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BPOPF talks massive plans after trashing CMB in court

Publishing Date : 06 August, 2018

Author : UTLWANANG GASENNELWE

Botswana Public Officers Pension Fund (BPOPF) is picking up the pieces after their recent high profile court victory against Capital Management Botswana (CMB) and its Chief Executive Officer (CEO), Rapula Okaile.


In the judgement of the case which BPOPF were in pursuance together with Non-Bank Financial Institutions Regulatory Authority (NBFIRA), three Court of Appeal Judges; Justice Ian Kirby, Justice Singh Walia and Justice Jacobus Brand ruled that “the appeals of both the first appellant (BPOPF) and the second appellant (NBFIRA) are allowed.” They also set aside Justice Omphemetse Motumise’s judgement and replaced it to confirm appointment of Peter Collins as Statutory Manager of CMB.


In light of the appointment, BPOPF CEO Boitumelo Molefhe told Weekend Post in an interview this week following a press briefing in Gaborone that Collins has taken charge and BPOPF is banking on him to direct way forward. “We are now going to be guided by CMB new Statutory Manager Peter Collins; he is a very important and key person going forward for all of us,” Molefhe said.


She emphasised that “Collins is going to make recommendations for all of us and they will be looked at by Non-Bank Financial Institutions Regulatory Authority (NBFIRA) and if they agree with them they will be implemented.” The BPOPF CEO also said Collins will lead investigation into a proper inquiry on how they lost close to 500 million pula of pensioner’s funds that was invested in CMB.


“We need a proper inquiry (that will be led by Collins) into how on earth this whole thing happened and that are we likely to receive the lost assets, and which one, including finding out if we can recover further assets beyond Okavango Wilderness and Cell city,” Molefhe highlighted.


According to the pension Fund CEO, they drew some lessons from the whole circus that put 60 billion worth pension fund into risks. “We learnt that next time there should do a thorough due diligence and make sure that they know the customer very well before any partnerships agreements.”


Why BPOPF committed to increase assets: P500 million to P880 million

The BPOPF CEO further told this publication separately after the press conference that initially they had wanted to increase assets they invested at CMB from P500 million to P880 million because they felt it was reasonable. Molefhe explained the transaction: “it was at a time in which the relationship between us as BPOPF and CMB was in good health. They were compliant. They were doing the draw down and they were laying down the money, they were actually investing the money. So we thought it would make a lot of sense to increase the capital which under weighed the dividends and increase them.”


She further observed that they wanted to allow CMB to make that capital rising for the company so as to allow for additional money in which the Advisory board approved it about three months later and that was also done in accordance with the partnerships agreements, Molefhe pointed out. “But shortly after that they started breaching those agreements and that’s when we started reminding them that they have to comply and do their quarterly reports to see their valuations and that is when they disagreed and refused saying they won’t do that.”


Molefhe added: “That is when we went ahead and told them that because of the major breaches and even that additional capital of P880 million is now null and void because there were conditions that they should give the valuation reports and even the auditors were concerned about it asking why they are refusing the valuations.” Private equity, she said, when they come and raise capital with you they need to show you that they have a pipeline and you have to be confident in the pipeline.

Will BPOPF locate the assets and repossess them?

In terms of the assets the BPOPF CEO said, “I think for these two; Okavango Wilderness and Cell City — am still confident that we will repossess them because they were/are still subjects of the court that is they are under Statutory Manager, they were even frozen, there was no trading allowed on them. It is a lot of money to the tune of P150 million and the share keeps increasing and there is also dividend.”

BPOPF appoints new board chairperson Solomon Mantswe

According to BPOPF CEO the Pension Fund has dully constituted new board with 11 trustees. They have also “appointed Solomon Mantswe as Chairman of the board effective 1 July 2018.”  He will serve for a 5 year contract. “New board under Mantswe supports us as was evident in the just ended court case. There is a very cordial relationship,” Molefhe told this publication.

CMB wanted to settle matter outside court

In an interesting twist of events, BPOPF CEO also mentioned to Weekend Post in the interview that she heard CMB had wanted to settle the matter outside court although she denied it in the press conference. When asked separately she said “there may have been some kind of attempts to settle the matter outside court. This happened after the matter was lodged before court.


In fact it happened recently, I just heard recently. I heard it was from the CMB side and not BPOPF. It is certainly cannot be from our side as we believed in this case and had great prospects of winning as it turned out.” She insisted on the matter: “From our side we could have engaged our legal team. We never talked about wanting to settle. You just can’t settle by street talk without following due process and rational.” 

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