BURS probes Bakang Seretse millions
The Botswana Unified Revenue (BURS) is unrelenting in its pursuit of businessman Bakang Seretse’s alleged failure to comply with tax.[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”1,2,3″ ihc_mb_template=”1″ ]
The war of words between Seretse and the taxman follows a Court of Appeal judgement which saw him winning an appeal by the state. The State had attempted to recover P82 million suspected to have been proceeds of an alleged crime linked to the P250 million National Petroleum Fund (NPF) saga.
After the judgement, BURS demanded P166 millions of what it termed tax arrears from his associated companies.
According to documents seen by this publication, BURS has been summoning Seretse for questioning in relation to his company, Khulaco Propriety Limited. It is understood that the officers were interested in assessing how much the company owes the taxman.
This is confirmed in a letter dated 1st September 2022, titled “Request for information in respect of section 68 of the income tax act (cap: 52:01).”
The letter signed by BURS’ official Precious Mooketsi states that; “We request to be furnished with your outstanding returns for Tax Years 2028, 2019, 2020 and 2021. You are required to furnish this information within seven days from receipt of this notice.”
Still on the same day, Mooketsi wrote another letter titled; “Failure to register and submit VAT returns value added tax (VAT) assessment: Khulaco Propriety Limited.”
The letter reads in part; “Reference is made to our letter dated 4th May 2022 and the meetings held in our offices on the 20th June 2022 and 23 August 2022.”
The letter adds that; “You are once more reminded to register for Value Added Tax (VAT) with immediate effect.”
Mooketsi warned Seretse that “Failure to register will attract a penalty equal to double the amount of output tax payable from the time you were liable to register until you file an application for registration with the Commissioner General (Section 16 (9).”
Seretse has been battling money laundering, corruption charges after he was appointed as the mastermind of the NPF financial saga. The monies were considered proceeds of crime by the state. The monies (P82 million) were c omission paid to Seretse’s company, Khulaco Propriety Limited which was administering the NPF.
Other than his issues with the taxman, Seretse is also being pursued by Bank Gaborone. The Bank has invited bids as it has put up the house worth more than P6 million for auction. This follows a High Court judgment in its favour. The house is registered in the names of Seretse’s other company, Basis Point Capital.
Meanwhile at the time when BURS froze’s money, his lawyers, Ngakaagae and Co. issued a statement denying that he owes the taxman.
“We have indeed received BURS, notifications, purporting tax liabilities against the beneficiaries of the Court of Appeal, judgment in favor of Bakang Seretse associated companies. We had envisaged the possibility of such, as the last resort of the vanquished state machinery,” the lawyers said.
“Our clients were not invited to any assessment and the BURS never conducted any. The notifications are a panic reaction to correspondence by Ngakaagae & Co, issued yesterday, giving the receiver 24hrs, to release the money. Notifications were then prepared overnight by the Receivers office, and BURS, to restrain the amounts under a tax pretence,” Seretse’s lawyers said at the time.
They indicated that Basis Points Capital, was fully tax compliant at the time its accounts were frozen in December, 2017.
“The respective companies could not have filed before end of the tax year while their accounts were shut down and all their accounting books seized by the DCEC, through the court order that has since been discharged,” the lawyers said.
The lawyers said the BURS and the Receiver, being under pressure to release the amounts, went for a care free approach and spat out figures without reference to laws, rules or procedures.
“All the alleged taxable amounts were frozen many months before the end of the tax year, and have only been released, technically, on the 29th April, 2022. How the BURS would exact penalties of 200% on amounts for a period upwards of four years over which amounts had been restrained and in government custody (Receivers custody), is plainly absurd,” Seretse’s lawyers said.
The lawyers said “Assuming the companies aren’t tax compliant (which is false beyond doubt) it instructive that we are in the middle of a tax amnesty period which has somewhat been forgotten by those that gave it, namely, BURS.”
They added that; “We have all the patience to wrestle with BURS until the amounts are released. We are indefatigable, and remain fired by the courage of our convictions,” adding that “We remain hopeful for a day in the life of our country when BURS shall be a professional entity and shall no longer be weaponised by our petty government against citizens.”
In a brief interview Seretse could only say “these guys are fighting. Because they cannot win in court, they are now doing underhand tactics”. Strangely, Seretse says he is being penalized for accounts that were frozen by the government because of the infamous National Petroleum Fund (NPF) case that was before court. In some instances, the government owes him tax, but they charge him for that.[/ihc-hide-content]
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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.