Debswana, Infotrac face off again in spying scandal
Mpho Mokwape | Monday July 10, 2023 06:00
Debswana's move to the Court of Appeal comes after losing the case in 2022 after the High Court ruled that it should pay a local company, Infotrac, P110 million for backdoor dealings that took place in 2018 that involved lobbying powerful personalities.
The lobbied personalities were said to have included the then vice president, Mokgweetsi Masisi and others in favour of the appointment of a new managing director for the diamond giant.
Now in an attempt to avoid forking out millions, Debswana has appealed the former judge president of the High Court Abednigo Tafa's judgement. At the time, Justice Tafa ruled in favour of the spy company in a judgement that embarrassed Debswana. Debswana believes the court erred in not considering all the facts before it and by not taking into consideration that Infotrac acted in bad faith.
“The court erred in ruling in favour of Infotrac without considering all the evidence before it and realising that the company despite being engaged acted in bad faith,” said Debswana.
Meanwhile, Debswana lost the suit that Infotrac originated claiming it was owed millions by the former for service delivery of undercover spying. Through its managing director Mompoloki Motshidi, the spy company claimed that it was owed for various deep undercover services provided to Debswana, which included the alleged spying on the union and lobbying the likes of the late Linah Mohohlo and ex-spy chief, Isaac Kgosi, to ensure that the late Albert Milton was appointed the Debswana managing director.
Following a long trial, Justice Tafa, a then High Court judge, ruled in favour of the spy company explaining that the evidence before the court was sufficient enough and showed indeed the diamond giant owed Infotrac. "At any rate, there is evidence that Infotrac had previously dealt with the security department of Debswana and on the evidence adduced on behalf of the plaintiff which I believe without reservation, I am satisfied that the plaintiff has proven its claim on a balance of probabilities,” he said.
The former judge explained that in the instant case, the diamond giant could not assert against Infotrac that its general manager and/or head of security and human resources manager did not have authority to engage it when they customarily have such authority. The now retired Tafa emphasised that on the evidence before court, he had no reason to hold that the company’s director must have known, or at least, have had good reason to believe that the necessary steps had not been taken, especially the internal procedures relating to procurement.
He pointed out that there was no evidence that Motshidi acted in bad faith and did not agree with Debswana that the group head of security would not be expected to enter into contracts of that nature. “There is no doubt in my mind that the sum claimed was a large amount but noted that when one has regard to the Debswana business and stature, there was nothing improbable about the amount of the contract fee being claimed,” he said. The former judge further explained that from the evidence he was satisfied that indeed Infotrac was engaged by Debswana with the blessing of the late Milton and that the evidence of Motshidi supported that of the company as it got confirmation from the late Milton that indeed the company was owed.
According to the case, by way of summons issued on June 10, 2020, Infotrac was seeking relief against the diamond giant for payment of the sum of P110,000,000 and interest at 10% per month from the date of the breach to the date of full and final payment and costs of suit. Infotrac’s claim arose from an alleged oral consultancy agreement entered into between Debswana and the company. The company’s managing director contended that it was engaged by the diamond giant to provide consultancy services to ensure that the deceased Milton was appointed the managing director of Debswana. The consultancy services, according to the evidence of Motshidi involved lobbying and engaging stakeholders. It was said in court that sometime in December 2017, a tip-off was received by Debswana through its established channels for whistle-blowing.
The tip-off was forwarded to the diamond giant’s then managing director, Balisi Bonyongo and also the board of audit committee chairperson. The anonymous tip-off alleged a romantic affair between the late Milton and one Candy Godie, an employee at Debswana. It was resolved that the alleged affair be investigated and Infotrac was appointed to investigate the alleged affair and any favouritism which might have been shown by Milton to Godie in the workplace, as a result of the alleged affair. Infotrac then carried out the investigation and submitted its report for which it was duly paid. It was during the investigation that the company was engaged to carry consultancy services for the disputed court subject work. The case will be heard on Monday.