Boom, Kgafela lets the cat out of the bag
Bakgatla Ba Kgafela (BBK) Paramount Chief, Kgafela Kgafela II has revealed that his relations with the government of Botswana have almost normalised. The controversial Bakgatla Ba Kgafela kgosi on Tuesday professed that differences between him and Government have been settled.
Kgafela was responding to his royal uncle, Kgosi Nyalala John Pilane’s submissions during the ongoing Commission of Inquiry into Bakgatla dealings in Rustenburg on Tuesday. Kgafela had to let the cat out of the bag after Pilane scoffed at him demanding that he (Kgafela) return to Botswana and leave them alone in South Africa. He had challenged Kgafela to come back to Botswana and face his problems with the government of Botswana.
During his evidence in chief on Tuesday, Kgosi Kgafela rebuffed Kgosi Nyalala’s sentiments concerning Botswana before a three panel of Commissioners being Chairperson, Advocate Sesi Baloyi; and members, Advocate Mahumani and Professor Moleleki. Kgafela told the commission that, “Concerning Botswana issues, the trouble that I had in Botswana, of which I have told you that I had problems in Botswana. I had serious mathata there. It was my problem as a leader. It comes with the seat,” he said.
He went on to state that his great grandfather, Molefe had his problems and was banished and that his father also had his own problems. “I had my own problems with the Botswana government. It is between me and the Botswana government. It is not relevant to this commission. My problems with the Botswana government, have been solved. They are almost solved, all of them. You see, it is because it is Botswana issues. It is asked in Botswana, you must leave Botswana to Botswana, South Africa to South Africa. Otherwise we mix things and then we get derailed,” cautioned Kgosi Kgafela.
Kgosi Kgolo further argued before the commission that his uncle was demanding from him documents from Home Affairs concerning his citizenship. “And even then, I have said that issue of Kgosi Kgafela’s citizenship is not relevant to this commission, but in any event, it is a matter between me and Home Affairs. My citizenship issue is between me and Home Affairs. And I am a South African by birth,” he averred, adding that it is a birth right which no one can take away from him. “That is just how it stands. I have got my South African birth certificate. I am a citizen and this issue is not relevant.”
Kgosi Kgolo urged the commission to press his uncle to furnish him with the documents he is supposed to give him. The documents he said include among others, bank statements to see how billions of Rands were distributed. It was further Kgafela’s evidence that while he was in Botswana his uncle and his associates were using his name improperly to obtain money from a state owned entity.
He stressed that he as such has a personal interest to see how his name was used to whatever ends. He also said it was unfortunate that his uncle was asking him to produce bank statement regarding some monies he claims to have been sending to him while he was still in Botswana. He said, his uncle as the depositor of the money as he claims, should be in a position to produce that kind of evidence. “But he is not willing to comply despite the fact that he has long been asked to avail such kind of information and a lot more. He is in contempt. He doesn’t respect anyone. He doesn’t respect the law, including you Commissioners. And I have given up on that aspect.”
Kgosi Kgolo’s sentiments concerning his uncle’s attitude towards the law was shared by one of the Evidence Team Leader, Benny Makola. “The consequences of failure on the part of Kgosi Pilane to produce documents, in fact has resulted in this Commission not being able to conclude at least one critical element which in our respectful submission can be separated from the other terms of reference. There has been a lapse of seven months. We have not been able to do any work and I regret just like Kgosi Kgafela I have also given up on how to receive those documents.”
On his part, Kgosi Pilane who was represented by Moshanti Makgale of Setshedi Makgale & Matlapeng Attorneys told the Commissioners that he has received instructions that Kgosi Kgolo is not a South African citizen by birth and that he is born in the USA. “Kgosi Kgolo came to South Africa and he does not have any identity document that identifies him as a South African.
On that account Commissioner we submit to an extent that there is this order that is standing, he cannot appear before you.” He further said they have brought the documents they had in their possession and that whatever information they haven’t produced was because they could not trace them despite diligent search, it save for the minutes of the meetings that were held in camera. “Some meetings were held in camera, so we cannot avail such information.”
KGAFELA’S TROUBLES WITH THE LAW
Kgafela and 35 other tribes’ men were facing 17 charges of floggings in 2010. Kgafela then fled to RSA in May 2012 leaving his then co-accused to dance to the music alone. He failed to show up at court appearances whereupon the application for the warrant was made by the police. The warrant was handling some of his criminal charges, among them escape from lawful custody and unlawful floggings of members of the public in Kgatleng, which were carried out by his regiments, acting on his instructions.
It was this relocation to RSA that caused a fallout between Kgafela and his uncle, Nyalala Pilane. It is reported that Kgafela had unearthed issues of maladministration and misuse of funds after which he demanded an audit of the morafe books of accounts from Nyalala. To further infuriate Nyalala, Kgafela asked him to step down and vacate the Bogosi in Moruleng to him (Kgafela). At this point Kgafela had decided to stay in South Africa permanently. The move led to a sequence of disputes which developed to a chain of court cases before the South African courts and also the formation of the current commission termed ‘Commission of inquiry BBK’.
MINISTER TSOGWANE CONFIRMS
In an interview, the Minister for Local Government Slumber Tsogwane on Wednesday confirmed that it was true that Bakgatla Ba Kgafela chieftainship issue has been resolved. He was asked to comment on Kgosikgolo Kgafela’s point that his issues with Botswana government have been solved, and the minister’s immediate response was that, “yeah, he is right.”
But when asked if he meant that Kgafela could now come to Botswana freely, he said, “I don’t know about his issues with other ministries. Akere he had other issues with Kgathi’s ministry, which is Defence. They should speak for themselves. I am only referring to the issue of chieftainship as he had requested that we reinstate Bana Sekai as his representative here. And we did that recently because Sekai’s issues were also ironed out.”
Business
LLR transforms from Company to Group reporting
Botswana Stock Exchange listed diversified real estate company, Letlole La Rona Limited (“LLR” or “the Company” or “the Group”), posted its first set of group financial statements which comprise the Company and Group consolidated accounts, which show strong financial performance for the six months ended 31 December 2023, with improvements across all key metrics.
The Company commenced the financial year with the appointment of a Deputy Chairperson, Mr Mooketsi Maphane, in order to bolster its governance and enhance leadership continuity through the development of a Board and Executive Management Succession Plan.
At operational level, LLR increased its shareholding in Railpark Mall from 32.79% to 57.79% and proudly took over the management of this prime asset.
The CEO of LLR, Ms Kamogelo Mowaneng commented “During the period under review, our portfolio continued to perform strongly, with improvements across all key metrics as a result of our ongoing focus on portfolio growth and optimisation.
“We are pleased to report a successful first half of the 2024 financial year, where we managed to not only grow the portfolio through strategic acquisitions and value accretive refurbishments but also recycled capital through the disposal of Moedi House as well as the ongoing sale of section titles at Red Square Apartments. The acquisition of an additional 25% stake in JTTM Properties significantly uplifted the value of our investment portfolio to P2.0 billion at a Group level. Our investment portfolio was further differentiated by the quality of our tenant base, as demonstrated by above market occupancy levels of 99.15% and strong collections of above 100% for the period”.
The growth in contractual revenue of 9% from the prior year’s P48.0 million to the current year P52.2 million, increased income from Railpark Mall, coupled with high collection rates, has enabled the company to declare a distribution of 9.11 thebe per linked unit, which is in line with the prior year.
In line with its strategic pillars of ‘Streamlined and Expanded Botswana Portfolio’ as well as ‘Quality African Assets’, the Group continuously monitors the performance of its investments to ensure that they meet the targeted returns.
“The Group continues to explore yield accretive opportunities for balance sheet growth and funding options that can be deployed to finance that growth” further commented the CEO of LLR Ms Kamogelo Mowaneng.
Ms Mowaneng further thanked the Group’s stakeholders for their continued support and stated that they look forward to unlocking further value in the Group.
Business
Botswana’s Electricity Generation Dips 26.4%
The Botswana Power Corporation (BPC) has reported a significant decrease in electricity generation for the fourth quarter of 2023, with output plummeting by 26.4%. This decline is primarily attributed to operational difficulties at the Morupule B power plant, as per the latest Botswana Index of Electricity Generation (IEG) released recently.
Local electricity production saw a drastic reduction, falling from 889,535 MWH in the third quarter of 2023 to 654,312 MWH in the period under review. This substantial decrease is largely due to the operational challenges at the Morupule B power plant. Consequently, the need for imported electricity surged by 35.6% (136,243 MWH) from 382,426 MWH in the third quarter to 518,669 MWH in the fourth quarter. This increase was necessitated by the need to compensate for the shortfall in locally generated electricity.
Zambia Electricity Supply Corporation Limited (ZESCO) was the principal supplier of imported electricity, accounting for 43.1% of total electricity imports during the fourth quarter of 2023. Eskom followed with 21.8%, while the remaining 12.1, 10.3, 8.6, and 4.2% were sourced from Electricidade de Mozambique (EDM), Southern African Power Pool (SAPP), Nampower, and Cross-border electricity markets, respectively. Cross-border electricity markets involve the supply of electricity to towns and villages along the border from neighboring countries such as Namibia and Zambia.
Distributed electricity exhibited a decrease of 7.8% (98,980 MWH), dropping from 1,271,961 MWH in the third quarter of 2023 to 1,172,981 MWH in the review quarter.
Electricity generated locally contributed 55.8% to the electricity distributed during the fourth quarter of 2023, a decrease from the 74.5% contribution in the same quarter of the previous year. This signifies a decrease of 18.7 percentage points. The quarter-on-quarter comparison shows that the contribution of locally generated electricity to the distributed electricity fell by 14.2 percentage points, from 69.9% in the third quarter of 2023 to 55.8% in the fourth quarter. The Morupule A and B power stations accounted for 90.4% of the electricity generated during the fourth quarter of 2023, while Matshelagabedi and Orapa emergency power plants contributed the remaining 5.9 and 3.7% respectively.
The year-on-year analysis reveals some improvement in local electricity generation. The year-on-year perspective shows that the amount of distributed electricity increased by 8.2% (88,781 MWH), from 1,084,200 MWH in the fourth quarter of 2022 to 1,172,981 MWH in the current quarter. The trend of the Index of Electricity Generation from the first quarter of 2013 to the fourth quarter of 2023 indicates an improvement in local electricity generation, despite fluctuations.
The year-on-year analysis also reveals a downward trend in the physical volume of imported electricity. The trend in the physical volume of imported electricity from the first quarter of 2013 to the fourth quarter of 2023 shows a downward trend, indicating the country’s continued effort to generate adequate electricity to meet domestic demand, has led to the decreased reliance on electricity imports.
In response to the need to increase local generation and reduce power imports, the government has initiated a new National Energy Policy. This policy is aimed at guiding the management and development of Botswana’s energy sector and encouraging investment in new and renewable energy. In the policy document, Minister of Mineral Resources, Green Technology and Energy Security Lefoko Moagi stated that the policy aims to transform Botswana from being a net energy importer to a self-sufficient nation with surplus energy for export into the region. Moagi expressed confidence that Botswana has the potential to achieve self-sufficiency in electric power supply, given the country’s readily available energy resources such as coal and renewable sources.
Business
MMG acquires Khoemacau in a transaction valued at P23Bn
MMG Limited, the Hong Kong-based mining company specializing in base metals, has successfully concluded the acquisition of Khoemacau Copper Mine, a state-of-the-art, world-class copper asset nestled in the northwest of Botswana.
On Monday, MMG announced that the acquisition of Khoemacau Mine in Botswana was finalized on 22nd March 2024. “This acquisition enriches the company’s portfolio with a top-tier, transformative growth project and signifies a monumental milestone in the Company’s journey,” MMG communicated in an official statement published on the Hong Kong Stock Exchange.
Upon completion of the acquisition, MMG remitted to the Sellers an Aggregate Consideration of approximately US$1,734,657,000 (over P23 billion), a sum subject to potential adjustments post-Completion.
In addition to the Aggregate Consideration, MMG, in accordance with the Agreement, advanced an aggregate amount of approximately US$348,580,000 (over P4.5 billion) as the Aggregate Debt Settlement Amount, to settle certain debt balances of the Target Group (Cuprous Capital/Khoemacau).
On November 21, 2023, Khoemacau announced that the shareholders of its parent company [Cuprous Capital] had agreed to sell 100% of their interests to MMG Limited.
MMG is a global resources company that mines, explores, and develops copper and other base metals projects on four continents. The company is headquartered in Melbourne, Australia, and has a significant shareholder, China Minmetals Corporation, which is China’s largest metals and minerals group owned by the Government of the People’s Republic of China.
On December 22, 2023, Khoemacau Copper Mining (Pty) Ltd received the approval from the Minister of Minerals and Energy of Botswana regarding the transfer of a controlling interest in the Project Licenses and Prospecting Licenses associated with the Khoemacau Copper Mine, a result of the Acquisition.
The Botswana Competition & Consumer Authority (CCA) on January 29, 2024, notified the market that it had given its approval for the takeover of Khoemacau Copper Mining by MMG Limited.
On January 29, 2024, the CCA issued a merger decision to the market, stating that after conducting all necessary assessments, it was ready to proceed.
The Competition Authority affirmed that the structure of the relevant market would not significantly change upon implementation of the proposed merger as the proposed transaction is not likely to result in a substantial lessening of competition, nor endanger the continuity of service in the market of mining of copper and silver ores and the production, and sale or supply of copper concentrate in Botswana.
Furthermore, the CCA stated that the proposed merger would not have any negative impact on public interest matters in Botswana as per the provisions of section 52(2) of the Competition Act 2018.
Earlier this month, Minister of Minerals & Energy, Lefoko Maxwell Moagi, informed parliament that his Ministry was endorsing the Khoemacau acquisition by MMG Limited. He noted that not only was the company acquiring the existing operation but also committing to an expansion program that would cost over $700 million to double production, create more jobs for Batswana, and increase taxes and royalties paid to the Government.