Fleming probes BPOPF contract termination
Pauline Dikuelo | Tuesday June 28, 2016 18:00
The BPOPF shook the markets last Friday when it issued a statement announcing an immediate termination of all contracts it had with Fleming Asset management. Fleming managed equities, bonds and properties on behalf of BPOPF.
Although speculation is rife that the termination was based on the financial impropriety allegations that were made against a top Fleming Asset Management Botswana official, the company’s board chairman, Charles Tibone has said there could be confusion around what transpired hence they have instituted an investigation.
“I am made to believe there could be confusion around a financial transaction that was made by someone’s company in his personal account and that has been mixed-up with the fact that he works at Fleming Asset Management,” he said.
The Fleming Asset Management official is reportedly implicated in a financial kickback deal in which about P900 000,00 was deposited into a certain account at First National Bank of Botswana (FNBB), which belonged to a Stanbic bank employee.
According to Tibone they have engaged an independent auditor to investigate all the company’s transactions to clear the misunderstanding.
“We met as the board on Friday and decided to engage an independent auditor to investigate the allegations because we think it is proper to clear the allegations which have caused the confusion,” he said.
The board chairman also said the BPOPF have not advised them on the reasons for the termination of all their contracts.
Fleming Asset Management Botswana is the country’s longest independent asset manager with over P10 billion under their management and currently offers full range of asset management and investment advisory services. Last year BPOPF signed a P300 million deal with Fleming for the construction of a five star Hilton hotel, which is located in the CBD.
The cancellation of the contracts will come as a huge blow to the asset management company as it wipes out 40% of the company’s assets under management.
Fellow asset manager, BIFM faced the same fate two years ago when the BPOPF cancelled about P9 billion worth of mandates.