The action by Babereki Investments to recover money allegedly gone down the drain through millions of investments at its subsidiary, Fly Mission Services has commenced with the auctioning of six-grounded aircraft acquired in the Flying Mission Services deal.
The action started last Thursday with the auctioning of the three aircraft currently grounded at the Sir Seretse Khama International Airport (SSKIA).
They include Beech Craft King AIR 200 Reg A2-M, white Beech Craft Super King Air 200 Reg A-2 FMB and white Beech Craft Reg-A2 FM.
The move comes after the Botswana Public Employees Union’s (BOPEU) investment arm obtained an order from Gaborone High Court Judge Michael Mothobi to acquire and sell by auction aircraft owned by Flying Mission Services in order to recover over P7 million plus interest the school owes the union.
It is said that the P P7, 886 000.00 was part of a loan agreement to Flying Mission Pty Ltd allegedly authorised by BOPEU’s former executive chairman, Andrew Motsamai, on behalf of Babereki Investments.
Through the deal, Babereki would purchase ordinary shares of Flying Mission Services for the sum of P2 314 000. 000 and obtain 40% shareholding of the school pursuant to an agreement reached between the two companies in August 2017.
However, sources have said that the BOPEU business wing would find it difficult to get suitable buyers for the aircraft as most of them are beyond economic value.
On Sunday, the company’s attorney Dutch Leburu told The Monitor that although the Gaborone auction went ahead at the SSKIA, only one aircraft found a suitable buyer.
He said bids for the other two aircraft were rejected, as they were way below the minimum reserve price.
“I am yet to confirm if indeed the successful bidder for the other aircraft has paid the deposit as it is supposed to be.
But the other bids were rejected on the basis that they were below the minimum amount we wanted. We were looking for anything not less than P900, 000.”
“The A2-AFU Cessna206 starts at US $400, 000, Cessna 207 A2-FMC at US $450, 000 while the King air C90 A2-MJM starts from $600, 000. These are Rough Order of Magnitude figure,” he said.
Leburu stated that of the six aircraft, three have been declared ‘beyond economic repair’ so they should be sold as scrap. He added that the Maun auction would take place on November 11.
He stated that if they fail to find suitable buyers for the aircraft, they would re-advertise.
“We have also invited another training institute to have a look at the aircraft,” he added.
Mothobi has also ordered the cancellation of the subscription and shareholders agreement and the loan agreement as it is alleged that they were signed without the authority of the Board.