Connect with us
Advertisement

Court rules against Debswana in P60 million suit


The court has ruled against Debswana Diamond Company in a case in which the diamond miner was embroiled in a bitter One Million Four Hundred and Ninety five Thousand One Hundred and thirty three rand 60 Cents (ZAR 61 495 133.60) legal tiff with a South African company, NA SERA General Sales. The company was hired to drill the 165MM blast holes at Letlhakane and Damtshaa Mines.


The South African Company had applied to the court after Debswana ordered them to leave the site immediately a few weeks after the South African company was placed under business rescue in terms of the Company’s Act in South Africa. Business rescue is a new concept in South African Law and was introduced through the enactment of the Companies Act 71 of 2008 (“The Act”).


One of the main purposes of the Act as encapsulated in Sec 7 of the Act is to “provide for the efficient rescue and recovery of financially distressed companies in a manner that balances the rights and interests of all relevant stakeholders. Business Rescue in South Africa is essentially the same as Judicial Management in Botswana.


Debswana had ordered the company to vacate the site and cease drilling activities and also remove its equipment from the mines.The court order has complicated Debswana planning as they (Debswana) had already appointed another Company,Blasting and Excavation to commence drilling blast holes at the Damtshaa mine where the South African Company was drilling before being stopped.


Delivering his ruling on the matter last week,Justice Michael Mothobi ordered Debswana to return to the company its control of the mines.


“The respondent (Debswana) is ordered to return to the second applicants’ possession and control the drilling site situated at the Damtshaa mine forth,” said Justice Mothobi when delivering his judgement.


The judge further ordered Debswana to allow Na Sera General Sales “to execute its obligation under the contract number 395-SCM C005750 forthwith.” He further warned Debswana against interferring with the company on performing its duties.


“The order above operate as interim interdicts with immediate effect pending the final resolution of the dispute over the Debswana’s repudiation of the agreement,” the court order said.


Mothobi further directed the SA Company to institute arbitration proceedings in terms of clause 20.4 of the contract or other applicable provisions within 30 days of the order,”failing which the orders some of the above orders shall lapse.”
The judge in the end ordered Debswana to pay the costs of the application,such costs to include legal costs of both parties.


The dispute arose when the South African Company appointed a business rescue practitioner to exercise full management and control over the Company in substitution of its Board of Directors and pre-existing management of it.


Following this, Debswana terminated the contract entered into between them and the Company, giving rise to a series of legal tussles and disputes between the two parties over the matter.The applicants disputed Debswana’s right to cancel the contract saying the reasons were not those that were agreed upon in the contract.


The parties had agreed that the contract can only be terminated if the contractor “becomes bankrupt or insolvent,goes into liquidation,has a receiving or administration order made against him,compounds with his creditors or carries on business under a reciever,trustee or manager for the benefit of his creditors,or if any act is done or event occurs which (under applicable laws) has a similar effect to any of these acts or events.”


The South African based company which had employed scores of Batswana argued that the purpoted cancelation was invalid because of the disputed clause, arguing that the clause didn’t refer to business rescue.


The company in one of the letters to Debswana argued that Debswana “has allowed the business rescue practitioner to drill,well knowing that the company is under business rescue.” They added “you have therefore waived your rights to cancel the agreement.The other shareholder has consented that I may cede the agreement to Advanced Capital Botswana,” said the Business Rescue practitioner,Etienne Naude to Debswana.


Advanced Capital Botswana is a company owned by former Botswana Democratic Party Secretary General,Mpho Balopi according to the papers before Weekend Post.The SA Company had wanted to invest in Balopi’s company and become equity partner.


Debswana through its legal Counsel,Ludo Tema, however disagreed with the Company’s enterpretation of the Clause or agreement. “We do not agree with your views on the clause.In our View the specific events set out in the clause are clearly not (and are not intended to be) an exhaustive list of events which entitle the employer to cancel.In our view the clause need not mention ‘business rescue’ specifically in order for it to constitute an event entitling the employer to cancel,” said the Debswana lawyer in an email sent to the Company business rescue practitioner, Naude.


He added that “in respect of Nasera,a number of events listed are in our view,applicable and we believe that the process of business rescue is sufficiently covered by the clause.” Tema continued denying that they had waived any rights in terms of the contract saying “we have prudently and expeditiously under the circumstances and more importantly,in line with the requirements of the contract.”

Continue Reading

News

BAD WEEK FOR MANCHESTER CITY

6th February 2023

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

Continue Reading

News

South Korean Embassy aids students living with disabilities

6th February 2023

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.

Continue Reading

News

DIS alleges plot to kill Masisi hatched in South Africa

6th February 2023

A dispute is brewing between Botswana and South Africa intelligence agencies over alleged mercenary training camps discovered in South Africa by the Directorate of Intelligence and Security (DIS). 

This content is locked

Login To Unlock The Content!

Continue Reading