01 Nov 2022

Gaborone High Court has convicted former permanent secretary to the president, Carter Morupisi on three counts of corruption and money laundry while his wife, Pinny Morupisi and her company R7 Group Pty Limited were discharged and acquitted.

Delivering judgement Monday, Judge Mokwadi Gabanagae said the second and the third accused,, R7 Group and Pinny respectively were discharged and acquitted as the state failed to prove beyond reasonable doubt that they had knowledge of the committal of the offence.

Though liable to be incarcerated after conviction, Judge Gabanagae extended Morupisi’s bail to November 08, the day of sentencing..

“I believe you will not run away, therefore you shall remain on bail until the day of sentencing. You can go home now,” said Judge Gabanagae.

The judge said Morupisi, who is also former director at the Directorate of Public Service Management (DPSM), Permanent Secretary to the President (PSP) and Secretary of Cabinet was the employer trustee in the Botswana Public Officers Pension Fund (BPOPF), where he was appointed the board’s chairman.

At the material time, Morupisi on November 11, 2014, awarded Capital Management Botswana (CMB) a contract to manage BPOPF private equity fund, a move that was done without the authority of the board as it was still in suspension.

The BPOPF board was suspended through a court order dated October 07, 2014 pending election of new employee trustees in BPOPF.

Morupisi is said to have received valuable interest in the form of a Toyota pickup Land Cruiser from CMD valued at R630 988, 99.

Judge Gabanagae said the prosecution had lined 33 witnesses, of which seven gave oral evidence, 23 admitted and three were never called as they were deemed not critical.

He said it was without doubt that the vehicle that was bought in South Africa by a company called Manor Squad which shares directorship with CMD, was registered in Botswana as property of R7 Group.

He said since R7 Group had insufficient funds in its account, the vehicle was financed by Morupisi, through funds which were established through evidence by the prosecution to be proceeds of crime.

Judge Gabanagae said Morupisi was a public officer and had directly or indirectly used his powers to receive valuable consideration.

“As an employer trustee, Morupisi was responsible for custody, safe keeping of public funds. As a fact BPOPF is a public body, which is mandated to manage pensions for public employees,” the judge said.

He said it was a fact that Morupisi signed and awarded tender authorising CMB to administer funds without authority of the board.

“All parties involved in awarding CMB equity fund management knew that the BPOPF board was suspended and therefore did not endorse the decision. They acted with intent and motive. Morupisi’s action was motivated by a benefit from CMB,” said Judge Gabanagae.

Behind both companies, Manor Squad and CMB, he said there was a common denominator in Rapula Okaile, who was sitting in the leadership of both companies as one of the directors and he was in the picture during the awarding of the tender and purchasing of the vehicle.

He said Okaile served as a personal secretary to Morupisi at DPSM, also served as a member and chairman of BPOPF board of trustees and was the one who drove the vehicle from South Africa and delivered it to R7 Group in Botswana.

Judge Gabanagae said the agreement by the first accused person in securing the vehicle was a scam that beat logic.

He pointed out that the state had carefully laid down evidence to nullify the alleged proper sale of the vehicle by the defence. Morupisi and the directors of CMB and Manor Squad, he said, acted together and with a common purpose to commit a crime.

Regarding R7 Group and Pinny, Judge Gabanagae said the state had failed to establish a case against the two. He said it was not clear to court that the two were aware that the vehicle that they received was proceeds of a crime.

“Her only sin was that through her company, she received a vehicle not knowing that it was proceeds of a crime. Nothing shows that she was party to the deal,” said Judge Gabanagae.

The court also rruled that even though Morupisi had denied having knowledge of the link between CMB and Manor Squad, the state had through evidence proved that Morupisi and Rapula had known each other for quiet sometime.

He said the said vehicle was bought in South Africa at CMH Toyota in Alberton by Timothy Marsland, one of the former directors of both CMB and Manor Squad, contrary to the defence’s evidence that it was bought as a second hand.

The judge said the state had proved that the vehicle was bought through funds from CMB not from the first accused’s personal savings as put by the defence.

He added that the sale contract between Manor Squad and R7 Group was drafted long after the vehicle was bought.

Meanwhile, the defence attorney, Mr Busang Manewesaid his team had noted the court’s ruling.

“I have taken instructions from my client. We will not say anything in mitigation. The court could continue and deliver sentence,” said Mr Manewe.

Morupisi was charged with two counts of corruption and jointly charged with R7 Group (PTY) Limited and wife, Pinny on another count of money laundering.

While employed as BPOPF board chairperson, Morupisi is reported to have on or about November 11, 2014 without the final resolution of the board, while the business of the board was on suspension by court order and in abuse of his public office, corruptly signed a contract with Capital Management Botswana as private equity managers and in the process obtained valuable consideration for himself and his wife’s company R7 Group (PTY) Limited.

On the second account, Morupisi is said to have on or about May 15, 2017 acting together and in consent with wife, Pinny in her capacity as R& Group (PTY) Limited director, received valuable consideration in the form of a gold Toyota Land Cruiser pickup valued at R630 988, 99.

On money laundering count, Morupisi and Pinny, together with R7 Group (PTY) Limited are to have on or about May 15, 2017 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 B587 BEW was derived or bought, in whole or in part, directly or indirectly from the commission of the offence.  ENDS