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Public servants may lose P500 million

The case between Botswana Public Officers’ Pension Fund (BPOPF) and Capital Management Botswana (CMB) has now taken a legal turn, with BPOPF dragging CMB before the court of law. The case was before the Gaborone High Court on Friday and it is likely to be a marathon case.

At the centre of the case are attempts by the BPOPF to recover P477 million from CMB in the form of assets and cash. It is arguing that the investments made are not in tandem with the agreed investment policy. The most recognized local face behind CMB is Rapula Okaile and he has partnered with South African businessmen. CMB is determined to fight off suggestions by the BPOPF, if the case does not go in the latter’s favour, public servants will be the biggest losers.

But CMB has forced BPOPF to start arguing preliminary matters first. In the active case, the applicant BPOPF is seeking a verdict that they be determined the rightful party to terminate contract with CMB and take over the assets. And on the other hand CMB contends that they are the right party to terminate the contract, not the other way round. This followed an exchange of letters of termination of contract between the two parties a month ago.

BPOPF had three weeks ago written to CMB terminating their contract for persistent breach of the obligation in managing and handling of the funds which they labeled as negligent and an act of misconduct by CMB. They also summoned CMB to return all documentation and assets. In response to this, CMB wrote back to BPOPF a week later that they were actually the ones terminating the contract. Their reason was that BPOPF did not honor the Drawdown notice of Lobatse Clay Works.  CMB then deposited P50 million into BPOPF account citing it was net cash. And BPOPF argument was that the money was short of P420 million.

Should the court grant BPOPF the verdict, BPOPF will then get hold of the records from CMB; get the assets back which are at Bona Life, Wilderness Holdings and Cell City;  do the audit and get to see the valuation of the record as they are of the view that CMB has misused the funds.  BPOPF is also questioning the assets which CMB says they have invested with three other companies namely Kawena, Makuba Airlines and Ajine University. BPOPF says it is not even sure of the existence of the said companies. Kawena was supposed to be a chain of stores competing with Choppies stores according to the records. In the case CMB wins the case, BPOPF will then get nothing from CMB.

The background of the case is that BPOPF entered into an agreement (Advisory and Management Services Agreement 9AMSA) with CMB as the fund of P500 million on 3rd November, 2014. BPOPF at the time committed P500 million. Two years later, BPOPF questioned the way CMB was handling the funds, accusing it of breach of the investment policy. It was then that BPOPF terminated the contract on 30 October, 201, leading to the case before court today. BPOPF also wants all documentation relating to the Fund and to each of the Fund's Investments that are in its possession and which ought to be within its possession in terms of the Partnership Agreement both as its General Partner and Fund Manager.

MOLEFHE HAD SEEN THE SMOKING GUN

This publication learned that when Boitumelo Molefhe joined BPOPF in July 2015 she expressed concern that there were so many loopholes in some of the contracts BPOPF had entered into. She is said to have written to the Board in August 2016 making members aware of the anomalies and the need to take action but she was not successful. Molefhe is said to have asked for a proper valuation of CMB.

Weekend Post is informed that at the time, CMB had only invested in Bona Life. Unfortunately indications are that Molefhe was in her own world as many board members discouraged her from going ahead with the valuation. Board members were convinced that everything looked well and urged Molefhe to let sleeping dogs lie.  Sources point out that some went to the extent of scaring Molefhe by telling her that she was putting her position at risk.

“She demanded that her advice be put in writing as a record that she once demanded that this be done but the board was not willing to do so,” said a source close to the developments.  At some point Molefhe was accused of being trigger happy because every season she was firing one of the Fund managers.  Molefhe is said to have insisted that the board must be vigilant because it was dealing with public money which has to be accounted for. “It is only until recently that she decided to take the bull by its horns and fight this issue of CMB,” said the source. 

“People should understand that these are public funds, it is not somebody’s kitchen where they can do as it pleases them,” said a concerned citizen close to the BPOPF on goings. There was an initial back and forth on the subject of whether to terminate CMB or not. But common sense prevailed and the termination was agreed. On the issue of taking the matter to court the Board unanimously agreed.  A total of P477m was invested in all the six disputed companies and BPOPF wants it returned. BPOPF is represented by Werkmans Attorneys through the local law firm Minchin and Kelly.

A STAND OUT BREACH

BPOPF is taking a strong exception of the breach of the Provisions Relating to Fund Expenses. It notes that Fund Expenses should be reasonably incurred and duly evidenced and should expressly exclude any placement agent fees. It is said that on 3 March 2016, the General Partner drew down an amount of P12,500,000 representing 2.5% of the Total Commitment which BPOPF understood were in respect of Fund Expenses and Organisational Fees. The Drawdown Notice breached the provisions of the Partnership Agreement by not setting out the allocation to each item.

Fund Expenses must be actually incurred by the General Partner before they are reimbursed.  No evidence was provided with the drawdown that such fees were indeed incurred. BPOPF notes that there are caps of 0.25% on each of Fund Expenses and Organisational Fees. It Its concern is that this covers the entire term of the Fund. The capped amount was therefore P2,500,000 over the life of the Fund. Beyond that amount, any expenses of the Fund are to be borne by CMB. The amount drawn down exceeds the capped fees by P10,000,000.

The drawdown was also supposed to cover Management Fees. These are not separately enumerated in the notice but it is noted that the amount of P10,000,000 represents 2% of the Total Commitment whereas the Fund Manager was entitled to 1.5% as a fee. The difference cannot be explained by the reference to cash reserves .

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BODANSA strikes gold with a handsome P45K windfall from Turnstar Holdings

27th February 2024

The Botswana DanceSport Association (BODANSA) has been graced with a financial boon of P45,000 courtesy of Turnstar Holdings. This generous endowment is earmarked for the illustrious Botswana International Dance Sport Grand Prix Championships, which are scheduled to animate Gaborone from Friday to Saturday.

At a media engagement held early today, BODANSA’s Marketing Maestro, Tiro Ntwayagae, shared that Turnstar Holdings Limited has bestowed a gift of P45,000 towards the grand spectacle.

“We are thrilled to announce that this backing will enable us to orchestrate a cultural soirée at the Game City Marque locale, a night brimming with cultural fervor set for March 1, 2024, from 6pm to the stroke of midnight.

This enchanting space will also serve as the battleground for the preliminaries of traditional dance ensembles—spanning the rhythmically rich Setapa to the euphoric beats of Sebirwa, the spirited Seperu, the heavenly Hosana, and more—in a competition folded into the Traditional Dance Groups Category. The ensemble that dances into the judges’ hearts will clinch a grand prize of P10,000,” elaborated Ntwayagae.

He further illuminated that the cultural eve would not only celebrate traditional melodies but also the fresh beats of contemporary dance variants including Hip Hop, Sbujwa, Amapiano, among others, in a dazzling display of modern dance mastery.

Moreover, these championships carry the prestigious recognition by the World DanceSport Federation as a qualifying round for the Breakdance category for the Paris 2024 Olympics. “This is a monumental opportunity for athletes to leap towards their Olympic dreams during one of the penultimate qualifiers,” underscored Ntwayagae.

Looking ahead to March 2, 2024, the festivities will propel into the University of Botswana Indoor Sports Arena for the championship’s climactic showdowns encompassing Breakdance, Latin, and Ballroom Dancing.

 

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Government of Botswana yet to sign, ratify the UN-CRPD

26th February 2024

In Botswana, a beacon of democracy in Africa, the right to participate in the political discourse is a cornerstone of its societal structure. It’s an avenue through which citizens shape the rules and systems that govern their everyday lives. Despite this, recent studies indicate that Individuals with Disabilities (IWDs) are notably absent from political dialogues and face substantial hurdles in exercising their democratic freedoms.

Research within the nation has uncovered that IWDs encounter difficulties in engaging fully with the political process, with a pronounced gap in activities beyond mere voting. The call for environments that are both accessible and welcoming to IWDs is loud, with one participant, who has a physical disability, spotlighting the absence of ramps at voting venues and the dire need for enhanced support to facilitate equitable involvement in the electoral process.

The challenges highlighted by the study participants pinpoint the structural and social obstacles that deter IWDs from participating wholly in democracy. The inaccessibility of voting facilities and the lack of special accommodations for people with disabilities are critical barriers. Those with more significant or intellectual disabilities face even steeper challenges, often feeling marginalized and detached from political engagement.

To surmount these obstacles, there is an urgent appeal for Botswana to stride towards more inclusive and accessible political stages for IWDs. This necessitates a committed effort from both the government and relevant entities to enforce laws and policies that protect the rights of IWDs to partake in the political framework. Enhancing awareness and understanding of the political landscape among IWDs, alongside integrating inclusive practices within political entities and governmental bodies, is crucial.

By dismantling these barriers and nurturing an inclusive political environment, Botswana can live up to its democratic ideals, ensuring every citizen, regardless of ability, can have a substantive stake in the country’s political future.

 

 

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People with Disabilities Face Barriers to Political Participation in Botswana

23rd February 2024

Individuals challenged by disabilities encounter formidable obstacles when endeavoring to partake in political processes within the context of Botswana. Political involvement, a cornerstone of democratic governance, empowers citizens to shape the legislative landscape that impacts their daily existence. Despite Botswana’s reputation for upholding democratic ideals, recent insights unveil a troubling reality – those with disabilities find themselves marginalized in the realm of politics, contending with substantial barriers obstructing the exercise of their democratic liberties.

A recent inquiry in Botswana unveiled a panorama where individuals with disabilities confront hurdles in navigating the political arena, their involvement often restricted to the basic act of voting. Voices emerged from the study, underscoring the critical necessity of fostering environments that are accessible and welcoming, affording individuals with disabilities the active engagement they rightfully deserve in political processes. Noteworthy was the account of a participant grappling with physical impairments, shedding light on the glaring absence of ramps at polling stations and the urgent call for enhanced support mechanisms to ensure an equitable electoral participation.

The echoes reverberating from these narratives serve as poignant reminders of the entrenched obstacles impeding the full integration of individuals with disabilities into the democratic tapestry. The inaccessibility of polling stations and the glaring absence of provisions tailored to the needs of persons with disabilities loom large as formidable barricades to their political engagement. Particularly pronounced is the plight of those grappling with severe impairments and intellectual challenges, who face even steeper hurdles in seizing political participation opportunities, often grappling with feelings of isolation and exclusion from the political discourse.

Calls for decisive action cascade forth, urging the establishment of more inclusive and accessible political ecosystems that embrace individuals with disabilities in Botswana. Government bodies and concerned stakeholders are urged to prioritize the enactment of laws and policies designed to safeguard the political rights of individuals with disabilities. Furthermore, initiatives geared towards enhancing awareness and education on political processes and rights for this segment of society must be spearheaded, alongside the adoption of inclusive measures within political institutions and party structures.

By dismantling these barriers and nurturing a political landscape that is truly inclusive, Botswana can earnestly uphold its democratic ethos and afford every citizen, including those with disabilities, a substantive opportunity to partake in the political fabric of the nation.

 

 

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