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Kgori Capital chats new path

Publishing Date : 05 February, 2018

Author : REARABILWE RAMAPHANE

Kgori Capital has been chattering a difficult path this past couple of weeks, and although the dust has yet to settle, the investment firm is ready to open a new chapter. Kgori Capital has been caught up in a storm following its employees, Bakang Seretse and Botho Leburu’s entanglement in a multimillion pula money laundering case.


At a stakeholders’ meeting on Thursday morning, Kgori Capital distanced itself from both Seretse and Leburu, and the money laundering and any other unethical proceedings thereof.  Kgori’s new management however said the firm would embark on a new chapter all together. Seretse was Managing Director of Kgori Capital prior to his arrest and being charged with a count of money laundering. He has since been replaced by Alphonse Ndzinge.


The company currently manages over P5 billion on behalf of third party clients after losing four, among them the multi-billion pula Botswana Public Officers Pension Fund (BPOPF). BPOPF terminated its 3.5 billion contract with Kgori Capital following Seretse’s money laundering scandal.


The newly appointed Managing Director, Ndzinge revealed that the clients who parted ways with them did so without affording Kgori Capital a chance to absolve the company of any wrong doing. “it is quite unfortunate that we had to go through this as a company, most of these clients that terminated their mandate with us acted out of emotion and were influenced by the media uproar and misinformed public pressure,” he said addressing stakeholders at their CBD offices.  


Ndzinge, who was appointed earlier this week however highlighted that their dumped by the clients hurt their balance sheet significantly.  “Especially the BPOPF mandate, the pension fund was a major client,” he highlighted. Ndzinge underscored that while the loss of some clients was saddening the focus of his company continues to be on delivering excellence for the remaining reputable clients. “We are focused on providing excellent investment outcomes and client services leveraging on depth and breadth of skill and experience to ensure sustainable returns for our investors,” he said.


He reiterated that his company has been purposefully ensuring a healthy client mix to make sure the business was not built around any single client. He added that going forward they will further diversify their mandate management portfolio to ensure sustainability.


Kgori has since cut all ties with Seretse, who tendered his resignation immediately after being granted bail. Kgori Capital reaffirmed that Seretse was no longer under its employ and thus has been removed from the shareholder registry. “Our Shareholder agreement states that shares will only be held by those that are employed by Kgori Capital, we are currently exploring how shares previously held by him will be managed and a process has commenced to pay him the worth of the shares and completely part ways with him,” explained Tshegofatso Tlhong, also an executive member at Kgori Capital.


Tlhong reiterated that the money laundering charges do not in any way reflect on Kgori Capital(Pty) Limited as the company only acted on authorized instructions. “These allegations involve only one client, the Department of Energy, we at Kgori  continue to be a sustainable and stable  firm despite loss of some mandates,” she said.  


The company, which currently employs 12 professionals says it does not anticipate any staff changes going forward “We are a team and we are in this together, our Directors are currently exploring possibilities to broaden shareholding to our staff,” shared Tlhong.


While Ndzinge conceded that the Kgori Capital brand and image has indeed been tarnished to some degree by association, he explained that though a number of inaccuracies were making rounds in public domains, his team has been working hard to set the record straight. “At the same time however we have a long standing reputation for excellent work, transparency and trustworthiness, for our company sustainability we have been conservative in distributing retained earnings over the years and that has allowed us to have a comfortable cushion of reserved and a strong balance sheet to carry us through this slightly difficult time,” he said.


Kgori Capital was established in 2012 by a partnership of local business persons and South African asset Management Company Afena Capital as a Botswana focused investment manager, providing solutions to pension funds, corporate, charities and private personal clients. The company was awarded its first client mandated in 2013.


Kgori Capital management and Staff Trust bought out Afena Capital Group from the company in late 2016 to birth a new 100 % Botswana citizen owned company under the new brand Kgori Capital.  Amid the money laundering, Kgori Capital was awarded a CIU license early this year by regulator NBFIRA. The company says it has since taken a decision to profile and add another lay of KYC (Know Your Clients) for politically exposed clients to avoid any future instances similar to that of the National Petroleum Fund.

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