A Chinese company is suing the Government of Botswana over a forty million Pula Local Government and Rural Development citizens only tender after a local contractor, N AND M Services, secretly sold them the deal, fully knowing that the Chinese did not qualify to execute the job.
The disputed multimillion Pula tender was for the procurement and construction of water treatment plants and evaporation ponds at New Xade and Radisele.
The Chinese company said it entered into an agreement of Cession in terms of which the citizen company ceded all its rights under tender No 8/1/3/12II. The tender was awarded by the Department of Local Services.
Giant Building Construction say they fulfilled all their contractual agreements, in particular the two million Pula payment to the Citizen Contractor who also acknowledged receipt of the money as shown in court documents, as well as a performance bond of Two Million and Forty Four Thousand Seven Hundred and Three Pula Forty four thebe to the Department of Local Government.
The Chinese company argue that they further mobilized their workforce and machinery and started work at the two sites. “The applicant did all the above in the bona fide and reasonable belief that the agreement was valid and enforceable,” argues the Chinese company Lawyer, Yame Tshepo Kebabonye in the court papers.
The court papers show that the Citizen Contractors failed to cede their rights in the said tender to the Chinese due to the fact that the said tender was reserved for citizens only and therefore could not be ceded to non citizen companies, a fact well known by the citizen Contractors and a fact they hid from the Chinese.
The Chinese applied for payment of their Two Million Pula with a ten percent interest on the amount from date of breach to date of full payment as well as legal costs at attorney and own client scale. They further said they performed the work as per the contract and want an amount of P2 119 278.71 for that.
The material terms of the said agreement were that the Citizen Company, N AND M absolutely cedes every right to the Chinese, including the benefits. It was therefore agreed that the Chinese shall pay the Citizen Contractor the total sum of Three Million Pula which includes VAT and which amount represented the consideration to be paid to the Citizen Company for the said cession of rights and interest.
It was also agreed that the said amount of P3,000.000.00 shall be paid as follows: ‘firstly Two Million Pula upon signing of the agreement between the parties and the remaining balance of One Million Pula shall be paid after three months from the project commencement date by way of six successive payments of P166,666,66 from six successive payment certificate,’ reads the court papers.
The agreement was also that immediately after signing of the agreement, the Citizen Contractor shall apply for three percent withholding TAX exemption from Botswana Unified Revenue Services and deliver it to the Chinese.
It was also agreed the Chinese shall provide a security worth Two Million and Forty Four Thousand seven Hundred and Three Pula Forty Four thebe to the department of Local government as a client. This performance bond was a pre-requisite for the award or finalizing of the tender.
Moreover the two had agreed that the collateral security provided by the Chinese Contractors for the said performance bond shall be restored back to the Chinese at the end of the contract.
It was further agreed that all payments for work done under the contract shall be paid directly to the Chinese account and that the Director or the Chinese Contractor, Wang Daotian must be the sole signatory of the account and shall so remain for the entire duration of the contract.
Another agreement was that the Citizen Contractor shall deliver to the Chinese the complete original agreement of the contractor in order that the applicant may verify the specifications thereto.
It was further agreed that the Citizen Contractor shall sign all documents and render assistance as may be reasonably required for the fulfilment of the parties’ obligations under the contract.
The Citizen Contractor however denied ever making such an agreement with the Chinese contractor. In defence, the Citizen Contractors argued that the Chinese company does not even exist. “I am advised that proceedings instituted by a non-exist entity have no effect in law and are liable to be set aside as a nullity,” said the Citizen Contractor Director, Chilisa Ndlovu.
He continued that nothing came out of the negotiations with the Chinese contractors, as they wanted seventy percent of the works.
“We were not amenable to such a move for it would mean that the Chinese contractor would be in total control of the project if he was given such a percentage of the works,” he said further arguing that they never entered into an agreement with the Chinese contractors.
Chilisa further accused the Chinese Contractors of faking their signatures in the contract agreement cited by the Chinese. “The resolution was for the negotiations of sub-contracting and nothing more. I do not understand the Chinese Contractor saying subcontracting and cession of agreement are identical concepts,” they said further denying that the Chinese Contractor ever paid them the said Two Million Pula.
Chilisa called on the Chinese to provide proof of any invested amount into the project, as according to him they never paid a single thebe onto the said project.
In March last year, the Lobatse high court ruled in favour of the Chinese after they took the Citizen contractor to Court over the matter. A default judgement was made when N AND M Services failed to appear to defend their actions.
Efforts to attach the Citizen Contractor’s goods as per a follow up judgement were also futile as the there were no goods to satisfy the judgement.
N AND M Services is represented by Kanjabanga and Associates whereas the Chinese contractor, Giant Building Construction is represented by Sadique Kebonang Attorneys. The law firms representing the two warring parties did not want to comment on the matter.
Recently the Chinese’s lawyers successfully sought a garnishee order against the government to the debts. A garnishee order is a legal proceeding in which a plaintiff seeks the satisfaction of a debt by obtaining a judgment that directs a third party in possession of the property of the defendant to make it available to satisfy the judgment. The order was granted by Justice Nthomiwa Nthomiwa on the first week of August.
A letter passed to this publication from the Attorney General Chambers suggest that on the 5th of August 2015, the Chinese contractor’s lawyers wrote a letter to the Attorney General requesting the payments.
“We have previously informed you what is owed to our client. We in this regard attach the court in favour of our client and against N AND M Services. Kindly pay all money due to N AND M services from yourself, satisfying the attached judgement to the bank account provided below, the money to be paid includes the retention fee held by yourself on behalf of N AND M Services. We trust you will swiftly comply with the court order,” the letter stated.
While there is no hard-and-fast rule in politics, former Molepolole North Member of Parliament, Mohamed Khan says populism acts in the body politic have forced him to quit active partisan politics. He brands this ancient ascription of politics as fake and says it lowers the moral compass of the society.
Khan who finally tasted political victory in the 2014 elections after numerous failed attempts, has decided to leave the ‘dirty game’, and on his way out he characteristically lashed at the current political leaders; including his own party president, Advocate Duma Boko. “I arrived at this decision because I have noticed that there are no genuine politics and politicians. The current leaders, Boko and President Dr Mokgweetsi Masisi are fake politicians who are just practicing populist politics to feed their egos,” he said.
Former Botswana Democratic Party (BDP) parliamentary hopeful, Lawrence Ookeditse has rejected the idea of taking up a crucial role in the Botswana Patriotic Front (BPF) Central Committee following his arrival in the party this week. According to sources close to development, BPF power brokers are coaxing Ookeditse to take up the secretary general position, left vacant by death of Roseline Panzirah-Matshome in November 2020.
Ookeditse’s arrival at BPF is projected to cause conflicts, as some believe they are being overlooked, in favour of a new arrival. The former ruling party strategist has however ruled out the possibility of serving in the party central committee as secretary general, and committed that he will turn down the overture if availed to him by party leadership.
Ookeditse, nevertheless, has indicated that if offered another opportunity to serve in a different capacity, he will gladly accept. “I still need to learn the party, how it functions and all its structures; I must be guided, but given any responsibility I will serve the party as long as it is not the SG position.”
“I joined the BPF with a clear conscious, to further advance my voice and the interests of the constituents of Nata/Gweta which I believe the BDP is no longer capable to execute.” Ookeditse speaks of abject poverty in his constituency and prevalent unemployment among the youth, issues he hopes his new home will prioritise.
He dismissed further allegations that he resigned from the BDP because he was not rewarded for his efforts towards the 2019 general elections. After losing in the BDP primaries in 2018, Ookeditse said, he was offered a job in government but declined to take the post due to his political ambitions. Ookeditse stated that he rejected the offer because, working for government clashed with his political journey.
He insists there are many activists who are more deserving than him; he could have chosen to take up the opportunity that was before him but his conscious for the entire populace’s wellbeing held him back. Ookeditse said there many people in the party who also contributed towards party success, asserting that he only left the BDP because he was concerned about the greater good of the majority not individualism purposes.
According to observers, Ookeditse has been enticed by the prospects of contesting Nata/Gweta constituency in the 2024 general election, following the party’s impressive performance in the last general elections. Nata/Gweta which is a traditional BDP stronghold saw its numbers shrinking to a margin of 1568. BDP represented by Polson Majaga garnered 4754, while BPF which had fielded Joe Linga received 3186 with UDC coming a distant with 1442 votes.
There are reports that Linga will pave way for Ookeditse to contest the constituency in 2024 and the latter is upbeat about the prospects of being elected to parliament. Despite Ookeditse dismissing reports that he is eying the secretary general position, insiders argue that the position will be availed to him nevertheless.
Alternative favourite for the position is Vuyo Notha who is the party Deputy Secretary General. Notha has since assumed duties of the secretariat office on the interim basis. BPF politburo is expected to meet on 25th of January 2020, where the vacancy will be filled.
Botswana Democratic Party (BDP) big wigs have decided to cancel a retreat with the party legislators this weekend owing to increasing numbers of Covid-19 cases. The meeting was billed for this weekend at a place that was to be confirmed, however a communique from the party this past Tuesday reversed the highly anticipated meeting.
“We received a communication this week that the meeting will not go as planned because of rapid spread of Covid-19,” one member of the party Central Committee confirmed to this publication. The gathering was to follow the first of its kind held late last year at party Treasurer Satar Dada’s place.