The Non-Bank Financial Institution Regulatory Authority (NBFIRA) has taken a tough stance against Stock Brokers Botswana (SBB) and its Managing Director, Titose Tibone following a decision by the latter to request for suspension from the Stock Exchange. This has been a culmination of events which started with the dismissal of an accountant at SBB who was later fined P10 000 by the NBFIRA for practicing as a Controller without permission.
But the grass is still suffering as Titose Tibone and NBFIRA herald a possible showdown as the former refuses to accept possible penalties and a removal from practice by the latter. Titose Tibone assumed the position of Managing Director of Stock Brokers Botswana in June 2012 upon the acquisition of this company by the current shareholders during that period.
In a letter addressed to the Chairman of the Board of Stock Brokers Botswana by NBFIRA CEO, Mr Oaitse Ramasedi, a directive in terms of Section 53(3) and a Civil Penalty in terms of Section 93 of the NBFIRA Act is directed at the Company and Titose Tibone. “ Please be informed that the Capital Markets Department of the NBFIRA has noted several instances of non-compliance by Stock Brokers Botswana Ltd, and to this end, have reffered the same to the Compliance Department for enforcement action. In particular, the Compliance Department has been instructed that through its Managing Director, Mr Titose Tibone, the SBB has:
Appointed a controller to the organization without prior approval of the Authority as required in terms of Section 65 of the NBFIRA Act; Failed, on several occasions and despite numerous requests, to provide the Authority with information regarding the job descriptions of Managing Director and Chief Executive Officer functions, how the two relate to each other, and who is the more superior between the two; And on August 30, 2016 sent an email to the Authority and the Botswana Stock Exchange, indicating that the SBB wishes to wind down its operations due to inability to operate as a going concern, although winding down was never the intention of SBB, and the contents of the email did not present a true reflection of the SBB position. This was thus misleading and false statement made to the Authority, which statement had the potential to disrupt and discredit capital markets of Botswana.”
Ramasedi argues on behalf of NBFIRA that the issues outlined, all precipitated by Mr Titose Tibone as Managing Director, indicate that Mr Titose Tibone conducts himself in a careless manner that breaches his fiduciary duties towards SBB and its clients. “To this end, the Authority has formed the view that he is no longer fit and proper to hold office as a controller, much less a managing director or director, at SBB.”
The NBFIRA Chief indicated that the Authority issues Directive in terms of Section 53(3) that effective from September 6, 2016, Mr Titose Tibone be removed from holding office as a controller, a Director and the Managing Director of SBB. “The Authority further directs that a formal letter be submitted by SBB indicating that it takes note of this directive and has actioned it. Such letter should be submitted to the Authority no later than September 9, 2016.
Ramasedi further pointed out that NBFIRA will impose a civil penalty on SBB in line with Section 93 (a) of the NBFIRA Act for knowingly making a false statement to the Authority. However he has given SBB 21 days to request a hearing, if it wishes for one, to show cause why the proposed penalty should not be imposed. In the meantime SBB has complied with the directive to remove Titose Tibone as Managing Director and Director.
TITOSE TIBONE ON HIS OWN DEFENCE
Although SBB has agreed to comply with the directive, from its rebuttal of the NBFIRA letter, it is clear that the company is not happy with the decision. “ We now refer to your paragraph 4 of the aforesaid letter in which you have issued a directive in terms of Section 53 (3)(b) of the NBFIRA Act to remove our Managing Director, Mr Titose Tibone from holding office as a Controller, as Director and the Managing Director of our company. On a without prejudice basis, we hereby confirm that we will comply with this directive and that we have requested Mr Titose Tibone not to be involved in the management and business affairs of the company,” writes SBB chairman
However SBB says it notes the action of removing Mr Titose Tibone in their view is highly prejudicial to the company in that Mr Titose Tibone has played a major role in the success of this company. They further point out that Mr Titose Tibone is a fit and proper person and without him, they strongly believe that the continued profitability and success of the company will be compromised.
On noting reasons for declaring him, not to be a fit and proper person, SBB tabulated a rebuttal, which we or Mr Titose Tibone, can substantiate and prove, should the opportunity be given to us:-
In relation to the allegations that they appointed a controller before vetting, SBB says Mr Titose Tibone, or the company, did not and has never appointed Ms Rebaone as a controller of the company. “It is for this reason that we had not applied for the prior approval of the Authority. Ms Rebaone was an accounting clerk/officer and not a controller and it was as a result her own self-doing that she gave the impression to the Authority that she was a controller and not by any instructions from Mr Titose Tibone or the company. It is for this reason she was penalized and paid P10 000.00 and was accordingly dismissed. If at all, it was the intention to appoint her as a controller, we would have thereafter applied for her vetting so as to re-instate her. We believe that using this again to penalize Mr Titose Tibone is unfair and not in the spirit of the NBFIRA Act.”
SBB is of the view that using this as a ground to hold Mr Titose Tibone is unfair and not in the spirit of the NBFIRA Act.
On the charge of disruption capital markets and presenting a false and misleading position of the company (SBB): “In relation to the allegations stated at clause 2.3 of your letter, we confirm that this matter was dealt with and the reasons were given by Mr Titose Tibone for sending such an email. This was done at a meeting held on the 30th day of August 2016, at. At this meeting Mr Titose Tibone explained that as a result of the dismissal of Ms. Rebaone, the accountant and not having a financial manager in place (as the approval process was being pursued), he felt that it would be in the interest of the clients of the company to stop trading until the affairs of the company were sorted out. It is our opinion that this was a responsible move because without a finance manager and without an accountant, the company would not be able to manage the accounts, which would in turn prejudice the clients. It is for this reason that at the meeting, the parties confirmed that instead of using the words “winding down”, which would give an impression that the company is closing down instead of giving the true intention of Mr Titose Tibone, which was to suspend trading until such time that the affairs of the company were sorted out, the company should state that it is suspending trading, thus use the words “suspend trading”.”
SBB Board indicates that they believe that the email was sent out with the client interests and protections at the core of Mr Titose Tibone’s intentions and that same was not made with any bad intentions as correctly stated in Ramasedi’s letter.
“Further to this, it is stated that, you will note that this statement was not published, that is, it had never entered the public domain, it was an email sent to the Authority and the BSE. Therefore we disagree that it had any potential to disrupt and discredit the capital markets of Botswana. It was sent to the Authority and to the BSE to advise them that there is a problem at the company and to let them know that as a result the company wanted to stop trading and await further instructions from the Authority and the BSE.”
Titose Tibone and his Board are of the view that when joined, the company was not performing well. In fact it had showed losses in the amount of P8,000,000.00. They state that shortly thereafter the fortunes of the company had reversed. “We are therefore confident that based on market share figures and profitability, the CEO of the BSE, Thapelo Tsheole can attest not only to the successful turnaround strategy implemented by Mr Tibone but also to the extent to which SBB has contributed to the fiscus of the BSE under the tenure of Mr Tibone. The shareholders from a profitability and management side are pleased with Mr Titose Tibone performance.”
SBB says at this stage there is no threat of the company being insolvent, in fact, “we worry that with the removal of Mr Titose Tibone, the company might end up in such a position. Having said the above, which we felt would be necessary to bring to the attention of the Authority; we do note that the issue of Mr Titose Tibone’s removal will be dealt with separately.”
SBB has sought clarification on imposition of a civil penalty because they are of the view that it can only be imposed on a person who has committed an act within the purview of that section and that the company cannot be penalized under that section. SBB says the civil penalty on the company will be unlawful.
After falling to close the gap on Arsenal by losing to a record breaking goal by Kane at the Tottenham stadium.Manchester City now find themselves being charged by the Premier League with more than 100 breaches of its financial rules following a four-year investigation.
According to BBC , it has referred the club to an independent commission over alleged rule breaches between 2009 and 2018 , and also that Man-city has not been co-operating since the investigation which started in 2018 .
BBC further states that The commission can impose punishment including a fine , points deduction and expelling the club from the Premier league.
The alleged breaches include , breaching rules for requiring full details of manager remuneration,from 2009-2010, to 2012-2013 seasons when Roberto Mancini was in charge . Also player remuneration between 2010-2011 and 2015-2016.
The Premier league stated that City breached rules related to UEFA regulations , including Financial Fair Play , from 2013-2014 to 2017-2018 ,as well as Premier League rules on profitability and sustainability from 2014-2016 to 2017-2018
South Korean Ambassador in South Africa has donated e-learning equipment through Botswana Red Cross Society (BRCS) to Tlamelong Rehabilitation Centre in Tlokweng recently, in a bid to fine tune the student’s textile skills.
When talking at the handing over ceremony, Chull-Joo Park, said they agreed with BRCS to give out e-learning equipment to better the training skills of students living with disabilities.
“With the Information and Communication Technology (ICT) equipment and job training skills, we will be able to help the students living with disabilities to do e-learning and to better their education and job training,” said Chull-Joo Park.
It was revealed that the South Korean Embassy approached BRCS with the intent to donate equipment and educational material that includes an embroidery machine, photo copier machine, tablets and interactive boards to be utilized by the trainees.
The industrial printer is a machine that works with embroidery machine to print designs for clothing and it will enable the learners to have more material available to them to facilitate learning.
Through this embroidery machine, students will be exposed to better technologies which ultimately improve the quality of materials they produce. It will also allow students to learn business skills and run profitable ventures.
Smart board gadgets will provide the students with an elevated learning process to be fostered by e-learning. The gadgets provide a more visual element to the learning process, which in turn improves learner mental retention.
Tlamelong Rehabilitation serves the marginalized and underserved less privileged persons living with disability in Botswana. The center offers boarding services, vocational training, social services, physiotherapy and rehabilitation services for young people living disabilities aged 18-35 from across the country over a period of two (2) years per cohort which has a maximum intake capacity of 35. BRCS through International Federation of the Red Cross and Red Crescent Societies (IFRC) have managed to create great working synergy with the South Korean Embassy in Pretoria based in South Africa to support or augment the National Society’s Rehabilitation Centre’s learning challenges.
For his part, BRSC Secretary General Kutlwano Mokokomani said they are delighted to convey their gratitude as BRSC to the South Korean Embassy for donation and they look forward to an enduring partnership for such worthy causes.
“South Korean Embassy’s great gesture will enable trainees to thrive, to fulfil their dreams to become a reality as this equipments will go a long way in creating great impact in the lives of trainees and their families. We wish to convey our sincere gratitude to the South Korean Embassy for their noble gesture of donating the E-learning equipments.”
BRCS offers rehabilitation services spread across three (3) areas in Botswana being Sefhare Stimulation center in Sefhare, Tshimologo stimulation center in Francistown and Tlamelong rehabilitation center in Tlokweng.