Court ruling threatens DIS case against Israeli firm
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The recent High Court ruling by Justice Godfrey Radijeng, which dismissed with costs the application for forfeiture to the government several properties that belong to Bakang Seretse and others, is likely to have a bearing on another related case in which an Israeli company, Dignia System, is suing the Directorate of Intelligence and Security Services (DISS).
Dignia is seeking an order compelling the DIS and the Attorney General (defendants) to accept delivery of the remainder of the orders under the contract and pay them USD 11 320 000.00 (about P123 million).
The Dignia contract case, pending before the courts, is at the centre of the NPF case because NPF funds were used to finance the contract. The DPP director, Stephen Tiroyakgosi, in the just-ended case, claimed that the globular amount of P230 Million having been disbursed in an irregular manner or as an illegal transaction painted every subsequent transaction flowing from it with the same brush of illegality and subsequently as proceeds of crime.
The state has suspended the Dignia contract because it was invalid as the tender, in this case, was not floated in terms of the enabling statute. Consequently, the state says there is no need for the DIS to pay the amount claimed or any part thereof.
According to the state, the NPF money was requested by the former director-general of Intelligence Services, Isaac Kgosi, to construct petroleum facilities and was to be received from the Fund manager, Kgori Capital. But surprisingly, P230 million was disbursed from the Fund account held with Stanbic Bank Botswana to an account held by Khulaco PTY LTD, a private persons account at a capital bank at the instruction of Kgosi-hence the state alleging that irregularities and illegalities marred the processes.
A substantial amount of the money was transferred on 21 November 2017 to Dignia System Limited to a bank in Israel. The state in the just-ended Bakang Seretse matter said that the investigations regarding this amount are ongoing due to international cooperation, further saying that the process is slow and takes more time than ordinarily expected.
It would be proper to have the amount remain in restraint pending the conclusion of the investigation, said the state referring to the Dignia matter.
Tiroyakgosi says there was a departure or deviation in the administration and expenditure of the National Petroleum Fund that was not authorised by the Minister of Finance and Development Planning. Subsequent transactions, they argued, connected to several possible offences under the penal Code, more particularly, Sections 129 and 132 thereof on breach of trust and fraud and disobedience of statutory duties respectfully, and the further possible violation of the Corruption and Economic Crime Act-conflict of interest contrary to section 31 and cheating public revenue as well as criminal activities relating to money laundering under Section 47 of PICA.
The DISS has suspended the Dignia System contract arguing that it was invalid as the methodology used in the transaction does not conform with provisions of the Public Procurement and Asset Disposal Board, which a procuring and disposing entity should follow.-this rendering the alleged contract unlawful and therefore of no force and effect.
But Dignia is having none of it and wants to deliver the outstanding deliverables to the contract, which were three Unmanned Aerial Vehicles (UAVs) and their accessories, part of the Special Forces equipment and training.
The unmanned aerial vehicles or drones their accessories and the remainder of the Special Forces equipment are ready for delivery and plaintiff is ready to conduct the associated training, read part of the papers. Dignia states that on or around 21 November 2017, DIS made payment of half the contract price, leaving a balance of USD 11320 0000.00, which remains due, owing, and payable.
Such payment was made through a company called Khulaco Management Services which is a company approved by the second defendant and or the Botswana Government to make payment in respect of the project, Dignia stated.
How the current ruling is likely to jeopardize the DIS case
The DPP has requested that for the amount transferred on 12 November 2017 to Dignia, the court place the said property in continuing restraint under Section 43 (5) (b) of PICA.
However, Justice Radijeng has thrown out the application made by the state that the globular amount of P230 Million having been disbursed in an irregular manner or as an illegal transaction painted every subsequent transaction flowing from it with the same brush of illegality and subsequently as proceeds of crime. His views are that the state failed to prove its case and substantiate it with evidence or proof.
The offence of money laundering requires proof or establishment that the person who engages in a transaction or receives such property knows, suspects, or has reasonable grounds for knowing or suspecting that the property is derived or realised in whole or in part, directly or indirectly from a confiscation offence. I have found in my assessment of the facts of this case that the respondents commit no offence as interested parties and that therefore the properties are not proceeds or instruments of crime-related activities, he said in his ruling.
Legal pundits say the ruling has persuasive value towards the pending P123 DISS-Dignia case, which the state describes as an act of criminality. The verdict effectively denies that Dignia was improperly or corruptly engaged. The current judgement does not bind the other court, but it has persuasive value as courts generally avoid issuing contradictory rulings.
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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries
Botswana Telecommunications Corporation Limited (BTC) has announced that its 3rd Francistown Marathon will be held on Saturday 20th April 2024 at Obed Itani Chilume Stadium in Francistown. The BTC Francistown Marathon is officially recognised by World Athletics and a Comrades Marathon Qualifier will offer race categories ranging from 42.2km, 21.1 km, 10km, 5km fun run, 5km peace run for children and has introduced a 5km and 10km categories for wheelchairs athletics.
BTC also used this opportunity to announce beneficiaries who received donations from proceeds made from the 2nd BTC Francistown Marathon that was held on April 23rd 203. BTC donated a play area, plastic chairs and wooden tables for pupils worth a total of thirty eight thousand, one hundred and three pula, fifty thebe each (P38, 103.50) to Monarch Primary School, Tatitown Primary School, Mahube Primary School and Gulubane Primary School. Ditladi and Boikhutso clinics each received a donation of benches, television sets and 10, 000 litre water tanks worth thirty seven thousan, eight hundred and ninety eight pula (P 37, 898.00). Additionally, BTC also donated seventy thousand pula (P70,000.00) to their marathon technical partner, Francistown Athletics Club (FAC) which will be used for daily operations as well as to purchase equipment for the club.
The BTC Francistown Marathon aligns seamlessly with BTC’s corporate social investment programme, administered through the BTC Foundation. This programme is a testament to BTC’s dedication to community development, focusing on key areas such as health promotion. The marathon, now in its third year, not only promotes a healthy lifestyle but also channels all proceeds to carefully chosen charities as part of BTC’s commitment to impactful and sustainable projects.
Speaking at the launch, the BTC Managing Director Mr Anthony Masunga stated that the marathon underscores BTC’s commitment to community upliftment and corporate social investment. He stated that “the annual event which has been in existence since 2016, having taken a break due to the covid and other logistical issues, is instrumental to the economic upliftment of the city of Francistown”. He congratulated all the beneficiaries for having been nominated to receive the donations, adding that “the donation of proceeds from the 2023 marathon aims to highlight BTC’s commitment and heart for Batswana and our continued impact in the different industries”.
He further stated that through this marathon, “we demonstrate our steadfast commitment to having a good influence on our communities, this event is a manifestation of our dedication to promoting education and a healthier, more active society”. He concluded by stating that “BTC looks forward to another successful marathon that will leave a lasting positive influence on the greater Francistown community and the country at large” he said.
Giving welcome remarks, the Councillor for Donga, Honourable Morulaganyi Mothowabarwa stated that “he is ecstatic that BTC is collaborating with the City of Francistown on yet another installment of the Marathon”. He continued to offer his support to BTC to enable this marathon to continue over the coming years, stating that the “CSI element is a welcome development that helps empower our communities”, he said.
The 3rd BTC Francistown Marathon is officially open for registrations and athletes may use the following platforms to register and pay; through Smega by dialling *173# and choosing opton 5, then choose Option 3 for the Francistown marathon, at any BTC store or by visiting the BTC website and clicking on the BTC Francistown Marathon and choosing the relevant options.
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Letsholo lauds President Masisi’s digitization in fight against corruption
Thapelo Letsholo, Member of Parliament for Kanye North, delivered a moving speech at the United Nations International Anti-Corruption Day commemoration, praising President Dr. Mokgweetsi Eric Keabetswe Masisi’s digitalization initiative in the fight against corruption. Letsholo highlighted the importance of embracing digitalization in governance as a crucial step in curbing corrupt practices.
According to Letsholo, the implementation of digital systems in government services can significantly reduce direct interactions between citizens and officials, which often serve as fertile grounds for corruption. By minimizing these opportunities for illicit activities, the efficiency and transparency of public services can be enhanced. Letsholo pointed to Estonia’s success in digital governance as an example, where public services have become more transparent, accessible, and efficient.
The MP commended President Masisi’s commitment to digitalization and E-Governance, emphasizing that it aligns with global anti-corruption standards. He called for full support and active participation from all sectors to ensure the success of this initiative.
Letsholo also stressed the importance of improving detection methods and refining whistleblower laws to effectively combat corruption. He highlighted the unseen and unspoken facets of corruption as its lifelines, emphasizing the need for robust detection mechanisms and a system that encourages and protects whistleblowers.
Addressing the societal role in fighting corruption, Letsholo focused on the crucial role of everyday citizens and civil servants who often witness corrupt practices firsthand. He acknowledged the existing reluctance to report corruption due to the perceived risks of repercussions. To change this narrative, Letsholo advocated for creating an environment where staying silent is deemed more detrimental than speaking out. He called for a cultural shift where the potential benefits of exposing corruption outweigh the risks, ensuring that whistleblowers are protected and feel secure in coming forward.
Letsholo called for collective responsibility and action in creating a system that not only detects and reports corruption but also supports those who stand against it. He expressed hope that under President Masisi’s digitalization initiatives, the future of governance in Botswana will be characterized by integrity, transparency, and accountability. Letsholo’s speech resonated with the sentiments of hope and determination that permeated the commemoration, emphasizing the need for unity in the fight against corruption.
In summary, Letsholo lauded President Masisi’s digitalization initiative in the fight against corruption, highlighting its potential to curb corrupt practices, enhance efficiency and transparency in public services, and align with global anti-corruption standards. He emphasized the importance of improving detection methods, refining whistleblower laws, and creating an environment where speaking out against corruption is encouraged and protected. Letsholo called for collective responsibility and action in creating a future characterized by integrity, transparency, and accountability in governance.
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FaR property assets value clock P1.47 billion
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.