25 May 2021

Kweneng district councilors have approved recommendations by liquidator over the P15 million investment deal between Letlhakeng sub-district council and Bluthorn Funds Managers,  which has gone sour. 

The decision was made during the recent Kweneng district special full council, convened to get update on progress report relating to the matter which remained a thorny issue within Kweneng district council.

According to Kweneng district council chairperson, Mr Motlhophi Leo the meeting was to update councilors on BluThorn Funds Managers’s failure to meet its obligation over the P15 million investment deal with Letlhakeng sub-district council. 

It was during the previous full council meeting that a decision was taken for the issue to be followed to recover invested funds.

Presenting the liquidator’s report on behalf of the council, Letlhakeng sub-district senior council secretary (SACS) Mr Joseph Segopa briefed the meet on a February 2021 High Court decision to place Bluthorn under liquidation with Christopher John Bray appointed as the liquidator.

Mr Segopa said the liquidator had explained the process involved in recovering funds invested with Bluthorn funds managers which would entail interrogating company directors as well as a follow of subsidiary companies, which received funds from the investment.

The council was further advised on the importance of having an investment lawyer to advice council towards favorable resolutions reached at the creditors meeting

The report also talked of the need to safe keep some of the investment files received from DCEC, which entail deposits and proof of payment transactions as relevant documents to accompany claim forms.

The liquidators reports revealed that BluThorn has a liability of P211 382 549 while its assert stood at P46 633 million reflecting a deficit of P164 million. 

Some recommendation presented, advised Kweneng district council to pursue its claims against Bluthorn with respect to the P15 million investment 

Cllrs approved the liquidator’s report insisting on action to recover the money. 

Counillors amongst them, Mr Molatedi Selala of Thamaga North had called for the Sibisibi brothers who are councilors to recuse themselves from the council session because they were indirectly implicated in the matter.

Lekgwapheng cllr Slumber Mokgosi emphasised the need to handle the issue with the sensitivity it deserves, arguing that there was no question about the fact that P15m was owed to Letlhakeng sub-council, but said it was imperative to allow the team tasked with the matter to handle it properly than to blow the issue out of proportion.

The issue however did not augur well with Letlhakeng sub-district council chairperson cllr Meshack Tshenyego who insisted on criminal proceedings against perpetrators implicated in the liquidators report saying the deal was done in bad faith.

Cllr Lopang Sebutlenyane of Salajwe ward expressed happiness at the manner in which the issue was handled, but said he was disappointed at the way some councilors appeared to be deliberately deviating from the truth. Ends