Former cabinet Minister, Jacob Nkate, has said he still have presidential ambitions ahead of 2019 general election despite chickening out of Botswana Democratic Party (BDP) July Congress chairmanship race.
Nkate who had initially declared that he will contest the chairmanship in Tonota has resorted to the secretary general position where he will face the incumbent, Botsalo Ntuane and Assistant Minister of Health and Wellness, Phillip Makgalemele. In his own view, the secretary general position is more prestigious as compared to the chairmanship since the former will put him at the helm of the party and its structures.
“I decided after getting here than I can make better contribution to party in the position of secretary general as opposed to the chairman,” he told this publication in an exclusive interview this week. “It is because the secretary general is the melting pot of all issues in the BDP; you get to travel around the country to help the structures, form the structures and supervise them. I think that is something I am good at. I have done it before.”
Nkate who served as party secretary general from 2007-2009 remark that the position of the secretary general is a much more challenging position in terms of making the party a success, as compared to that of chairman. He said although he support Masisi for the chairmanship at the upcoming congress, the two of them did not reach any deal to offer Masisi free passage to the top in exchange for the vice president position in 2019.
“The idea that I have a deal with Masisi and that he will make me vice president is not true. No deal like that exists,’ he denied and added that, “Upon arriving in a country from Japan, I thought let me hear what the situation is on the ground and my conclusion was that maybe I should support him so that I do not cause too much disruptions in my party. And then we can take it from there. If between now and 2019, me and Masisi do not agree, my rights are on the table. All the options are on the table.”
Nkate stated that he decide not to challenge Masisi because his priority is 2019 but between now and 2019 he will look at the situation if the need arises for him to compete, he will compete. He said although he had made a decision not to challenge Masisi for the chairmanship, it is a good thing that they are others who have expressed interest in contesting for the chairmanship.
“It is their constitutional right, it is a good thing and it is always a good thing when an organisation of the size of the BDP goes to congress for people to express their views. The fact that I am not standing against Masisi is a personal choice and I am not going to criticise anyone for standing,” he stated. Nkate said it is impossible for a party of BDP’s size to have people agreeing all the time, noting that it is a normal thing for people to hold different views and such should be embraced.
“The BDP has 580 000 registered members in the whole country. You want all 580 000 members to agree? We will never agree. If Botsalo [Ntuane] happens to be on the other side and I am on the other side, I think it is a healthy conversation. He is a very intelligent man and I am happy to engage him,” he said confidently.
“People who say they do not want factions, they themselves are a faction. People make look bad if I disagree with others, they say I should follow blindly. It’s not going to happen. The idea that someone like me should be quiet is wrong. I am a voice and this voice must be heard,” Nkate further stated.
ON BDP DECLINING POPULARITY
The former Minister of Education is of the view that the BDP has detached itself from the citizens, something he attributes to the declining popularity of the party. The 2014 general elections dealt BDP a blow, losing unprecedented 20 seats to opposition parties and gaining a popular vote below 50 percent for the first time since independence.
‘I think the BDP needs to reconnect with the people; to have a message that resonates with the people. I do not think people are hearing us, we need to re-message and recalibrate. We need to understand what the biggest concern of the people is. We need to hear the people and people should hear us,” he noted.
“Unemployment: huge problem, we must be able to say to people what we are doing. Health; in a lot of hospitals in Botswana, people are sleeping on the floor and in passages. I am not criticising my party. I am saying let us talk about these issues.” Nkate said the entire government machinery is engulfed with problems which people are not happy about, something which he said BDP should swiftly move to address if it is to endear itself to the voters again.
“35 percent pass rate at secondary junior level is bad, people are not happy about these. We are not a corrupt country, we do not believe in corruption but there is a perception that people can do whatever they like without anything done to them. These are the issues I want my party to engage with the people about,” he remarked.
The former A-Team faction leader insists that BDP has to find its connection with the people, and for them to do that they have to allow the people to talk to them, and to believe that they are being heard: “You do that by opening your ears, opening your eyes, opening your heart. It’s all about running an effective government.”
ON GOVERNMENT RELATIONSHIP WITH THE WORKERS
Nkate opined that the government have got it wrong; the manner in which it has been handling issues regarding workers and their unions. Since the infamous 2011 public servants strike, government have had an acrimonious relationship with the unions. Botswana Federation of Public Servant Union (BOFEPUSU) resolved in 2014 for the first time to endorse opposition in the general elections. BOFEPUSU itself was instrumental in the formation of the opposition coalition, Umbrella for Democratic Change (UDC) which now encompasses all opposition parties with representation in parliament.
“The workers of these countries are the creators of the wealth. They are the creators of the wealth that drives the country forward,” he observed. “A government that sits and sulks for five years against the workers of the country is not going to succeed, because if the workers themselves sulk the same way, then the government is not going to go forward.” The onetime BDP Youth Wing leader said that the workers are in fact the driver of the vehicle that is Botswana.
“I want a good honest conversation to take place between the government and the workers,” he said. He said during his absence from active politics as an ambassador, he was not able to advise the party because he made a point of separating himself from politics.
ON FORMATION OF BMD
Despite being at the helm of faction in the run up to Kanye, Nkate never imagined that such would lead to a sad ending. The victory of Barataphathi at Kanye Congress in 2009 set in motion a chain of events which led to the splitting of the party, resulting in the formation of Botswana Movement for Democracy (BMD) which forms part of the UDC coalition.
“Any split, whether is in the family, in a political party, in a company, is not a good thing. Yes it hurt us,” he admitted. “I did say when Rammidi left us in Mahalapye: bad thing, I say today that was a bad thing, the formation of BMD: bad thing. One of my most important goals should I succeed as secretary general of the BDP is to bring our people back. Because I know that their philosophy is the same as mine. You cannot take that away.”Nkate admits that BDP should have handled the matter differently to avoid the split.
CRITICISM OF BCL SALE
Nkate has expressed his displeasure with the way BCL liquidation and sale was handled. “I have a criticism on the way BCL liquidation process and the alleged purchase by Arab group is being handled. I am saying, where is the information? I am also aware that government cannot negotiate on the radio or newspapers but I think the government should give us information that will let us know that there is good and honest process,” he said. “That good process should lead to positive results. I support privatisation in some circumstances and I am not suggesting that BCL deal is a bad deal because I do not know. That is the problem.”
Botswana Football Association (BFA) leadership appears to be bowing down to Nicolas Zakhem’s football pressure. The development comes to the open roughly 24 hours after the Gaborone United director publicly labelled Maclean Letshwiti and his committee failures for deciding to chop five premier league clubs under the pretext of club licensing disqualification.
As early as Wednesday noon, the BFA emergency committee met with one agenda item to discuss the possibility of reinstating the clubs. This publication gathers that the committee saw it fit to pardon the five clubs without entertaining a second thought. The committee even invited the clubs to the meeting, sources say.
Late last month, the five teams were disqualified from playing in the premier league, pending the appeal outcome. The teams are Notwane, Extension Gunners, BR Highlanders, Mogoditshane Fighters, together with Gilport Lions. The immediate decision by BFA follows what Zakhem had said and advised that it was wrong to chop clubs given the COVID-19 situation in the country.
Unbeknownst to BFA leadership, observers stress that Zakhem exerted public pressure and influenced them to change tone without asking. At the meeting, BFA president Maclean Letshwiti, his vices, Marshlow Motlogelwa and Masego Ntshingane, Aryl Ralebala, the Botswana Football League (BFL) chairman, together with Alec Fela, an ordinary member in the now stubborn NEC.
However, the reactive move by the association to reinstate the clubs is highly welcomed in certain quarters, but it also appears to have left a permanent scar, especially at BFL. As things stand, the general feeling on the ground is to oust chairman Ralebala for failing to defend these clubs before the eyes of President Letshwiti.
This publication has intercepted an ongoing petition to unseat Ralebala and his deputies from the BFL board. Strange enough, the signed petition has thus far attracted clubs with household influence in the league itself. GU, Township Rollers, Notwane, Extension Gunners, Police XI are some clubs that have already appended their signatures to have Ralebala removed.
The big clubs are believed to fighting for principle and demand fair governance at BFL. The reality is that these clubs command a large following, and sponsors can always have a say based on their presence.
When approached for clarity, Ralebala said he could not comment on allegations or issues that lack substance. He concedes that he has heard about the rolling petition but is yet to lay his eyes on it. “I have heard about the petition, but I don’t know where it is coming from. I think it is best you ask those who have signed it. My focus is to commence the league and make sure everything is on point,” said Ralebala.
Football observers state that Ralebala, together with Letshwiti, are now faced with a dilemma. Reports coming from Lekidi Football Centre, although yet to be fabricated, are that the big guns lead others to form a parallel structure where they will play on their league. The clubs are angry at their chairman for taking many of the instructions from the BFA boss, and already a general melee is gathering traction that the two must resign as football has lost direction.
Zakhem says, although he supported Letshwiti, he has a sense of duty to stand for the truth. “I knew I supported Letshwiti and his troops, but you see, these guys have lost direction. I have long advised them that chopping clubs like this will cause confusion and delay progress, but they cannot listen. Letshwiti gave BFL autonomy, but I do not know why he is still interfering,” Zakhem said.
You may, by now, have heard about the dark side of the high profile P100 billion case, but wait, there is also the brighter side. Staff Writer AUBREY LUTE explores the positives accruing from the fall of the country’s biggest financial ‘scam-dal’.
A chance to fix the country’s financial record
They have not publicly been saying it, but the state agencies and the President, Dr Mokgweetsi Masisi, have been at pains to explain and rationalise how an amount almost equal to the country’s GPD left the central bank.
Many insiders attributed the country‘s troubled financial status to the case, including the grey-listing, non-compliance and identified deficiencies, some of which were hitting citizens around the globe. Botswana was in 2018 taken aback by FATF news that the country has been listed alongside countries that do not comply with (AML/CFT). The European Union Commission later flagged Botswana in March 2019 for lacking strategic deficiencies in AML/CFT regulations.
A chance to restore the dignity of the law enforcement arms
The case, without a doubt, was a distraction object on the law enforcement agencies, which spent a chunk of their time bickering and finger-pointing. A leaked audio recording exposing the explosive meeting of the law enforcement arms of government, being the Intelligence Services, Corruption and Economic Crimes agency, and the Prosecutions division summed it all.
The case presented a monumental crisis threatening the core of their being. Following these developments, the Presidency, clearly under the influence of a tripartite member, took a spine-chilling decision to disband the DCEC, a move that was saved by the organisation’s founding director- Tymon Katlholo’s bold protest.
The DPP, the Police, and the DCEC staff were used in the process to carry out bizarre instructions, some of which left the state with an egg on its face. Mistrust and backstabbing were the order of the day within the law enforcement agencies, and the P100 billion case was to blame. “Some badly wanted the plot executed while the other side badly wanted it to end to restore sanity,” an insider says.
The source further adds that “if the case did not end soon, it was going to end a lot of people’s relationships and careers because those who refused to carry the insane instructions were seen as sympathisers to former President Ian Khama.” With the case having fallen, these agencies can reflect, reconcile and go back to work.
A chance to fix diplomatic relations…
It was not only South Africa that was accused of Sabotaging Botswana’s prosecutorial goal. The state also accused several countries of refusing or delaying to assist in the process. Of all the nations, only South Africa has decided to take Botswana to task, perhaps on its proximity to Botswana. Others long ignored Botswana’s requests for assistance to the frustration of former DPP deputy director who repeatedly told the courts that they were struggling to get responses from the international community. With the case having fallen, Botswana may get a chance to face her actions, apologise and rectify the promise that lessons have been learnt.
Pressure off the shoulders of those who have to account…
The case did not only affect the law enforcement agencies. All the stakeholders were put in the spotlight to provide answers. The first to bolt out of the circle was the central bank, Moses Pelaelo, who, like DCEC director-general, long declared the case a scam. He told the world that his books were in order and that no money was missing risking his high-paying job.
According to insiders, his superiors, the then Minister of Finance and Development Planning – Dr Matsheka and his subordinate, Dr Wildfred Mandlebe, were only whispering, without success, to the Gods that there is no money missing.
So concerned and under pressure was Dr Sethibe- then the head of the Financial Intelligence Agency- who, like his Ministry supervisors, was engaging in silent screams to warn the powers that be, all in vain. He later jumped the ship to his former employer, the University of Botswana, allegedly to protect his name and career.
At the time of the fall of the case, the DIS and the DPP were at advanced plans to higher American to come and probe the Bank of Botswana’s servers in a move that bankers feared could compromise them further.
The case was bleeding the country’s coffers…
Had it not ended, the case was likely to end up ‘genuinely’ costing the country P100 billion Pula duo to its complexity and challenges. Insiders say sources who had sold the law enforcement agencies some falsified documents were paid handsomely.
Moreover, investigations were costly as they involved the international community and frequent travelling. “We are told there was also motivation for some officers to act abysmally and out of their way,” an insider said.
Lessons leant for public officers…
Public officers are often duty-bound to obey superiors instructions, no matter how irrational. The case was an eye-opener to many public officers that principle pays in the discharge of one’s duty at all times. The professional careers of the P100 billion case conspirators are currently in shambles. And as expected, the influencers, if at all there any, are nowhere to be seen.
Botswana remains on the grey list of the Financial Action Task Force (FATF) and the “black list” of the European Union, a status quo that highlights the country as one of the high-risk jurisdictions to deal with money.
The far-reaching implications of these listings is a compromised Foreign Direct Investment drive for Botswana. In particular, these listings mean investors now have to exercise some caution and restrain when thinking about putting their money in Botswana. On Tuesday, Minister of Finance and Economic Development Peggy Serame said that Botswana could see itself out of the “undesirable listing” by October this year.
Serame called for united and concerted efforts towards liberating Botswana out of this financial noncompliance tag. She said the delisting could be archived by concerted efforts from all stakeholders: players in the financial services sector, non-financial services businesses, regulators, and every individual who deals with transactions.
Botswana is a founding member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). This regional body subscribes to the Financial Action Task Force (FATF) to combat money laundering and financing of terrorism and proliferation.
One of the membership obligations to ESAAMLG is for Botswana to be peer-reviewed by the other Member States and other international bodies like the World Bank, IMF or FATF. The most recent assessment for Botswana to gauge compliance with the FATF standards was conducted by ESAAMLG in 2016 and culminated with publishing the Mutual Evaluation Report (MER) in 2017.
Following the discussion and adoption by the Task Force and approval of the MER by the Council of Ministers, the country was placed under enhanced follow-up. This led to a one (1) year observation period in which the country was expected to improve its technical compliance (legislative framework) by correcting the deficiencies identified in the MER.
After one year, in October 2018, the Task Force decided that the country was not taking sufficient steps to implement the recommendations made by the assessors in the MER. The Task Force recommended that Botswana be referred to the International Cooperation Review Group (ICRG) for monitoring and potential listing often referred to as the ‘FATF greylisting”.
Following the FATF greylisting, the EU placed Botswana on its list of high-risk third countries, often referred to as the ‘black list.’ In 2018, Botswana and FATF agreed to an Action Plan that had six items with several timelines. In terms of Risk and coordination, Botswana was told to develop and implement a risk-based comprehensive national AML/CFT strategy, assess the risks associated with legal persons, legal arrangements, and NPOs, and operationalize the modernized company registry to obtain and maintain essential information and Ultimate Beneficial Ownership information.
Botswana was further advised to enhance the capacity of the supervisory staff, including by developing risk-based supervision manuals and providing adequate training, implement risk-based AML/CFT supervision and impose sanctions against violations.
Furthermore, Botswana was instructed to improve analysis and dissemination of financial intelligence by the Financial Intelligence Unit, including operationalizing an online Suspicious Transactions Report filing platform and prioritizing high-risk predicate crimes, and enhancing the use of financial intelligence among the relevant law enforcement agencies.
Regarding terrorism financing investigation, Botswana was instructed to develop and implement a Counter Financing of Terrorism Strategy, operationalize the Counter-Terrorism Analysis and Fusion Centre, and ensure the Terrorism Financing investigation capacity of the law enforcement agencies.
In 2018, the 11th Parliament passed 25 pieces and, later, six others related to AML/CFT/CFP. At the just ended Parliamentary session of the 12th Parliament, lawmakers passed the Financial Intelligence (Amendment) Act to address the definition of beneficial ownership.
Cabinet approved the National AML/CFT/CFP Strategy of 2019-2024 in October 2019. At the June 2021 FATF Plenary meetings, the FATF made the initial determination that Botswana had substantially addressed the Action Plan and that this warranted an on-site assessment to verify that the implementation of Botswana’s AML/CFT/CFP reforms is in place and is being sustained. Furthermore, an assessment was to be instituted to check if the necessary political commitment remains to sustain implementation in the future.
Serame said in a televised press briefing that Botswana’s exit from the FATF grey list and the EU black list would be determined by the outcome of the on-site assessment, which will be discussed at the FATF Plenary in October 2021.
She revealed that the Botswana delegation attended the Eastern and Southern Africa Anti-Money Laundering Group 42nd Task Force of Senior Officials meeting from the 26th August to the 6th September 2021, followed by the Council of Ministers on the 7th September 2021.
She told the media that at these meetings, Botswana was commended for making progress in complying with the FATF standards by addressing deficiencies in her AML/CFT/CFP framework. “We are making all these efforts of complying with the FATF standards so that we guard against our financial system being used for money laundering, terrorism financing and proliferation financing,” she said.
“We are hopeful that at the October 2021 FATF Plenary meetings, the outcome of the on-site visit undertaken by the FATF in August 2021 will bear positive results, leading to Botswana being delisted from the FATF greylisting,” she said. However, Minister Serame called on all stakeholders to support the government to remove Botswana from the greylisting.
“As Government continues its efforts of putting in place the necessary legislative and institutional framework, due diligence must be exercised by all institutions, including the ordinary Motswana, so that no one is found dealing with financiers whose credibility is wanting,” she said.
The minister reiterated that all players in the financial services sector had a role to play: “It is important that where unsolicited funds are offered, the individual or entity so receiving the offer must ensure that the funds being offered are not associated with unlawful acts. If we are not diligent, criminals may use unsuspecting people and entities to launder proceeds of crime.”
She reiterated that the government is committed to doing all within its power to remove the country from the FATF “grey list” and the EU “black list”. However, she noted that to achieve that requires the cooperation and assistance of financial institutions, designated non-financial businesses and professions and individuals to ensure full compliance with AML/CFT/CFP rules and regulations.
“These efforts will not only assist us to be removed from these mentioned lists but are for the benefit of our country to maintain a high standard of financial prudence and an economy which genuine investors can have the confidence to invest in,” Serame explained.