of local antitrust body, Competition Authority (CA). Recently the CA received a merger notification for the proposed acquisition of 100% of the issued share capital in Great Explorations owned by Okavango Wilderness Safaris by Mountbatten Limited.
As a result, the Authority further seeks any person or a third party not an interested party to voluntarily submit information about the proposed merger according to section 57(3), of the Competition Act. Also, any stakeholder for or against the acquisition may send views to the Authority within 10 days from the notice, according to the Authority.
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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.