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Half billion pula gone as Chinese raided Govt coffers

The Fengyue Glass project shenanigans are refusing to go away, especially after Specially Elected Member of Parliament, Mephato Reatile took aim at the imbalance demonstrable in the sale of the failed plant equipment and 100 hectares of land. But Government has indicated that it was well aware that it will never recover the P500 million gobbled by the briefcase Chinese company behind the glass project.

The inquisitive legislator had asked the Minister of Trade Industry and Investment whether in view of approximately half a billion Pula of public revenues expended on the Botswana Development Corporation (BDC) Fengyue Glass Manufacturing Plant in Palapye, due regard was made by his Ministry in its decision to sell the Plant for the price for which it was sold by the Liquidator. Reatile also wanted to know how much the 100 hectares of the Plant consisting of a glass producing Plant, Power Sub-Station and the Railway Spur was sold for; and how much was realised after the sale of the 100 hectares of the Fengyue Glass Manufacturing Industrial Estates.

Responding directly to Reatile, Assistant Minister, Biggie Butale indicated that in November 2013, the Board of BDC resolved to place Fengyue Glass Manufacturing Botswana (Pty) Ltd under liquidation and a provisional liquidator was appointed. “Liquidation is a process by which a company is dissolved or wound up, and the assets and properties of the company are sold and the proceeds thereof redistributed to shareholders,” he explained.

The Minister apportioned all blame to the liquidator: “the liquidator is responsible for the process of winding up the company which includes receiving all claims from creditors as well as the distribution of assets. The liquidator works under the supervision of the Master of the High Court. As such, BDC as a company nor my Ministry had any control or influence over this process.”

However, Butale confirmed that BDC spent half a billion Pula on the project, but stated that it was not possible to recover the money. “Whilst it is acknowledged that BDC spent half a billion Pula through its investment of debt, equity and purchase of the assets of the Fengyue Glass Manufacturing Plant in Palapye, it should be made clear that it was unlikely that the Corporation would recover the capital invested.”

Further, the minister said the sale conducted by the Liquidator was not in respect of the business and equity. “On the contrary, the sale was in respect of the assets of the company. I should however indicate that a credible, auditable and fair process was used by the Liquidator to value the assets of the entity prior to the sale. The assets of the entity were in this regard valued by a Certified Professional Valuer.” He said the valuation report demonstrated that the technical equipment to be sold was either used, incomplete, considerably deteriorated and/or certainly out of any possible warranty by the manufacturer or the supplier.

Butale the liquidator opted for an online auction to maximise recoveries hence ensuring that as many local and international bidders would have access to the sale. According to the Minister, the auction attracted a total of 2 713 bids of which 60 per cent or 1 628 were from Botswana bidders.

He further indicated that the Ministry could not have any say in the amount to be realised from the sale of Fengyue Glass Manufacturing Plant’s assets through the sale process.  The junior minister said following a valuation of the assets as explained above, the land, plant, power station and railway spur were sold for the sum of P54 382 000.00 inclusive of Value Added Tax. “What remained following the sale of 110 hectares of Fengyue Glass Manufacturing Industrial Estate was sold for P50 million, these being the movable assets.”

Warren Schewitz’s company was awarded an auction by KPMG for the sale of Fengyue Glass Plant. This publication has established that every bidder who participated was FICA registered and had paid a refundable P5000 deposit. In total there were 2 713 bids placed on 79 assets with an average of 34 bids per asset. Weekend Post understands that following the auction, two high bidders, namely G4 Consulting Engineers and Sable Transport of Zambia failed to pay despite numerous and vigorous correspondence. It has been verified that both actually attended the viewing day and wanted to bid for the entire plant and as such bid extensively on almost every item.

In the first planned auction in 2015, no buyers had shown interest in purchasing the BDC’s Fengyue Glass Manufacturing plant. The plant, situated in Palapye, was sold after the project collapsed amid allegations of corruption and was put under liquidation. The Fengyue glass project was expected to create hundreds of jobs for residents of Palapye and surrounding areas. Amongst the company assets that were up for auction is a float glass plant and equipment. An advert on the sale indicates that the float glass is designed to have a daily melting capacity of 450 tonnes of molten glass and designed in compliance with the China Louyang Float Glass Standards.  The majority of the plant and equipment remained in its original packaging. A list of other goods that are on site has been prepared by the contractor, though it has not been independently checked or verified.

The plant also boasts of a 100 hectare piece of land close to the centre of Palapye and has a dedicated electricity substation with a railway spur. Of the area, 1,000 m by 600m has been fenced. There are also 11 temporary accommodation blocks on site. But these have been temporarily rented out to a third party for a period of two years with 18 months remaining on the lease.

Civil engineering works had commenced on most of the plant and required utilities buildings with the foundations been laid. Also, varying degrees of civil steel and concrete had been completed, though the exact level of completeness is not known. The advert further stated that there are also construction plant and equipment consisting of small tools and heavy plant equipment and machinery, as well as assets from office and accommodation blocks for construction workers. The oxygen plant is believed to be complete and the oxygen is on site but in a self-contained area. The oxygen plant consists of three independent buildings outside the area of the plant, but access to it can only be gained through the main entrance of the plant.

Minister recognizes the BDC journey

This is how Assistant Minister Butale began his response to Reatile’s question: “BDC is a company limited by guarantee which was registered on the 15th April 1970. The company has played a pivotal role in pioneering growth in a number of sectors such as; Aviation with Air Botswana, Car rental with Avis Property Development, Hospitality through Cresta Group of Hotels. BDC has led the industrial development drive of Botswana through the likes of; Sechaba Breweries, Nortex Industries, Kromberg and Schubert, Kwena Rocla and Can Manufacturers.

These companies have been important in the creation of sustainable employment for Batswana. Having started off with an investment base of R20 000.00, BDC now has an asset base of P4.2 Billion. Mr Speaker, let me now respond to the Honourable Member’s specific question on the Fengyue Glass project.” The Minister wants the role BDC played in the past in industrialization and employment creation to be recognized, instead of the Fengyue blemish.

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29 SEPTEMBER 2023 Publication

29th September 2023

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BMD disapproves homosexuality

26th September 2023

The newly elected Botswana Movement for Democracy (BMD) Executive Committee led by Pastor Reverend Thuso Tiego has declared their disapproval of homosexuality saying it is anti-Christianity and Botswana culture.

Speaking at a Media Briefing this past week, BMD President Tiego said Botswana has been a country that respects culture hence endorsing homosexuality will be catastrophic.

“Our young generation grew up being taught about types of families, if homosexuality is passed, at what age will our children be introduced to homosexuality?” he rhetorically asked.

He continued: “If we are going to allow homosexuality then the next day, another person will come and say he wants to practice bestiality. What are we going to do because we have already allowed for this one (homosexuality) and at the end it will be a total mess.” Bestiality is sexual relations between a human being and an animal

This according to Tiego will give those people an opportunity thus disrupting known Botswana beliefs. He however dismissed any notion that the decision to condemn homosexuality should not be linked to the top two of the committee who are men of cloth. “This is a decision by the whole committee which respects the culture of Botswana and it should not be perceived that because we are clergymen we are influencing them, but even if we do, politics and religion are inter-related.”

Of late the church and the human rights organization have been up in arms because of the high court decision to allow for same sex marriages. Ministries ganged up, petitioned parliament and threatened to vote out any legislator who will support the idea. The ruling party, BDP which was to table the amendment in the constitution, ended up deferring it.

BMD President further revealed that he is aware of what really led to the split of the party and he is on course to transform as they approach 2024 elections.

“There are so many factors that led to split of party amongst others being leadership disputes, personal egos and ambitions, toxic factionalism and ideological difference just to mention a few, but we are transforming the party and I am confident that we will do well in the coming elections.

In addition, Tiego is hopeful that they will take the government as they feel it is time to rebrand Botswana politics and bring in fresh blood of leaders.

He further hinted that they are coming with positive transformation as they eye to better the lives of Batswana.

“When we assume government, we promise to be transparent, free and fair electoral processes and encourage pluralism as way of getting back to our roots of being a democratic country as it seems like the current government has forgotten about that important aspect,” Tiego explained.

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North Korea diplomats in suspected illegal ivory trade

26th September 2023

Reeling under the increasing barrage of stinging international sanctions, the isolated North Korean regime is reportedly up to its old trickery, this time in a more complicated web of murky operations that have got the authorities of five southern African countries at sixes and sevens as they desperately try to tighten their dragnet around Pyongyang’s spectral network of illicit ivory and rhino horn trade.

It is an intricate network of poaching for elephant tusks and rhino horns that spans Botswana, Mozambique, South Africa and Zimbabwe, with the main sources of the contraband being Botswana and South Africa.

The syndicate running the illegal trafficking of the poached contraband is suspected to be controlled by two shadowy North Korean government operatives with close links to one Han Tae-song, a disgraced North Korean career diplomat who, while serving as the second secretary at his country’s embassy in Harare, Zimbabwe, was expelled in 1992 after he was fingered as the mastermind behind a similar illegal ring that was busted by the country’s authorities.

This disturbing tale of malfeasance by North Korean state actors is as real as it gets.

Recent reports indicate that authorities in the source countries are jointly battling to plug holes created by the shadowy syndicate which allegedly has on its payroll, park rangers, border officials and cross-border truck drivers.

Even more disturbing are allegations that some wildlife officials are conniving in misrepresenting numbers of retrieved rhino horns and ivory from poachers and getting kickbacks for their involvement in the pilfering of ivory and rhino horns from government stockpiles especially in South Africa.

In a shocking and well-orchestrated movie-style heist in South Africa, thieves in June this year made off with 51 rhino horns after breaking into a very secure government stockpile facility of the North West Parks Board (NWPB).

While some suspects from South Africa and Malawi were nabbed in a government sting operation, none of the rhino horns – 14 of which were very large specimens that can fetch serious money on the black market – were recovered.

A report of the heist said the police were lethargic by eight hours in responding to an emergency alert of the robbery which was described by North West police spokesperson Brigadier Sabata Mokgwabone as “… a case of business robbery…”

Thabang Moko, a security analyst in Pretoria says the military precision in the burglary, delays in police response, and failure to recover the stolen rhino horns is dubious. “This development lends credence to suspicions that some government officials could be part of a shadowy syndicate run by foreign buyers of rhino horns and ivory,” Moko says.

It is understood that in light of the rhino horns heist in North West, South Africa’s Minister of Environment, Forestry and Fisheries, Barbara Creecy on 1 August, shared her concerns to her counterparts in Botswana, Zimbabwe and Mozambique calling for greater regional cooperation to combat the illegal wildlife trafficking which she believes is being masterminded by the Far East’s buyers of the ill-gotten horns and ivory.

It is believed that foreign kingpins involved in perpetuating the illegal trade are mainly North Koreans vying against Vietnamese and Cambodian buyers in the quest for dominance of the illicit trade in rhino horns and ivory sourced from southern Africa.

Creecy’s concerns, which she also shared to South Africa’s state-run broadcaster SABC, echoed Moko’s worries that the North West heist may have been an inside job.

According to Creecy, there was a need for the International Criminal Police Organisation (Interpol)’s greater involvement in joint investigations by affected countries as there were indications of ‘local knowledge’ of the North West job and that syndicates, “Higher up the value chain actually recruit park rangers to the illegal ivory trade network.”

Botswana’s Environment and Tourism Minister Philda Kereng is on national record admitting that poaching was a source of headaches to her government, especially considering that the daring poachers were making successful incursions into secure areas protected by the Botswana Defence Force (BDF).

This came after poachers gunned down two white rhinos at the BDF-protected Khama Rhino Sanctuary in August 2022 despite Kereng putting the time frame of the killings between October and November 2022.

Kereng hinted at the existence of Asian controlled syndicates and acknowledged that the surge in poaching in Botswana is driven by the “increased demand for rhino horn on the international market” where in Asia rhino horns are believed to be potent in traditional medicines and for their imagined therapeutic properties.

Botswana has in the past recorded an incident of a group of an all-Asian reconnaissance advance team teams being nabbed by the country’s intelligence service in the Khama Rhino Sanctuary.

Masquerading as tourists, the group, with suspected links to North Korea and China, was discovered to be collecting crucial data for poachers.

Also according to reliable information at hand, an undisclosed number of wildlife parks rangers were arrested between September 2022 and January this year, after information surfaced that they connived in the smuggling of rhino horns and ivory from Botswana.

One of the rangers reportedly admitted getting paid to falsify information on recovered horns and ivory which were smuggled out of the country through its vast and porous eastern border with South Africa, and making their way to their final destination in Mozambique via back roads and farmlands in South Africa and Zimbabwe.

“We are aware that in the past year, some rhino horns and ivory illegally obtained from Botswana through poaching activities and shady deals by some elements within our wildlife and national parks department, have found their way out of the country and end up in Mozambique’s coastal ports for shipment to the Far East,” a Department of Wildlife and National Parks (DWNP) source says.

Independent investigations reveal that two North Korean buyers, one of them only identified as Yi Kang-dae [confirmed to be an intelligence official in the country’s state security apparatus], acting on behalf of the disgraced Han Tae-song, financed the entire operation on two occasions between 2022 and 2023, to move at least 18 rhino horns and 19 elephant tusks from Botswana, including pay-offs – mostly to border patrol and customs officials for safe passage – along the knotty conduit across South Africa’s north western lands, then across south-eastern Zimbabwe into Mozambique.

According to a trusted cross-border transport operator in Zimbabwe, the rhino horns and elephant tusks were illegally handed over to smugglers in Mozambique at an obscure illegal crossing point 15km north of Zimbabwe’s Forbes Border Post in November 2022 and February this year.

The end buyers in Mozambique? “It is quite an embarrassment for us, but we have solid evidence that two North Korean buyers, one of them who is linked to a former notorious diplomat from that country who has been in the past involved in such illegal activities in Zimbabwe, oversaw the loading of rhino horns and ivory onto a China-bound ship from one of our ports,” a top government source in Maputo said before declining to divulge more information citing ongoing investigations.

 

Yi Kang-dae and his accomplice’s whereabouts are presently unclear to Mozambican authorities whose dragnet reportedly recently netted some key actors of the network. Han Tae-song currently serves as North Korea’s ambassador to the United Nations in Switzerland.

North Korean diplomats have in the past used Mozambique as a final transit point for the shipment of rhino horns to the Far East.

In May 2015, Mozambican authorities nabbed two North Koreans, one of them a Pretoria-based diplomat and political counsellor identified as Pak Chol-jun after they were caught in possession of 4.5kg of rhino horn pieces and US$100,000 cash.

Pak’s accomplice, Kim Jong-su, a Taekwondo instructor also based in South Africa, was fingered as a North Korean spy and returned to North Korea under suspicious circumstances on the heels of Pak’s expulsion from South Africa in November 2016.

A security source in Zimbabwe closely following current developments says there is a big chance that Han Tae-song may have revived the old smuggling network he ran while posted in Zimbabwe in the 90s.

“The biting international sanctions against North Korea in the past decade may have prompted Han to reawaken his network which has been dormant for some time,” the source says. “There is no telling if the shady network is dead now given that Han’s two front men have not been nabbed in Mozambique. More joint vigilance is needed to destroy the operation at the source and at the end of the line.”

North Korean diplomats have, as early as October 1976, been fingered for engaging in illegal activities ranging from possession of and trade in ivory pieces, trade in diamonds and gold, the manufacture and distribution of counterfeit currencies, pharmaceuticals, and the sale on the black market, of a paraphernalia of drugs, cigarettes, alcohol and other trinkets on the back of protracted and biting international sanctions against the reclusive state for its gross human rights abuses against its own people and flagrant nuclear tests.

These illegal activities, according to a US Congressional Research Service (CRS) report, have raked in at least US$500m annually for the Pyongyang regime. Other global studies estimate that North Korea’s illegal earnings from the black market are around $1bn annually, and are being channelled towards the country’s nuclear weapons programme, while ordinary North Koreans continue to die of mass starvation.

In February 2014, Botswana, citing systematic human rights violations, severed ties with North Korea with the former’s president Mokgweetsi Masisi (then vice president) calling North Korea an ‘evil nation’ on 23 September 2016, at a United Nations General Assembly forum in Washington, USA.

Botswana has close to 132,000 elephants, more than any of its four neighbouring countries, namely Angola, Namibia, Zambia and Zimbabwe, according to a 2022 Kavango Zambezi Transfrontier Conservation Area (KAZA TFCA) Elephant Survey.

The rhino population in Botswana has significantly dwindled, with poaching a leading cause of the decimation of the country’s rhinos. Despite dehorning and relocating its diminishing rhino population from the extensive Okavango Delta to undisclosed sanctuaries, Botswana has since 2018, lost 138 rhinos to poachers.

The sharp spike in rhino poaching in Botswana came after the country’s government made a controversial decision to disarm park rangers in early 2018.

In a statement delivered in November 2022 to the Convention on International Trade in Endangered Species (CITES) CoP-19 in Panama, the Botswana government instead blamed the surge in poaching to a shift of foreign-sponsored organised poaching organisations from South Africa to Botswana.

“This increase in rhino poaching in Botswana coincided with a decline of rhino poaching in South Africa from 2018 to 2020, suggesting a displacement of the poaching syndicates from South Africa to Botswana,” the statement reads. “The recent decline in rhino poaching in Botswana (2021 and 2022, relative to 2020) coincides with the increase in rhino poaching in Namibia and South Africa, further suggesting displacement of the poaching syndicates across the sub-region.”

According to the Botswana government, as of 13 November 2022 the country has secreted its shrinking rhinos (only 285 white rhinos and 23 black rhinos) in undisclosed locations within the country’s borders.

South Africa has close to 15,000 rhinos. Between January and June 2022 alone, poachers killed 260 rhinos in South Africa for their horns. The country is home to the majority of Africa’s white rhinos, a species whose existence remains under threat of extinction due to poaching.

The major threat posed by foreign state actors including those from North Korea, to southern Africa’s rhino and elephant population remains grim as the bulk of the rhino horns and elephant tusks reportedly continue finding their way to the Far East, where China is being used as the major distribution centre.

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