Cabinet to decide NDB boss future
The National Development Bank (NDB) Chief Executive Officer Lorato Morapedi
The National Development Bank (NDB) Chief Executive Officer (CEO) Lorato Morapedi is currently working without a contract following the expiration of her current deal at end of April. Morapedi’s contract ended with the bank yet to release the 2013/14 financial report, which is long overdue.
The report is expected to declare a declining performance by the development bank, and this will be a hard hit since it was established more than 50 years ago.
Highly placed sources at the bank indicate that the financial report is still kept under the rug as there is fear that it might put the CEO on the spot light – at a time when her performance needs to be gauged.
“Obviously the bank is not performing; the CEO took over when we were making profits of around P48 million but now we have been warned in previous meetings that we are anticipating a loss of P87 million as a bank,” an immaculate source told this publication this week.
Some of the employees at the bank have attributed the bank losses to financial mismanagement.
It is understood that already the Minister of Finance and Development Planning, Kenneth Matambo has been notified through a letter dated Monday, 16th February 2015 of which a copy has been passed to the WeekendPost, that the bank needs to take a different strategic direction and it needs leadership renewal.
The National Development Bank Employees Union (NDBEU) warned in the letter, that: “in a highly competitive business of borrowing and lending, and given commercialization drive of NDB, the CEO lacks both the charisma and technical competence to rally her troops.”
The union, which represents a good part of the employees has observed that Morapedi’s leadership has been the sharp rise of resignation of many critical and high ranking officers who were high performers.
This has not been helped by the fact that “the board has actively ensued that the few internal audit reports that are highly critical of the CEO’s leadership are swept under the carpet. They have resorted to acting as the CEO’s gatekeepers,” the union complained.
As the Minister, Matambo has the prerogative to decide to renew Morapedi’s contract or not. The minister may also solicit advice from key stakeholders like Bank of Botswana – which normally influences appointments of management in banks, including NDB. Under normal circumstances, NDB board recommends contracts and then the Minister approves.
WeekendPost is reliably informed that the contract of the CEO ended last month after serving in the position for close to five years.
However when contacted for comment, NDB Head of Branding, Marketing and Communications Harry Marks was tight lipped on the CEO contractual disclosure preferring not to divulge the information.
“It is in the best interest of the bank and its employees not to divulge any contractual agreement to third parties. It would be very unfair to the employee and against the bank’s policy for the bank to discuss employee’s contract with a third party as this is confidential,” he stated.
He emphasized that they are not aware of the allegations of the CEO parting ways with the bank. Instead, he said the CEO is steadfast in following up the transformation agenda towards Privatization and Commercializing the bank.
According to the letter penned by the union to Matambo, the lack of engagement by Morapedi and staff has resulted in staff giving contradicting and sometimes unconvincing information when engaged by customers. “It would not be long before these frustrated employees deliberately churn out negative information to the customers,” the letter stated.
The employees also said that from the beginning of this year (2015), the board was still reluctant to engage them on the matters they raised with them and resorted to advancing technical arguments intended to frustrate meaningful dialogue and conveniently did so. As consequence, the employees then resolved for a vote of no confidence on the CEO, bank management.
“As a consequence of this conduct by both the Board and Management Honourable Minister, the Union has in pursuant of its strategic and national interest in the operations of NDB, at its meeting of the 11th February 2015 resolved to pass a motion of no confidence against both the Board and Management.”
Following this resolution, the minister was informed that the CEO has resorted to rather unorthodox and desperate methods of engagement by intimidating and seeking to victimize union members. “We hope the breach is not influenced by an elaborate attempt by the CEO to ensure that all channels are blocked to operationalize the resolution of the Union,” they sated in the letter.
The basis of the motion of no confidence against the CEO is said to have been influenced mainly by the financial position of the bank – which is said to have been declining – and anticipated to be at its lowest in the financial report of 2014.
However, the NDB spokesperson Marks told this publication that the bank has not received any motion of no confidence on the CEO. Marks however confirmed to this publication that “financials for 2014 are yet to be approved and it has been mentioned that the bank is anticipating an operational loss.”
He pointed out that the loss is due to high impairments and provision thereof, an interest rate constrained environment, leading to reduced liquidity and that this scenario is not only peculiar to NDB.
“Overall, the banking sector has been experiencing a decline in profitability due to the aftershocks of the 2008 world economic meltdown and partly due to a combination of other factors,” he justified.
It is understood that the past financial year that ended on 30th April 2014 is in fact the worst in terms of financial reporting. It is reported that to date, the external auditors are yet to complete their audit of the bank’s financials. Furthermore, this publication understands that the deadline of the 30th June 2014 which had earlier been agreed to between NDB and the Bank of Botswana – has long lapsed.
Stakeholders also revealed that “a subsequent extension of time has also not been met. The statutory reporting deadline for NDB has always been the 30th September 2014, yet this too has not been met. Timelines aside, it is months into the next financial year, yet previous year end financials have not been finalized. This is preposterous by any stretch of imagination.”
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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.