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P15 million trouble for Kgori Capital

Publishing Date : 06 March, 2018

Author : TEBOGO KGALEMANG

Kgori Capital, a company formerly owned by Bakang Seretse was last week put under a restraining order for an amount in the sum of P15 million by Lobatse High Court Judge Abednego Tafa. Alphonse Ndzinge is the new Executive Manager.


Delivering the order, Judge Tafa narrated that he was relying on Section 35(3) of the Proceeds and Instruments of Crime Act, Cap 08:03. “The order relates to the credit amount of P15million standing to the credit of Investment Account Number: 3000 448 474-INV held by Afena Capital Botswana Kgori Capital with Bank Gaborone. The receiver shall take control of all property specified in the order pending the institution and finalization of proceedings for a Civil Penalty Order,” Judge Tafa ruled.


He went on to stress that all persons with knowledge of this order were, other than as required and permitted by the order, prohibited from dealing with the said amount, “Except in the manner or circumstances, if any, specified in the order.” The sum in question is a portion of the total credit balance of P30m standing to the same account as at January 22, 2018.


An affidavit deposed by Director of Public Prosecutions (DPP), Stephen Tiroyakgosi states that the amount in question represents a reasonable estimate of the value of benefits and incidental expenses derived by Kgori Capital as a result of a multiple serious related criminal activities. The offences include cheating the public revenue; abuse of public office; obtaining by false pretences and money laundering.


The court heard that Kgori Capital had over a period of 10 months, debited to the Kgori National Petroleum Fund Account held with Stanbic Bank the total amount of P10m ostensibly as management fees contrary to the consultancy agreement. The consultancy agreement is that Kgori Capital could only benefit as a sub-contractor with whatever fees it might be entitled to, claimable from Basis Points Capital Botswana Limited from the consultancy price.


“By paying itself the so called management fees from the Kgori National Petroleum Fund account, Kgori Capital breached the National Petroleum Fund and diverted to itself the said P10m. As investigations are continuing, this figure is likely to change, especially at the time of making of the substantive order,” states Tiroyakgosi in his affidavit.


It is said that from March 7, 2016 to December 14, 2017, various debits were entered against the National Petroleum Fund account No: 906 000 208 5742 held with Stanbic Bank, with the amounts credited to the Kgori Capital bank account No: 906 000143 6320 held by Kgori Capital with Stanbic Bank Botswana allegedly as management fees in payment to Kgori Capital.


The information before court further suggests that the investigations have revealed that the National Petroleum Fund consultancy agreement had only Basis Points Capital as the only contracting party with Botswana government concerning the services that Kgori Capital purported to render and to be entitled to be paid for. “Kgori Capital could only render the services to government as a sub-contractor under the consultancy agreement, with all its fees only claimable from and payable by Basis Points Capital.”


“By reason of this conduct by Kgori Capital, public finance standing to the credit of the National Petroleum Fund was overreached and over P10m was diverted from the public revenue and thereby depriving the revenue of money to which it was entitled,” the affidavits further outlines. This, according to the affidavit, was signed for under the hand of Kenneth Kerekang, notwithstanding the whole consultancy agreement being between Botswana government and Basis Points Capital.


The Department of Energy late last year withdrew all National Petroleum Fund monies and investment portfolios from respective banks and investment institutions. A communication from the Department of Energy stated that all proceeds into the National Petroleum Fund would now be deposited into the Government Remittance account held at Bank of Botswana. Furthermore, all commitments out of the Fund shall be routed through the Ministry of Finance and Economic Development for payment through the Government Remittance account.

The latest decision by government follows a series of events originated by a money laundering charge on one Bakang Seretse who was Managing Director of Kgori Capital is in his personal capacity implicated in a case involving P326 million which is perceived as thus far the leading financial scandal in monetary value. Bakang is accused alongside two others, Botho Leburu and Kenneth Kerekang. One of Bakang’s companies has apparently been administering the National Petroleum Fund (NPF) since 2016. It is also understood that Minister of Mineral Resources, Green technology and Energy Security.

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