CMB offers to return P450m

Ryder Gabathuse | Friday August 23, 2019 18:00

CMB, now under liquidation, was contracted by the BPOPF in 2014 to manage an initial P500 million investment mandate in private, unlisted equity.

The asset manager and the pension fund fell out in late 2017 with allegations of misappropriation, at which point CMB had reportedly being given P477 million to manage. The asset manager sent BPOPF P50 million back and said the amount was fulfillment and settlement of its (CMB’s) obligations under the contract. Prosecutors, empowered in part by the findings of a Court of Appeal-appointed statutory manager into CMB and complaints filed by the pension fund and others, are building cases against the asset manager’s directors, Tim Marsland and Rapula Okaile.

Marsland, a South African, was taken into custody recently in Johannesburg, and is fighting extradition to Botswana, while Okaile continues to cooperate with investigators. Both directors have reportedly had various assets seized in the investigation.

This week, it emerged Okaile had made an “without prejudice” offer to the Directorate on Corruption and Economic Crime (DCEC). Mmegi is informed that under the offer, the directors are offering to return up to P408.5 million in BPOPF assets apparently tied up in various arrangements and also settle the balance to P450 million.

“This is conditional upon full closure of all criminal charges against the CMB directors and partnership companies with immediate effect,” reads a proposal apparently signed by Okaile. “We demand the cancellation of any and all warrants local and international. “This should include the return of confiscated assets belonging to me.

“An agreement must be reached that all the court cases will be cancelled.”

The director listed nine investments that funds had allegedly been made in and offered to return these. The offer, however, does not bear a date when the assets could be returned.

In his letter, Okaile refers to a meeting with DCEC director general, Joseph Mathambo where the matter was discussed.

“You indicated that you will call a meeting for all involved with BPOPF issue for you to understand the issue and find a lasting solution,” reads the director’s letter.

DCEC boss, Mathambo confirmed the latest developments to Mmegi yesterday, saying the graft-buster has always wanted to recover the missing BPOPF funds.

“It has yet not reached us as an official prayer by CMB to pay so that they buy their freedom.

“I must however, confirm that their desire to buy their freedom by paying back the missing funds has nonetheless reached us,” he said.

Mathambo emphasised that if the money is repaid, the DCEC would take it on behalf of the BPOPF as part of the agency’s mission to recover missing assets.

He however, clarified that returning the loot would not justify setting CMB and its management free as the commission of an offence was not in doubt.

“We can’t yield to the pressure to drop the charges because what we will be dealing with subsequent to that is the criminal aspect of the matter as there is no doubt that a criminal offence has been committed,” Mathambo insisted, indicating that repayment of the assets is one thing and the criminal charges are another. The DCEC boss’ take is that the law will not allow an accused person to buy his/her freedom by simply returning the stolen goods. Rather, the law enforcement agency has to deal with the criminal behaviour, which is undesirable, he said.

Meanwhile, Marsland reportedly remains in custody in South Africa after unsuccessfully applying for bail.