Former directors at Philibama Investment Group and couple, Matlhogonolo Mongwa and Barolong Mouwane, are suing their ex-business partner Likando Mwitumwa-Turvey claiming a breach of contract following their divestment from the company.
Mongwa and Mwitumwa-Turvey are both medical practitioners while Mouwane is an entrepreneur.
According to court papers filed before the Gaborone High Court judge Zein Kebonang, the couple and Mwitumwa-Turvey have been in business together through Philibama Investment Group since 2019, but things fell apart after the couple sold their 50% stake in the company back in March 2021.
Mongwa and Mouwane each held 25% of the total shares of the company, thereby comprising a collective shareholding of 50% of the total shares as they are married.
However, after resolving to terminate their business union with Mwitumwa-Turvey, the former partners drew up a compromise agreement on cancellation of investment and arrangement of buy-out of interest in the business, which was signed in March 1, 2021. Amongst others, the parties agreed that the remaining business partner would pay the two plaintiffs 50% of the valuation prize of the business.
“The defendant shall effect payment of the compensation within a period of no more than six months from the date of the valuation,” read court papers.
According to the court papers, a valuation report was produced on May 5, 2021, and delivered to all parties involved.
The valuation report, which was conducted by Grant Thornton, concluded that Philibama Investment Group amounts to P1,763,423, thereby entitling the plaintiffs to P881,711.50.
“The defendant has since delivery of the valuation report failed and/or refused to pay or make arrangements to pay the compensation aforementioned despite lawful and the sole holding response of the defendant given as at July 21, 2021,” read the papers.
“Therefore, in breach of the agreement between the parties, the defendant has failed and/or refused and/or neglected to compensate the plaintiffs in terms of the parties' agreement.”
However, Mwitumwa-Turvey has denied that there was ever a conclusion on the methodology of the valuation of the business to be done.
According to her, her former partners are entitled to whatever may be proven to be their contribution to the business.
She said, while she received a valuation report, it is known to her that the parties were to source valuations from two sources. Mwitumwa-Turvey said that she is in the process of a second report from another firm.