Missing P500m could be 'safe,' CMB claims

Monkagedi Gaothobogwe | Friday May 31, 2019 21:47

 

That is, if documentations presented before the Directorate on Corruption and Economic Crime (DCEC) and the Directorate on Public Prosecutions (DPP) early this week, by embattled CMB managing director, Rapula Okaile, hold water.

Okaile and his lawyer, Gabriel Kanjabanga on Tuesday this week asubmitted to the DCEC and DPP all information regarding the “missing” funds.

Information in the hands of Mmegi indicates that CMB accounted for every Pula in the P500m. Okaile and his attorney presented themselves as part of the investigations on the missing public officers funds. The Director welcomed the criminal investigations saying they give him the opportunity to tell the truth in the midst of all what has been said and written concerning CMB and its directors.

Okaile produced a spread-sheet supposedly detailing the investments money trail. He stated that all the 10 investments he mentioned are currently active and have the capacity to return the funds with interest to public officers,  as expected.

The information shared with the investigators indicates that in total some P513, 750, 000  was invested by CMB in the 10 companies. Of that total,  P450, 500, 000 was listed as the purchase price of shares in five companies, namely Kawena Holdings (P150 million), Agile (50, million), Cell City (P50 million), Bona life (P50.5 million ) and Wilderness Safari (P150 million).

The other P63, 250, 000 Okaile cited as loans to companies, went to five of them, namely; Cell City (P20, million),  Yarona Holdings( P13 million),  shareholder in BONA (P25, 250, 000), as well as loan to Lobatse Clay Works of P5 million.

He also said the values of investments at some  of the companies have appreciated, citing  Wilderness Safaris’s  P150 million, now up by a further P50 million,  while  Cell City’s investment value also went up by P40 million,; and that Kawena Holdings’ investment of P150 million, has now appreciated in value to  P180 million.

Okaile provided contact persons and their phone numbers at the companies CMB transacted with in the missing money, in a way to emphasise his point that all the money is safe and earning interest for BPOPF, contrary to  conflicting reports coming from CMB detractors.

The CMB Director’s appearance before the DCEC has been a long waited process that has seen the DPP approaching the Registrar and Master of the High Court, Justice Nthomiwa. The DPP got an order on April 30, that halted the liquidation of CMB to allow the completion of criminal investigations at CMB, as recommended by the then judicial manager.

The manager raised alarm about specific transactions he  said were of criminal nature, warranting prosecution.

CMB directors  are accused of obtaining  by false pretences, money laundering, charges which  CMB  refutes.

On the contrary, Okaile said the Kawena transaction that is the basis of the storm, was in his view transparent and that the objective was to open retail stores in Botswana to take on the likes of Choppies. In his affidavit, he states that the transaction required several legs, including a loan whose purpose was to buy out South African minorities.

He added that the result was that CMB, through Botswana Opportunity Partnership (BOP) acquired all of the shares of Kawena’s holding company in South Africa through  the newly established Kawena Holdings registered in Botswana.

“The net result was that BOP held 60% of Kawena Holdings, as per the presentation to the Investment Committee,” he said.

Regarding another subsidiary,  CMBF1, whose transactions also raised eye-brows as perused by the judicial manager, Okaile wrote to the investigators through a letter he shared with Mmegi,  that “CMF1 is a company which has operated since 2005. It is a 100% subsidiary of CMA. CMBF1 has a balance sheet of its own and has value of its own, which belongs to its shareholders.

“The sharesholders have a claim to the assets of the company; thus it is unsurprising that our clients would have transacted through CMBF1; an evaluation of the bank account does not in any way assist in determining ownership of funds given the tangible nature of cash,” Okaile wrote to the investigators. Further, he said CMBF1 account was not an account that existed in isolation of the company.