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‘ZCC constitution is a fraud’

Following an application by some Zion Christian Church (ZCC) members in Botswana challenging the church’s disregard and violation of its own constitution, another member who sits on the church’s lawyers’ panel launched a fresh application this week challenging that the 2009 Botswana constitution is fraudulent.

“The applicants have instituted legal proceedings against ZCC relying on the 2009 constitution that is not operational or not in use and as such the said constitution does not govern the affairs of ZCC in Botswana. I will further pray for the Honourable court to declare the said constitution null and void and of no force and effect,” Jost Sinvula Isaac who is a member and lawyer of ZCC declared in court papers the Weekend Post is in possession of.

Prior, 11 members of the church being Tshiamo Tladi, Khumo Gaorengwe, Mogomotsi Bogosi, Stanley Lejone, Daniel Mathibe, Lesetse Othamo, Mmusi Moeng, Mmatli Lopale, Lebogang Bose, Faneck Bareki and Tony Joseph last week dragged the church together with its Bishop Dr. Barnabas Edward Lekganyane to court saying the ZCC local branch is flouting on its constitution of 2009 – which is currently the subject of the “storm”.

Isaac, who sits in the ZCC attorneys’ panel instituted a fresh application this week as a member of the church and argued that the submission of the 2009 constitution by ZCC to the Registrar of Societies was not necessary as the church had a South African church constitution that was in use since 1994.

He said: “it is my humble submission that the 1994 constitution is the lawful and operational constitution of the ZCC church in Botswana as it has never been repealed or invalidated by any lawful process.”

Accordingly, he emphasized that the “2009 Botswana constitution is illegal, unlawful and a nullity in law and of no force and effect”.

When supporting his arguments the lawyer said there are new facts which he intends to bring before court, which have not been brought forth by any of the parties in the 11 members versus ZCC, Bishop Lekganyane, pending before the court. He added that he discovered the facts after thorough research, making inquiries and perusing the church file at the Registrar of Societies.  

Sometimes in the early 1990’s, he explained, the church applied for registration of its constitution and “exemption” from registration under the Societies Act. The exemption was then approved and they were issued with an exemption certificate. In applying for exemption, he said the church filed its constitution from South Africa, which was received by the Registrar of Societies on the 5th July 1994.

“The church was thus confirmed as a society exempted from registration in terms of the Act and that it was headquartered and controlled outside the country (South Africa), with a universal constitution that applied to all its members and was registered accordingly.”

A perusal of the church file at the Registrar of Societies’ office reveals that sometimes there was a misconception on the part of officials of the church as to its registration status in Botswana.

Indications are that at some stage the church engaged the Office of the President (OP) to have the church exempted from registration, when in fact the church was ‘already’ exempted from registration.

Therefore, the ZCC member stated further that it seems that the confusion that resulted in the registration of the 2009 constitution began with a public announcement that was made by the Registrar of Societies in 2008.

In terms of that notice, all churches which were registered using the constitutions of their ‘mother churches based outside the country’ were now required to file ‘local’ constitutions and a deadline was set for that purpose.

“This request was not made in terms of any provisions of the Societies Act. I must add that this public announcement was not addressed to the ZCC. While the legal propriety of this notice was itself questionable, it was nonetheless not necessary for the church to concern itself with the notice as it was an exempted society which had a constitution in place.”

Other churches that are exempted such as the Roman Catholic Church did not concern themselves with the notice and they did not file local constitutions.

In the end, the ZCC lawyer said a local constitution was developed and on June 2009, the 2009 constitution was submitted to the Registrar of Societies.

He pointed out that the registration status of the church is a matter that has not been ventilated at all by all the parties to the main application (11 ZCC members) “yet it is at the centre of the controversy in these proceedings”.   

According to Isaac, “when this 2009 constitution was submitted, what was overlooked is the fact that the church had a constitution that was in use and further that it was exempted from registration, and that under no circumstances could the church be required to submit local constitution.”

He added that the filing of the 2009 constitution therefore would have resulted in the Exemption of the church being rescinded or cancelled since the preamble of the said constitution states that the church is constituted in terms of Section 5 of the Societies Act.

“When the 2009 constitution was filed with the Registrar of Societies, the church awaited response from the Registrar’s office in relation to the registration of such constitution but to date there is no such response and my understanding is that in the absence of any meaningful response the said constitution was never formally registered for it to be effective.”

The ZCC member also expressed that he is greatly aggrieved by the 2009 constitution because it creates a different ZCC than the church itself. “The church will effectively have two parallel seemingly distinct constitutions since the 2009 constitution did not repeal the 1994 constitution nor was it registered.”

The constitution does not make any reference to the status of the church as an exempted society, suggesting that it was submitted under a misapprehension of facts as to the registration status of the church, he highlighted.

In the 2009 constitution, it is stated that: “the headquarters of the church is said to be Lot 20462, Gaborone. This has never been the headquarters of the church. To the best of my knowledge, the headquarters of the church is Zion city Moria in Limpopo Province of South Africa,” the lawyer clarified.

The Executive Council is entrusted with powers that have hitherto been the preserve of the Church Council, and the 2009 constitution as it is if adopted will hinder the smooth running of the church in Botswana, he highlighted.  

“I therefore intend to raise arguments questioning the validity of this 2009 constitution. The proceedings will have to involve the Registrar of Societies, through the Attorney General.”

“I have raised these issues with the church. In particular I have raised the issue of invalidity of the 2009 constitution with the General Secretary of the church as well as lawyers panel of the church,” he added.

However, Isaac said his pleas for the church to raise these issues have not been headed to. “I understand this to be because the members of the lawyers’ panel directly responsible for this case hold views that are different from mine,” he stated. “To my understanding the church has therefore not been advised to raise these issues in the manner I seek to raise them. I respect this divergent of views, and now ask this court to give me a hearing.”

“As a member of the church, which is a very big international church, and further as an official of the church where the applicants (11 members) in the main action worship, I have an interest in ensuring that the church is governed properly and I consider the raising of these issues to be my responsibility and duty.”

Going forward, he observed that a decision on this matter will also clear any confusion to the registration status of ZCC, the constitution that is in use and the responsibilities of the church in terms of the Societies Act.   

Isaac’s new application citing the Botswana church constitution as “a fraud” will be argued still before Justice Michael Mothobi on 19th August 2016 and it will determine whether the previous matter on violation of the local church constitution falls off or not.

In the 11 members’ case, ZCC was represented by Advocates Soraya Skhassim (SC) and Lenette Pillay from South Africa and Uyapo Ndadi of Ndadi Law Firm in Botswana sat in for the aggrieved 11 ZCC members while in the fresh application due in August, attorney Jost Sinvula Isaac represented himself.

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Mowana Mine to open, pay employees millions

18th January 2022
Mowana Mine

Mowana Copper Mine in Dukwi will finally pay its former employees a total amount of P23, 789, 984.00 end of this month. For over three years Mowana Copper Mine has been under judicial management. Updating members, Botswana Mine Workers Union (BMWU) Executive Secretary Kitso Phiri this week said the High Court issued an order for the implementation of the compromise scheme of December 9, 2021 and this was to be done within 30 days after court order.

“Therefore payment of benefits under the scheme including those owed to Messina Copper Botswana employees should be effected sometime in January latest end of January 2022,” Kitso said. Kitso also explained that cash settlement will be 30 percent of the total Messina Copper Botswana estate and negotiated estate is $3,233,000 (about P35, 563,000).

Messina Copper was placed under liquidation and was thereafter acquired by Leboam Holdings to operate Mowana Mine. Leboam Holdings struck a deal with the Messina Copper’s liquidator who became a shareholder of Leboam Holdings. Leboam Holdings could not service its debts and its creditors placed it under provisional judicial management on December 18, 2018 and in judicial management on February 28, 2019.

A new company Max Power expressed interest to acquire the mining operations. It offered to take over the Mowana Mine from Leboam Holdings, however, the company had to pay the debts of Leboam including monies owed to Messina Copper, being employees benefits and other debts owed to other creditors.

The monies, were agreed to be paid through a scheme of compromise proposed by Max Power, being a negotiated payment schedule, which was subject to the financial ability of the new owners. “On December 9, 2021, Messina Copper liquidator, called a meeting of creditors, which the BMWU on behalf of its members (former Messina Copper employees) attended, to seek mandate from creditors to proceed with a proposed settlement for Messina Copper on the scheme of compromise. It is important to note that employee benefits are regarded as preferential credit, meaning once a scheme is approved they are paid first.”

Negotiated estate is P35, 563,000

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Councilors’ benefits debacle-savingram reveals detail

18th January 2022

A savingram the Ministry of Local Government and Rural Development sent to Town Clerks and Council Secretaries explaining why councilors across the country should not have access to their terminal benefits before end of their term has been revealed.

The contents of the savingram came out in the wake of a war of words between counselors and the Ministry of Local Government and Rural Development. The councilors through the Botswana Association of Local Authorities (BALA) accuse the Ministry of refusing to allow them to have access to their terminal benefits before end of their term.

This has since been denied by the Ministry.  In the savingram to town councils and council secretaries across the country, Permanent Secretary in the Ministry of Local Government and Rural Development Molefi Keaja states that, “Kindly be advised that the terminal benefits budget is made during the final year of term of office for Honorable Councilors.”  Keaja reminded town clerks and council secretaries that, “The nominal budget Councils make each and every financial year is to cater for events where a Councilor’s term of office ends before the statutory time due to death, resignation or any other reason.”

The savingram also goes into detail about why the government had in the past allowed councilors to have access to their terminal benefits before the end of their term.  “Regarding the special dispensation made in the 2014-2019, it should be noted that the advance was granted because at that time there was an approved budget for terminal benefits during the financial year,” explained Keaja.  He added that, “Town Clerks/Council Secretaries made discretions depending on the liquidity position of Councils which attracted a lot of audit queries.”

Keaja also revealed that councils across the country were struggling financially and therefore if they were to grant councilors access to their terminal benefits, this could leave their in a dire financial situation.  Given the fact that Local Authorities currently have cash flow problems and budgetary constraints, it is not advisable to grant terminal benefits advance as it would only serve to compound the liquidity problems of councils.

It is understood that the Ministry was inundated with calls from some Councils as they sought clarification regarding access to their terminal benefits. The Ministry fears that should councils pay out the terminal benefits this would affect their coffers as the government spends a lot on councilors salaries.

Reports show that apart from elected councilors, the government spends at least P6, 577, 746, 00 on nominated councilors across the country as their monthly salaries. Former Assistant Minister of Local Government and Rural Development, Botlogile Tshireletso once told Parliament that in total there are 113 nominated councilors and their salaries per a year add up to P78, 933,16.00. She added that their projected gratuity is P9, 866,646.00.

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Households spending to drive economic recovery

17th January 2022

A surge in consumer spending is expected to be a key driver of Botswana’s economic recovery, according to recent projections by Fitch Solutions. Fitch Solutions said it forecasts household spending in Botswana to grow by a real rate of 5.9% in 2022.

The bullish Fitch Solutions noted that “This is a considerable deceleration from 9.4% growth estimated in 2021, it comes mainly from the base effects of the contraction of 2.5% recorded in 2020,” adding that, “We project total household spending (in real terms) to reach BWP59.9bn (USD8.8bn) in 2022, increasing from BWP56.5bn (USD8.3bn) in 2021.”  According to Fitch Solutions, this is higher than the pre-Covid-19 total household spending (in real terms) of P53.0 billion (USD7.8bn) in 2019 and it indicates a full recovery in consumer spending.

“We forecast real household spending to grow by 5.9% in 2022, decelerating from the estimated growth of 9.4% in 2021. We note that the Covid-19 pandemic and the related restrictions on economic activity resulted in real household spending contracting by 2.5% in 2020, creating a lower base for spending to grow from in 2021 and 2022,” Fitch Solutions says.

Total household spending (in real terms), the agency says, will increase in 2022 when compared to 2021. In 2021 and 2022, total household spending (in real terms) will be above the pre-Covid-19 levels in 2019, indicating a full recovery in consumer spending, says Fitch Solutions.  It says as of December 6 2021 (latest data available), 38.4% of people in Botswana have received at least one vaccine dose, while this is relatively low it is higher than Africa average of 11.3%.

“The emergence of new Covid-19 variants such as Omicron, which was first detected in the country in November 2021, poses a downside risk to our outlook for consumer spending, particularly as a large proportion of the country’s population is unvaccinated and this could result in stricter measures being implemented once again,” says Fitch Solutions.

Growth will ease in 2022, Fitch Solution says. “Our forecast for an improvement in consumer spending in Botswana in 2022 is in line with our Country Risk team’s forecast that the economy will grow by a real rate of 5.3% over 2022, from an estimated 12.5% growth in 2021 as the low base effects from 2020 dissipate,” it says.

Fitch Solutions notes that “Our Country Risk team expects private consumption to be the main driver of Botswana’s economic growth in 2022, as disposable incomes and the labour market continue to recover from the impacts of the Covid-19 pandemic.”
It says Botswana’s tourism sector has been negatively impacted by the Covid-19 pandemic and the related travel restrictions.

According to Fitch Solutions, “The emergence of the Omicron variant, which was first detected in November 2021, has resulted in travel bans being implemented on Southern African countries such as South Africa, Botswana, Lesotho, Namibia, Zimbabwe and Eswatini. This will further delay the recovery of Botswana’s tourism sector in 2021 and early 2022.”  Fitch Solutions, therefore, forecasts Botswana’s tourist arrivals to grow by 81.2% in 2022, from an estimated contraction of 40.3% in 2021.

It notes that the 72.4% contraction in 2020 has created a low base for tourist arrivals to grow from.  “The rollout of vaccines in South Africa and its key source markets will aid the recovery of the tourism sector over the coming months and this bodes well for the employment and incomes of people employed in the hospitality industry, particularly restaurants and hotels as well as recreation and culture businesses,” the report says.

Fitch Solutions further notes that with economies reopening, consumers are demanding products that they had little access to over the previous year. However, manufacturers are facing several problems.  It says supply chain issues and bottlenecks are resulting in consumer goods shortages, feeding through into supply-side inflation.  Fitch Solutions believes the global semiconductor shortage will continue into 2022, putting the pressure on the supply of several consumer goods.

It says the spread of the Delta variant is upending factory production in Asia, disrupting shipping and posing more shocks to the world economy. Similarly, manufacturers are facing shortages of key components and higher raw materials costs, the report says adding that while this is somewhat restricted to consumer goods, there is a high risk that this feeds through into more consumer services over the 2022 year.

“Our global view for a notable recovery in consumer spending relies on the ability of authorities to vaccinate a large enough proportion of their populations and thereby experience a notable drop in Covid-19 infections and a decline in hospitalisation rates,” says Fitch Solutions.
Both these factors, it says, will lead to governments gradually lifting restrictions, which will boost consumer confidence and retail sales.

“As of December 6 2021, 38.4% of people in Botswana have received at least one vaccine dose. While this is low, it is higher than the Africa average of 11.3%. The vaccines being administered in Botswana include Pfizer-BioNTech, Sinovac and Johnson & Johnson. We believe that a successful vaccine rollout will aid the country’s consumer spending recovery,” says Fitch Solutions.  Therefore, the agency says, “Our forecasts account for risks that are highly likely to play out in 2022, including the easing of government support. However, if other risks start to play out, this may lead to forecast revisions.”

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