CEO faces 60 days in Jail
The Chief Executive Officer of Itekanele Medical Health Scheme, Solly Reikeletseng has decided not to go down without a fight against the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), which of late is on gear five, shutting down a number of local businesses for alleged non-compliance.
Reikeletseng, whose company started attracting the attention of NBFIRA in July this year, has particularly taken aim at the Chief Executive Officer of the NBFIRA, Oaitse Ramasedi, whom he has cited for contempt in his urgent court application filed on Thursday. Through Maphakwane and Partners, Reikeletseng wants an Order granted declaring NBFIRA and Ramasedi to be liable and in contempt of the Court Order dated 14th July 2017 by refusing to authorize urgent transactions of the Applicant, Itekanele, as ordered.
He is also seeking an Order directing NBFIRA and Ramasedi to specifically authorize urgent transactions of Itekanele relating to the payment of rent, employees’ wages and service providers’ claims within 24 hours. He further wants the court to grant an order directing that should Ramasedi fail to comply within the said 24hours, he be committed to prison for at least 60 days until compliance.
The genesis of the NBFIRA/Itekanele tiff is such that on 13th July 2017, NBFIRA lodged an urgent application before court through which it sought to confirm the temporary closure of Itekanele business; they also soguht to freeze the accounts. However, NBFIRA was further instructed by the court to authorize urgent transactions of Itekanele and that the latter be entitled to conduct such business activities, which shall from time to time be authorized by NBFIRA, pending consideration of the temporary closure of the business.
The judge made it clear that “in the interim the Applicant shall authorize urgent transactions of the Respondent to allow it to maintain its financial obligations”. The Judge had also stated that Itekanele shall be entitled in the interim to conduct business activities it is already handling which shall from time to time be authorized by the NBFIRA pending the resolution of the matter. Furthermore, the Judge said the “Respondent’s existing clients shall continue to be adequately serviced by the Respondent during the period of the temporary closure.”
In an affidavit he deposed on Thursday, Reikeletseng notes that NBFIRA has flagrantly disregarded it and inexplicably refused to comply with the Order to authorize urgent transactions of Itekanele to allow it to maintain its financial obligations.
NBFIRA has refused to pay salaries for Itekanele employees for two months; refused to pay rent for two months and the landlord wants Itekanele out of his building; NBFIRA is also refusing to pay the medical ad scheme’s service providers and on Thursday five of them terminated their relationship with the medical aid scheme. In his affidavit, Reikeletseng points out that he wrote NBFIRA a letter through which he requested that they authorize the payment of employees’ salaries from Itekanele’s BanABC account, the letter was ignored by NBFIRA. The Itekanele Chief wrote a similar letter on 1st August 2017 and it was responded to by NBFIRA attorneys on 9th August 2017 “with a lukewarm and indifferent correspondence”.
Reikeletseng further writes that on 31st July 2017, in pursuit of the said Court Order, he issued a letter to NBFIRA requesting for authorization of certain payments to service providers in the form of medical practitioners, which were due for payment. “I state further that, despite due and repeated demand, Respondents have unwarrantedly refused to authorize urgent transactions in relation to certain payments owing to service providers. Instead, Respondents have employed myriad excuses and delay tactic s, which fly directly in the face of the above mentioned Court Order. It follows, therefore, that the Applicant’s service providers have not been paid for months of July and August 2017, bringing Applicant’s business to a grinding halt.”
The situation has worsened at Itekanele, the landlord’s patience with non-payment of rent has expired. In his affidavit, Reikeletseng indicates that: “..On 31st August 2017, Itekanele received a letter from COLLINS NEWMAN & CO. indicating that –following the award of a default judgement against the Applicant for unpaid rental arrears and the amicable conclusion of a payment plan in relation thereto – Applicant’s (Itekanele) landlord’s patience had expired, owing to Applicant’s inability to honour the aforesaid payment plan, and Applicant was put to terms to make immediate payments plan, or face eviction by 14th September 2017.” Reikeletseng argues that transactions relating to employees’ salaries, rental payments and payments to service providers – undoubtedly constitute urgent, if not essential transactions and fall well within the scope of the court order. “Therefore, the Respondent’s undue and inexplicable failure, neglect or refusal to authorize the same consequently constitutes contempt of court.”
Reikeletseng also reads an insidious agenda on the part of NBFIRA. He writes that on 5th September 2017, NBFIRA filed a replying affidavit in the main application wherein they annexed certain financial statements – and purported to rely on the same as proof of Itekanele’s non-compliance. I state that the aforesaid financial statements were erroneously submitted to NBFIRA and that on 25th August 2017, being well before NBFIRA filed its Replying Affidavit, Itekanele supplied NBFIRA with appropriate financial records and thereby substantially complied with what was required of it.”
According to Reikeletseng Itekanele accounts are liquid and is now and has been, at all relevant junctures, capable of meeting financial commitments, save for NBFIRA’s undue and unreasonable contemptuous conduct. The Itekanele Chief Executive Officer tells the court that the ongoing state of affairs is occasioning immeasurable and irreparable hardship on Applicant’s employees. “In fact, owing to Applicant’s inability to pay its employees’ salaries for two months, the said employees are facing eviction, financial distress and ruin – as monthly rentals have gone unpaid, monthly stop orders have not been honoured and various expenses have not been met, inter alia. In this respect, Itekanele employees have encapsulated their hardships in various formal complaints tendered.”
According to Reikeletseng as a result of the ongoing financial distress, one of the company’s employees – having reached a state of utter despondency – has unsuccessfully attempted suicide and is currently recovering in hospital. He further states that he has been forced to discharge the labour force and allow employees to remain home, pending the resolution of the matter instant, for a lack of a better option.
He further indicates that what NBFIRA has done has caused immeasurable and irreparable harm to the business and finances, as service providers – who Itekanele has been unable to pay – consequently refuse to service clients and this has spurred an unprecedented and catastrophic exodus of Itekanele clients, who are now terminating their membership en masse for lack of service. He states that the initial court order was meant to curtail this very situation. Reikeletseng and his lawyers want an order granted declaring NBFIRA liable and in contempt of Court Order dated 14th July 2017 by refusing to authorize transactions of Itekanele as ordered. He wants NBFIRA to comply failing which Oaitse Ramasedi must be jailed for 60 days.
News
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.”
News
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.
News
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.