A knockout punch also known as a chassis punch can end all contests decisively. It can finish fights without dispute and can save your life in grave circumstances. Government’s shocking announcement last week Saturday to place BCL under provisional liquidation with immediate effect owing to unprofitable business dealings – delivered a final blow to a mine that was battling with high operational costs, huge debts, and low commodity prices.
The decision is surely meant to stop the government purse from bleeding excess Pulas, but it shall wilt away a lot of livelihoods. Nigel Dickson Warren of KPMG has been instructed to finish off the job in four months, as a liquidator.
Addressing multitudes of mine workers in Selibe Phikwe last week Saturday (October 8) former Minister responsible for Minerals & Energy, Kitso Mokaila stated that the mine was a business running at huge loses hence the government as the single shareholder was drained by bailing out the mine countless times to prevent job losses. He said the bailouts were now crippling the national economy.
Advocate Sadique Kebonang who now heads the re-organised Ministry of Minerals, Energy and Green Technology explained that it cost double the selling price to mine the ore from BCL deposits. “BCL mines at 8 USD per tonne and sells at 4USD, that is a big loss and we cannot continue pumping money into such a business,” said new Minister who recently took over from Mokaila.
“Currently the mine needs P7.6 billion ($713 million) pula to continue operations and if the government was to inject such amount into BCL through guarantee loans or direct bailout, we would have to put the entire economy to a halt and cease provision of ARVs and tertiary education just to name a few,” emphasized Advocate Kebonang.
A cabinet subcommittee commissioned by President Lt Gen Dr Ian Khama to evaluate and map the way forward on the BCL mine explained to workers that a consensus has been reached after an intense assessment, that it makes economic sense to cease operations at the copper nickel mine because commodity prices in the market were not business friendly.
THE HISTORY OF BCL
Originally known as Bamangwato Concessions Limited, BCL was founded in 1956 in a meeting arranged by John Bunchunan, Chairman of Minerals Separation Limited, between Tshekedi Khama, Regent of Bamangwato Tribe in Bechuanaland Protectorate and Sir Ronald Prain, Chairman of Roan selection Trust (RST).
An agreement between the parties was signed on the 2nd June 1959 and subsequently ratified by the British House of Lords. This agreement with RST Exploration Limited, a subsidiary of Roan Selection Trust deployed BCL to operate the concession and to commerce mining copper and nickel discovered in Selibe area in 1963. In 1966 higher grade ore was discovered at Phikwe.
BCL continued to grow, dominated by private shareholding with Norilsk Nickel being the largest shareholder until 2013 when the government bought out the Russian mining giant by converting an outstanding P2.3 billion loan BCL owed to government into equity. At the time of that decision Norilsk was holding 6 % stake in BCL and had reduced its stake over the past two decades of operations at BCL.
In 2014 the BCL also announced buying out of all Norilsk Nickel operations in Africa and that included Tati Nickel Mine and 50% of Nkomati Mine in South Africa. The transaction was to see BCL pay P3 billion plus and, earlier on that year the company bought 50.5 % in Pula Steel Casting Manufacturing.
EVENTS THAT LED TO COMPANY LIQUIDATION
In February 2016 government agreed to guarantee a 1 billion pula BCL loan acquired from Barclays Bank. When addressing multitudes of workers at Selibe Phikwe stadium this past Tuesday, the Vice president, Mokgweetsi Masisi indicated about three weeks ago BCL management had submitted a proposal requesting another P1 billion from the government, and decision makers reached a consensus that enough was enough, no more bail out.
The Vice President explained that BCL lifespan was shortened by low copper and nickel prices in the market. “Market prices put by foreign countries who buy BCL products is the reason BCL reached a dead end sooner than expected, we don’t have control over commodity market prices, thus it was only right to close BCL in order for other economic activities to continue,” said Masisi.
The Vice President went on to explain that under these circumstances, the best decision was to put the company under provisional (voluntary) liquidation in order to protect workers packages and exit incentives . “Creditors were going to put this company under forced liquidation anyway, and that was going to be harsher on employees, thus we weighed options and approached the High Court on Sunday,” explained Masisi. He said a liquidator was appointed to asses BCL asserts, pay its debts and make final economical stance on the future of the company.
BCL POOR MANAGEMENT
However workers, opposition political parties and other pressure groups have rubbished reasons advanced by government that BCL is closed because of the prevailing low copper and nickel prices in the international market.
The Member of Parliament for Selibe Phikwe West, Dithapelo Keorapetse lashed out on the BCL management. He accused some in the leadership of corruption and poor management. He said the government lacked monitoring and proper oversight as the only shareholder. Speaking to Weekend Post on Tuesday, Keorapetse said: “I have talked about this in Parliament, that Polaris II and its Nkomati acquisition were corruption breeding exercises, and the same can be said about the shutdown undertaking – this will cost BCL and government billions of Pula.’’
The MP said the government has been ignorant and did no listen to him, “I warned the then Minister, Mr Mokaila about reckless procurement occurring at BCL, for the shutdown, billions of Pula left the mine through unprocedural processes.”
Meanwhile, government and BCL officials told Weekend Post that the shutdown of the smelter was done to allow for its refurbishment so it readies for more ore from Tati and Nkomati for processing, “We anticipated pick capacity for the Smelter and thus shut down and Nkomati acquisition was to get ready for that, unfortunately it did not work out as expected,” permanent secretary in the Ministry of Minerals, Mr Kgomotso Abi explained.
The permanent secretary said if there were corrupt dealings, those who have information should have or still should come forth. Addressing the press on Monday, Abi said: “DCEC doors were open for any corruption tip offs and the expectation is that those who were aware of any maladministration and economic crime at BCL should have reported the cases.”
THE LIQUIDATION PROCESS
The High Court on Sunday appointed Nigel Dickson Warren of KPMG to dissolve BCL Limited. Addressing members of the media on Monday, Permanent secretary in the Ministry of Mineral, Energy & Green Technology, Mr Kgomotso Abi alongside dissolved BCL board Chairman, Kholane Fichani indicated that the appointed liquidator was given four months to complete the liquidation processes. In a stakeholders’ consultative meeting on Tuesday, before addressing multitudes of workers, Vice President Masisi revealed the government will conduct a parallel inside look to the liquidation process in order to iron out any concerns that might arise.
Adding her voice, Chairman of government owned Mineral Development Company which recently bought out De Beers at Morupule Coal Mine, Reginah Sikalesele-Vaka told workers in Selibe Phikwe and its subsidiary, Tati Nickel Mine that the liquidation process intends to come up with resolutions that are in the best interest of workers.
“The liquidation process is necessary to determine and inform the government on what assert BCL has, and what can be sold at what price, as well as advice the government on possible operations or ore deposits that can be resurrected at a later stage,” said Sikalesele-Vaka.
She explained that the liquidator will most importantly determine workers’ exit packages. “The liquidator will determine how much and how you as the workers will be paid as exit compensation, I urge you to cooperate with the government and the liquidator,” she said.
Sikalesele-Vaka has just assumed duty at the government Mining Industry oversight company from Botswana Stock Exchange where she served as Chairman as well.
WORKERS SALARIES & BENEFITS
On Saturday (October 8) Minister of Investment, Trade and Industry, Vincent Seretse revealed that despite the halted of operations, workers remain BCL employees and shall receive full salaries until decision is taken on the way forward.
Seretse who is also a member of the cabinet BCL investigation subcommittee added that those occupying BCL houses shall do so until liquidation process is complete.
On Tuesday 12th October, Minister Advocate Kebonang shocked the workers with a slightly different statement at the Selibe Phikwe stadium. ‘’We guarantee full salary payments for October only, for next month and the month after next, that is entirely on the jurisdiction of the liquidator who is currently handling all paperwork and financial accounts of the company.”
For their part Botswana Miners Workers Union (BMWU) expressed concern over the rushed decision and short notice implementation of the resolution to close the mine. In an interview with this publication this week, BMWU representative, Mr Western Ebepilesaid they had anticipated that BCL operations will come to halt, but they question government lack of transparency and the supersonic decision to shut down.
“We will fight tooth and nail to ensure that our members receive their packages, if need be we will approach the court of law if there are unconstitutional delays,” said Ebipile.
THE SOCIO- ECONOMIC IMPACT OF BCL CLOSURE
Selibe Phikwe is home to over 50 000 inhabitants as per the 2011 population census and BCL had absorbed well over 4000 workers who provided socio-economic support to their families.
Consequently the closure of BCL, the largest single employer in Selibe Phikwe, and second largest private sector employer in the country, cripples other businesses that relied on 4000 BCL employees’ income for survival, from Retail outlets, SMMEs, transport providers, hair salons, the list is endless.
Speaking to Weekend Post this past week, Mr Philip Malema, a taxi driver expressed hopelessness as he shed tears, “I have been given this corolla by someone to work for it and pay back his money with interest, they are going to confiscate it as they will be no business that allows me to pay them as per our contract. It is very likely that I have worked for nothing,” said Malema who hails from Bobonong.
BCL mine closure is said to also threaten other parastatals and private companies’ production. The mine accounts for the largest stake in Morupule coal mine clientele, being the largest consumer of the coal produced from the Palapye based mine.
The complexity of the BCL operations has also seen the company being the largest consumer of electricity and water in the country, thus its closure is likely to impact heavily on the balance sheet of Botswana Power Corporation (BPC) and Water utilities Corporation (WUC).Morupule Colliery is likely to cut down its production and consequently reduce workforce unless new business is identified, especially in neighbouring countries.
Parents have also questioned government’s decision to close the mine now, they find the decision reckless and lacking vision. Speaking to this publication, Mr Boipuso Makame, a middle income parent at Botshabelo Township, told this publication that the mine closure comes at a wrong time when children are writing examinations – from primary to senior secondary schools. “They should have waited until exams are completed, psychological shock will disturb our children, our schools are likely not to do well this year,” observed Makame who also works a BCL.
GOV’T PIN HOPES SPEDU AND OTHER PARASTATALS
Various Government officials have indicated during the past two weeks that Selibe Phikwe will not be left to turn into a ghost town. In his address to workers on Tuesday Vice President Masisi revealed that SPEDU is now a revived company that will work at a high speed to resurrect the economy of Selibe Phikwe. He revealed that a cabinet sitting has already proposed more cash injection into SPEDU. “We are in the process of evaluating how much SPEDU needs to create double the employment here in Selibe Phikwe,” said Masisi.
The Vice President further indicated that CEDA and SPEDU as well as the SPECIAL ECONOMIC ZONE AUTHORITY and other business development parastatals will make proposals and the government is in a position to pump more money into those, in order to unearth other alternative economic activities.
“We will not allow Phikwe to turn into a ghost town, ’’ said the Vice President while speaking at a meeting arranged by the Ministry of Investment, Trade & Industry to engage the business community this Monday (October 10ths).
The Permanent Secretary in the ministry, Ms Peggy Serame urged the Selibe Phikwe Chamber of Commerce to put up feasible business proposals that can help resuscitate the town and the region.
According to Khumbulani Mabena, Chairperson of the Chamber of Commerce, they have been given a week to do so. “We already had those business proposals in our shelves, so we will just polish them up and submit them,” said Khumbulane Mabena.
An international report complied in South Africa dubbed ‘Legal Gender Recognition in Botswana’ says that the transgender and gender non-conforming people in Botswana live a miserable life. The community experiences higher levels of discrimination, violence and ill health.
In this report, it has been indicated that this is because their gender identity, which does not conform to narrowly define societal norms, renders them more vulnerable. Gender identity is a social determinant of health, which means that it is a factor that influences people’s health via their social context, their communities and their experiences of social exclusion. The Ministry of Health and Wellness has recognized this, and transgender people are considered a vulnerable population under the Botswana Second National Strategic Framework for HIV and AIDS 2010-2017.
In a recent study that shed light on the lived experiences of transgender and gender non-conforming people in Botswana, transgender persons often experience discrimination because of their gender identity and expression. The study was conducted by the University of Cape Town, LEGABIBO, BONELA, as well as Rainbow Identity Association and approved by the Health Ministry as well as the University of Botswana.
Of the 77 transgender and gender non-conforming people who participated in the study, less than half were employed. Two thirds, which is approximately 67% said that they did not have sufficient funds to cover their everyday needs. Two in five had hidden health concerns from their healthcare provider because they were afraid to disclose their gender identity.
More than half said that because of their gender identity, they had been treated disrespectfully at a healthcare facility (55%), almost half (46%) said they had been insulted at a healthcare facility, and one quarter (25%) had been denied healthcare because of their gender identity.
At the same time, the ‘Are we doing right’ study suggests that transgender and non-conforming people might be at higher risks of experiencing violence and mental ill-health, compared to the general population. More than half had experienced verbal embarrassment because of their gender identity, 48% had experienced physical violence and more than one third (38%) had experienced sexual violence.
The study showed that mental health concerns were high among transgender and gender non-conforming people in Botswana. Half of the transgender and gender non-conforming study participants (53%) showed signs of depression. Between one in four and one in six showed signs of moderate or severe anxiety (22% among transgender women, 24% among transgender men and 17% among gender non-conforming people).
Further, the study revealed that many had attempted suicide: one in three transgender women (32%), more than one in three transgender men (35%) and three in five gender non-conforming people (61%).
International research, as well as research from Botswana, suggests that not being able to change one’s gender marker has a negative impact on access to healthcare and mental health and wellbeing. The study further showed that one in four transgender people in Botswana (25%) had been denied access to healthcare. This is, at least in part, linked to not being able to change one’s gender marker in the identity documents, and thus not having an identity document that matches one’s gender identity and gender expression.
In its Assessment of Legal and Regulatory Framework for HIV, AIDS and Tuberculosis, the Health Ministry noted that “transgender persons in Botswana are unable to access identity documents that reflect their gender identity, which is a barrier to health services, including in the context of HIV. In one documented case, a transwoman’s identity card did not reflect her gender identity- her identity card photo indicated she was ‘male’. When she presented her identity card at a health facility, a health worker called the police who took her into custody.”
The necessity of a correct national identity document goes beyond healthcare. The High Court of Botswana explains that “the national identity document plays a pivotal role in every Motswana’s daily life, as it links him or her with any service they require from various institutions. Most activities in the country require every Motswana to produce their identity document, for identification purposes of receiving services.”
According to the Legal Gender Recognition in Botswana report, this effectively means that transgender, whose gender identity and expression is likely to be different from the sex assigned to them at birth and from what is recorded on their identity document, cannot access services without risk of denial or discrimination, or accusations of fraud.
In this context, gays and lesbians advocacy group LEGABIBO has called on government through the Department of Civil and National Registration to urgently implement the High Court rulings on gender marker changes. As stated by the High Court in the ND vs Attorney General of Botswana judgement, identity cards (Omang) play an important role in the life of every Motswana. Refusal and or delay to issue a Motswana with an Omang is denying them to live a complete and full-filing life with dignity and violates their privacy and freedom of expression.
The judgement clarified that persons can change their gender marker as per the National Registrations Act, so changing the gender marker is legally possible. There is no need for a court order. It further said the person’s gender is self-identified, there is no need to consult medical doctors.
LEGABIBO also called on government to develop regulations that specify administrative procedure to change one’s gender marker, and observing self-determination process. Further, the group looks out for government to ensure members of the transgender community are engaged in the development of regulations.
“We call on this Department of Civil and National Registration to ensure that the gender marker change under the National Registration Act is aligned to the Births and Deaths Registry Act to avoid court order.
Meanwhile, a gay man in Lobatse, Moabi Mokenke was recently viciously killed after being sexually violated in the streets of Peleng, shockingly by his neighbourhood folks. The youthful lad, likely to be 29-years old, met his fate on his way home, from the wearisome Di a Bowa taverns situated in the much populated township of Peleng Central.
CEO of Khato Civils Mongezi Mnyani has come out of the silence and is going all way guns blazing against the company’s adversaries who he said are hell-bent on tarnishing his company’s image and “hard-earned good name”
Speaking to WeekendPost from South Africa, Mnyani said it is now time for him to speak out or act against his detractors. Khato Civils has done several projects across Africa. Khato Civils, a construction company and its affiliate engineering company, South Zambezi have executed a number of world class projects in South Africa, Malawi and now recently here in Botswana.
About ten (10) Umbrella for Democratic Change (UDC) parliamentary candidates who lost the 2019 general election and petitioned results this week met with UDC Vice President, Dumelang Saleshando to discuss the way forward concerning the quandary that is the legal fees put before them by Botswana Democratic Party (BDP) lawyers.
For a while now, UDC petitioners who are facing the wrath of quizzical sheriffs have demanded audience with UDC National Executive Committee (NEC) but in vain. However after the long wait for a tete-a-tete with the UDC, the petitioners met with Saleshando accompanied by other NEC members including Dr. Kesitegile Gobotswang, Reverend Mpho Dibeela and Dennis Alexander.