18 Dec 2022

Government has spent over P1.8 billion towards BCL liquidation activities.

This was revealed by Minister of Minerals and Energy Mr Lefoko Moagi during the minister’s question time in Parliament on Friday. Mr Moagi said government had advanced over P1.6 billion to the liquidator since November 2016 and paid a sum of over P163 million as terminal benefits to former BCL employees.

He said the first Liquidation and Distribution account (L&D) was lodged with the Master on December 9, 2022. Mr Moagi said the L&D account included a record of all disbursements and realisations since the date of liquidation up to August 31, 2022.

He said the liquidation was being undertaken under the supervision of the Chief Registrar and Master of the High Court in terms of the Companies Act.

He noted that in terms of that process there was no supervision for an audit because the laws in Botswana did not make provision for the audit of a company in liquidation by either the Auditor General or an Auditor.

He said the winding up of BCL and Tati Nickel mining company liquidation should be completed by quarter two of 2024.

Mr Moagi said government announced earlier this year that the liquidators had entered into transactions with the Premium Nickel Resources entities for the sale of the Selibe Mines and the Selkirk Mine in Tati. He said the transactions had closed.

Mr Moagi highlighted that the remaining assets which did not form part of the Selibe Mines remained the estate of BCL as did the portion of Tati assets which did not form part of the Selkirk mines.

He said the Liquidator commenced a sale process to seek offers to dispose of the remaining assets of BCL and Tati. He said offers from potential buyers had been received and were being considered.

He said the Liquidator had made revenue amounting to over P686million as at end of August this year. He said in terms of the asset purchase agreements for Selibe and Selkirk mines the aggregate purchase price payable by Premium Nickel Resources as over P737million.

He said former employees of the estate had been paid and no further payment was due. He said the amount disbursed was a proved claim against BCL and not a retrenchment package.

He said as per government’s instructions of June 2022 the intention was to offer the housing to the former and current employees of BCL and to dispose the remaining houses by public auction.

He added that there was a proposal that some government departments should acquire some of the residential properties.

Mr Moagi was responding to a question from Selebi Phikwe West MP Mr Dithapelo Keorapetse who asked the minister to state the amount paid from the Consolidated Fund towards liquidation-related activities.

He asked if any audit had been done on the funds used for liquidation by the Auditor General or any audit firm and to furnish Parliament with the report. ENDS