Kebonang clears the mist over BCL liquidation
Staff Writer | Friday September 21, 2018 14:30
“I was appointed minister of minerals in October 2016. The announcement was however made at the end of September 2016. My first Cabinet meeting was on the very day I reported to work.
“On the agenda was the way forward for BCL Mine. BCL management had come with a request of P1 billion bail-out for the insolvent mine having previously been given the same amount by Barclays Bank with government standing as surety for the loan,” Kebonang explained.
He further said before this request, President Ian Khama had appointed a Cabinet Ministerial Committee headed by the then vice president, Mokgweetsi Masisi to investigate the mine incident that killed some employees of the mine. The findings of this committee were, amongst other things, that the mine was not safe with very poor safety standards.
“Government through Minerals Development Company of Botswana (MDCB) led by Paul Smith also came to almost the same conclusion.
“Smith went further to state that in his professional view, BCL was insolvent and Polaris II did not address the business case to prudently and financially sustain BCL going into the future.”
Smith went on to suggest that it would be safe to put BCL in care and maintenance or to liquidate it. After his presentation to Cabinet, Cabinet unanimously agreed given the facts presented to proceed to liquidate BCL.
“I was dispatched to address the mine employees. Accompanying me were ministers Vincent Seretse, Kitso Mokaila, Nonofo Molefhi, MPs Dithapelo Keorapetse and Samson Moyo Guma. In Selebi Phikwe Mokaila, who was better placed, articulated the government position on the liquidation of the mine. Actually all the MPs spoke.”
He continued: “Once the liquidation process was initiated, the liquidator Nigel Warren-Dixon took full control of all assets (including any licences that BCL had) of BCL and operated the mine in the interest of all creditors independent of the minister or Cabinet. “He reports to the Master of the High Court. Every person who had a claim against BCL was directed by my office to the liquidator with no direction given to the liquidator as to how to deal with such creditors or debtors of BCL”.
He dismissed reports that he was appointed to the ministry to protect the interests of Khama.
“I have never had a personal relationship with president Khama. It was always professional. At no point has he ever instructed me to favour anybody nor given me any inappropriate instructions. “It was always a very honest, professional relationship where decisions were made for the benefit of the country.”
He submitted that ministry officials never briefed him about any diamonds or mining licences held by BCL prior to its liquidation.
He never met the Board of BCL or management of BCL at any stage to discuss the liquidation of BCL. “I learnt months later that BCL had a prospecting licence in the CKGR, which showed promise of a Kimberlite.
“That licence was now one of the assets controlled by the liquidator, not the minister. Everyone who came making reference to the licence was referred to the liquidator. “That includes attorney Kgosietsile Ngakaagae and Montwedi Mphathi who had come to see me at the office.” “I have never dealt with Khama’s family members about any mining interests relating to BCL or any other mine for that matter.
“Please further note that, the liquidator himself, independent of Paul Smith and the Cabinet Ministerial
Committee, has found that BCL was not viable. This has also been the finding of many people or companies that had initially shown interest in buying BCL. “If indeed diamonds exist, it will be up to the liquidator to use those to remove BCL from liquidation. In short, he calls all the shots on anything that involves BCL.”
Government, unless it makes provision for all creditors to be paid, will not be able to have the BCL Mine reopen anytime soon. In fact, the fate of BCL lies in the hands of the liquidator, who must at all times act in the best interest of all creditors. “Government would have to work with the liquidator to have the mine re-opened. If the liquidator does not get buyers for BCL Mine, he would be within his rights to strip the mine of its assets and sell them to members of the public. “The liquidator is under the supervision of the Master of the High Court, and not government,” Kebonang said.