NBFIRA blacklists Tibone as Stock markets battle rages on
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.
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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.