On Thursday last week, when the three quit, it was reported that they were protesting what they viewed as dictatorial tendencies from the current board chairman, Serwalo Tumelo. It has been alleged that Tumelo had reneged on the board's popular decision to renew the contract of the then CEO, Joshua Galeforolwe. At the time, even cabinet had to enter the fray and instruct the board to give Galeforolwe another contract. In an unsigned press statement, the trio have thrown a spanner in the works by stating that their resignation was not in protest at Tumelo's alleged despotism.

"The reason for resigning is that it had become untenable, in our view, to continue to serve where unanimous and independent decisions of the board of directors, due to recent developments, cannot be carried out or implemented."

Without stating where the source of impediment came from, the three directors indicated that they could no longer function under the prevailing atmosphere. It is however well documented that both cabinet and the office of the Vice President and the Minister of Finance, Baledzi Gaolathe have at various times issued conflicting instructions to the board on the renewal of Galeforolwe's contract.

It is understood that Vice President, Ian Khama and to some extent the cabinet, are fighting in Galeforolwe's corner, while Gaolathe might be with the board.

In their press statement, the trio state that contrary to popular belief, they had recommended that Galeforolwe's contract not be extended. "Four months ago, prior to the expiry of his contract, the former CEO of PEEPA wrote to the board chairman, in line with contractual requirements and procedures, seeking the board's indication of its intention to re-new his contract. The board fully deliberated on the matter and after due consultation with the minister, on behalf of the shareholders, advised the former CEO that it did not intend to renew his contract."

In not so many words, the press statement points to what could be salient disagreements between the board and cabinet. It has been suggested that the board has to take orders from cabinet, or better still from the Vice President who is believed had instructed that Galeforolwe be given another contract. From the statement, it is evident that that trio's contention is that the board and not cabinet, is the appointing authority. They clearly state that:

"The board is the appointing authority of all senior employees of PEEPA (including the CEO) and is bound by fiduciary duties as directors under the Companies Act and principles of corporate governance".

Although it does not give reasons, the statement by Oabile Mabusa, Reginald Motswaiso and Irene Tlhase, is covertly suggestive that the non-renewal of the contract has to do with Galeforolwe's past performance and even suitability for the post. It is clear that they are saying Galeforolwe is not the most suitable candidate.

"The reasons for not renewing Galeforolwe's contract are detailed in a confidential document to the government from the board. These have nothing to do with the so-called 'differences of opinion on whether privatisation should continue to be governed by policy or legislation," the three former PEEPA directors say. They state in categorical terms that they were party to the decision to deny Galeforolwe a new contract by the board.

"We were party to and/or were in full agreement with all decisions of the board that whilst dialogue with the share-holders was on-going on this matter, Galeforolwe should not come to work because his contract had not been renewed by the board.

"It has been suggested in the media that by resigning, we were doing so in protest against our former colleagues who have remained in the board. This is not true. Until our resignations, the board of PEEPA had acted as a single unit and fully aware of its collective responsibility," the statement says.

When asked whether the unsigned letter reflected his true position and if he indeed co-authored it, Motswaiso whose substantive post is CEO at Botswana Housing Corporation was not in the mood to talk.

"Where did you get it? Why don't you trace it back to its source?"

Mmegi could not raise Mabusa at Bank of Botswana nor private consultant Irene Tlhase to say if indeed the statement reflected their position.

There is, however, talk doing the rounds that some in government are contemplating taking action against the two for defiance. As employees of BHC and Bank of Botswana, the thinking in some quarters is that they remain employees of government who are expected to dance to the whim and dictates of government. Efforts to authenticate the unsigned statement were futile as both men were out of their offices.