03 Dec 2018

Ministry of Mineral Resources, Green Technology and Energy Security has put on hold the settlement process involving Norilsk Nickel and government pending the outcome of the legal action challenging the legality of the Nkomati Share Purchase Agreement in South Africa.

Answering a question in Parliament recently, Minister Eric Molale said the liquidator in the case had initiated legal action in South Africa challenging the legality of the agreement, adding that government could not pay until the case was settled and the condition precedent of the settlement had been fulfilled.

Mr Molale explained that Norilsk and government had, in December 2017, agreed to settle all outstanding claims and disputes in respect of the agreement amounting to US$45 million to be paid by government to Norilsk.

A condition precedent inserted into the agreement was that Norilsk entered into a settlement agreement with the liquidator before the funds were paid, but so far the two parties had failed to reach an agreement as the liquidator believed that Norilsk Nickel was not the creditor, the minister said.

He said the resolution of Parliament approving the US$45 million towards permanent settlement of all disputes and claims between Norilsk and BCL had not been varied and that the funds were held in a US Dollar ring-fenced short term fixed deposit account at First National Bank of Botswana.

Maun West MP Mr Tawana Moremi had asked the minister to explain what had been done to implement the approved payment to Norilsk of the disputed P425 million and who had the authority to vary a Parliament resolution.

He also enquired about the accounts wherein the approved monies for payment to Norilsk were held. Ends