Slap in the face for BCL creditors
Onalenna Kelebeile | Thursday November 2, 2017 11:30
According to the provisional liquidator, Nigel Dixon-Warren, at present, there has been very little recovered from the Mine’s debtors. This effectively means creditors will make minimal recoveries of the monies they are owed by BCL.
Local creditors left an informal meeting yesterday with long faces, after the provisional liquidator informed them that those submitting claims against the Mine would also have to contribute towards the rehabilitation fund.
The original rehabilitation fund, amounting to more than P1 billion was eaten away by management when the Mine fell into hard times. Dixon-Warren explained that he had a shortfall of between P500 million to P1 billion in order to comply with his responsibility of re-establishing BCL’s rehabilitation fund. He is, by law, the BCL mining licence-holder.
He told the creditors that it would be wise if they did not submit their claims for now. Only P175 million has been recovered. “There is nothing for creditors at the moment and I now have to minimise the cost of rehabilitation of the environment and maintain the Mine resource,” he said. “I have so far managed to recover P175 million from debtors and some amounts from the Botswana Unified Revenue Services.
“I intend to also recover some amounts from the sale of stock, but the cost of selling is high, more so that there are some processes to be followed to recover stock that has been withheld in South Africa during the time of liquidation.”
At present, it is unclear how much individual creditors will be required to contribute.
“Currently there is zero balance for creditors and there are possibilities of them losing completely. I am responsible for the rehabilitation of the environment while still trying to find a solution for BCL and this is where a huge amount of the money will go,” he said.
He said BCL Mine did not manage its obligations to minimise damage to the environment as there was no plan in place at the time of the Mine’s closure. However, the creditors who attended the meeting said there was no way they could contribute any money towards the Mine.
“Government must foot the bill and not to expect us to do so.
Our claims are compromised. In fact, it is clear that we are looking at an empty well. Government must buy our debts just like they did when they decided to pay employees and leave us out,” one of the creditor said.
Another suggested that the creditors group themselves and pursue action against former BCL Board chair, Dr Akolang Tombale, other directors and BCL management.
“Let us look for a commercial lawyer and sue because government is liable for the situation that we are in. Management should have warned us well in time as we supplied goods and services but it did not happen,” he said.
Other creditors suggested that the P640 million that was channeled to SPEDU from the European Union’s Reemployment account should be diverted to paying local creditors in order to support the local businesses. Creditors are due to formally meet in Gaborone next week.