16 Nov 2022

The Broadhurst Magistrate Court has learnt that former acting Botswana Public Officers Pension Fund (BPOPF), CEO, Ms Lesedi Moakofhi was party to the awarding of a tender to Capital Management Botswana (CMB), which was done without the board’s consent.

Giving evidence at the ongoing corruption trial on Tuesday, state witness Mr Musa Nleya said Ms Moakofhi turned down the advice against awarding the tender while the board’s activities were suspended.

Mr Nleya, who was Legal Services Advisor at BPOPF, said his evidence was in relation to the awarding of a tender to CMB and private equity manager. He said BPOPF had floated a tender seeking a company to manage its investment activities and CMB was among those that had shown interest.

He said CMB was eventually awarded the private equity mandate on August 19, 2014, after having been awarded a conditional offer, which was to be finalised by the board after passing the due diligence process.

“I was part of the team that carried out the due diligence process at CMB, which included BPOPF asset consultants and the finance manager. 

The process entailed an analysis of the investment process that was to be adopted, the company’s previous performance in managing funds, assessment of the company’s investment and risk management processes including regulatory and compliance issues,” he said.

Upon completion of the due diligence process, Mr Nleya said the Finance and Investment Committee submitted a report to the BPOPF board for issuance of a resolution that would eventually certify CMB as the private equity manager.

However, he said the only challenge was that the tender was awarded without final approval/resolution of the BPOPF board. 

He said at the time when the tender was awarded on November 11, 2014, the board’s activities had been suspended by a court order of October 7, 2014. 

He said the then BPOPF chairperson, Carter Morupisi and Ms Moakofhi signed on behalf of BPOPF, while Tim Marsland and Rhys Carr signed on behalf of CMB.

“As the legal advisor, I advised her accordingly that the awarding of the tender could not go on without the board resolution. 

She said she would not refuse to implement the board’s resolution,” he said.

He said the documents that were signed at the awarding of the tender met all the recommendations of the tender and that the only challenge was that the awarding was done without the resolution of the BPOPF board.

Mr Nleya also told the court that Ms Moakofhi was not a witness at the awarding of the tender, but rather an accounting officer to the events that unfolded on that day. 

He said Ms Moakofhi was also aware that the board activities were suspended.

Another state witness, Mr Allen Keitseng, who was an employee trustee in the BPOPF board then, also concurred with Nleya that around 2013 there was intention by BPOPF to review its investment strategy. Mr Keitseng said at that time he was the chairperson of the investment committee and therefore involved in the process of developing the investment strategy.

He said the tender to get an asset manager was floated in 2013 and that CMB was among the companies that had shown interest and eventually was among the three companies that made it to assessment stage.

Mr Keitseng said his last meeting as a member of the BPOPF board was on October 6 and the board was suspended on October 7, 2014 following a court order. He said the court order suspending the board’s activities followed the manual workers and trainers and allied workers unions’ grievance regarding the selection of employee trustees into the BPOPF.

Ms Moakofhi, who was then under the employ of BPOPF, holding the position of acting CEO, is charged with a single count of corruption. She is alleged to have abused her powers. On or about November 11, 2014 in Gaborone, acting together and in consent with Carter Morupisi, the then chairperson of BPOPF board, co-signed a contract between BPOPF and CMB.

The duo is alleged to have done so when they knew that they had no authority to do so, as the business of the board of trustees for BPOPF was on suspension by a High Court order dated October 7, 2014. Morupisi has since been found guilty and convicted of corruption. BOPA