20 Sep 2020

Assistant director of Public Prosecutions, Ms Priscilla Israel says the prosecution has gathered enough evidence to prove that Carter Morupisi was part of a team that defrauded the Botswana Public Officers Pension Fund (BPOPF).

Responding to an application of no case to answer on Friday at the Gaborone High Court, Ms Israel said the submission of no case to answer may be upheld only where there is no evidence that the accused person committed the offence.

“We submit that the prosecution has led evidence against all accused persons intricately linked to the signing of the BPOPF and CMB contract. Therefore, the application by the defence of no case to answer lacks merit and should be dismissed. The prosecution has led evidence on which a reasonable tribunal fact, properly directed, might convict the accused persons of the offences charged,” she said.

Ms Israel said a former director at CMB, Rhys Car’s admitted evidence elaborated how the plot to defraud BPOPF was hatched. 

“The admitted evidence of Mpho Raletsubutsubu gave clarity on how money that was disbursed to potential investors was diverted from BPOPF by CMB,” she said.

She said the vehicle that Morupisi received from Manor Squad was bought through funding that was diverted by CMB and he could not be divorced from the team that swindled BPOPF. 

Ms Israel also said the defence team had indicated that the money that Morupisi used to purchase the vehicle was a loan from Manor Squad Services. 

“A loan is considered by the law as valuable consideration. Since the vehicle was purchased through a loan, as it is alleged by the defence team, it is a valuable consideration. I believe we had called critical witnesses to substantiate our case. The state has deduced enough evidence showing elements of the offence,” said Ms Israel.

On the other hand, the defence team led by Mr Busang Manewe stated that on the basis of evidence before court, the accused persons had no case to answer. 

“It is appropriate for the court to exercise its discretion to acquit and discharge the accused persons,” said Mr Manewe.

Looking at the three counts, Mr Manewe said all the counts talked to a Toyota Land Cruiser alleged to be valuable consideration as described by the Corruption and Economic Act. 

“My first observation is that the charges were not diligently drafted,” he said.

Mr Manewe said since the vehicle had an essential ingredient of all the charges, once the court made the determination relating to the vehicle in agreement with the defence version of events, all the three counts would collapse leading to the acquittal and discharge of the accused persons.  

Although the prosecution alleges that the vehicle was valuable consideration, there was evidence before court of a sale agreement between Manor Squad PTY Limited and R7 Group PTY Limited, adding that there was a record of about 16 instalments payment for the vehicle.

Mr Manewe said there was also evidence to prove that the funds used to purchase the vehicle were from Morupisi’s savings account. 

“There is proof of sale and purchase of the vehicle,” he said. 

He said the state's case was based on speculation as it was not properly investigated.

He further said the court order of October 7, 2014, suspending the BPOPF board was complied with on October 20, 2014 after the nomination of employee trustees and the suspension of the activities of the BPOPF board of trustees were seized immediately after complying with the order. 

Mr Manewe said Morupisi had not violated a court order by signing a contract on November 11, 2014.

The case involves former Permanent Secretary to the President (PSP) Morupisi, R7 Group (PTY) Limited and Pinny Morupisi. 

The first accused person, Morupisi is facing two counts of corruption and is also on another count, jointly charged with R7 Group (PTY) Limited and Pinny Morupisi on a count of money laundering.

In the first count, Morupisi is charged with corruption contrary to Section 24A (1) read with Section 24A (3) of the Corruption and Economic Crime Act. 

Particulars of the offence are that the accused person whilst employed by the Directorate of Public Service Management (DPSM) serving as a public officer who held the position of board chairperson for the Botswana Public Officers Pension Fund (BPOPF), on or about November 11, 2014 at or near Gaborone without the final resolution of the board and in abuse of public office as chairperson of BPOPF, and while the board was on suspension, corruptly signed a contract with Capital Management Botswana to administer the BPOPF funds as private equity managers and in the process obtained valuable consideration for himself and his wife’s company R7 Group (PTY) Limited.

In the second account, Morupisi faces a charge of corruption contrary to Sections 26 and 36 of the Corruption and Economic Crime Act. 

Details of the offence are that on or about May 15, 2017, at or near Gaborone acting together and in consent with Pinny Morupisi in her personal capacity as the director of R7 Group (PTY) Limited received valuable consideration in the form of a gold Toyota Land Cruiser, chassis number JTELV73J007011353 and engine NO: 1VD0357877 valued at R630 988. 99 for himself and his wife’s company, R7 Group (PTY) Limited.

On the count of money laundering contrary to Section 47(1) (b) of the Proceeds and Instruments of Crime Act, punishable under Section 47(3) of the same act, Morupisi and his wife, Pinny and R7 Group (PTY) Limited on or about May 15, 2017, in Gaborone, acting together and in consent, received and converted to their personal use a Toyota Land Cruiser pickup bought from South Africa whilst they knew or had reasonable grounds for knowing or suspecting that the said vehicle registered B 587 BEW was derived or bought, in whole or in part, directly or indirectly from the commission of an offence.

Justice Mokwadi Gabanagae will on November 10, 2020 deliver a ruling on whether the accused persons have a case to answer or not. ends