Bailout, suicide, all out of one bag

Rampholo Molefe | Friday March 12, 2010 00:00

 

Even among the underdeveloped countries such as Botswana, the law has learnt to adapt to the inadequacies and excesses of the actors in the political and economic arena as they pursue their class interests. It would be folly therefore, to view the passing of Louis Nchindo, one time executive of Debswana, as an isolated incident or an aberration in the normal and natural flow of things in capitalist Botswana.He was the ultimate embodiment of relations between the DeBeers multinational mining conglomerate and the government of Botswana.

If it cannot be argued that his death was the very result of his status as the link pin between De Beers' economic interests and the political programme of the government, it remains difficult to separate his passing from the joint interests of the company and the state.

Nchindo's passing will not erase that nation's awareness that the man was to finally stand trial for massive corruption whilst he played a role in reconciling the interests of government with those of his principal employee at De Beers.What the courts have now been robbed of is the opportunity to test the allegations put to Nchindo and the three with whom he is jointly accused. The effect of that will be to deprive the courts and the public of a rigorous interrogation of the notion of 'corruption' in the instance where the joint political and economic interests of a huge multinational and the government converge. Nchindo represented the personification of that convergence. His alleged accomplices can only give anecdotal evidence and there shall be many 'I don't knows' throughout their trial, when and if it proceeds. If, as some suspect, a substitute victim was assassinated in his place allowing him to escape - a real possibility though it appears improbable in light of the given evidence -the effect is the same as when the public believes that he is truly gone.

The suspicion is not farfetched in light of the recent cultivation of a culture of 'extra-judicial' killings at the secret police services. Government monopoly of information and the dearth of independent investigators compel the public to accept the official facts.

De Beers were more likely to be irritated by the evidence he would have given in court than the government, now represented by Ian Khama, who has so far kept a safe distance from the spilling beans, only attending the man's memorial service after the funeral! De Beers have had to respond to protests at their new offices in London about their connection to mining at the Central Kgalagadi Game Reserve, also paying internationally renowned public relations companies to make the argument for them, together with government. They have also had a brush with US law with regard to anti-competition practices. Corruption of a few spoilt brats in a small desert country is not something that the rich will stomach if it threatens their profits, especially at a time of an economic depression at the citadel of capitalism in the US, in whose currency the diamonds are bought.

Two observations become relevant so far: *Court would have helped to soothe the consciences of the state and De beers regardless of the direction in which the judgement went. All guilt - better still, innocence - would have been directed at Nchindo and his cohorts, giving the appearance of clean dealing at De Beers and government.

*The absence of Nchindo in court reduces the chances of any more bleeding of information that has been kept from the public for the lifetime of Debswana. But there has to be court with the smaller fish to enhance the impression that the state wants to clean up the mess left by a few managers at De Beers. There is yet the third and most important observation, that the ruling class, represented here by the political leadership of the Botswana Democratic Party , will stop at nothing to keep the path to corporate profit clear of impediments such as talkative politicians and ambitious socialites, regardless of their contribution to previous successes.

Profit comes before anything. So, crude as it may sound, it does not really matter to the capitalists how the defaulter goes. From that point of view, it becomes irrelevant whether Nchindo went by way of suicide, murder by some secret agents, or some deception in which someone was sacrificed to allow him to escape. The rule is that: 'Profits must not suffer on account of the failure of one player. Life is not too expensive a price to pay for the player who breaks the rule, or threatens to do so'. The lesser tragedy is that of the radio announcements about the imminent impounding of President Ketumile Masire's 2,000 cattle in order to recoup debts.

A modest estimation places the market value of the cattle - only the cattle - at say, P3million, close enough to the 'bailout' amount offered to him by De Beers on his ascendancy to the presidency. This appears like the appropriate moment for De Beers, in appreciation of its dealings with the former head of state, to offer a bailout in the proper sense of the word. It is inappropriate to refer to De Beer's contribution to Masire's presidential lifestyle as a 'bailout'. The president says he took De Beers money because he was too busy as head of state to look after his farm. He needed a farm manager. Presumably he now has a farm manager and plenty of time since he is neither president nor even deputy. His financial troubles can only be attributable to unfriendly markets which he should learn to swallow especially that he is himself an avid fan of the capitalist system. That argument assumes that the accounts have not been made to tell a story that does not reflect the reality!

The government of Botswana guarantees Masire - the first to benefit from such - the retirement package then fixed for an outgoing president. The pay is about 80 percent of the salary of the serving president, coupled with access to official transport, office staff and a big house. That should be plenty when considered against the livelihood of the average Motswana. Needless to say, those facilities exclude the presidents other farms here and overseas, real estate, companies, presents received locally and abroad, rewards in kind - free water, electricity, medical care - earnings from peace missions, lectures and foundations and the million dollar De Beers incentive.

'Incentive' is perhaps the more appropriate description of the president's deal with De Beers when he became president. Not even 'a loan'. In return for what though?

It is to President Masire's credit that he regrets that 'deal'. He insists though that he was not bought out. That is neither here nor there. The president gained twice, taking on the larger position of head of state which was constitutionally guaranteed anyway, as well as ensuring that his ailing farm was brought to good health.

He played a part in doing two things: He exposed the office of president to public auction. Vice presidents can now take money so that they should not have to worry about their private businesses when they take the presidency. Secondly, he took part in creating conditions for 'conflict of interest' at the presidency in his dealings with De Beers and other huge private companies. Clearly, by this deal, De Beers had made an investment in the leader of the Botswana Democratic Party who automatically becomes president when the party wins at the elections. Strangely, it is now the taxpayer, rather than De Beers, who is being asked to bail out the former president. Neither of these parties, each for his own reasons, has any further interest in the person of President Masire. Both have done their bit with De Beers probably gaining the most for its investment.

But Masire is no longer a player among the state operatives who could have an influence on the profitability of De Beers' enterprises. He, like others, has become dispensable. The former president, thankfully, will only lose a few beasts.

All said and done suicide, assassination, bailouts, incentives and even court cases all form part of the large repertoire of tools that the multi nationals have learnt to employ in order to protect their ultimate interest, the pursuit of profit.