Judge deliver final blow to Okaile, CMB
The High Court on 27 January 2022 confirmed a rule nisi issued against properties connected to Rapula Okaile and dispensed a Restraining Order under section 35 (3) of the Proceeds and Instruments of Crime Act. Judge O.M. Motumise has agreed with the Directorate of Public Prosecutions (DPP) that there is enough evidence to suggest that there is reasonable suspicion that the property could be proceeds of crime, and should be ceded to the Office of the Receiver.
The order relates to Lot No. 311, Extension 5, Gaborone, Lot No. 312, Extension 5, Gaborone, Lot No. 2839, Extension 10, Gaborone, Lot No. 22022, Gaborone West, Extension 13, Gaborone, Lot No. 57266, Block 10, Gaborone, Lot No. 3277, Extension 12, Gaborone, Ploughing field at Madiabatho, Pitseng, Scania Truck registered B 925 AUO, Toyota Land Cruiser registered B 925 BBU, Toyota Hilux registered B 675 AYU, Toyota Corrolla registered B 974 BBP, Toyota Corrolla, registered B 679 AZN, JCB Backhoe loader registered B603 APT, JCB Front end registered B 288 AKY, Massey Ferguson Tractor registered B 993 APJ, Tipper Truck registered B 737 ACE, Fuel tank trailer registered B479 BGB, Link Trailer registered B712 AJK, Link Trailer registered B 714 AJK, Link Trailer registered B 498 BGF, Link Trailer registered B 492 BGF, 18 Hydraulic Disc Plough serial number 4302, Row Planter serial number NB75-1272, Farrow Mould Board, serial number ARPG47110, Toyota Land Cruiser registered B587 BEW.
The main issue in the proceedings was to establish whether the various properties cited as respondents should be placed under restraint in terms of the proceeds and Instruments of Crime Act (PICA) on account of a reasonable suspicion that they are proceeds of crime and were acquired in furtherance of the offence of money laundering contrary to section 47 of PICA.
On 19 November 2019, the Director of Public Prosecutions brought an ex parte application in terms of sections 35 and 39 of PICA, for a rule nisi to secure and restrain the respondents pending confirmation of the rule nisi and the subsequent institution and finalisation of the civil forfeiture or civil penalty proceedings against the said respondents.
The DPP alleged in its ex parte application that the respondents (properties) were proceeds of crime in that they were bought with funds obtained by false pretences from the Botswana Public Officers Pension Fund (BPOPF) by Mr Rapula Okaile and or companies associated with him, amongst them; Capital Management Botswana (CMB), CMB Fund 1, and others.
The court had granted the rule nisi, placing the respondents (properties) under restraint and in the control of the Receiver pending confirmation of, or the discharge of the rule nisi. Judge Motumise confirmed the rule nisi on 25 February 2021, following a lengthy hearing. Okaile had filed extensive answering and supplementary affidavits contesting the rule nisi and seeking its discharge. “The crux of his contention was that the properties were lawfully acquired from innocently derived income,” Judge Motumise observed.
The Directorate on Corruption and Economic Crime (DCEC) received a report on the possible misappropriation of BPOPF funds by one of the directors of CMB, Rapula Okaile in November 2017. “The allegations were of a serious nature, involving an amount in the region of P500 million. The DCEC’s Finance Investigation Unit set up a team of investigators to investigate the allegations. The investigations took about two years to complete. The investigations set out a detailed trail of funds which the BPOPF had intended to invest in private equity funds.”
The relationship between Okaile’s CMB and the BPOPF was set in motion on 11 November 2014 when the two parties entered into an En Commandite Partnership Agreement whose object was the establishment of a partnership called (the BOP, or the Fund), a Botswana private equity fund established for the investment of BPOPF funds in portfolio companies to be approved by BPOPF. Under the agreement, the BOP would accept capital commitments; acquire, hold, and dispose investments in accordance with the Investment Policy of the BPOPF.
Judge Motumise observed that Okaile bought personal assets for himself with some of the BPOPF money. “What Mr Okaile did not dispute that much of the money went into his company, CMBF1 whicjh was contrary to the En Commandite. It is more probable than not that the money was thus obtained under the false pretence that it was going to be invested on behalf of the BPOPF when that was not true. The purchase and registration of the properties (respondents) in Okaile’s name was not an investment on behalf of the BPOPF,” the judge surmised.
The judge found that it was inconceivable for Okaile to have bought so many properties from his earnings and dividends. “First, his monthly salary of P120 000.00 for the period 2016 and 2017 would have been less than P3, 000 000.00. If the dividends of P4, 000 000.0 arte added, the total would still havwe been less than P10 000 000. 00. Allowing living expenses, other household expenditure and tax obligations just to mention a few obvious expenses, Okaile’s disposable income would have been far less than the above total,” Judge Motumise observed.
The judge agreed with the DPP, “I have accordingly come to the conclusion that a case has been made in that it is more likely than not that the funds were obtained by false pretences from the BPOPF by Okaile. It is equally more likely than not that the purchase of the respondents was money laundering contrary to section 47 of PICA.” By so doing Judge Motumise confirmed the rule nisi, subject to the exclusion of Lot 226, Extension 5 Gaborone, against which the DPP has abandoned its prayer for restraint.
News
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.”
News
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.
News
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.