BCL is not likely to resume operation anytime soon, the company provisional liquidator, Nigel Dixon Warren revealed this week Tuesday. Furthermore, Dixon Warren revealed, February 7 2017 contrary to popular belief, is not the date in which the liquidation period ends, but only a return date where the court will decide the final fate of the company.
“There is absolutely no intention to restart operation at the mines , no prospects or what so ever, not anytime soon ,either after February 7th or 1st meeting of creditors and we are looking at possibly beyond 2017,” he said emphasizing that currently there are no resources available to finance operations.
“I have currently placed the mines under care and maintenance, that decision was very paramount to safeguard the assets and preserve the company value,” he explained. Dixon Warren revealed that he was advised by professional smelter experts to shut down the BCL smelter which is the most valuable asset of the company, explaining that it would be very costly to keep it running until final liquidation is complete.
“When I arrived here the Smelter was shut down from 7th October as per order by the main shareholder; the government, but the BCL engineers advised me to restart it and operate it at a warm temperature as it gets damaged and looses value when it’s not operational, but I later engaged an expert who consulted the manufactures of the smelter and we arrived to a conclusion that it would cost us 5 million pula per month on fuel alone to keep the smelter operational , thus I decided to shut it down.”
“It is not usually the procedure within liquidation dealings for the liquidator to address media and issue out information to the public, but considering the amount of public interest in this matter, I have seen it fit to assemble the media and clear out certain misconceptions and misunderstandings making rounds in the publication circles that are also polluting public knowledge consumption,” further highlighted Dixon Warren at the Tuesday press briefing in Selibe Phikwe.
He unpacked that on February the 7th, 2017, the High Court will decide if the companies being BCL Limited, BCL Investments, and Tati Nickel Mine should be placed under final liquidation or the initial reasons presented to the Court can be dismissed. “The order granted in 9th October 2016 to wind up the companies was only a provisional liquidation or rule nisi,” he said. “Per the court order any interested party may apply to high court to prevent the Court not to grant the final order which winds up the company’s liquidation.”
According to him the court can decide to extend the provisional liquidation period and delay the final winding up (complete liquidation) order if it deems it necessary. He further noted that for the final liquidation order to be delayed or not be granted, it would require a clear demonstration satisfactory to the court that the companies were not insolvent.
“That’s to say who ever the interested party logging that application would be, will have to prove beyond reasonable doubt why the winding up petition should be dismissed, of which according to my assessment all the three companies are fatally insolvent, like they have no money or funds or whatsoever and have been making massive losses,” he said.
BEYOND FEBRUARY 7TH 2017
Nigel who is a well experienced professional housed under KPMG Chartered Accountants Advisory observed that it is in the best interest of all the creditors that the companies be finally wound up into liquidation process followed to its conclusion. According to him, “After February the 7th this year, the formal liquidation process commences.” He further added that the winding up process includes holding meetings of creditors and sale of assets, a process he revealed takes months to over a year.
“What happens is that at the return date if there is no application to dismiss the final liquidation order, the Master of the High Court who oversees the liquidation now takes the reins and convenes a formal meeting of creditors.” Furthermore, he revealed, creditors meetings are held so that they (creditors) can prove their claims against the companies (i.e. have them recognized as the creditors in the liquidation) so that they can issue instructions to the liquidator and ultimately receive payment against their claim (a dividend) at the end of liquidation process.
This, he said, would be if there are sufficient funds realized in the sale of assets to cover the costs of the liquidation and pay a dividend to creditors. Warren Dixon also revealed that erstwhile directors of the companies will be required to attend the two meetings of creditors so that they can answer questions by creditors and the liquidator.
“I am only a provisional liquidator appointed by the High Court, at the 1st meeting of creditors, the proven creditors now nominate the final liquidator, this isn’t always the same person as provisional liquidator but in many cases creditors appoint the same person for continuity as the provisional liquidator would already be familiar with the liquidation and insolvent company records,” he explained. He also indicated that at that meeting, he as the provisional liquidator will present a report written in terms of Section 44 of the companies Act.
“This report provides creditors with details of assets and liabilities of the companies and a reason as to why the entities failed in the first place. It was also observed that if the BCL companies are put on final liquidation on the 7th February 2017 it is expected that the first meeting of creditors be held in April 2017.
Dixon-Warren noted that the date of the meeting is not set by the provisional liquidator but by the Master of the High Court. “I have to prepare a report and submit claim forms to all known creditors. Considering that these companies are relatively many I will need time after February 7th to undertake this,” he further stipulated.
The BCL Undertaker further added that the second meeting of creditors of which the reins will be with the final liquidator who might not be him, will give an opportunity to creditors to further prove their claims. “Ordinarily this second meeting occurs between three to six months after the first, and the final liquidator will report on the affairs of estate and will be given direction from the creditors as to the sale of the assets.”
THE RUSSIAN NORILSK MATTER
The Liquidator also cleared misconceptions on the Russian Norilsk matter which has been making rounds , BCL had entered into an a share purchase agreement with Norilsk Nickel Mauritius and Norilsk Nickel International Holdings Limited to acquire Norilsk interest in South African Nkomati Mine and Tati Nickel Mine in Francistown.
Dixon Warren explained that prior to the liquidation there was a dispute between parties to the agreement as to whether the conditions precedent was met and therefore whether the contract has full force and effect. “Since Norilsk has taken the matter to court at the High Court of Botswana and in London, there are no further comments I can make on the issues,” he said observing that once the issue is dealt with at the court of law, if the case went in favor of Norilsk they can approach him and claim their rightful argument as a creditor He also revealed that BCL has a number of creditors which the company had entered into operational contracts with.
He further clarified that Pula Steel, contrary to the belief of many, is not part of BCL or BCL Investment, stating that it’s a separate entity in which BCL has shares and is not affected by BCL’s liquidation. “As a matter of fact Pula Steel owes BCL millions in dividends, it is actually one of the few debtors which will have to pay us soon,” he explained adding that RealZim , MTO, Glecon , Zimbabwean Copper companies also owe BCL a few chunks of millions, but emphasized that BCL creditors sit at billions all together.
Though no formal offers have been made yet and far from being put forth, the liquidator revealed that a number of interested parties, both local and international have expressed interest in the mine. According to Warren any conclusion to sell will be considered after the second meeting of creditors observing that it will only be looked into if it’s in the best interest of the creditors. He however stressed that even if sold, the mine would need time before reopening as it would require restructuring, refurbishment of equipment and re-designing of shafts to start up the mine on profitability.
FORMER BCL EMPLOYESS
“As we all know I was forced to terminate over 4000 employees contracts, I have paid terminal benefits to almost all of them, only just over 180 have not yet received their benefits,” he explained, adding that reasons were that the 180 are still yet to be contacted, some changed addresses amongst other reasons.
He observed that he initially retained about 400 employees to help him with care and maintenance but have reduced the number to just over 350. “I have fired some of my staff and re-hired some of the initially terminated, because I operate under a limited budget and time so I cannot afford incompetent staff,” he asserted.
Furthermore, he revealed that all former BCL employees who occupied staff houses have been allowed to stay in the houses. “We have signed leases with them up to 31st October 2017, and as per our agreement the occupants will not be paying rent in return we want them to keep the houses in good shape and suitable state, however as stated before, occupants will pay for their own utilities bills,” he said”.
BCL which has been in operation for the past 40 years was put under provisional liquidation last year October 9th after operations were halted 2 days earlier. Meanwhile, reports indicate that copper and nickel prices have bounced back by 20%.
While there is no hard-and-fast rule in politics, former Molepolole North Member of Parliament, Mohamed Khan says populism acts in the body politic have forced him to quit active partisan politics. He brands this ancient ascription of politics as fake and says it lowers the moral compass of the society.
Khan who finally tasted political victory in the 2014 elections after numerous failed attempts, has decided to leave the ‘dirty game’, and on his way out he characteristically lashed at the current political leaders; including his own party president, Advocate Duma Boko. “I arrived at this decision because I have noticed that there are no genuine politics and politicians. The current leaders, Boko and President Dr Mokgweetsi Masisi are fake politicians who are just practicing populist politics to feed their egos,” he said.
Former Botswana Democratic Party (BDP) parliamentary hopeful, Lawrence Ookeditse has rejected the idea of taking up a crucial role in the Botswana Patriotic Front (BPF) Central Committee following his arrival in the party this week. According to sources close to development, BPF power brokers are coaxing Ookeditse to take up the secretary general position, left vacant by death of Roseline Panzirah-Matshome in November 2020.
Ookeditse’s arrival at BPF is projected to cause conflicts, as some believe they are being overlooked, in favour of a new arrival. The former ruling party strategist has however ruled out the possibility of serving in the party central committee as secretary general, and committed that he will turn down the overture if availed to him by party leadership.
Ookeditse, nevertheless, has indicated that if offered another opportunity to serve in a different capacity, he will gladly accept. “I still need to learn the party, how it functions and all its structures; I must be guided, but given any responsibility I will serve the party as long as it is not the SG position.”
“I joined the BPF with a clear conscious, to further advance my voice and the interests of the constituents of Nata/Gweta which I believe the BDP is no longer capable to execute.” Ookeditse speaks of abject poverty in his constituency and prevalent unemployment among the youth, issues he hopes his new home will prioritise.
He dismissed further allegations that he resigned from the BDP because he was not rewarded for his efforts towards the 2019 general elections. After losing in the BDP primaries in 2018, Ookeditse said, he was offered a job in government but declined to take the post due to his political ambitions. Ookeditse stated that he rejected the offer because, working for government clashed with his political journey.
He insists there are many activists who are more deserving than him; he could have chosen to take up the opportunity that was before him but his conscious for the entire populace’s wellbeing held him back. Ookeditse said there many people in the party who also contributed towards party success, asserting that he only left the BDP because he was concerned about the greater good of the majority not individualism purposes.
According to observers, Ookeditse has been enticed by the prospects of contesting Nata/Gweta constituency in the 2024 general election, following the party’s impressive performance in the last general elections. Nata/Gweta which is a traditional BDP stronghold saw its numbers shrinking to a margin of 1568. BDP represented by Polson Majaga garnered 4754, while BPF which had fielded Joe Linga received 3186 with UDC coming a distant with 1442 votes.
There are reports that Linga will pave way for Ookeditse to contest the constituency in 2024 and the latter is upbeat about the prospects of being elected to parliament. Despite Ookeditse dismissing reports that he is eying the secretary general position, insiders argue that the position will be availed to him nevertheless.
Alternative favourite for the position is Vuyo Notha who is the party Deputy Secretary General. Notha has since assumed duties of the secretariat office on the interim basis. BPF politburo is expected to meet on 25th of January 2020, where the vacancy will be filled.
Botswana Democratic Party (BDP) big wigs have decided to cancel a retreat with the party legislators this weekend owing to increasing numbers of Covid-19 cases. The meeting was billed for this weekend at a place that was to be confirmed, however a communique from the party this past Tuesday reversed the highly anticipated meeting.
“We received a communication this week that the meeting will not go as planned because of rapid spread of Covid-19,” one member of the party Central Committee confirmed to this publication. The gathering was to follow the first of its kind held late last year at party Treasurer Satar Dada’s place.