After managing to convince the High Court to unfreeze P15 million a few weeks ago, asset management company, Kgori Capital and government will soon lock horns in court again.
The Directorate of Public Prosecutions (DPP) has made an urgent application before Justice Tshepo Motswagole for restraining and forfeiture Orders in terms of Sections 39 and 11 of the Proceeds and Instruments of Crime Act. This is in relation to credit amount of P9,081,382.15 standing to the credit of call account held by Kgori Capital with Stanbic Bank Botswana
In his founding affidavit the acting Director of Public Prosecutions, Kabo Leinaeng listed interested parties as Kgori Capital, Bakang Seretse, Sharifa Noor, Alfonse Ndzinge and Stanbic Bank. Leinaeng explained that Seretse, Noor and Ndzinge were all interested parties in the property of Kgori Capital by virtue of their directorship and beneficial shareholding in the company. Stanbic Bank is the bank at which the money or property sought to be restraint are held in an account by Kgori Capital.
For reasons to be dealt with, he submitted that the property referred to in his affidavit represents a reasonable estimate of the value of benefits and incidental expenses derived by the respondent company as a result of criminal activities namely cheating the public revenue and abuse of public office.
He also mentioned obtaining by false pretences, money laundering by the company over a period of about 10 months the total amount of P10,525, 786.67 ostensibly as management fees contrary to the Consultancy Agreement, under which Kgori could only benefit from as a sub-contractor with whatever fees it might be entitled to, claimable from Basis Points Capital Botswana from the Consultancy Price.
"The restraining order sought in respect hereof is to ensure that the amount of BWP9,081,382.15 or interest in this amount should not be disposed of or otherwise dealt with except in the manner or circumstances that may be specified in the order to be granted in terms of this application, pending the making of an application for a Civil Penalty Order pursuant to the provisions of Section 11 of Chapter II of the Proceeds and Instruments of Crime Act,
He listed facts relied on saying from March 7, 2016 to December 14, 2017 various debits were entered against the NPF account held with Stanbic Bank and amounts thereof were credited to the Kgori Capital account allegedly as management fees in payment to the respondent company.
In the course of the investigations, the investigating team found that the NPF consultancy agreement, had only Basis Points Capital as the only contracting party with Botswana Government concerning the services that the respondent company purported to render and to be entitled to be paid for.
"Additionally that the respondent company could only render the services to government as a sub-contractor under the consultancy agreement, with all and its fees only claimable from and payable by Basis Points Capital.
"That by reason of this conduct by the respondent company, public finance standing to the credit of the National Petroleum Fund was overreached and over BWP10,525,786.67 was diverted from the public revenue and thereby depriving the revenue of money to which it was entitled."
It was established during the course of investigations that the respondent company in so doing purported to act on the basis of a purported interim mandate signed and given under the hand of Kenneth Kerekang, notwithstanding the whole consultancy agreement being between the government and Basis Points Capital. Kerekang, Seretse and one Botho Leburu are currently facing money-laundering charges at the regional Magistrate’s Court.
Leinaeng submitted that the investigator has reasonable belief that serious crime-related activities were committed leading to the transactions allowing payments from the NPF account and that in the aftermath of such transactions causing a depletion of the public revenue amongst others. Attorney Busang Manewe has been instructed to oppose this ex parte application next week.