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BSE ESTABLISHES SME BOARD

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GABORONE 10 March 2016, (Pic:MONIRUL BHUIYAN/PRESS PHOTO)

The Botswana Stock Exchange (BSE) is in the process of establishing a fresh separate board for Small Medium Enterprises (SME), named ‘Tshipidi SME bond’, the Chief Executive Officer (CEO) Thapelo Tsheole has said.
Tsheole while speaking yesterday (Thursday) at the second annual BSE Listing & Investment Conference  explained that the new initiative inside the domestic bourse would create an opportunity for SMEs to enjoy listing benefits.  “We are presently finalizing the rules then presenting them to the board for approval then regulator for final approval.”

 
It is part of  the local bourse’s transformational plan to make rules conducive and less stringent. This, Tsheole says, is part of an elaborate strategy to attract SMMEs to list and raise capital on the BSE, whether it’s through listing equity or bonds. The domestic bourse is looking to do this by also revamping the venture capital board by relaxing the rules, and possibly rebranding it to speak to SMMEs, a process that is ongoing.

 
Globally, Tsheole argues SMMEs are significant employers and potential contributors to economic development which is why their growth is vital to the nourishment of any economy. “However access to external finance which may help an SMME transition into becoming a bigger company is a major barrier to this successful growth.” he argued. It was in recognition of these challenges that the BSE sought to put focus on SMEs in this year’s conference, hence the theme ‘The BSE as a Gateway to Raising Capital’.

 
Tsheole says the conference has grown substantially since inception. “Last year the conference created immense interest among businesses to access the stock exchange to raise capital judging from the level of engagement that we have since experienced.” This year BSE attracted over 400 delegates representing privately owned companies.

 
BSE is currently going through a transitional growth period aimed at positioning the exchange as a pivotal part of economic development. The Exchange has since developed a five (5) year plan aimed at growing market capitalization, products, number of issuers and investors. As per the newly approved BSE Strategy for the period 2017 to 2021, the BSE aims to increase the number of domestic companies listed from 24 to 30,  the number of foreign companies listed from 10 to 15,  grow the ratio of the BSE’s market capitalization to GDP from 34 percent to 40 percent and increase the number of bonds listed from 39 to 50.

 

 

Furthermore Tsheole’s team wants to increase the number of Exchange Traded Products (ETPs), such as Exchange Traded Funds (ETFS), listed on the BSE from the current 4 to 10, the number of asset classes available on the BSE from the current 3 to 6,  the average daily turnover levels to P18.0 Million per day and the number of investors on the BSE from 78,193 by the end of 2016 to 100,000 by 2021.
The Listings and Investments Conference, which annually attracts major business and economic figures continues today concluding tomorrow.


More shenanigans in BMC privatisation

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LOBATSE, BOTSWANA, APRIL 15,2011, Botswana meat commission (BMC) (Pic: Press Photo)

In parliament this week, junior minister for Agricultural Development and Food Security, Kgotla Autlwetse avoided discussing the privatisation of the Botswana Meat Commission (BMC) choosing instead to spark debate of the liberalization of the beef sector.
While specially elected Member of Parliament (MP) Mephato Reatile wanted the Assistant Minister to indicate when government was planning to liberalise the beef sector, he further explained that his real concern was whether there was truth to recent media reports that there are advanced plans for the privatization of BMC.

 

 
Autlwetse did not address the privatization and focused the debate on the liberalisation of the industry, telling the legislators that, government has commissioned a study on the liberalization of BMC. The study is expected to end in September 2017.
He said the study endeavours to assess the feasibility of liberalisation on the Botswana beef export market in order to allow other players in the beef industry to participate in the international beef market.

 

 
“The findings of the study should inform Government decision on whether or not the monopoly on the export of beef products, live cattle, should or should not be removed,” he said.

 

 
The Business Weekly & Review has established that government engaged a tax audit and consulting firm, KPMG as at November last year to conduct the study.
At the same time, The Business Weekly & Review found that a decision has already been taken to privatize the BMC. Minister Ralotsia has been travelling Botswana in what was said to be consultations on the ongoing privatisation. Previously this publication asked him if a decision to privatize did not contradict the liberalization study and policy, and why would government spend money on a liberalization study, knowing very well that BMC is being privatized.

 

 
Ralotsia said consultation towards the privatization is on-going and cannot be stopped by the unavailability of a liberalization study, “Those are two unrelated issues”. The Minister indicated further that the privatization process will be kick started immediately after the consultations have taken place.  It emerged through investigations that government will unbundle the European Union (EU) compliant abattoir and sell it in bits and pieces.
Spear-headed by Ralotsia, the state has taken a decision to sell a 50 percent shareholding in the Lobatse abattoir, which is the BMC cash-cow. Those in the corridors of power speak of South African wealthy cattle farmers, who are eying the Commission.

 

 
The potential investors will be required to inject P2 billion for a 50 percent shareholding, while government will retain the remaining shares. Lobatse abattoir slaughters around 400 cattle every day for export.  BMC makes over P1 billion from exporting beef annually. Statistics Botswana shows that, P1.1 billion was made in 2015, while the first and second quarters of 2016 show figures of P880.9 million (excluding the last 3 months of 2016).
BMC head office in Lobatse comprises an integrated complex housing an Abattoir, deboning and cutting plant, cannery, rendering plant and tannery.

 

 
The Francistown abattoir which has been non-performing, will be fully disposed of to an interested buyer, but government is willing to negotiate the price since the abattoir is operating at a loss. BMC also operates an abattoir in Maun, a red-zone area that is on foot and mouth alert. Government intends to retain the Maun abattoir in order to have oversight and control over movement of cattle in and out of the red zone area to curb the transmission of FMD.

 

 
Government, as part of its changing policy in the meat industry will also establish an independent Meat Board Authority, an organization that will be an equivalent of the Competition Authority, but focusing instead on the beef sector, according to sources, to ensure fair play within the soon to be privatised sector.
Besides owning three abattoirs in Botswana, BMC has cold storage facilities in South Africa with marketing subsidiaries in the United Kingdom, Germany, Holland and South Africa.

 

 
Interestingly the debates in Parliament side tracked legislators, who were caught in debating the liberalisation, which may not see the light of the day, to the detriment of privatisation. In parliament however, Ralotsia’s comments on their face appeared to contradict those given in his response to this publication previously when they engaged him in the same matter. In the national assembly he said if indeed the Government had made a decision to privatize there would be have been consultations regarding the matter long before a decision was actually taken. Ralotsia advised Salakae to always position himself to be able tell between a decision and a proposal.

 

 
UDC MP for Ghanzi North Noah Salakae said if indeed there were plans to sell or privatize BMC, parliament ought to have been aware of the plans. He said the point being no one in parliament has been informed of a liberalisation Act for the industry and further that he was only aware that the Lobatse meat Commission privatization had been put to a complete halt when the cabinet members said Christian De Graff, then as the accountable Minister, was seeking to make his friends richer by selling to them.

MIXED RESULTS FOR FOUR DEPARTING GOVERNMENT CEOS

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This year only four CEOs of the top government parastatals have not had their employment contracts renewed, making contract renewals the most effective way of showing someone the door.

 

 
BOTSWANA RAILWAYS
The first CEO to exit his job was Dominic Ntwaagae of Botswana Railways.  He decided to resign with immediate effect on the 24th of February, just a month before his contract with government came to an end. Ntwaagae had five years at the helm of BR. Having completed an initialthree year contract, which was extended for two years, he resigns from his position with a month left on his current contract that was coming to an end in March (this month).

 

 
His choosing to step down however was not without controversy according to inner circles. Ntwaagae was said to have had a major fallout with his board of directors and consequently his boss, Minister KitsoMokaila, who was deployed to the Ministry of Transport and Communications after the last cabinet reshuffle.

 

 
Just last month, Mokaila dissolved the previous board of directors, which according to sources had ceased to cooperate with Ntwaagae. The previous board had been unable to amicably meet and discuss issues and governance, effectively tying the CEO’s hands when it came to the decision the making processes. Mokaila’s newly appointed board is yet to be approved by cabinet.

 

 
Ntwaagae’s reign has not been without its controversies. The most recent controversy, believed to have led to his fallout with the board,was the procurement of passenger trains and coaches said to have been second-hand.The passenger train was intended to improve service delivery for BR but has experienced repeated challenges, ranging from technical problems, breakdowns, and now the reported railway line damage caused by the heavy rains.Government spent P280 million procuring the coaches from Transnet in South Africa.

 

 
BOTSWANA INVESTMENT AND TRADE CENTRE
Last week, Letsebe Sejoe, who was appointed the founding CEO of BITC also left, after government opted not to renew his employment contract, and rather appointing Meshack Tshekedi as interim CEO.
BITC was formed through a merger of the dissolved Botswana Export Development and Investment Agency (BEDIA) and the International Financial Services Centre (IFSC), which were found to have over-lapping responsibilities.

 

 
Sejoe’s role since appointment in 2012 was to bring in Foreign Direct Investment (FDI) and ensure that every year there are new companies that invest in Botswana, creating employment and spiking economic activity in Botswana. Though less FDI has been achieved,BITC still takes credit for companies that have long established themselves in Botswana and no longer need BITC assistance. Botswana continues to see high levels of unemployment, with less money circulating in the economy. The current economic climate has experienced more companies shutting down than setting up. On the other hand, BITC, receives just over P100 million as government grant annually, with expenditure for administration expenses at P116 million (according to 2016 annual report).

 

 
The company said in its annual report that 27 companies were registered expressing interest to invest in Botswana withinvestor facilitation services. BITC further says, these companies are involved in various sectors including manufacturing, business and financial services, agriculture, property development, aviation, logistics, tourism and energy. “The combined projected capital investment from these projects is P1.33 billion with a corresponding projected employment of 2,460 jobs once the companies are set up and fully operational,” Sejoe said in the 2016 annual report.

 

 
It appears however that these numbers merely projections which may or may not be achieved. Since its inception, BITC has had limited effectiveness in delivering on its primary mandate that is to bring into Botswana a foreign companies that create substantial employment and to facilitate the diversity to Botswana’s economy. To date, Botswana remains, mineral led, lacking diversity and the economy is under threat, with government running on a deficit.

 

 
BOTSWANA COMMUNICATIONS AND REGULATORY AUTHORITY
Government has also taken a decision not to renew the employment contract of the Botswana Communications and Regulatory Authority (BOCRA) CEO Thari Pheko after being at the helm of the authority for over ten years now. However, insiders indicate that Pheko has been preparing to leave his job, owing to personal circumstances.

 

 
BOCRA may be a financially sound institution that closed the 2016 full year with cash exceeding P265 million, but its greatestchallenge lies with its core mandate of regulating the telecommunications industry. Under BOCRA, Batswana continue to experience unacceptably high tariffsfrom mobile phone operators, Mascom Wireless, Orange Botswana and BTC Limited.Local tariffs for mobile phone are some of the highest regionally, without a corresponding quality of service.

 

 
BOCRA has failed to ensure that as a regulator it controls mobile phone operators. Buying airtime in Botswana is like paying from dropped calls, failing messages and sometimes failing to process an intended call because of poor network by mobile phone operators. Pheko himself, admitted to The Business Weekly & Review that mobile phone operators do not have the capacity, because they are not investing in infrastructure and transmission towers, despite making hundreds of millions as profits. Pheko’s regulation has not ensured that citizens are fairly charged for quality service.

 

 
Almost all mobile phone operators have launched 4G (fourth generation) speed network. Technically, 4G means speeds in excess of 100 MB/second. It means that one should be able to watch a video smoothly without any buffering. However the three mobile service providers are unable to pull 4G type internet service because they do not have sufficienttransmission towers to reduce traffic congestion and increase the quality of services. However, BOCRA has allowed mobile phone operators to sell that ‘illusion’ to Batswana, as a regulator.

 

 
Data prices in the country are much higher than those in other countries on the continent and in the world. While 1GB (gigabyte) of data costs R11 in India, R22 in Nigeria and R32 in Namibia. South Africans are paying R150 per GB, yet their charges are way cheaper than here in Botswana. In Botswana however, 1GB of mobile data is more than double that in South Africa. SA authorities last year ordered mobile phone operators to cut such charges failing which the authorities will cut them themselves, a bold decision which perhaps Botswana’s regulators could learn from.

 

 
NON-BANK FINANCIAL INSTITUTIONS REGULATORY AUTHORITY
It has emerged that Oaitse Ramasedi’s employment contract expired on the first of March, and government has not renewed his contract. It is not clear why his contract has not been renewed. NBFIRA regulates insurance companies, pension funds, stock exchanges and other non-bank institutions.

 

 
According to the 2016 annual report the authority is operating at a loss. It recorded a total operating deficit of P13.4 million in the financial year 2015/2016, compared to a deficit of P1.7 million in the prior financial year 2014/2015. The deficient was attributable to significant increases in operating costs while increases in revenue weremodest.
While the authority made revenue of P50.6 million, its total expenditure on the other hand increased significantly from P50.8 million in 2014 to P65.4 million in 2015/16 primarily driven by increase in staff costs and administration expenses. The Authority however remains a going concern entity, according to Chairperson Mmatlala Dube.

Mozambique: Letshego’s problem child

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Being a man who has headed institutions like the mighty Goldman Sachs, Low is unfazed by the Mozambican currency translation losses.  He says it is just beyond his control, adding however that his patience would pay off in markets like Namibia, Tanzania, Ghana and Nigeria, where the currency is on a rebound.

 

 
In a defiant stance, the head of the P4.5 billion valued blue-chip lender rather looks confident, during the group’s full year 2016 presentation. “Mozambique we believe will come around,” he declares confidently. He believes the P33 million setback made by the Mozambique investments will someday be profitable. In 2015, Portuguese speaking the Mozambique unit together with the Namibian operation had grown to such extent that they made up over 40 percent of revenues, profit and advances.

 

 
With Mozambique contributing a substantial amount to Letshego’s earnings, currency translation losses were obviously going to be high, in light of the poor currency. In the previous fiscal year, Profit before Tax exceeded P1 billion for the first time in Letshego’s history despite depreciating exchange rates against the Pula. However Low emphasised that his organisation has no control whatsoever over currency performance and simply had to ride out the storm even when Mozambican Metical (MZN), the Southern African country’s currency, was what pundits viewed as “one of the worst performing African currencies”.

 

 
Translation losses arising on the conversion of the results of non-Botswana operations had a significant impact on the group’s results for 2016, penned Low this past week. The most notable however was the impact of the depreciation of the Mozambican Metical versus the Botswana Pula (the group’s functional and reporting currency). The 60 percent depreciation of the Metical resulted in a reduction of the group profit before tax of P33 million, suppressing the group’s Profit before Tax to the grounds of P948 million, which is a 9 percent reduction from 2015. Depreciation of MZN reduced the loan book by P437million, an equivalent of 6 percent compared to the previous year. Had the exchange rates been akin to the previous reporting period, they would have recorded a P33m higher profit before tax.

 

 
Mozambique makes part of the strong performers of the Southern African subsidiaries, including Namibia, Botswana, Lesotho, and Swaziland. The group says the region has seen modest growth, perhaps slowed by the embattled Mozambique unit. Analysts argue that currency deprecations are once off misfortunes that fade with the passage of time, lending credence to Low’s aspirations of future turnaround.

 

 
The Business Weekly and Review asked the group’s head where Letshego sees growth in the interim, as Mozambique ‘momentary’ falls short of what they needed to lead another successive round P1 billon in profit before tax. “We are looking to create a portfolio of growing businesses across our market.” He responded alluding to almost every country Letshego enjoys presence in. Letshego is nestled across 11 countries: Botswana, Kenya, Lesotho, Mozambique, Namibia, Nigeria, Rwanda, Swaziland, Tanzania, Uganda and most recently Ghana. Upper most in his mind is Namibia, Tanzania, West Africa’s Tanzania and Ghana.

 

 
In Namibia, the group is alive to growing profitability during the reporting fiscal year, which otherwise should see no interruption to momentum. In Tanzania, Low points to early success in fully integrating Letshego Bank Tanzania into the Group, with sourced profit before tax at P10 million.  Letshego Bank Tanzania was rebranded last year August 2016 after entering the market the previous year. The group’s key focus has been on integration of people and systems. A new management team was recruited, all staff trained and upskilled to group standards. And the group’s boss says losses were reduced from prior year. Customer deposits grew from 29 085 to 37 757.

 

 
In Nigeria, the first West African country Low penetrated, the journey hasn’t progressed as rapidly. Yet he says it should be one of his money spinners. Nigerian operations were re-branded last year August. the Nigerian economy shrunk by 1.5 percent in 2016, while inflation had more than doubled to 18.7 percent in 12 months. Acquisition of Letshego MFB was certainly not decided upon based on the current economic scenario; rather the group looked to what potential the investment would contribute to the group in the future.  Entry into West Africa through the Nigeria acquisition was based on the fact that Letshego believed that Nigeria would be a key contributor to the pan African company’s strategy looking to the future – with continued investment in people and systems. The performance of this subsidiary should become significant, so believes Low.

 

 
Just as promising is Ghana’s afb Ghana Plc (“afb”), a financial services company providing innovative credit products to consumers. The deal was struck last year. Now Letshego has control of a lender which made a handsome P18 million in profit before tax over the just ended year. Afb has grown to service over 60,000 customers through a country-wide network of more than 25 branch and customer access points and an end-to-end automated service delivery model. Its strategy – to deliver responsible lending services by leveraging technology to drive access, simplicity and customer satisfaction – fully aligns to Letshego’s own inclusive finance agenda as does its established product offering. This includes deduction-at-source loans for government employees and direct loans to private sector employees as well as loans to micro and small entrepreneurs (MSEs).

THE TROUBLE WITH TSHETLHA: Inside Khama’s Eurocentric, Afro-sceptic Psyche (part 1)

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(Pic: Pressphoto)

Khama is a man who understands the power of whiteness, the privilege of being an African monarch and how to lead a people like Batswana, a people completely unaware of the effect of colonialism on their self-image and how this makes them totally ill-equipped to confront whiteness as a system of privilege and the elaborate corruption it nestles away from detection and criticism, granting his presidency not just power but impunity. In this series TSHIRELETSO MOTLOGELWA explores the psychology and self-identity of Seretse Khama’s first born son as his presidency reaches its dusk. In this first part of a four-part series, he explores the impact of racism in Khama’s early childhood and its impact on his policy direction.

 

Khama’s presidency has been a phenomenon. There has never been anything like it and it is doubtful anything quite like it will ever come again; at least not with the audacity, sheer dominance, expansiveness, self-confidence and, ultimately, such express impunity. By the end of his decade-long tenure, now 12 months away, President Khama would have ransacked his way through the body politic and overseen an unprecedented shifting of public assets into private hands through a sophisticated system of denationalization, if everything goes according to plan. He would also have extended the role of the presidency over the judiciary and parliament, decimated one of Africa’s longest ruling parties and demobilized an economy that should have otherwise thrived.

 

 
But Khama’s decisions make no sense until one understands the psychology and the self-identity of the man as well as the society that raised him as a boy and how it aided and abetted his choices as a leader. Arrogant, entitled, Eurocentric and Afro-skeptic, Ian Khama is both a product, and indeed a victim, of our colonial, racist, tribalist, feudal and classist history.

 

 
His formative stages having to constantly shift from the identity of a Mongwato prince and glamorous half-white boy among Bangwato children, to a reject of the purveyors of white racial purity seen tainted by his African side created a child who, confused, would grow into an adult with a yearning for Eurocentric acceptance and camaraderie. Ultimately he became a leader and a national leader with an overreliance on white ability while rejecting African expertise and counsel the way a king would reject his misguided subjects.

 

 
The search for Mohumagadi
Khama loves jokes. Those close to him say he enjoys friendly banter, perhaps a legacy of his British upbringing and to some extent a legacy of a Setswana culture whose humour is loaded with self-deprecation. Ever a psychoanalyst’s gift, it is through that dark humour, that the inner Khama emerges. It is when he is telling those jokes, mocking his buddies, being mocked by those given such hallowed rights but careful enough to exercise them correctly that Khama reveals his psychological story. He may tell jokes but often in Khama’s humour, you may laugh with him but it always at yourself.

 

 
Take the infamous Botswana Democratic Party (BDP) Women’s Wing saga where in 2010 in Mahalapye, Khama extolled the virtues of a “tall and slender” woman.  The matter of Khama’s serial bachelorhood had been raised during the recital of a praise poem for him by party elder and veteran, a Mokhurutshe and Sir Seretse Khama’s right hand man, Kebatlamang Morake. It is instructive to understand the power relations between Khama and Morake; the latter would be instinctively aware of these power dynamics. Experts of African poetry say that in feudal Africa, there were a few opportunities for subjects to criticise their rulers openly- but poetry was a viable avenue. Morake on the face of it is Khama’s elder, having been a contemporary of Khama’s father but ultimately, he is his junior on many levels even his subject on a purely tribal level. Morake would know this, hence his choice of medium. Of course, Khama is also Morake’s senior within the party being its president and that of the country. Veteran Mmegi reporter Ryder Gabathuse chronicles this episode in beautiful detail. According to his report, an outpouring of condemnation ensues about Khama’s bachelorhood. The late Mompati Merafhe who was one of the people with a close relationship with Khama, and Kwelagobe- himself a party doyen at the time- add their views in jest, ‘complaining’ about the same issue.

 

 
Khama is a butt of jokes but not for long, he retorts “For your information, I want a woman who is tall, slim and good looking”. And then he turns to the woman who is often a butt of his jokes, Botlhogile Tshireletso. “Ga ke battle yoo tshwanang le yo. Yo o ka palelwa ke go feta fa kgorong ya ntlo, a thuba  di-furniture ka bokima a bo a roba di shock absorber tsa dikoloi (I don’t want one like this one. She may fail to pass through the door, breaking furniture with her heavy weight and even break the vehicles’ shock absorbers)” he says to roaring laughter.  Cape Town based British journalist Aislinn Laing (formerly Simpson) narrating this story in the British publication The Telegraph, describes Mma Tshireletso as “corpulent”.  Just to be clear about the power relations, Khama adds “”You are guilty of ridiculing the President. The best that you should do is to go all out and look for the woman that you prefer for me as I hardly have time to hunt for a woman who will become my wife”.

 

 
BDP Women’s Wing chairperson and a member of the party’s central committee, Angelinah Sengalo reportedly complains that the hunt for Khama’s wife-to-be could not be left in the hands of men. Sengalo has an idea, the type of woman Khama would be attracted to would be Emma Wareus, herself of bi-racial descent. “As the party’s Women’s Wing, we shall immediately play a leading role in taking Emma Wareus on board as our choice for First Lady. There’s just no way that our male counterparts could be allowed any free role in the hunt for Khama’s choice,” she elaborates.

 

 
The entire hall of the BDP Women Wing, one of Africa’s longest ruling parties, roars in laughter. It is all jokes of course but the joke is not on Khama. After all it is Black African women like Tshireletso who the infrastructure of a racist beauty definition has victimized as in the painful experiences of figures throughout history from South African Sarah Baartman in 19th century Europe to the American tennis living legend Serena Williams in the 21st century.

 

 
A Mongwato male of royal blood, Kgosi nor less, and son of the first president, Khama in this instance was enjoying the benefits of a sexist, racist and tribalist system which has sustained the society from which he earned limitless benefits.

 

 
Being Khama was not easy though, one moment you are the adored half-white child (called – Lekhalathe), a prince and heir to the throne of one of the country’s main tribes and the next you are nothing but an abomination to British racial purity.

 

 
Khama did not and still does not possess the intellectual rigour to interrogate what is happening to him and indeed what he is doing to others. Obama in his book “Dreams From My Father”, attempts to tussle with his own bi-racial background and in some way, chart his own place in a complex world in which race is a major dynamic.

 

 
Racism in 50s Britain
Khama was born in 1953 in what was then still racist England. In his family background his maternal grandfather George Williams was prejudiced against Seretse Khama, more virulently when he met and married Ruth and more understatedly when they came back from what was then Bechuanaland.

 

 
Born at this tumultuous stage, Ian Khama’s name would also reflect not just his background but perhaps these multiple agendas laying claim on him. “The boy was named ‘Seretse’ after his father, ‘Ian’, as a name from the Williams family which also had the virtue of being Scottish and ‘Khama’ after his grandfather” however, “the last name was added as another first name, at the specific request of Bangwato elders who cabled from Serowe,” explain Seretse’s biographers Neil Parsons, Thomas Tlou and Willie Hendersen in their book Seretse Khama.

 

 
It was then that Ian was plastered with this “somewhat repetitive-sounding name, Seretse Khama Ian Khama, the second ‘Khama’ being the surname”.

 

 
When Seretse and his wife Ruth left Serowe for Britain after the acrimonious fight with Tshekedi Khama, they landed right into a racist country. The position of people of African origin in 50s England was that of not just colonial subjects but an inferior race. “Before black workers had begun to arrive here in significant numbers, black immigration was already being racialised. To use Hall’s phrase, ‘race’ was becoming a lens through which people experienced and made sense of their everyday lives. This development was to displace the responsibility for Notting Hill 1958, Brixton 1981 and Handsworth 1985 (white riots) on to the black population and in so doing render the role of the state invisible,” write scholars Bob Carter, Clive Harris & Shirley Josh in their paper, the product of a study on how the British state apparatus racialised immigration from former colonies.  They argue that there was a state of fear of black people to an extent that a concerted effort was put in place to discourage more from coming to England.Three years later Khama and his family flew out of England to Botswana again when Ian  was but pre-school age.
The creation of the whites of Serowe
It is important to understand the racial stratification that characterized colonial Botswana as a product of the near full century of British rule. By the time Seretse and Ruth arrive in the country with a young Ian and older sister Jacqueline, the Ngwato area was a colonial enclave. The dismantling of Ngwato society was kick-started by Kgosi Khama III with the approval of the British colonial apparatus. Khama III was perhaps, of all kings of his time, the one most open to the British imperial project. He ascended to the throne in 1875, and he, seen by the colonial system as a weapon with which to destroy African identity and nationalism, went about doing exactly that in the Ngwato area himself. He did fight occasionally with the colonialists over power but overall Khama III’s program was aligned to the demands of the colonial system. “By the time of Tshekedi’s birth the Ngwato state was formally a Christian one presided over by a monarch who enjoyed an international reputation as `one of those miracles of modern mission work.’

 
Contemporary photographs of Serowe, the new capital to which the Bangwato moved in 1902 and in which Tshekedi was born, show a society that had adopted European dress almost to a man, the richer of them wearing dark suits with their women in bustles and black bombazines. The ruling classes sent their children to the local mission school while the wealthier among them arranged for the further education of their sons in South African mission schools. Sekgoma II “ For instance, had been sent by his father to Lovedale, the Church of Scotland school for Africans in the Eastern Cape to which Tshekedi was to be sent later” writes historian Michael Crowder in his unfinished manuscript Black Prince: A Biography of Tshekedi Khama 1905-1959. The colonial system was not founded by Khama III, after all the British designated Botswana a protectorate as early as 1885  but he was its strong disciple, having established strategic alliances with the British during his earlier battles with the Ndebeles, Boers and German occupiers of modern day Namibia.

 

 

In his departure, therefore, Khama III left to Sekgoma II and later Tshekedi a tribe in which both British administrator and citizen were superior and in turn white supremacy was entrenched. Britishness was admired and the small community of British settlers enjoyed a status higher than most Ngwato royals. This is the therefore the complications that Tshekedi, a much more nationalist leader would have with the colonial project. By the time he attempted to fight the colonial system it was too late, events had moved.

 

 
In spite of age and readiness to attend nursery school, there was none to attend in Serowe, so he stayed home while his older sister Jacqueline attended an all-white school. He was attended to by royal servants and helpers, a prince.

 

 
Being uprooted from an urban lifestyle in modern England to a much more traditional Setswana setting in Serowe brought forth challenges especially for Ruth: it was the beginning of Ian’s closeted childhood. He was prevented from mixing with ordinary Bangwato children. Ruth did not want her children accepting food from other children and she insisted on Ian Khama and his sister speaking English not Setswana. Ruth wanted to raise her children British and wanted them to grow into full Brits but was on the other hand struggling to be accepted by the British community due to her marriage to Seretse Khama and bearing mixed-race children. Her rejection by the white community in 50s-Serowe made it clear to her that it was “shameful” for a British woman to have any relations with a black African, even a royal. In a way, therefore, Ruth was tainted and thus lowered in stature from the pure white level.

 

 
Still she was a Muhamagadi among Bangwato and was held by them as a white woman. Ian Khama however was too young to know these things although he would later encounter them. When he was old enough, he was sent to a white Rhodesian school called Whitestone School in Bulawayo.

 

 
Ian Khama and his mother had a close relationship and perhaps her British aspiration could reasonably be expected to have influenced the young boy’s early and late self-identity. At the same time, he also faced rejection for his racial impurity as a mixed child by the very same people he aspired to be belong to. Khama tells the story of how he was turned by a white dentist in South Rhodesia when Ruth had brought him for a check-up. The dentist is said to have told the woman, a fellow Brit, that he does not assist black clients.

 

 
The constant fear of rejection by whites and the limitless interest in finding credibility among people of European origin on one side and a certain monarchist disposition to black people would characterize Ian Khama’s leadership years later. This would define Khama’s view of black people, generally, as subjects. Everything from his arbitrary decision to ban hunting; pardoning Kalafatis killers; the anti-poaching shoot-to-kill policy; rejecting negotiations with workers during the Public-Sector strike of 2011; his decimation of criticism within parliament; dismissal of the BDP faction that led to the BMD and absence from AU and SADC summits shows Khama as a man unprepared to engage African minds in a meaningful way.

 

 

This also extended into his interest in philanthropic programmes aimed at “uplifting” black people; but it would also explain his xenophobic disposition as exemplified by the banishment of foreigners both black and white, the reaction equivalent of a King ejecting intruders into his territory. On the other hand, Khama placates people of European origin- seeking to win their approval, attending tourist shows such as Desert Race at which males of European origin are central figures, attending Conservation International gatherings, root-top diplomacy on African issues, extending exceptions to civil servants of European origin such as the Blackbeards and MDCB MD Paul Smith.

Stanchart may appoint a foreign CEO-sources

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In the sprint for the post of Chief Executive Officer (CEO) at Standard Chartered Bank Botswana, The Business Weekly & Review has established that major shareholders at Standard Chartered PLC in London and Asia may choose to appoint someone from the Head Office.

 

 
This week, Moatlhodi Lekaukau left the employ of the bank, which is currently headed on an interim basis by Mpho Masupe, substantively the Chief Finance Officer (CFO). The Business Weekly & Review asked Lekaukau if he could provide a hint as to who could be his successor, the information he said he was not privy to. Queried as to whether or not he did not recommend to his former masters who should take over he said he did. “Of course I was asked to recommend someone, I simply gave them a profile of the suitable candidate to take over, and I threw in one or two names for their consideration.” He did not however reveal the names.

 

 
Lekaukau was a stern believer in localizing top positions at the Botswana Stock Exchange (BSE) quoted banking counter. While when he took over in 2012 as the first ever Motswana boss, he found 50 percent of top management positions expatriate, he leaves a bank that has over 90 percent of the management positions held byBatswana. “It was one of the goals I set out to achieve,” he said. Further, sources revealed that internally, CFO, Masupe and the Chief Operations Officer (COO) Pedzani Tafa are two of the possible names that Lekaukau has suggested as candidates to the banks top position.

 

 
While these two are front-runners for the CEO post, sources said that the bosses and Standard Chartered PLC actually prefer jetting in their own appointee.

 

 
Should an expatriate be appointed as CEO at Standard Chartered Botswana, it would see the localization of the CEO position being reversed, after the bank made history five years ago when it appointed Lekaukau as the first Motswana to lead it. While there are those that believe that the bank may appoint a foreign CEO, officials at the bank are tight-lipped on the ongoing recruitment of the bank’s top post. Sources believe that with the tough global and local trading environment, especially in the banking sector, which is exposed to unfavorable trading conditions, Head Office would prefer someone closer to the strategy makers, who would be able to implement exactly what the Head Office wants for better efficiency.

 

 
As the banking sector regulator, the Bank of Botswana (BoB) has the final say in approving any candidate that the bank proposes to take over as CEO. Sources reveal that were it not for such regulatory oversight, Head Office would have swiftly roped in their preferred CEO.

 

 
Lekaukau’s appointment in 2012 saw him taking over from the West Indian David Cutting, in a transition that was not a smooth. Lekaukau was Head of Mergers and Acquisitions at Delloitte South Africa. At a time when he was appointed, Standard Chartered had been having a Deputy CEO in Serty Leburu, who had been an understudy to succeed Cutting. When the bank wanted her to take over as CEO, the central bank, under the stewardship of Linah Mohohlo declined to have Leburu take over as CEO.

 

 
Lekaukau was then imported from South Africa to come and head the bank. However, he has in previous interviews revealed that henever took interest in the position of Stanchart CEO at the time, until he was encouraged by an acquaintance.

Banks run under poor risk management – BoB

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Bank of Botswana Governor Moses Dinekere Pelaelo(Pic:MONIRUL BHUIYAN/PRESS PHOTO)

Bank of Botswana (BOB) governor Moses Pelaelo says banking systems ought to invest more in risk management infrastructure in order to tap into new resources and opportunities; including  identifying  and funding bankable projects from low income groups and small enterprises.

 

 
Amidst the celebrations of Stanbic Banks Botswana silver jubilee this past week, Pelaelo warned banks that  failure to do so could marginalize them in a long term as  they are known today, as fintechs and block chain technologies increasingly satisfy the demand for financial services in more innovative and cost effective ways. “In order to continue to contribute positively to sustainable economic development, the Botswana Banks should be more inclusive.”

 

 
According to the World Economic Forum Global Competitiveness report of 2016/17, Botswana financial sector’s overall ranking is 66 out of 138 countries, representing a slight deterioration from a ranking of 63 in 2015/16. The report attributes this to weak performance in the soundness of bank (ranked 68) and ease of access to loans (ranked 69). These indices were ranked 55 and 56 respectively in the previous report.

 

 
The report noted that it is also a matter of public policy concern that the ratio of private sector credit to Gross Domestic Product (GDP) has increased only marginally from 25 percent in 2011 to 31.8 percent in 2016. Furthermore the proportion of mortgage loans to total GDP has been, on average 5.2 percent in the last five years. This compares, for example with the ration of 69.3 percent for Norway 67.6 percent for the United Kingdom and 84.3 percent for Sweden.  Pelaelo says these particular financial indicators for Botswana are below international norms. “It suggest that it may be true that lack of cost effective to appropriate finance and credit is a constraining factor towards a more diversified economy.”

 

 
Post global financial crisis, the financial stability board and other international standard setting bodies have been spearheading regulatory reforms aimed at enhancing the resilience of banking systems globally.  In this regard BOB has demonstrated foresight with respect to the minimum prudent capital requirements for banks, which has been set at 15 percent of risk weighted assets, compared to the international benchmark of 8 percent since 1997, Pelaelo said.

 

 

“As some of you will be aware, effective January 1 2016 the Bank of Botswana implemented those elements of revised International Convergence of Capital Adequacy Measurement and Capital Standards called Basel II.” It was deemed relevant and proportionate to the nature of the risk profile of banks as well as the structure and the needs of Botswana’s economy.

 

 

Furthermore the BOB is along with other stakeholders, taking steps to strengthen the framework for the banking sector safety nets and system wide crisis management. This project requires all systemically important domestic banks to develop recovery plans in conjunction with their parent bank.” The bank recently issued a guidance note on cybercrime risk imploring banks to put in place effective risk management systems and maintain sound internal control specifically designed to counter the growth of increasingly sophisticated cyber-attack and other forms of financial crimes.

The creation of a behemoth asset manager

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In less than five years, Kgori Capital Botswana (formerly Afena Capital Botswana) has grown to manage assets of approximately P7 billion. In an interview with Managing Director (MD) BAKANG SERETSE, Staff Writer KEABETSWE NEWEL sees a giant investment firm in the making.

 

Shortly after the company rebrand as Kgori Capital, the now 100 percent Batswana owned company, the company and its directors are now both confident and ambitious enough to expand the service portfolio, specifically to tailor make products for Botswana market. “Under a partnership with our former SA partners, we could not be fully flexible towards Botswana market because Afena was part of an international brand and global investment model,” explained Seretse.

 

 
The company will spread its wings towards what Seretse called Retail Investing and Alternative Investments. He emphasised that Kgori Capital will dive full-force into Private Equity and Infrastructure/Property Asset Management.

 

 
“We want to diversify income and also have a large pool of clients,” Seretse explained, stressing further that clients are looking at alternative investments and where the next growth in investments will come.

 

 
To Seretse, there may be a limitation when investing in equities in Botswana. “Equities are limited, and possibly over-valued, and because of the limitation, there is overconcentration of clients on the same equities, which increases the risk of investment,” the Kgori Capital boss explained. His company’s quest he says is to spread the risk, and increase returns by investing in alternatives. He sees a demand in investing in infrastructure through private companies, which he believes, will also encourage pension money and sovereign money (foreign reserves) to be brought into Botswana and invested here. In his view, to address unemployment and other economic challenges, more money needs to be spent in the local economy to spike activity.
Currently, Kgori Capital portfolio is balanced between local and offshore investments.

 

 
“Investing in property for example, is like a proxy to investing in bonds, returns are almost guaranteed,” he said. Under Retail Investments Kgori Capital will in the near future launch retail investment products targeted at promoting individual investments at a micro-level, which will not only give the individual low-income earners an opportunity to invest and also diversify the class of clients for the firm.

 

 
However, the quest to turn Kgori capital into what it is now has not been a walk in the park. It took dedication from three young financial services professionals, Bakang Seretse, Alphonse Ndzinge and Sharifa Noor who had been working for international asset managing firms, until 2012 when they conceived Afena Capital Botswana.

 

 
Somehow, having worked for companies like Investec as well as the Afena Group in South Africa, the trio gradually got intoxicated by the idea of running a citizen owned asset/investment management firm. After all, they had the experience and the knowhow. It could not be an easy task though, a technical partner with a deeper understanding of the dynamics of investments was needed, at least for a while. That is why Afena Capital Botswana was birthed with 51 percent of its shares held by Afena Capital (PTY) Ltd in South Africa, while the trio held the remaining shares. Seretse said that then, the South African partners had interests in spreading across Africa, which opened a window of opportunity for them to partner here in Botswana.

 

 
Seretse recalls how they started with zero assets under management, despite some capital from partners’ contributions. With only three months in operation, the company according to its MD clinched its first contract from one of the government institutions.

 

 
“To us, it was an opportunity to demonstrate to the market, what we could do as a new entrant,” he said. Seretse believes that at a time when they entered Botswana, there was an opportunity especially to bring products tailored specifically to Botswana.

 

 

When their company commenced, he said the idea was to sell international investments to Botswana. To him, while their assets are biased towards Botswana, there were always some limitations which prompted the company to look to South Africa, a country that has a similar monetary policy to Botswana. The Botswana Pula is also heavily weighted towards the SA Rand given that the country is Botswana’s biggest trading partner.

 

 

“We wanted to develop Botswana in the long term by courting and investing in unlisted companies to enhance their growth in the capital market,” he pronounced. To him, the company’s model was in going beyond investment, it was a partnership with government and other institutions to bring forth social investments and address unemployment, access to capital and stimulating economic activity could be achieved. However, all this began at a time when Kgori (then Afena) has zero clients, with a very lean team as well because of budgetary constraints.

 

 
With each client, the company grew, employed more people to boost efficiency, but most importantly, the three Batswana founders gained more experience, exposure and became more ambitious towards a company fully controlled by Batswana to easily advance interests of Botswana.

 

 
Seretse confirms that up to last year, the company grew significantly to assets close to P7 billion, and prospects for growth were also bright. It was then that Seretse, Ndzinge and Noor opened negotiations with the foreign partners to buy them out.
“It was a difficult negotiation because the company value was on the rise, and prospects were good,” he added, saying that they paid a good price for their stake.


RDC PROJECTS SUCCESS IN AFRICAN ADVENTURE

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Group Managing Director (MD) Guido Giachetti welcomed guests to the swanky Masa Centre with clear message that the group would hit the ground running regionally in Mozambique, Namibia and South Africa. The scale and geographic scope of the countries , to him, provides undoubted opportunity.  More so that in Namibia sites for development of convenience shopping centres in Katima Mulilo & Tsumeb have been secured. Land allocation for the other 3 sites is in progress and construction is expected to start within the next six months, according to a publication from the company.

 

 
In Mozambique shareholders have already signed for the development of two convenience shopping centres; one which is said to be a partially completed centre in Xai-Xai and the other a new build in Maputo (Zimpeto suburb). The owners of Masa Centre expect construction to start within the next three months. The group’s interests in the developments in Mozambique will be held through two registered Mauritius subsidiaries of RDC Properties International (Proprietary) Limited, and a 100 percent subsidiary of RDC Properties Limited.

 

 
It’s been more than a year now since RDC has been studying the markets and the findings have eased Gaichetti’s fears of the financial uncertainty, especially in Mozambique. “IMF has stabilized the currency and the country is picking up” his sentiments are emblematic of Christopher Low, the MD at the helm of the colossal micro finance lender Letshego Holding Limited, even during a period in which forecasters have become more pessimistic about the southern African country’s prospects. The World Bank has downgraded its forecasts for Mozambican growth in 2017 and 2018 by 2.5 percent and 1.4 percent respectively, to the still respectable figures of 5.2 percent and 6.9 percent.

 

 
Mozambique is best known by investors for its past as the scene of economic meltdown, when the Metical, its currency suffered bouts of depreciation against trading partners. The Mozambican Metical was among the 10 biggest depreciating currencies in the world in 2016. It lost 60 percent of value against the Botswana Pula. Market gurus argue that should new investments be leased denominated in the country’s currency, losses are inevitable at such times of uncertainty.

 

 

Thankfully, Gaichetti says leases are in Dollars. Yet the Dollar is also trading sideways overshadowed by sentiments borne by the drama of United States President Donald Trump’s administration and the US rate confusion. This past week has been a tough week for the greenback. It depreciated by 1.44 percent against the domestic currency, Motswedi Securities points out. “The weakness prevailed following a rather dovish interest rate outlook by the Feds, after hiking the previous week. The bone of contention, well reduced optimism or calls for more than 2 more hikes for 2017.” Further pressure was placed on the Dollar by waning confidence in ‘Trumpflation’ as markets watched with caution how the Senate would vote on Trump’s healthcare bill, which eventually never saw the light of the day.  On Wednesday, the dollar pulled back, “Some fed members have come out affirming further rate cuts for the year.”

 

 
Gaichetti confidently argues the Dollar has a little movement compared against the Pula. “The dollar is still much stronger than Pula.”

 

 
Tshephang Loeto, a Financial Analyst at Investec says the Pula performance is mainly driven by how the Rand performs against the Dollar. “So during the just ended year we saw the Rand appreciating against the Dollar and this filtered into the Pula given that the Rand has the biggest weight in the basket.” If a property company decides to repatriate the USD into Pulas, he argued that it would have to crystalize this negative performance given that it occurs at a period when the Pula may be doing well. “However, if not crystalized, on paper these are just translating losses that are for reporting currency purposes.”

 

 
Elsewhere in Namibia RDC says land has been purchased, the notarial deed signed and registered with land rezoning in progress. The MD says leases will be denominated in Rands which he admits has considerable exposures. The past week’s Rand performance has been at its prime thanks to recently published positive macros in South Africa. Available data showed that inflation for February penned down lower at 6.3 percent, down from 6.6 percent for January while the current account deficit for the 4th Quarter of 2016 narrowed to 1.7 percent bringing the yearly average to 3.1 percent compared to 4.1 by the previous year. The Rand appreciated by 1.33 percent against the Pula for the past week.

 

 
That momentum was short-lived. South African Media detailed how President Jacob Zuma instructed the Minister of Finance, Pravin Gordhan and Deputy Minister Mcebisi Jonas to cancel an international investment promotion roadshow to the United Kingdom and the United States and return to South Africa. This has fuelled speculation of a cabinet reshuffle. While markets await, pundits generally feel that the weeks ahead could prove critical for South Africa’s political and economic stability. An impact that may influence RDC as it is exploring opportunities in South Africa  after acquiring shares in a private placement of property Listed REIT.

 

 
The last time Zuma replaced Gordon, the Rand dropped to record lows against the Pula. This Wednesday “the Rand traded sideways for the day, with rumours of the sacking of both the Finance minister and his right hand man abating. The divergence between the President and those at helm of the National Treasury could not be more apparent, and more costly to the Republic of South Africa,” researchers at Motswedi Securities Garry Juma and Moemedi Mosele wrote.  “Political risk is priced in for a cabinet reshuffle, however it appears the president got a pushed back on his agenda by senior members of the ANC, possibly buying Gordhan and Jonas a little more time.”

THE TROUBLE WITH TSHETLHA: The Genesis of a Savior Complex (part 2)

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In this second part of the series, staff writer TSHIRELETSO MOTLOGELWA explores Ian Khama’s childhood as a basis of the military heroism and savior complex which later had a dominant influence in his personal and policy posture. Anti-intellectual, suspicious of a questioning black intelligentsia; compulsively praise-seeking while patronizing of the poor; self-absorbed and disciplinarian- Khama is in most characteristics his mother’s child more than his father’s.

 

 

President Ian Khama likes to hang around Batswana he calls the less fortunate – the rural poor and urban township dwellers. He enjoys it when he happens upon an unsuspecting street hawker and she rises to her feet eyes alight and mouth agape in disbelief. Something messianic in the way they hold his hand and then walk away in amazement, as if a new perfect dream has gate-crashed through their bland reality.

 

 
Khama also relishes giving them goods; groceries of phaleche there, a bag of rice there, pasteurised milk, cans of fish, and for the even luckier ones, a roof over their head.
But if there is something that provides the man from Serowe with ultimate satisfaction it is being seen to be giving, that is, when those donations are given in his name – His Excellency Doctor Lieutenant General Seretse Khama Ian Khama, the President of the Republic of Botswana.

 

 
There is a picture of Khama donating to an old San man, groceries before them, boxes of pasturised milk, phaleche and a newly painted wall behind them. The San man has the look of a hare stuck before the headlights, almost wide-eyed stunned. Khama has that characteristic smile. He has never looked happier.

 

 
Khama’s keen interest in saving people whether as a soldier or as a philanthropist has had serious implications for his presidency at a policy level, with everything from his extreme interest in military procurement to his transfer of the entire government media department to Office of the President, all borne of that complex. When one studies Khama’s upbringing from formative stages past his Commandership of the Botswana Defence Force two aspects of Khama’s thinking stand prominent – the unsatisfied need to be a recognized mind in military terms, like his maternal grandfather, and to save people and animals in dire situations, like his highly influential mother lady Ruth Khama. However Khama possesses a Hero Complex of a unique nature and being known for such characteristics. But underpinning that is Khama’s keen interest in proving his worth to people of European origin, an inferiority complex before them that often presents itself in the guise of a superiority complex over Black people, the latter of which has foundations in both his racist past social existence as well his royal childhood. It is when his, and indeed his brothers’,  actions as leaders are seen through this prism that a clearer picture emerges.

 

 
Khama’s journey of heroism can be located within his dedication to the military while his philanthropy is traceable to his mother Ruth which itself is from her own dad and former soldier George Williams.

 

 
In the book, A Marriage of Inconvenience by   Michael Dutfield, the role of the old man in his eldest daughter is explained in detail. When she, in the mid1940s, seeks to introduce Seretse Khama who she is dating to her father, she worries about how it would hurt him.
Copious amount of writing exists on the influence fathers have on their daughters, and according to Dutfield, Williams was no less significant in the Ruth’s life.

 

 
He would have been a hero to his daughter, a man who took part in the First World War. While Ruth, at least according to various literary accounts, was determined to date a black man despite the extreme views of her father against cross-racial relationships, she worried about his reaction.

 

 
“Her father, George, to whom she had always been very close, would, she knew, have been angry and hurt. He had spent six years in the British Army in India and had been invalided out at the end of the First World War. During that period, he had acquired very fixed opinions about the roles of black and white in the world. Born into an age when Britain ruled huge parts of the globe, George Williams regarded the differences between the races as fundamental and obvious. Any relationship other than that of ruler to ruled seemed to him absurd,” states Dutfield.

 

 
They may have differed over her dating decisions but the influence of the elder Williams could not be discounted, especially given that when a teenager she had quit school to join the Women’s Auxiliary Air Force, the WAAF. As World War II raged, Ruth encountered men who represented her father, at their most, helpless as survivors of plane crashes. “At 17, she had left school to join the Women’s Auxiliary Air Force, the WAAF. Her job had been to drive crash ambulances at airfields in the south of England, racing across the grass as crippled aircraft, often with their crews badly wounded, staggered home,” Dutfield explains. In a way, Ruth seeks to save men like her own father and in short admired military men like her father.

 

 
Father and beloved daughter would reconcile years later but old Williams’ influence would resonate beyond the daughter’s WAAF role as shown by her later role in moving her eldest son into military service and sending him to Sandhurst Military School in Britain. Khama would later in his life be fast-tracked through the Police Mobile Unit to head of the Botswana Defence Force eventually.

 

 
The WAAF, where Ruth served, itself stands in the history of Britain as one of the most heroic organizations.  It is not insignificant that Khama later became a pilot too because the WAAF was the women’s counterpart to the Royal Airforce during the World War II. It was formed in 1939 at the beginning of the World War II and at the height of its powers, it exceeded 180 000. WAAF members did not serve as aircrew, women were not allowed but did something second best to that, providing the framework upon which the British air force would function, serving in parachute packing, meteorology, radar, aircraft maintenance and ambulance services where Ruth served. Black and White pictures of women of the WAAF, with that hero-angle are still available to use in modern Britain.

 

 
As much as Ruth would have seen her father, a military man, as a hero, the young Ian would have been told of his maternal grandfather’s heroics as a British soldier in India. At the same time, it is possible that British airmen being attended to on emergency services by Ruth would have struck a chord, not just soldiers but specifically, pilots. It was her job to take care of these crash-landed pilots and combining her admiration of her dad as a soldier and these young pilots flying to dangerous enemy territory and coming back injured and needing help. So, father would have been hero to daughter. But daughter turned mother would also become hero to son, feeding the boy’s drive to emulate them.

 

 
If Ian Khama led a closeted life after he arrived in Serowe in 1953, as Seretse Khama biographers put it, then the boy made up for it with a closeness to his to his mother. They say he was a doting mother who wanted to keep her children near her, insulated from the surrounding rural environment. The closeness of Ian Khama to his mother is also natural, as many books have been written about the influence of mothers on their sons, especially their first-born sons. The British lady would work in formulating from her son, especially Ian, a model Brit, perhaps a version of her own father. In a way, the boy was destined to be a soldier. Later in life Ian Khama, now a Vice President, became protective of not just his elderly mother but her legacy.

 

 
Back in the 60s as Seretse Khama got further into the tribal politics and later the mainstream pre-independence politics of Botswana, Ian Khama became more and more of a public figure although his was a routine between attending boarding schools, returning home and going back again.

 

 
After stints in a Rhodesian school Ian Khama joined boarding school at Waterford Kamhlaba in Mbabane, Swaziland. Waterford is a member of a group of schools with campuses across the world.

 

 
It remains a mystery whether he completed his high school qualifications or not but in 1970 a 17-year-old Ian Khama left Waterford. He spent time after high school in a sort of academic island. Reports say he went to Geneva the following year to learn French, moving to London the following year.

 

 
In 1972, he joined the military college of Sandhurst. The school, established in 1947, gives preliminary training to military officers. RMA Sandhurst was a product of the merger of the Royal Military Academy which prepared Artillery and Engineering officers and the Royal Military College. At some point, it was the major training institution for entrance level military officers for the British army. Although not at the University level unlike schools such as West Point (US), National Defence Academy (India) and Australian Defence Force Academy, Sandhurst is one of the most recognizable names in military training. Ian Khama returned to Botswana in 1973 and joined the Police Mobile Unit, the precursor to the Botswana Police Service. The meteoric rise of Khama as a soldier and the impact of his military background on his government style are much obvious.

 

 
The Business Weekly & Review in an earlier story quoted declassified British documents indicating that the BDF was founded with pressure from Ruth Khama and the young Khama, against the wishes of senior civil servants at the time. According to archival records, the late Seretse Khama’s decision to form the Botswana Defence Force (BDF), taken in 1976 and implemented a year later, was a result of pressure from his family, particularly his wife, Ruth.  It is said the First Lady wanted her husband to start the BDF to give then recent Sandhurst Military Academy graduate, Ian Khama something worthwhile to do. A brief from British Commission to the British Government, written by a certain W. Turner dated 16th January 1981 and bearing the official stamps and letterhead of the British Government, reveals that the BDF was formed under such questionable circumstances.

 

 
However, Turner, quoting his encounters with Mogae and other civil servants, says that the late president was under tremendous pressure from his wife to give his first-born son who had recently completed military training at the British military college, something to do with his acquired knowledge.  This version has been corroborated by a number of former senior cabinet ministers.

 

 
The BDF Bill was put to parliament and passed in 1977. Civil servants worried that the formation of BDF would attract of regional racist regimes who would want to test the BDF, preferring that the new government focus its efforts on diplomatic avenues.

 

 
The BDF would later cause a lot of concern when it dominated government spending during and after Seretse Khama’s presidency. Turner reveals that both then Vice President, Quett Masire and other senior government officials, among them Festus Mogae who was Permanent Secretary (PS) in the Finance and Development Planning Ministry and Philip Steenkamp, PS in the Office of the President were opposed to the project.

 

 
“Mogae commented that the BDF is now a monster, absorbing more of the national wealth than could be afforded and diverting funds from worthwhile projects” states Turner’s brief.
However, after the passing away of Seretse, the pressure to spend on the BDF, where Merafhe was commander and Ian Khama deputy, carried over to the Masire government, much to the consternation of civil servants at the Ministry of Finance and Development Planning (MFDP). “In the final years before President Khama’s death, Ian had been able to get anything he wanted from his father, who was then ailing and although Masire had always opposed the heavy expenditure he had been overruled by the president, who had imposed his will on the cabinet. The situation now was that Ian Khama and Merafhe had become extremely arrogant with ministers and officials,” states the letter.

 

 
Ian Khama must have been hurt by Mogae’s anti-defence spending position to the point that when Mogae returned from the United States (US) in 1981, he, Khama, is said to have noted that he was pleased by the latter’s departure in 1976, adding that the pro-BDF lobby had won a victory in his absence. However, Khama, through his office, rejected the account. “No, the president does not recall interacting with this individual. The president does not have a recollection of such a discussion with former President Mogae,” replied G. Pitso, Senior Private Secretary to the president.

 

 
At the time when the BDF was under Khama, it was the biggest employer in the country. In recent times Khama has insisted on heavy spending in the BDF.  In the years between 1989 and 1998 when Khama was Commander, he averaged 4% of GDP in defence spending, one of the highest levels in the world, at the time. On average Khama outspent every BDF commander from Fisher to Galebotswe. It is not clear what prompted subsequent presidents to continue spending so heavily on the army, especially during Khama’s commandership.  In a way, the formation and sustenance of the BDF indicates that Lady Ruth was prepared to move actively to make sure her son properly emulates her dad. What is true is also that she was still alive during these years, exerting influence over her son rapidly rising through the ladder of power.

 

 
The formation of the BDF is the first chapter where Khama views himself as a hero; and as much as Ruth would have been given all equipment she needed to save the bleeding soldiers as a WAAF, Khama would have seen the creation of the BDF and his inexorable match to its Commandership and his endless procurement of military equipment, merely as part of instruments a hero needs if he is to save the day. It’s the first-time state apparatus moved to feed this savior complex, but it would not be the last.

 

 
Victims creating the hero
There is no point in creating a hero if there’s no one to be saved. Botswana’s society provided a solid platform in the creation and indeed sustenance of the hero syndrome in Khama, not just through the rushed formation of BDF against expert advice, but later in the overblown profile he gathers against his limited curriculum vitae. One major episode in the history of the BDF which would be later vaunted by Khama disciples was the shooting of three white men who had crossed into Tuli Block suspected to be undercover Rhodesian special forces, in March 1978. The year started tragically and for Ian Khama, a potential challenge to his sense of heroism. In February 1978, less than a year after its founding, responding to reports of a Rhodesian military incursion along Botswana’s north-eastern border near the village of Lesoma, a BDF-mounted patrol drove directly into a Rhodesian ambush, sustaining 15 deaths.  The Lesoma incident remains, so far, the biggest loss of life within the BDF and left a scar in the conscience. Of special relevance to Khama was that the men were under his him, given that he responsible of the northern part of the country. The death of the soldiers would have been seen as a serious threat to Khama’s sense of self and it would have affected his hero image for the story to be told and retold among the populace whose salvation was his destiny.

 

 
Therefore, that March, just a few weeks after the Lesoma tragedy, when three white men suspected of being Rhodesian Special Forces trainees are caught in Tuli, Khama is quick to act. The men are arrested and then shot under Khama’s instructions.  Reports indicate the men were attempting to escape.

 

 
Among the three was a 19-year-old Briton, Nicholas Love. In the months that followed Khama received pressure from all angles to tender an apology for the death of the teenager. “The unspoken point of issue was implicit criticism of Seretse’s eldest son Ian, who as deputy commander of the BDF had actually been in charge of the north-eastern frontier forces” say Parsons, Tlou and Henderson.  Seretse refused to publicly relent on his defence of the BDF putting its actions within the context of the precarious situation in Botswana.

 

 
But this episode built on the Khama phenomenon. The shooting of a white man in the minds of black Batswana at the time, who had by now lived through a century of white colonial oppression served to elevate this belief that Khama was something special. His mixed-heritage, for a people who had lived through white supremacy and royal background, would have added to that mix that created Khama as the savior of Batswana. In a way, the formation of BDF against expert advice, the summary shooting of white soldiers by Khama, fitted the narrative that perhaps only Seretse’s son, himself half white, could save the country from destruction by evil whites of the southern African region.

 

 
In Khama’s mind his role as the savior of his people, and his people as helpless victims of their own inherent inability was developed. From then on Khama became a hero in folktales that were told to the young and his character was given superhuman powers including changing form to save each and every situation. Of course, incursions into Botswana increased following that Tuli Block episode, confirming the original thesis by some within government and BDF the latter would attract attacks to Botswana rather than stop them. If the BDF was formed to prevent such attacks, then it did not, because it was ill-prepared to confront the military strength of regional racist regimes, confirming the position held by Masire and Mogae at the time that diplomacy provided the best option for Botswana at the time.

 

 
On 14th June 1985, South African Defence Force under General Constand Viljoen crossed into Botswana reportedly in search of Umkhonto we Sizwe operatives. They killed 12 people including women and children and it was later reported that only 5 of the victims were members of the ANC. It is said in the aftermath Merafhe and Masire had to constantly remind the gun-happy Khama that BDF could not go to war with the SADF, a position Ian Khama saw as cowardice. Soldiers who have worked with Khama said he was adamant that they retaliate but strategists viewed this position as almost suicidal. The South African attacks must have hurt Khama, but he had foil, he could not be blamed for not responding. The South Africans only changed their intransigence once the British and American governments threatened to pull out of diplomatic relations. Ordinary Batswana would not be privy to such details, to them Khama had saved the day, rather than make the situation worse.

 

 
This story, to ordinary Batswana, fitted the profile of their savior Khama as a man who would move mountains to protect them against white abuse and despise the cowardice of their fellow black people such as Masire.

 


In a way Khama’s need for heroism is matched by Batswana’s projection such a quality on him. They in turn confirm the racist narrative in which whiteness equals ability, and in a way, projecting this expectation on him, it feeds his desire to be accepted as a man of European abilities. Every time he went to parliament to seek further funding, critical questions were never asked, firstly because he was very popular and secondly because he was the son of the beloved first president; But he was also King of Bangwato, a majority of policy makers were still his tribal subjects. At the same time, he could confirm with his admittedly aging mother, that indeed he was a capable heir to the Williams military heritage. Two things happened, both Batswana and Khama created a victim and hero out of each other. Khama, through his continuous rejection of black expert advice, came to know that it was not only it necessary to do so in some cases but useful to do so. He may have known throughout his childhood that he was above black Africans racially, it was also prudent for him to reject black expertise as more often, as Seretse Khama himself shown, and later Ian proved, you could make progress despite such advice.

 

 

Also in Khama’s logic, because he is saving situations, he needs not necessarily entertain debates and exchanges of views before he can proceed with saving those who need to be saved. The savior often takes an authoritarian position forced by the power dynamics between hero and the helpless. Firstly, a savior does not have time for debates with those seeking her saving, if the ambulance is here Ruth Williams the driver needs the patient in it so she can drive away and save this life, not to hear the nurse debating with the injured pilot on how to place him on the stretcher.

 

 
When the BDP was in a seeming crisis, a man of European heritage, Professor Patrick Schlemmer was hired to advice on the way forward. At that time, the party was at its wits’ end, party elders like Masire and his generation had run out ideas, they turned to this man to proffer his ideas out of the morass. Schlemmer released a report that would fit right into Khama’s sense of identity – he concluded that only Khama could save the situation. It is once again a moment when a type of man Khama inherently respects, expresses recognition for his abilities, especially to save a situation. The Schlemmer conclusions would have resonated with Khama’s deep sense of self. It also confirms that indeed Khama is special, that being him, rules of interrogating capability and skill do not apply. By 1994, Khama had known nothing but the barracks but he was deemed more than capable of replacing such political experience, and intellectual depth as Ponatshego Kedikilwe or David Magang. Neither did he possess a professional profile relevant to political office of the kind Mogae or Baledzi Gaolathe possessed. However, President Mogae was prepared to dissolve parliament to force its hand if it rejected Khama as his Vice President, and the next president automatically. And when he was appointed president, he was received with ululations across the political divide. The media coined a phrase, The Khama Magic, a deep recognition that the man from Serowe possessed special powers beyond the normal, as far as this society is concerned.

 

 
Now, from the top office, the man who had been a subject of folk tales could finally put into practice his destiny. However, Batswana nearly 10 years as President, Khama has been rejected by the intelligentsia and middle class, a matter he often says he finds incredulous. Whether this concerns him deeply or not is not clear as he comes to the end of his term.

 

 
However recently, the Khama siblings landed in one of Europe’s most prestigious cities Berlin, Germany- for the ITB Berlin 2017 tourism expo. The city could not be any more European; it is the capital of the biggest economy in the European continent and one of the most iconic of cities in the world.  It would have been a prestigious event for the Khama brothers and their contingent. So, when he arrives in that city he finds the streets paved with images of Botswana, the smiling faces of its happy natives and the scenery of flora and fauna, lions snarling, antelopes galloping. Then the real action begins, he does the official opening alongside none other than the German Federal Minister Brigitte Zypries.

 

 
He gets the opportunity to address and indeed be feted by the type of people he respects and in turn whose respect he craves. Spotlight on him and all eyes glazed at the podium, Khama gets the moment to shine where it matters the most to him – before an attentive group of European men and women. ITB Berlin is no small platform.
Ian Khama, the boy once rejected on account of being of mixed-race by a Rhodesian settler dentist; a boy whose mother, Ruth, was ostracized by some colonial Serowe British settlers for daring to be herself – was back as a hero in the very heart of Europe, before a people who, in the 50s, would have laughed him away. Now he was an equal among them, a better equal even.
Next week – seretse the absent father

THE TROUBLE WITH TSHETLHA: The Genesis of a Savior Complex (part 2)

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President Ian Khama likes to hang around Batswana he calls the less fortunate – the rural poor and urban township dwellers. He enjoys it when he happens upon an unsuspecting street hawker and she rises to her feet eyes alight and mouth agape in disbelief. Something messianic in the way they hold his hand and then walk away in amazement, as if a new perfect dream has gate-crashed through their bland reality.

 

 
Khama also relishes giving them goods; groceries of phaleche there, a bag of rice there, pasteurised milk, cans of fish, and for the even luckier ones, a roof over their head.
But if there is something that provides the man from Serowe with ultimate satisfaction it is being seen to be giving, that is, when those donations are given in his name – His Excellency Doctor Lieutenant General Seretse Khama Ian Khama, the President of the Republic of Botswana.

 

 
There is a picture of Khama donating to an old San man, groceries before them, boxes of pasturised milk, phaleche and a newly painted wall behind them. The San man has the look of a hare stuck before the headlights, almost wide-eyed stunned. Khama has that characteristic smile. He has never looked happier.

 

 
Khama’s keen interest in saving people whether as a soldier or as a philanthropist has had serious implications for his presidency at a policy level, with everything from his extreme interest in military procurement to his transfer of the entire government media department to Office of the President, all borne of that complex. When one studies Khama’s upbringing from formative stages past his Commandership of the Botswana Defence Force two aspects of Khama’s thinking stand prominent – the unsatisfied need to be a recognized mind in military terms, like his maternal grandfather, and to save people and animals in dire situations, like his highly influential mother lady Ruth Khama.

 

 


Khama’s keen interest in saving people whether as a soldier or as a philanthropist has had serious implications for his presidency at a policy level

 

 

However Khama possesses a Hero Complex of a unique nature and being known for such characteristics. But underpinning that is Khama’s keen interest in proving his worth to people of European origin, an inferiority complex before them that often presents itself in the guise of a superiority complex over Black people, the latter of which has foundations in both his racist past social existence as well his royal childhood. It is when his, and indeed his brothers’, actions as leaders are seen through this prism that a clearer picture emerges.

 

 
Khama’s journey of heroism can be located within his dedication to the military while his philanthropy is traceable to his mother Ruth which itself is from her own dad and former soldier George Williams.

 

 
In the book, A Marriage of Inconvenience by Michael Dutfield, the role of the old man in his eldest daughter is explained in detail. When she, in the mid1940s, seeks to introduce Seretse Khama who she is dating to her father, she worries about how it would hurt him.
Copious amount of writing exists on the influence fathers have on their daughters, and according to Dutfield, Williams was no less significant in the Ruth’s life.

 

 
He would have been a hero to his daughter, a man who took part in the First World War. While Ruth, at least according to various literary accounts, was determined to date a black man despite the extreme views of her father against cross-racial relationships, she worried about his reaction.

 

 
“Her father, George, to whom she had always been very close, would, she knew, have been angry and hurt. He had spent six years in the British Army in India and had been invalided out at the end of the First World War. During that period, he had acquired very fixed opinions about the roles of black and white in the world. Born into an age when Britain ruled huge parts of the globe, George Williams regarded the differences between the races as fundamental and obvious. Any relationship other than that of ruler to ruled seemed to him absurd,” states Dutfield.

 

 
They may have differed over her dating decisions but the influence of the elder Williams could not be discounted, especially given that when a teenager she had quit school to join the Women’s Auxiliary Air Force, the WAAF. As World War II raged, Ruth encountered men who represented her father, at their most, helpless as survivors of plane crashes. “At 17, she had left school to join the Women’s Auxiliary Air Force, the WAAF. Her job had been to drive crash ambulances at airfields in the south of England, racing across the grass as crippled aircraft, often with their crews badly wounded, staggered home,” Dutfield explains. In a way, Ruth seeks to save men like her own father and in short admired military men like her father.

 

 
Father and beloved daughter would reconcile years later but old Williams’ influence would resonate beyond the daughter’s WAAF role as shown by her later role in moving her eldest son into military service and sending him to Sandhurst Military School in Britain. Khama would later in his life be fast-tracked through the Police Mobile Unit to head of the Botswana Defence Force eventually.

 

 
The WAAF, where Ruth served, itself stands in the history of Britain as one of the most heroic organizations. It is not insignificant that Khama later became a pilot too because the WAAF was the women’s counterpart to the Royal Airforce during the World War II. It was formed in 1939 at the beginning of the World War II and at the height of its powers, it exceeded 180 000. WAAF members did not serve as aircrew, women were not allowed but did something second best to that, providing the framework upon which the British air force would function, serving in parachute packing, meteorology, radar, aircraft maintenance and ambulance services where Ruth served. Black and White pictures of women of the WAAF, with that hero-angle are still available to use in modern Britain.

 

 
As much as Ruth would have seen her father, a military man, as a hero, the young Ian would have been told of his maternal grandfather’s heroics as a British soldier in India. At the same time, it is possible that British airmen being attended to on emergency services by Ruth would have struck a chord, not just soldiers but specifically, pilots. It was her job to take care of these crash-landed pilots and combining her admiration of her dad as a soldier and these young pilots flying to dangerous enemy territory and coming back injured and needing help. So, father would have been hero to daughter. But daughter turned mother would also become hero to son, feeding the boy’s drive to emulate them.

 

 
If Ian Khama led a closeted life after he arrived in Serowe in 1953, as Seretse Khama biographers put it, then the boy made up for it with a closeness to his to his mother. They say he was a doting mother who wanted to keep her children near her, insulated from the surrounding rural environment. The closeness of Ian Khama to his mother is also natural, as many books have been written about the influence of mothers on their sons, especially their first-born sons. The British lady would work in formulating from her son, especially Ian, a model Brit, perhaps a version of her own father. In a way, the boy was destined to be a soldier. Later in life Ian Khama, now a Vice President, became protective of not just his elderly mother but her legacy.

 

 
Back in the 60s as Seretse Khama got further into the tribal politics and later the mainstream pre-independence politics of Botswana, Ian Khama became more and more of a public figure although his was a routine between attending boarding schools, returning home and going back again.

 

 
After stints in a Rhodesian school Ian Khama joined boarding school at Waterford Kamhlaba in Mbabane, Swaziland. Waterford is a member of a group of schools with campuses across the world.

 

 
It remains a mystery whether he completed his high school qualifications or not but in 1970 a 17-year-old Ian Khama left Waterford. He spent time after high school in a sort of academic island. Reports say he went to Geneva the following year to learn French, moving to London the following year.

 

 
In 1972, he joined the military college of Sandhurst. The school, established in 1947, gives preliminary training to military officers. RMA Sandhurst was a product of the merger of the Royal Military Academy which prepared Artillery and Engineering officers and the Royal Military College. At some point, it was the major training institution for entrance level military officers for the British army. Although not at the University level unlike schools such as West Point (US), National Defence Academy (India) and Australian Defence Force Academy, Sandhurst is one of the most recognizable names in military training. Ian Khama returned to Botswana in 1973 and joined the Police Mobile Unit, the precursor to the Botswana Police Service. The meteoric rise of Khama as a soldier and the impact of his military background on his government style are much obvious.

 

 
The Business Weekly & Review in an earlier story quoted declassified British documents indicating that the BDF was founded with pressure from Ruth Khama and the young Khama, against the wishes of senior civil servants at the time. According to archival records, the late Seretse Khama’s decision to form the Botswana Defence Force (BDF), taken in 1976 and implemented a year later, was a result of pressure from his family, particularly his wife, Ruth. It is said the First Lady wanted her husband to start the BDF to give then recent Sandhurst Military Academy graduate, Ian Khama something worthwhile to do. A brief from British Commission to the British Government, written by a certain W. Turner dated 16th January 1981 and bearing the official stamps and letterhead of the British Government, reveals that the BDF was formed under such questionable circumstances.

 

 
However, Turner, quoting his encounters with Mogae and other civil servants, says that the late president was under tremendous pressure from his wife to give his first-born son who had recently completed military training at the British military college, something to do with his acquired knowledge. This version has been corroborated by a number of former senior cabinet ministers.

 

 
The BDF Bill was put to parliament and passed in 1977. Civil servants worried that the formation of BDF would attract of regional racist regimes who would want to test the BDF, preferring that the new government focus its efforts on diplomatic avenues.

 

 
The BDF would later cause a lot of concern when it dominated government spending during and after Seretse Khama’s presidency. Turner reveals that both then Vice President, Quett Masire and other senior government officials, among them Festus Mogae who was Permanent Secretary (PS) in the Finance and Development Planning Ministry and Philip Steenkamp, PS in the Office of the President were opposed to the project.

 

 
“Mogae commented that the BDF is now a monster, absorbing more of the national wealth than could be afforded and diverting funds from worthwhile projects” states Turner’s brief.
However, after the passing away of Seretse, the pressure to spend on the BDF, where Merafhe was commander and Ian Khama deputy, carried over to the Masire government, much to the consternation of civil servants at the Ministry of Finance and Development Planning (MFDP). “In the final years before President Khama’s death, Ian had been able to get anything he wanted from his father, who was then ailing and although Masire had always opposed the heavy expenditure he had been overruled by the president, who had imposed his will on the cabinet. The situation now was that Ian Khama and Merafhe had become extremely arrogant with ministers and officials,” states the letter.

 

 
Ian Khama must have been hurt by Mogae’s anti-defence spending position to the point that when Mogae returned from the United States (US) in 1981, he, Khama, is said to have noted that he was pleased by the latter’s departure in 1976, adding that the pro-BDF lobby had won a victory in his absence. However, Khama, through his office, rejected the account. “No, the president does not recall interacting with this individual. The president does not have a recollection of such a discussion with former President Mogae,” replied G. Pitso, Senior Private Secretary to the president.

 

 
At the time when the BDF was under Khama, it was the biggest employer in the country. In recent times Khama has insisted on heavy spending in the BDF. In the years between 1989 and 1998 when Khama was Commander, he averaged 4% of GDP in defence spending, one of the highest levels in the world, at the time. On average Khama outspent every BDF commander from Fisher to Galebotswe. It is not clear what prompted subsequent presidents to continue spending so heavily on the army, especially during Khama’s commandership. In a way, the formation and sustenance of the BDF indicates that Lady Ruth was prepared to move actively to make sure her son properly emulates her dad. What is true is also that she was still alive during these years, exerting influence over her son rapidly rising through the ladder of power.

 

 
The formation of the BDF is the first chapter where Khama views himself as a hero; and as much as Ruth would have been given all equipment she needed to save the bleeding soldiers as a WAAF, Khama would have seen the creation of the BDF and his inexorable match to its Commandership and his endless procurement of military equipment, merely as part of instruments a hero needs if he is to save the day. It’s the first-time state apparatus moved to feed this savior complex, but it would not be the last.

 

 
VICTIMS CREATING THE HERO
There is no point in creating a hero if there’s no one to be saved. Botswana’s society provided a solid platform in the creation and indeed sustenance of the hero syndrome in Khama, not just through the rushed formation of BDF against expert advice, but later in the overblown profile he gathers against his limited curriculum vitae. One major episode in the history of the BDF which would be later vaunted by Khama disciples was the shooting of three white men who had crossed into Tuli Block suspected to be undercover Rhodesian special forces, in March 1978.

 

 

 

The year started tragically and for Ian Khama, a potential challenge to his sense of heroism. In February 1978, less than a year after its founding, responding to reports of a Rhodesian military incursion along Botswana’s north-eastern border near the village of Lesoma, a BDF-mounted patrol drove directly into a Rhodesian ambush, sustaining 15 deaths. The Lesoma incident remains, so far, the biggest loss of life within the BDF and left a scar in the conscience. Of special relevance to Khama was that the men were under his him, given that he responsible of the northern part of the country. The death of the soldiers would have been seen as a serious threat to Khama’s sense of self and it would have affected his hero image for the story to be told and retold among the populace whose salvation was his destiny.

 

 
Therefore, that March, just a few weeks after the Lesoma tragedy, when three white men suspected of being Rhodesian Special Forces trainees are caught in Tuli, Khama is quick to act. The men are arrested and then shot under Khama’s instructions. Reports indicate the men were attempting to escape.

 

 
Among the three was a 19-year-old Briton, Nicholas Love. In the months that followed Khama received pressure from all angles to tender an apology for the death of the teenager. “The unspoken point of issue was implicit criticism of Seretse’s eldest son Ian, who as deputy commander of the BDF had actually been in charge of the north-eastern frontier forces” say Parsons, Tlou and Henderson. Seretse refused to publicly relent on his defence of the BDF putting its actions within the context of the precarious situation in Botswana.

 

 
But this episode built on the Khama phenomenon. The shooting of a white man in the minds of black Batswana at the time, who had by now lived through a century of white colonial oppression served to elevate this belief that Khama was something special. His mixed-heritage, for a people who had lived through white supremacy and royal background, would have added to that mix that created Khama as the savior of Batswana. In a way, the formation of BDF against expert advice, the summary shooting of white soldiers by Khama, fitted the narrative that perhaps only Seretse’s son, himself half white, could save the country from destruction by evil whites of the southern African region.

 

 
In Khama’s mind his role as the savior of his people, and his people as helpless victims of their own inherent inability was developed. From then on Khama became a hero in folktales that were told to the young and his character was given superhuman powers including changing form to save each and every situation. Of course, incursions into Botswana increased following that Tuli Block episode, confirming the original thesis by some within government and BDF the latter would attract attacks to Botswana rather than stop them. If the BDF was formed to prevent such attacks, then it did not, because it was ill-prepared to confront the military strength of regional racist regimes, confirming the position held by Masire and Mogae at the time that diplomacy provided the best option for Botswana at the time.

 

 
On 14th June 1985, South African Defence Force under General Constand Viljoen crossed into Botswana reportedly in search of Umkhonto we Sizwe operatives. They killed 12 people including women and children and it was later reported that only 5 of the victims were members of the ANC. It is said in the aftermath Merafhe and Masire had to constantly remind the gun-happy Khama that BDF could not go to war with the SADF, a position Ian Khama saw as cowardice. Soldiers who have worked with Khama said he was adamant that they retaliate but strategists viewed this position as almost suicidal. The South African attacks must have hurt Khama, but he had foil, he could not be blamed for not responding. The South Africans only changed their intransigence once the British and American governments threatened to pull out of diplomatic relations. Ordinary Batswana would not be privy to such details, to them Khama had saved the day, rather than make the situation worse.

 

 
This story, to ordinary Batswana, fitted the profile of their savior Khama as a man who would move mountains to protect them against white abuse and despise the cowardice of their fellow black people such as Masire.

 

 
In a way Khama’s need for heroism is matched by Batswana’s projection such a quality on him. They in turn confirm the racist narrative in which whiteness equals ability, and in a way, projecting this expectation on him, it feeds his desire to be accepted as a man of European abilities. Every time he went to parliament to seek further funding, critical questions were never asked, firstly because he was very popular and secondly because he was the son of the beloved first president; But he was also King of Bangwato, a majority of policy makers were still his tribal subjects. At the same time, he could confirm with his admittedly aging mother, that indeed he was a capable heir to the Williams military heritage. Two things happened, both Batswana and Khama created a victim and hero out of each other.

 

 

Khama, through his continuous rejection of black expert advice, came to know that it was not only it necessary to do so in some cases but useful to do so. He may have known throughout his childhood that he was above black Africans racially, it was also prudent for him to reject black expertise as more often, as Seretse Khama himself shown, and later Ian proved, you could make progress despite such advice. Also in Khama’s logic, because he is saving situations, he needs not necessarily entertain debates and exchanges of views before he can proceed with saving those who need to be saved. The savior often takes an authoritarian position forced by the power dynamics between hero and the helpless. Firstly, a savior does not have time for debates with those seeking her saving, if the ambulance is here Ruth Williams the driver needs the patient in it so she can drive away and save this life, not to hear the nurse debating with the injured pilot on how to place him on the stretcher.

 

 
When the BDP was in a seeming crisis, a man of European heritage, Professor Patrick Schlemmer was hired to advice on the way forward. At that time, the party was at its wits’ end, party elders like Masire and his generation had run out ideas, they turned to this man to proffer his ideas out of the morass. Schlemmer released a report that would fit right into Khama’s sense of identity – he concluded that only Khama could save the situation. It is once again a moment when a type of man Khama inherently respects, expresses recognition for his abilities, especially to save a situation.

 

 

 

The Schlemmer conclusions would have resonated with Khama’s deep sense of self. It also confirms that indeed Khama is special, that being him, rules of interrogating capability and skill do not apply. By 1994, Khama had known nothing but the barracks but he was deemed more than capable of replacing such political experience, and intellectual depth as Ponatshego Kedikilwe or David Magang. Neither did he possess a professional profile relevant to political office of the kind Mogae or Baledzi Gaolathe possessed. However, President Mogae was prepared to dissolve parliament to force its hand if it rejected Khama as his Vice President, and the next president automatically. And when he was appointed president, he was received with ululations across the political divide. The media coined a phrase, The Khama Magic, a deep recognition that the man from Serowe possessed special powers beyond the normal, as far as this society is concerned.

 

 

 
Now, from the top office, the man who had been a subject of folk tales could finally put into practice his destiny. However, Batswana nearly 10 years as President, Khama has been rejected by the intelligentsia and middle class, a matter he often says he finds incredulous. Whether this concerns him deeply or not is not clear as he comes to the end of his term.

 

 
However recently, the Khama siblings landed in one of Europe’s most prestigious cities Berlin, Germany- for the ITB Berlin 2017 tourism expo. The city could not be any more European; it is the capital of the biggest economy in the European continent and one of the most iconic of cities in the world. It would have been a prestigious event for the Khama brothers and their contingent. So, when he arrives in that city he finds the streets paved with images of Botswana, the smiling faces of its happy natives and the scenery of flora and fauna, lions snarling, antelopes galloping. Then the real action begins, he does the official opening alongside none other than the German Federal Minister Brigitte Zypries.

 

 
He gets the opportunity to address and indeed be feted by the type of people he respects and in turn whose respect he craves. Spotlight on him and all eyes glazed at the podium, Khama gets the moment to shine where it matters the most to him – before an attentive group of European men and women. ITB Berlin is no small platform.

 

 
Ian Khama, the boy once rejected on account of being of mixed-race by a Rhodesian settler dentist; a boy whose mother, Ruth, was ostracized by some colonial Serowe British settlers for daring to be herself – was back as a hero in the very heart of Europe, before a people who, in the 50s, would have laughed him away. Now he was an equal among them, a better equal even.
Next week – Seretse the absent father

THE TROUBLE WITH TSHETLHA: How the son became the opposite of the father (part 3)

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Before President Ian Khama was inaugurated into the State House, just before his predecessor Festus Mogae ended his ten-year tenure, he sought to have something innocuous but somewhat emotionally important done. He sought to have the statue of his father and founding President Seretse Khama turned over to face parliament.

 

 

The statue, erected 22 year before, to mark the 20th independence of the country in 1986, was designed and cast in Britain by British artist Norman Pearce. For those entire 22 years from 1986 to 2006, that statue had stood facing eastwards over Parliament Drive into the Main Mall. Seretse Khama stayed watch over the sprawl of the Main Mall where young unemployed Batswana walk around with envelopes under their arms, hawkers squint from the spicy smoke of hotdogs, the pungent tasty funk of serobe and phaleche, hawkers yell out their wares to uninterested passer-bys and conductors hustle potential passengers into combis.

 

 
Seretse’s son was unhappy however with the gaze of this father being away from him. So, a tender was released to dislodge the bust and turn the founding president over so he gives his back to the people, to instead watch over parliament, in time for the son’s inauguration. As a result, on Tuesday 1st April 2008, the bronze Khama, with his half-smile, head proud, and straight posture had his full attention on the goings-on before him as another was Khama being sworn in as president. Right there in front of Parliament, Ian Khama put his hand on the bible and swore to serve the country “So help me (him) God”; After that the swearing in and Mogae walked away a mere citizen- what the new soldier president would have called “civilian”, it was time for the presidential pageantry to be focused on Ian Khama – salutes, guards of honour by the BDF men and ululations. All this unfolded under the watch of Seretse Khama’s statue. It is as if Ian Khama wanted to show his father that he had achieved what the old man had always doubted; that his son could do well. He and his father always had a fascinating relationship but one of the major points of differences between the two as son grew older was that father did not think Ian Khama would make a suitable leader, at least not a great leader for this country. Various politicians this writer has spoken to across the political divide stress that Seretse always warned that at the very best his son should only be left at Sir Seretse Khama Barracks as BDF Commander. Ian Khama was left with a deep scar because of the doubts his father entertained over his suitability in leading the nation.

 

 
It is important to understand that Ian Khama had a complicated relationship with his father which may later have impacted his view of not just his father but Batswana in general. Father and son fundamentally misunderstood each, it is said as the boy grew older, Lady Ruth Khama often had to intervene.

 

 
When one studies Khama’s upbringing from formative stages past his commandership of the Botswana Defence Force, two aspects of his thinking stand prominent – the unsatisfied need to be a recognized mind in military terms, like his maternal grandfather, and to save people and animals in dire situations, like his highly influential mother, Lady Ruth. However, Khama possesses a hero complex of a unique nature; underpinning the complex is his keen interest to prove his worth to people of European origin- an obsession which itself is an inferiority complex often presenting itself in the guise of a superiority complex over black people. This has foundations in both his racist past social existence as well his royal childhood. Seretse Khama may have been a giant in public life but seems to have been less so in his family- if his influence is to be measured according to the impact he had on his first born son’s self-identity. Instead of fashioning himself alongside his father, Ian Khama, whether consciously or subconsciously, found the oppositional self-identity worthier to pursue.

 

 
However, Ian’s difficult relationship with his father started way earlier. From the onset Ruth sought to direct the minutest details of his upbringing; Seretse envisaged that as the boy got older he would break away from his mother’s strict upbringing and perhaps follow his footsteps- but by the time the boy matured into the man, the father was unable to impact on the complex world view he had developed. Seretse, ever the man of dark humour- always, it is said, teased his son for being “Mum’s Boy”, perhaps as a way to dissuade him from staying tied to her apron strings; a thing said to have driven the son further into the safety of his mother, developing further shyness and social awkwardness. Ian Khama was never brought up to live and socialize with Batswana. What is not clear is whether there were plans even at that early age for him to become a national leader. If indeed there were any such plans, Seretse did not believe, at least later on, as he recorded, that he would make a suitable leader for Batswana.

 

 
Ian Khama’s role models were the men of European origin he met back in his maternal homeland and internationally as he was tossed from one strict boarding school to the next and ultimately to military school. He found that he mixed easily with his maternal family and throughout his entire formative years, his routine was between attending boarding schools, returning home and going back again. However, it is important to note that while he was fond of Britain, often he faced racial discrimination and still depended on Ruth to provide a safe home for him. Being teased by Seretse only drew him further away. As always, perhaps Seretse who had experienced and triumphed over racial tensions of his own due to his marriage to Ruth, never quite came understand his son’s experiences. It is possible that the boy’s experiences were unique within his family- being the first-born son; being thrown into foreign lands away from family and a child of mixed-race at a time when racial purity was a mainstream ideology within even the most western of cities.
While Ian Khama lacked a direct Motswana male role model on which to formulate his self-identity, Seretse had no such problems when he was growing up.

 

 

Seretse and Ian Khama’s life experiences would have been poles apart. Seretse, despite growing an orphan, grew up around a strong royal family environment that emphasized a well-rounded grooming, his school being planned by his uncle Tshekedi Khama as an elaborate plan to raise a future leader. Tshekedi was a strong leader and his run-ins with both his fellow tribal detractors such as the Ratshosa brothers and his assertion of royal independence from the colonial officials showed a man who knew how to lead, either by pushing or pulling his followers. Even when he chose Seretse’s schooling, Tshekedi made a deliberate effort to find schools he deemed worthy of a future Bangwato leader. The colonial masters preferred that Seretse be sent to Rhodesia while, Tshekedi thought Rhodesian schools were not up to scratch hence he preferred the school he himself had attended Lovedale.

 
“Rey was deeply suspicious of this institution and its products, and was determined to keep Seretse ‘out of the clutches of the missionaries’. He ruled that ‘on no account can we allow Seretse to go to Lovedale.’ Nettelton agreed with Rey’s views, considering that Seretse would meet all sorts of Africans from the Union ‘with a decidedly anti-European outlook on life and this Administration will suffer for it eventually just as it suffers from Tshekedi’s outlook which was created at Lovedale.’ Nettelton, Rey and the Inspector of Education, Mr. Dumbrell, all agreed that the best course would be for Seretse to go to one of the schools in Southern Rhodesia, or alternatively one of the mission schools in South Africa. The school favoured by the Administration was Dombashawa which the young Chief Moremi of the Bakgatla was attending. Tshekedi made clear his dislike for Rhodesian schools which he considered not to be “up to standard,” writes Michael Chowder in his unfinished manuscript The Black Prince. Tshekedi’s will prevailed.

 
Seretse Khama did not lack strong Batswana role models in which to follow. After Lovedale Seretse attended Tiger Kloof, both being schools which were known for grooming strong African thinkers, a decision that Tshekedi would have made deliberately as he believed he was grooming in Seretse a man who could stand toe to toe with the colonial system that had by then entrenched itself in the protectorate and the Bamangwato Reserve. Seretse studied law at the University of Witwatersrand and Balloil College, Oxford, before taking up further Barrister Studies at Inner Temple in London.

 
In a way Seretse’s formative stages and later academic development were the exact opposite of what Ian Khama would experience. By the late 1940s Seretse “had also blossomed in other respects because of his move to London. Nutford House and the Inns of Court gave him cosmopolitan connections with fellow students from Africa, Asia and the Caribbean. At Nutford House, Seretse moved easily between Caribbean and West African majority groups of students who were sometimes at enmity with each other. The only other Southern Africans at Nutford House were Northern Rhodesians (Zambians). Seretse shared a room with one of them, whom he had met in 1945 on the boat from Cape Town,” explains historian Neil Parsons in his manuscript for the book The Marriage Years of Seretse Khama (1945-56). Seretse would therefore have established an ideological framework around which he would base his world view; pan-Africanist, slightly left of centre and cosmopolitan.

 
But Seretse must have also imbibed from the intellectual wealth that was Tshekedi, a masterful and tactile politician experienced both in national and in international matters. Seretse and Ian Khama’s background could have become more divergent, as a result. Seretse battled with Tshekedi over his marriage to Ruth, indicating an independent thinker who was prepared to argue a point of principle, resembling in both clarity of argument and strength of character the endless arguments Tshekedi had with the colonial administrators.

 
In a way Seretse failed to provide to Ian what Tshekedi provided to him- by not asserting himself in the moulding of the boy the way his uncle had done for him. This further complicated Ian Khama’s psychological framework; he had to make do with high schools, a few language courses and then straight to military school. After stints in a Rhodesian school, he joined Waterford Kamhlaba boarding school in Mbabane, Swaziland; a school which was a member of a group of schools with campuses across the world.

 

 

It was founded by a British teacher Michael Stern who wanted to create a school that would espouse non-racialism at a time when most children of the African elite had nowhere to go, given that good schools were exclusively white. A somewhat liberal school, Kamhlala included a multiracial group of students from some of the most prominent families in the sub-continent. Among its alumnus Kamhlala counts the Mandela daughters, Zeni and Zindzi, Lindiwe Sisulu, current South African Minister of Housing and Xolile Guma of the Reserve Bank of South Africa. It is reported that Ian Khama socialized much more actively although he was still relatively reserved. The school was also oriented towards active community service. He took well to the physical activities the school’s extra-curricular activities provided.

 
It however remains a mystery whether Ian Khama completed his high school, qualifications or not, but in 1970 the 17-year-old left Waterford, spending his time after high school in a sort of academic lull. Reports say he went to Geneva the following year to learn French, moving to London the following year. In 1972, he joined the military college of Sandhurst, which accepted intake not only on academic qualifications but also on social status, enrolling numerous members of royalty and children of President’s from across the world. The school, established in 1947 gives preliminary training to military officers. Ian Khama was then, the only Motswana to enroll in the military school.

 

 

RMA Sandhurst was a product of the merger of the Royal Military Academy which prepared Artillery and Engineering officers and the Royal Military College. At some point, it was the major training institution for entrance level military officers for the British Army. Although not at the university level, unlike schools such as West Point (US), National Defence Academy (India) and Australian Defence Force Academy, Sandhurst is one of the most recognizable names in military training. He returned to Botswana in 1973 and joined the Police Mobile Unit the precursor to the Botswana Police Service. By the time he reached the commandership of the BDF, Ian Khama had a stunted intellectual trajectory.

 
In a way Seretse’s own growth provided the landscape to fill up his intellectual development, with his life experiences providing hard challenges and equal rewards. But one thing is also clear, Seretse’s background could not be as unique as Ian Khama’s. Seretse had a single heritage, the Sengwato royal background. Ian had to find his way in a complex world where he was both a royal on one hand and a less-than pure white man on the other.

 
It would have made more sense for Seretse Khama to take a more aggressive role in developing the intellectual form of his first-born son, with an understanding that the son’s experiences were more challenging and required more guidance as he attempted to carve out his place in a complex world which granted him both royal reverence and racial discrimination. However, there are those who say even as Ian Khama grew into a young man, he felt misunderstood by his father. Ruth may have provided a safe haven for him, but she did not possess the intellectual form through which the boy could design his own sophisticated self-identity. As a matter of fact, Ruth provided to Ian Khama a specifically British upbringing which further alienated him from the Botswana society in which he was later expected to thrive.

 
Seretse, from birth never had to prove himself to anyone, he knew he was a royal whereas Ian Khama had to prove himself to both his British to his Batswana counterparts, and win credibility among his British counterparts as a real Brit despite his black side. Schools such as Lovedale and later Tiger Kloof, leading institutions in the development of Black leadership, encouraged meaningful discourse among its students, and back home Tshekedi himself would have thrown Seretse into serious discourse as a young royal being groomed for future leadership. Seretse therefore could mix with Bangwato children and later other Batswana men knowing that he needed not assert himself as a leader as it was already implicitly understood. This granted him the ability to play down his own advantage and encourage a sort of egalitarian spirit around him. Speaking to then Mmegi scribe Ephraim Keoreng, the late Naledi Khama reveals that Seretse Khama was a passionate sportsman who played football. After playing for a long-time as a goal keeper at the then Serowe based Motherwell, Seretse in 1960 grouped his Malekantwa regiment and founded the renowned Miscellaneous Football Club, which now plays top flight football in the be Mobile Premier League. “He grew up very close to his cousins Serogola Lekhutile, Lenyeletse Seretse and Dikgakgamatso Kebailele,” she said in an interview conducted in July 2012.

 
Also, it is said often Khama and Ruth differed on how to conduct their lives. For example, Ruth, Naledi tells Keoreng, was opposed to Seretse Khama eating such things as phane and tlhogo ya kgomo, while Seretse saw Setswana cuisine and indeed its simplicity as an integral part to his own identity. If Ian Khama was close his mother, one could conclude that the boy would have developed a sympathetic if not similar views about a number of traits that Seretse saw as normal.

 
There are two main reasons however as to why Ian and Seretse may have not been able to reconcile their different point of views. Once he had gone for military training Ian Khama would have developed a different state of mind, added to that the clear black and white lens through which his mother Ruth saw the world, contrasting to Seretse’s appreciation of the nuanced way in which the world worked. The military world view seeks to bludgeon complicated intellectual engagement into a straight obeying of orders and Ian Khama, appointed a brigadier in his 20s, never had to take orders but instead was only required to issue them. This is a gap in his growth as a future leader both in and outside of the army, as he never had occasion to maneuver around difficult commands. Seretse Khama a trained lawyer sought constant engagement and encouraged arguments as a viable method towards refining ideas, while Ian Khama from as soon as he could walk, had to be seen to be a leader, partly because of his demanding mother’s expectation and also because of his royal background. If Ian Khama expected to learn slowly, the world gave him every indication he had no such time, by the time he was mid-20s he was already a national folk hero by virtue merely of birth.

 
The second point is that Seretse Khama became a busy man immediately he founded the Botswana Democratic Party. While Ian Khama was in and out of home on boarding schools, his father was in and out of home in his political activism and the busy social schedule.

 
Ruth’s concern for Seretse’s health would have led to her being concerned about what he ate and indeed what he inhaled. Seretse had enjoyed a smoke and indeed his drink for his entire early adulthood. It is not clear whether this was always a point of discussion between the two early in their relationship or developed as Seretse got older and his health became the subject of Ruth’s attention. If Ian Khama held a sympathetic view of Ruth’s position, it would have taken a short shift from that- to subconsciously seeking to be the type of man his mother demanded his father to be. Having joined the army the way his mother would have wanted, Ian would have rejected the vices of his father. The boy sought to make his mother proud, where perhaps his father failed and in the process also prove to his father, who had doubts about his capability, that indeed he was a real man.

 
It seems Ian Khama created an obverse, if not outright Eurocentric view of his father which he later projected on Batswana. Ian Khama deep in his own thinking has an oppositional view of his father, almost styling himself antithetical to him. The notion that Seretse was unable to reign in his ‘vices’- even to be point of suffering his ultimate demise to them- created in Ian Khama the need to then police what he viewed as vices among Batswana. There is something colonial in the way he views Batswana, especially men – he will do whatever he believes is necessary to save them from themselves, viewing them as inherently flawed and needing a benevolent dictatorial hand to guide them. If they cannot help but eat braaied meat off the street he will put an end to that. If they cannot help but imbibe their drinks he will put a heavy fine for such past times. Khama’s rejection of debate, so integral to Setswana leadership ethos, is the rejection of Seretse Khama’s “weakness”.

OLD MUTUAL: SWIMMING WITH THE BIG “SHARKS”

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TBWR: Old Mutual Life was granted a life insurance license during the first quarter of 2016 (Q1 2016). With only a couple of months operating, how would you describe the appetite of the market for your life insurance offering?
OM: The market has been very receptive to our entry and expectations have been very high given the pedigree of the Old Mutual brand and our success at life insurance in other African markets. We therefore have to manage these expectations which include the offering of a full suite of risk and savings products. We however have a strategy which we need to focus on and at this moment that means selling group risk products only e.g. Group Life Assurance, Group income Protection, Group Funeral and Group Credit Assurance.

 
TBWR: How is the uptake for Old Mutual Life Insurance products?
OM: The uptake has been exponential; something which is to be expected with a new business. We are seeing that clients who are usually very price sensitive are willing to give us their business at a slight premium because they believe that even where our terms are identical to those of our competitors, our service and ability to pay claims quickly is unmatched. Our brokers and customers alike have come to appreciate that our rigorous on board processes are necessary for dispute free claims and that this professionalism is a key differentiator between us and our competitors.

 
TBWR: What is your current market share and how do you see it growing in the future?
OM: We are Botswana’s newest life insurer having sold our first policy a few months ago. We will measure our market share over the next 12 months.
TBWR: What value do you see Old Mutual Life bringing to the group and how much does the business contribute to the holding company currently?
OM: The significance of Old Mutual Life to Old Mutual Botswana is the complementary role that it will play to the offerings that Old Mutual Short Term Insurance (our older and more established sister company), can offer to its corporate clients. Our customers are therefore the biggest winners in that they can enjoy both life and short term products from the same trusted brand. Old Mutual Botswana also has ambitions of being an integrated financial services provider for its customers and the addition of Old Mutual Life is a step closer to realising this goal.

 
TBWR: The regulator, the Non-bank Financial Institutions Regulatory Authority (NBFIRA) says the life insurance sector is slowly becoming more competitive. How will you position yourself to make your products superior to those of the competition?
OM: It is true that the market has been getting more competitive. Certainly this was the case up to around 2015 when we could see a trend toward a balancing of the market share distribution amongst the life insurance players. This has however started reversing. Our observation is that because competition is currently solely on price, an area where the largest insurers are more likely to survive than new entrants such as ourselves, there is an opportunity to compete on other terms such as superior service and distribution.

 
TBWR: This past week during the launch of Old Mutual Life, you believed there is a gap in the current life insurance market in Botswana which should be catered for. Where do you see opportunities in the life insurance market?
OM: The most common product in the market is funeral cover whereas there are more longer term, and in our view, better value adding products some of which can assist you whilst you are still alive. At a recent Pensions Conference it was mentioned that out of the active working population only a fraction have pensions. It is also common knowledge that the rural population is underserved by the life insurance industry and that the informal business market is all but forgotten. All of these gaps present opportunities. There are also glaring opportunities arising out of inefficiencies in the current life insurance market due to stakeholder apathy.

 

 

TBWR: What do you think will be your competitive edge?
OM: The key to our success will always be our professionalism and superior customer service. Customers will always want value and value is not encapsulated in price alone. Insurers have cried foul over an unfavourable economy which factors into customer’s appetite for insurance products. Moving forward do you see this hindrance/threat to your competence and how would you often respond to that?
We do not believe that the current economic climate is necessarily bad for life insurance given the untapped opportunities highlighted above. The squeeze on traditional business should be the spur that drives the innovation needed to access untapped potential. Botswana is the land of opportunity. We are optimistic about our ability to grow.

 

 

TBWR: What potential threats do you see to the life insurance business and the business moving into the future?
OM: My only fear is that in a global world, our failure to innovate, will lead to Batswana buying their life insurance from offshore companies. Technological advancements mean that a Motswana can run an unlicensed and untaxed Bed and Breakfast via AirBnB where payment is to an online PayPal account (and is in hard currency). Currently, one can buy a life insurance policy denominated in a hard currency from a foreign insurer through a local broker. Though these are currently sold to affluent clients, it is not hard to see how someone somewhere in the world can develop products for the lower end of the market and successfully distribute them online to consumers in Botswana.

THE TROUBLE WITH TSHETLHA: Tshekedi and all the President’s Men (part 4)

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There is a video circulating on Facebook in which Minister of Wildlife Tshekedi Khama and recently deposed Minister of Minerals Kitso Mokaila, do a little hip hop dance for journalists, perhaps to quash any hoovering suspicions of enmity. In the video recorded possibly a few months ago, the pair do a routine which involves dancing, slapping palms the way little girls used to do in the streets in the 90s. At the climax of this performance, the two men click heels in a way rather awkward for a pair of grown up men. A close observation of the video however shows who the real master of this routine is– Tshekedi.
It’s an innocuous little playful thing by the house of parliament in front of a scrum of cameras and curious eyes. When the little 40 seconds of goofing around is done, approving, satisfied laughter ensues. It is a victory for Tshekedi Khama, after all, just a few months before Mokaila fell to the sword after running afoul of the South African, Paul Smith, at the all-important Mining Development Corporation Botswana (MDCB) at the Minerals ministry. Smith was said to be close to Tshekedi. The Khama’s have substantial interests in the mining sector.

 

 
Smith according to sources inside Government Enclave, is largely fingered for the stealthy liquidation behind BCL in which tens of thousands of people lost their jobs. He is said to have acted outside of his mandate as CEO when he advised cabinet to liquidate BCL, a matter vehemently opposed by Mokaila and the MDCB board.

 

 
The Khama leadership, because of Ian’s sense of insecurity, has been characterized by a misplaced and inert trust of people of European origin, mainly males. The authority and sense of security men of European heritage provide to Khama is no different to one he felt when he was in the UK with Ruth’s family after difficult years in boarding school. His own social awkwardness in later life meant that he has had to surround himself with a buffer zone of what he sees as dependable expertise (European) and amenable African (sycophant) advice. Khama entrusts Europeans beyond just his belief in their intellectual ability.  At a more practical level, he attempts to deal with his sense of dread and insecurity by accumulating vast material interests and an attachment to the instruments of presidential power whether material or legal.

 

 
Ian Khama once said he was the type of child who would hide under the table when people visited his father, which must have amounted to a considerable place of comfort given the number of times the family was visited in light of Seretse Khama’s profile, in both his pre-independent and post-independent phases. As a child, he was not just reticent, he was closeted and grew up socially stilted albeit with a guaranteed reverence by Batswana. His close relationship with his mother fostered in him a trust in people of a similar background. But Ian Khama is also a product of his times, when he was growing up, as earlier pointed out, people of African origin at the time, would have been subjects of colonial domination and dictatorial benevolence. Khama did not just yearn for the comfort of a European framework but yearned for it, seeing the combination of this royal status and his “Europeanism” as the ultimate objective in his own self conceived benevolence. Like the colonial royal houses he has been jealously guarded about those who he brings within his inner circle, depending upon familial affinity, history and more often than not misplaced blind loyalty, as a guide of who can be entrusted with the onerous responsibilities in his social space and leadership characteristics.

 

 
After Ruth’s death, overburdened by the Khama tag and the cult hero status adorned on him by revering Batswana, the shy and inward looking Ian Khama found solace in the familial, his trust of kith and kin and those with a strong historical connection to him became his calling card in his rise to power.  Those within the president’s inner circle will tell you that he is blindly faithful to those close to him. Not many people get into his inner circle but those who do, find in it a space where everything can be deployed to protect them and their interest. In that regard, the socially naïve Khama has become a victim of his own blind dependence on loyalty- a thing that would hamper his ability to navigate and lead a nation he was ill-prepared to lead from the onset.

 

 
Khama’s dependence on Europeans, friends, kith and kin means that he can place them in a hierarchy. In that hierarchy, Europeans are at the top followed by or mutually coexisting with family, while African friends and loyalist are junior, only being ‘advisors’ at best. Even people like lawyer, Parks Tafa, who despite being his trusted legal advisor have never reached the authority and level expected to be enjoyed by someone like Court of Appeal Judge President Ian Kirby- who is also Khama’s godfather.

 

 
So, it is not accidental that a man like MDCB CEO Paul Smith was untouchable to the extent of costing Minister Mokaila his old job nor is it accidental that his “management style” of deference to Khama’s autocratic benevolence led to the resignation of Board Chairperson Reginah Sikalesele-Vaka in February. While Smith was finally sacked just last week by the new Minerals Minister Sadique Kebonang- Khama’s initial trust in him despite being so obviously ill-equipped catalogues what is an all too familiar story during his tenure: Khama would unquestioningly appoint a man of European origin who fawns at his every whim without assessing the risky consequence of such a man’s ineptness before appointing him.

 

 
Paul Smith as a European man is a creature on which Khama, due to his upbringing, projects his expectation of perfection or envy- just as long as he is white and of European decent. This complex goes back way before Paul Smith.

 

 
Late in 2007 then Vice President, preparing for his appointment to the State House, Khama put together the Business and Economic Advisor Council (BEAC), a thinktank that would be central to his vision of turning around the fortunes of the country. There were high hopes that a Khama presidency would bring improved living conditions because the man who had been the hero of Batswana during the dark times of white minority rule would now be President. In a way, the BEAC was tasked with putting together Khama’s economic masterplan. He turned to a largely unknown South African financial advisor, Nico Czypionka, who was tasked with leading the all-powerful organ. Khama also appointed his Belgian former brother in law Johan Ter Haar into the committee.

 

 
At the time Czypionka was appointed, the former Standard Bank Chief Economist was the Chief Executive of Economic Dynamics, an economic consultancy firm based in South Africa.  Indeed, Czypionka had never done any work at the scope in which the BEAC was tasked, he was a banking economist.  Czypionka’s star, like Paul Smith’s, rose quicker than anyone could measure, and soon he was battling the all-powerful Ministry of Finance and Development Planning, becoming the man behind government’s stealth privatization of Air Botswana.  According to The Sunday Standard, Czypionka made enemies within Government Enclave because of his exceptional power and access to Khama’s office. He authored the Air Botswana privatization model blue print; was appointed the Air Botswana Privatization Evaluation Committee member, the Air Botswana Privatization Committee Reference Committee Member and surprisingly became the Air Botswana privatization chief negotiator. He defied cabinet and proceeded to prepare for the fire-sale of the national airline, preferring to use the funds to buy a stake in South African carrier Airlink. The matter blew up in the government’s face when both backbenchers of the BDP and opposition MPs stopped the disposal of Air Botswana in its tracks and government lost a case against the privatization.

 

 
To appoint Czypionka, Khama would have had to overlook seasoned Batswana economists from some of the best economic institutions in the world and similarly to appoint Smith he would have had to rule out local mining experts in a country that has been one of the biggest diamond producers for nearly half a century. But it is more than expertise Khama is looking for, at least not Black expertise. For a man whose childhood was characterized by the authority figures in the men European colonial origin, Khama, in his yearning for European expertise, does not just attract experts of European origin, he craves certain characters of such a blend – often these men are abrasive in their disposition; like the colonial authoritarian masters of old, their word is the law within the entities they run. It makes sense for a man like him to find something reassuring about men of European origin who do not just claim to possess answers to all his questions but actually project a can-do attitude. Smith according to reports possessed the same character flaws, something one insider called, the “inability to recognize corporate governance”, which caused what one minister called “the collapse of relations with all stakeholders”.

 

 
The impact of the BCL liquidation is yet to be fully realized and it won’t be until three quarters of Phikwe town and the diamond deposits discovered through Polaris II are sold off as part of the fire-sale of the mine. It is this overreliance on the perceived infallibility of European expertise that perhaps will leave a more serious blight on Khama’s legacy. The more insidious effect is that Khama’s major decisions are seen as not just devoid of local input, but actually a rejection of local interests, inadvertently the ambulance attendant is choking the patient, the hero soldier is bombing his own citizens.

 

 
In another example, take Khama’s decision to impose a blanket ban on hunting, buttressed by Tshekedi Khama’s shoot-to-kill policy. He is reported to have been influenced by his wildlife filmmaker friend, Derek Joubert, who is a devout conservationist. Khama also therefore encounters conservation from a very Eurocentric view. “The tug of war between the government, conservationists and commercial hunters, each with their own position about the most sustainable approach to mitigating the adverse impact on some wildlife species while keeping the tourism industry essentially profitable is one that will not go away.

 

 
“In this equation, what is often disregarded is the rights and survival of subsistence hunters in poor communities such as in Kgalagadi, Gantsi, Chobe and the Tuli whose threat to wildlife is confined to killing for supper,” writes journalist Lawrence Seretse in Mmegi a few years ago. Khama’s lack of understanding of the complexities of the historical context of land, ownership, access to natural resources by ordinary citizens and such matters means his policy position is imposed rather than weaved from within communities. And, when his younger brother amasses armaments to shoot-and-kill all and sundry that they label “poachers”, the Khama government runs the risk of being perceived as settlers of the colonial times. This in the Khama mindset is not a bad thing; after all who knows what is better for his people than him in his own benevolence? In Khama’s thinking, people of European can do no wrong and they have a God-given role as saviors of the world, natives and animals alike, but this is not expressed so crudely, it comes in the sophisticated language of the conservationist, or the privatization guru or the denationalization advisor. The lack of consultation with Phikwe residents in the closure of their own mine for instance is the same lack of consultation with Ngamiland and Kgalagadi communities in the cancellation of hunting licenses; both are an aggressive expression of the primacy of Euro centric expertise.

 

 
In a way Khama has an insecurity, a certain loneliness, which only the familial can ameliorate. No other president has had family so concentrated in position of influence when he took over.

 

 
By 2009 when Khama was nearly a year into his presidency he had a network of family members or close friends located around strategic areas of society. His younger brother Tshekedi was Member of Parliament for Serowe North West. Brigadier Ramadeluka Seretse his cousin was then Minister of Defence, Justice and Security. Johan Ter Haar his brother in law had been chairman of the Business and Economic Advisory Council in the lead up to the inception of the Khama presidency. Isaac Kgosi, perhaps the only one without a historical familial connection to Khama, was a confidante and founding head of Directorate of Intelligence Security Services (DISS).

 

 
Ian Kirby, the powerful Court of Appeal president, was then High Court judge having served as Attorney General. In the 80s, Kirby was a senior partner in Kirby Helfer & Khama, alongside Doreen Khama nee Mmusi who was married to Mphoeng Khama, the youngest son of Seretse Khama’s uncle Tshekedi Khama. Thus, Mphoeng was Seretse’s cousin and Ian is Doreen’s cousin by marriage.  David Newman a friend, now American ambassador, is a former attorney and senior partner at Collins and Newman. He was High Court judge and advisor when Khama took over. Sheila Khama, cousin through marriage, was the head of De Beers Botswana- the company in a partnership with the Botswana government at Debswana. As head of De Beers, Sheila was a board member of the national mining conglomerate. At the time, it meant she served as a non-executive director to a number of group companies including De Beers Botswana, Debswana Diamond Company, De Beers Prospecting Botswana, Botswana Diamond Valuing Company, Botswana Ash and Gope Exploration Company, to name a few. Meanwhile Tsetsele Fantan a distant relative was appointed a member of the DISS Tribunal; basically having to provide the only oversight over Khama’s close friend, Isaac Kgosi, at the country’s top intelligence until.

 

 
Fantan herself is a daughter of Peto Sekgoma and sister to former minister David Magang’s wife. Peto was Mokhutshwane’s son. Mokhutshwane is Khama III’s brother. That way, Peto Sekgoma was a cousin to Sekgoma II, Seretse Khama’s father. Tsetsele is Peto’s daughter while Ian Khama is Sekgoma II’s grandson. The family lineage therefore, makes Tsetsele and Ian Khama cousins. Thus, Fantan sat on the tribunal to which people lodge any complaint they have against the DISS, some of which may have been about her cousin, the President.

 

 
Khama does not like people who flipflop – a view which would have possibly developed during his difficult years in boarding schools- where as a mixed kid you had to know your friends and stay close to them. This resentment could also be a projection of his relationship with his mother who stayed true to him through all those troubles he encountered, or the way his father defended himself against attack from governments and some Bangwato during his marriage debates. Even Seretse Khama valued people who stood by him, later granting vast support to people who had been on his side during his acrimonious fight with his uncle over his marriage.

 

 
In this respect the name Isaac Kgosi is most often associated with Khama’s office during his years as Commander of Botswana Defence Force and later as Vice President. He was Khama’s personal secretary during his tenure as VP. He has served Khama in different capacities over time, once as his personal bodyguard. He remains close to Khama both professionally and personally. He was appointed to head the DISS and was a crucial component of the team that formulated the institution.

 

 
Khama has stood beside Kgosi throughout his troubles. Because Khama prefers those close to him to be very close, to the extent that he often personalizes any criticism of those within his inner circle as being an attack on himself.

 

 
Tshekedi Khama, younger brother differs with his older brother’s leadership in one area – it has not lived up to its original billing. But like all siblings Tshekedi and Ian differ to agree. Tshekedi believes that his brother has always been naïve and socially unsophisticated, a man removed from the social psyche of a nation he was supposed to lead-but he does not believe Khama’s failures are solely his own making, in fact they are not of his own making. Tshekedi has a theory and the theory is thus – Khama is a victim of a few evil characters who captured him and led him astray and, chief among them is Isaac Kgosi. However, Tshekedi’s theory is an extension of something even more sinister; that the purity of Khama’s inherent ability, located within the Khama name and genealogy, is defaced by something local, something African. His contention that his brother’s leadership was good until it met Black African intervention- is a further assertion of the goodness in Khama being attributable to his European side and his weaknesses being equally attributable to his African side. Tshekedi is right in one area, Khama’s presidency has suffered serious damage from his association and defense of such people as Isaac Kgosi- but Khama has had to bend backwards for everyone – Black and White.

 

 
There is a familiar sibling rivalry dynamic to the Khama brothers, with Tshekedi as the loud brash younger sibling who has had to assert himself to be recognized. Tshekedi may not think his brother has been the best Khama president, he surely believes the Khama’s make the best leaders, hence his insistence that he, Tshekedi, should also reach the very top of national leadership before the end of his political career. In a way Tshekedi wants to fill in the gaps left by his brother’s presidency, and, as far as he is concerned, fulfill the legacy of the Khama name. In a way Tshekedi lives under the impression that the Khama’s have a divine legacy that cannot just be left at the presidency of his brother.

 

 
Khama family insiders say Ian would prefer that Tshekedi becomes president at some stage. Tshekedi has often said he will become president in the near future. In some way, the appointment of Masisi is seen as a way to secure a future Tshekedi presidency and provide if anything, some psychological security to Ian Khama. Khama fears for his future, not just politically but physically. Masisi provides for the best security for now, however in recent times those close to Khama have sensed a change of mood in the Masisi camp, that perhaps the outgoing president’s longer term plan might not be so secure after all.

 

 
Masisi, in recent times seems to have given indication that he might chart his own path once he is in charge, something which is causing consternation in the Khama camp. The accumulation of military armament during Khama’s term as commander, spending up to 4 per cent of GDP on defence, should not simply be seen as a soldier demanding toys for boys. It ought to be seen as a life-long complex to secure himself- personally under the pretext of securing the nation. It is similarly as much a means of accumulating of property, from land in Mosu to Ruretse as an attempt to dispense with that sense of insecurity. As Khama’s presidency reaches its end, his sense of dread, the fear of finding himself abandoned and susceptible to attack and the resultant need to secure himself even more is expressing itself in various ways.

 

 
Goaded by opposition leader Duma Boko with a threat to be arrested for any potential illegal acts performed by him or his surrogates were there to be a new government, Khama often warns that the change of government would bring chaos to the country, a rather less than subtle attempt to equate his own political, material security with that of the society. While Khama and his brothers hold vast interests in the tourism sector, and increasingly his brothers, in the mining sector as well, the Khama family has some of the largest land ownership in the country. But that is no substitute for the sense of fear for the future that Khama lives in. He has been building his compound at Mosu, at government cost, cordoning it off and building an airstrip. Journalists were recently told they could be killed for driving around in the area. BDF insiders say Khama wants to keep access to the latest presidential helicopter after his retirement, to a point where soldiers call it, “ya ga Rraetsho”, but without legal basis that could not be achieved hence his insistence that the Presidential Retirement package be adjusted to allow a retired president such access.

 

 
Khama, without the benefits of power, for the first time in his life, will have to make do with an even smaller circle of disciples, as glory-hunters leave for more powerful partnerships. He might lose some, and in some way that bothers him, hence the turn to material and military wares for a sense of security.

WANTED – MOLEFE – ALIVE AND AMENABLE

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Molefe (Pic:Taelo Maphorisa/BWR)

Boitumelo Molefe is a wanted woman, the “price on her head” is comply or go. You One wouldn’t tell by her looks, but the baby-faced CEO is at the center of a tussle for over the P60 billion that is the pension fund of for the Botswana civil service. The silently stern and astute Chief Executive Officer (CEO) of Botswana Public Officers Pension Fund (BPOPF) has, since her appointment refused to implement decisions that benefit political powers, and for that, powerful individuals at the Office of the President (OP) are planning to remove her and take control of the fund. The knives are out for Molefe and insiders say the tussle to remove her from the hot seat lies at the battle for the very heart of the pension fund and the political wellbeing of Botswana.

An crypticenigmatic occurrence took Boitumelo Molefe, the Chief Executive Officer (CEO) of Botswana Public Officers Pension Fund (BPOPF) by surprise a few months back. She was summoned by someone a person at the highest office imaginable in Botswana. She may well have thought, “…Ooh, what an honor…” but instead she had another puzzle coming experienced a level of consternation that no CEO would ordinarily experience. “…watch your back, and do what you are instructed to do, or risk losing your job…”   Those were the rather daunting highlights of her meeting.

 

 

It all began with a mysterious phone call made onto her mobile phone. The type of phone call that would cause panic to anyone soul in the public service. In fact it could frighten anyone in the whole country. The call was from one of the most powerful mean in the government enclave. The A man at the heart of the Office of the President’s operations. The man, originally from the southern part of this country, holds a special power within Government Enclave;. The man who has the power to order, what government perceives as their around “the so called CEOs” in government owned institutions, with their fate nestled firmly in the palm of his hand. The phone call summoned the BPOPF CEO to a meeting.

 

 

To The King Maker, Molefe had done something ‘reckless’ and unconscionable, something that could never be allowed to be done, without retribution, by anyone who answers to him. She did not renew the contract of a company called Novare Actuaries & Consultants South Africa as its asset and investment consultant. You see, that contract was not just any ordinary contract, it was a multi-million Pula contract. To compound matters, On the other hand, Novare Actuaries & Consultants SA was not just an ordinary firm as well. It was a company that was connected all the way to the top highest echelons of the political hierarchy.

 

 

The local custodian of Novare Botswana is Olebeng Ngwakwena, who is a cousin to Molale, hence the believe that Molale has by family extension interests in Novare. That was just it! Molefe had no regard to for the ‘interests of the elders’. She was stepping on the toes of very powerful people, unlike so many her predecessors others in the past, within the semi state owned family of enterprises, who know which contracts to terminate and which ones to keep, even though they warranted although they deserved termination.

 

 

 

The SA firm, founded in October 2000 as an independent investment advisory business in South Africa, began expanding into Africa in 2006, with its primary role being the provision of objective, third-party advice that will enable the board of trustees to make well-informed decisions regarding investment of the fund’s assets.

 

 

The BPOPF, the filthy asset-rich pension fund appointed Novare Actuaries & Consultants South Africa as its asset and investment consultant sometime in 2013 while it was, then under the leadership of the then interim-leader, Lesedi Moakofhi.

 

 

Moakofhi She was acting CEO for almost two years and was appointed when the BPOPF board, then under the cloud of an intense boardroom war dismissed its former CEO Ephraim Letebele and appointed Moakofhi her who was thenat on the political instance from within the government enclave. Ensuring in the process that the board become controlled by Morupisi and Molale, and ensuring in the process that rather did everything the political powers wanted. She was key to the appointment of Novare.

 

 

The SA firm, which was founded in October 2000 as an independent investment advisory business in South Africa and began expanding into Africa in 2006, with its primary role being the provision of objective, third-party advice that will enable the board of trustees to make well-informed decisions regarding investment of the fund’s assets.

 

 

This publication has established that the BPOPF board met in December last year, where the agenda was whether or not the Novare contract should be renewed by for another two years.

 

 

The political powers were pushing for the renewal of that contract, although some of the procedural requirements had not been met, something that baffled some members of the board, which under Molefe seem to emphasize the need for proper corporate governance.

 

 

It is said that some members of the board of trustees wanted Novare to submit a performance report that will be used to gauge Novare’s previous performance and decide if it qualifies for a re-appointment. There was no report was available or forthcoming.

 

 

In January this year, the board also convened another meeting, at which the performance report was once yet again absent. The lack of compliance to matters of corporate governance by Novare resulted in , hence the decision to not to renew the its contract.

 

 

When BPOPF decided to not renew Novare contract, the company’s managers were seriously unhappily with that decision, so much that they went to Molale and reported the CEO for that a ‘reckless decision’. It emerges that BPOPF took a decision to give that the lucrative contract to a company called RisCura, a foreign controlled investment advisory firm.

 

 

Those in the know say that just because sources indicate that when BPOPF gave that contract to RisCura instead of Novare, That’s when no-nonsense CEO, Molefe, received the mysterious phone call, that call that summoned her to Molale. they say at the meeting Molale simply told her, in no uncertain terms; to watch her back, and do what she is told or risk losing her job.

 

 

That was just it. The BPOPF CEO had never taken decisions to appease the political masters and ensure that lucrative BPOPF tenders fall into the hands of those preferred by The King Maker and his crew, and she was not about to start now, despite of the threats. She just did not know turning her back on that the powerful political forces that have always played a major part in the management of BPOPF operations. Interests that impacted so deeply on the funds management, so much that major decisions were taken there were influenced by personal and political interests considerations.

 

 

Before she Boitumelo Molefe was head-hunted to occupy the hot seat, BPOPF was a troubled institution. Too many facets of much political intrusions were at play. Appointments were made on that basis, disregarding qualifications and critical considerations of corporate governance. This is the same fund which before Molefe’s appointment, operated for two years without a substantial CEO, not because the board was unable to find a suitable recruit, but because of the boardroom wars at the filthy rich BPOPF,that targeted at BPOPF’s P60 billion in liquid assets.

 

 

Permanent Secretary to the President (PSP) Carter Morupisi is the chairman of BPOPF, a position he has occupied from his days as Director of Directorate on Public Service Management (DPSM). Morupisi reports to Eric Molale Minister of Presidential Affairs. Government, then represented by Carter Morupisi always wanted the CEO to be someone who can be controlled. Someone who can, for political reasons push for the allocation of mandates to companies in which top political leadership has direct or indirect interests in.

 

 

Fast forward to July 2015, something of a corporate governance revolution happened to BPOPF. Molefe assumed the stewardship of the fund. All of a sudden the fund started making bold decisions, divorced from political interests and rather was guided by proper strict policies of corporate governance. Molefe This is the woman who immediately undertook a restructuring exercise, which seemed to have been aimed at creating efficiency and shedding, less-useful personnel and systems.

 

 

It is has been under her guidance that BPOPF got worriedraised concerns over by the uncharacteristically industry high management fees paid to fund managers. Importantly Molefe, did not merely pay lip service to the concerns but took active and steps were actually taken to address such a challenge them, although it had been only lip service before.

 

 

Also, as a fairly new CEO, Molefe was quick decisive to react to a scandal last year, by one of the asset managers which saw her terminating all its contracts, something which could have not happened under the old BPOPF. She impressed as a result-driven professional who seemeds to play it by the book. What is more interesting is that she seems also to have interests in growing the fund as well, to the benefit of the members, but all that she wants to do under the rightful corporate governance practices and transparency.

 

 

The Business Weekly & Review has established that political masters are rather unhappy with Molefe’s leadership style of independence and transparency, which has no regard for orders that force her to make decisions based on political interests that benefit only a few key personalities. Those in the know say that powerful figures particularly at Office of the President, feel that Molefe now stands on in their way and that with her at the helm of BPOPF, they can no longer exert their personal and political not control over BPOPF.

 

 

When BPOPF terminated its mandates with Fleming last year after its CEO was engaged in fraudulent activities, it appears according to sources that some industry players close to the political powers felt that Molefe was too overzealous in her adherence to corporate governance and that her intention was to bring in a reign of terror, which did not augur well for their personal interests. The newfound zealousness for sound practices that eschewed manipulation rubbed them the wrong way.

 

 

Her job, as BPOPF CEO is also under threat, and that, she has been verbally told by the political masters. Investigations reveal that the BPOPF CEO is now living under surveillance with very tight security agents on her tail. Government also wants BPOPF to acquire 100 percent shareholding in Mascom Wireless, a mobile network company which is owned 53 percent by MTN South Africa, 7 percent by Econet, while and BPOPF owns with 40 percent. Apparently at the center of the storm over the purchase of Mascom shares are allegations that, Mascom is being used mostly by the Directorate on Intelligence and Security (DIS) as their central focal point for their mobile network monitoring their devious operations of and tapping into private individuals communications.

 

 

With MTN and other shareholders having access to Mascom shareholding, there are insiders believes that it the lack of government control of the mobile telecommunications giant, could compromise government and DIS information,. These concerns within the intelligence community and the political hierarchy has contributed to the hence a push for BPOPF to own all of Mascom, so that as to enable government has to have full control of the mobile network company.

 

 

Molefe has been against taking more a greater stake in Mascom because she thought that BPOPF will be fully overly exposed to on it, unlike if the risk is shared with other shareholders. Morupisi left Mascom chairmanship recently, albeit under pressure especially from some members of the board of trustees who felt that he had overstayed. He however leaves one unfinished assignment, making sure that Mascom falls under the control of BPOPF.

 

 

BPOPF is the only pension fund in the country which does not have annual general meetings (AGMs) where it reports directly to the members. Molefe is seriously advocating for that its implementation, so as to increase transparency in the fund and have members play an active role in the operations of the fund. Given that government wants to control the fund and its operations, the introduction of AGMs could be problematic to Molale in that operations will be more transparent and open, something a policy that would impede and frustrate which against government objectives.

 

 

While Molale is committed to getting rid of the BPOPF CEO, there are challenges. When Molefe joined BPOPF, she found a board of trustees that was not united, with trade union trustees pulling to one side while government representatives were also pulling to the other side. She however managed to bring the board together and ensured that there is has been unity and that decisions are taken unanimously, something that has never happened at BPOPF.

 

 

Now, for the BPOPF CEO to be fired, Molale needs the board, which is chaired by Morupisi to reach that quorum. However, sources within the board indicate that there is considerable respect for Molefe especially from the Union representatives, coupled with under a united board, it will be hard to get rid of her.

 

 

However Morupisi is planning something else. The greater dynamics of Union and government politics now come to the fore, in respect of Molefe remaining in her position. Government is in the process of amending the public Public service Service act Act to ensure that all members of the public service bargaining council (PSBC) are civil servants, failing which they will be disqualified from the PSBC. Government here simply wants to in a single legislative swoop will get rid of Trade Union leaders, who are full time unionists and are not employed by government. The same policy according to sources will be extend to BPOPF, where members of the board will be expected to behave to be government employees, failing which they will be disqualified as members of the board of trustees at BPOPF. There is a motive for this decision. Government wants to purge some members of the BPOPF board, who government believes stands on in their way to have the BPOPF CEO removed, and most of these are the Trade Union representatives, who support Molefe’s stance on acceptable corporate governance standards.

 

 

Government’s plan to capture BPOPF has been a relentless exercise. Earlier this year, Government moved to effect the Retirement Funds Act 2014, which sources say is a plan by the state to purge union representatives within BPOPF board of trustees, in a quest to gain control of the filthy-rich lucrative fund. In 2014, Parliament passed the Retirement Fund Act 2014, whose objective is to provide for licensing, regulation and administration of all retirement funds including pension and provident funds. Although the new Act has been passed, it is not yet functional. It appears government needs it now more than ever.

 

 

Initially, the BPOPF, which is the biggest fund in the country, was created in accordance with the provisions of the Pensions and Provident Fund Act 1987, as well as the associated Pensions and Provident Funds Regulations, 1988.

 

 

BPOPF has been managed by a Board of Trustees, which had 21 members with the inclusion of a principal officer, the chief executive officer (CEO). When the Pensions and Provident Funds Act gets replaced by the new Retirement Funds Act 2014, sources fear that union representation within the BPOPF board of trustees will be eroded while more creating greater power and influence will fall to for government, which will enable government to easily do as they please at BPOPF. Of particular concern in the Retirement Funds Act is Section 13, which reads thus, “Every licensed fund shall comprise of at least 5 board members, and not more than 11 board members, except where the Regulatory Authority has approved a number less than or more that the afore said.” This means that from a total of 21 board of trustees, the BPOPF will now have board members being between 5 and 11, creating in the process an imbalance in favour of government. .

 

 

Molefe’s job, as BPOPF CEO is now under threat, and that threat, she has been verbally and unequivocally told by the political masters. Investigations reveal that the BPOPF CEO is now living under surveillance with an entourage of security agents on her tail.


THE MAN WHO UNMADE A SOCIETY: The trouble with Tshetlha (final

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President Ian Khama has a sharp memory. Sharper than the elephants he so adores. Khama collects memories for future reference, and can often recall the finer details of things past, specifically, what has been done to him, and who did it when and how.
After the burial of Sir Seretse Khama, something even more traumatic happened to Ian Khama – government evicted his dear mother Ruth Khama from the State House. This event has stood foremost in Khama’s mind – the removal of his mother from her home, where he Khama, and his siblings had spent their early years. Suddenly Lady Khama, of all people, had to be found a place to go call home. Those close to Khama say he often tells this story to show how ungrateful this society has been to the Khamas. To him it was heartless. If anything perhaps the new President could find a different place in which to move in.

 

 
Khama often mentions that the Khama family has given everything to this country, his siblings more than anyone else, gave away their father who spent an inordinate amount of time away serving this nation. A man with a memory as sharp as Khama’s seldom forgets, and anyone with such a personal dedication to upholding an overall image of infallibility as Khama seldom forgives, and in a way Khama has never quite forgiven this society, so demanding of him and his siblings, and needing of their abilities, but unable to muster even a modicum of gratitude. At the same time he has a deep belief that it was always their destiny, as the Khamas to be called upon to save this country from a leadership deficit courtesy of lesser beings.

 

 
To understand Khama the person is to understand the Khama presidency because unlike the intellectual sophistication of such figures as Quett Masire or Festus Mogae Khama has no ability to differentiate his person from the position the person is holding.

 

 
It was all easy for Mogae to view his Presidency as a job, requiring certain competencies and indeed ultimately doing what needed to be done, regardless of who does it. But Khama has no such luxuries, society never presented to Khama anything other than that he is their leader. Khama does not so much as know he was a born leader as that leadership is implicitly him. It is inevitable that Khama would struggle to find any separation between him and his Presidency. In simple terms Khama could not be Khama unless he was Khama and Khama means being leader. He was never anything but a leader, whether as Commander or Vice President with near Prime Ministerial powers or when ultimately as President. Khama was never given the impression, soon as he could walk, listen and learn, that he needed to do anything to earn such positions. The throne is him, he is the throne, and the presidency is him and vice versa. In other words Khama’s brain is wired in a way that he could not picture himself as anything but a leader, and to some extent, this society could never picture itself in a way that Ngwana-wa-Seretse would not be a leader, hence the rumours especially in GaMmangwato during both Masire and Mogae’s tenure, that these commoners were doing nothing but manning the fort for Seretse’s son.

 

He has a deep belief that it was always their destiny, as the Khamas to be called upon to save this country from a leadership deficit courtesy of lesser beings.

 

 

 
There are consequences for this self-image. It therefore means, at least in his thinking a Khama can never be a bad leader any more than a lion could be a bad lion. Therefore, by extension, Khama exhibits an incapacity to view any criticism of himself as anything other than an expression of outright personal hatred towards him, personally. You cannot accuse a lion for being ‘liony’, unless you hate the lion. But if Khama’s government held so much promise to Batswana particularly because of who Khama is personally, then conversely, it becomes impossible to delink its failure from him personally. Consequently therefore never before in the history of this country has a President has been singularly blamed for so much of his government’s failure. It is exactly because he held so much power over the institutional framework of both government and society, and it is exactly because he takes criticism so personally that blame is placed on his mantle.

 

 
Khama’s presidency, based on his psychological make-up, and his resultant decision-making has in turn affected the psychological state of our society in ways that no president before has ever done. On one hand, Khama’s ability to exercise presidential power for matters personally close to him, has revealed the soft underbelly of our constitutional framework, its “presidentialism” and executive overtures. On the other hand, exactly because of this willingness to deploy the sheer power of the president, whether personally, or even within institutions such as the Botswana Democratic Party, Parliament and even the Directorate of Intelligence and Security, Khama has dismantled Batswana’s historical innocence, in the same way Watergate did to Americans.

 

 
It does leave something sour taste in the mouth for now, but like imbibing monepenepe, Batswana’s new found suspicion of their leaders can only work wonders for the democratic future of this country. However a government cannot function without a healthy amount of public trust. As American presidential historian Robert Dallek said: “Once the public loses confidence in a president’s leadership at a time of war, once they don’t trust him anymore, once his credibility is sharply diminished, how does he get it back?”
In 2007, then President Festus Mogae addressed, the Global Forum, on that basic ingredient to good governance – public trust. “Building the trust of its citizens is a process no government should ignore if it wants to govern with legitimacy and to lead a harmonious society. So important is trust, that in all the cultures represented here today, it is considered a vital ingredient for matrimonial bliss!”

 

 
Many Batswana have always been suspicious of President Ian Khama, even long before he rose to power. He was seen, unfairly or otherwise, as the devil lurking under a facade of normalcy. But two main events stand out as the beginning of the end of any trust between President and society – the killing of John Kalafatis and the death of Louis Nchindo.

 

 
Khama’s father and founding President, Seretse Khama was perhaps the last president to lead a totally trusting populace. It is for this reason that the late opposition doyen, Kenneth Koma was considered to have lost his marbles when he complained of government agents trailing him in the 70s – after all how could government do this? Some wondered if his obsession with opposition politics had not made him somewhat irrational. Batswana generally appreciated that government was indeed serving their interests, to provide for their development and their country. A glance through the praise poems of poets of the era indicate this fellowship with those in government, perhaps a residual legacy of the traditional system that was still intact even at the post-independent period. Batswana generally had faith in the agenda of those in political power.

 

 

Many Batswana have always been suspicious of President Ian Khama, even long before he rose to power

 

 
But by the time the 1980s and 1990s set in, corruption reared its head with its subsequent fall-out, President Ketumile Masire found himself governing a very mistrusting public. However even at that point, it was more mistrust in the specific sections if not individuals in government than in government itself. It was generally understood that every now and then, those in positions of influence could abuse their powers for their own narrow interests.  Therefore the founding of the Directorate of Corruption and Economic Crime (DCEC) was predicated on the idea that those rotten apples could be weeded out of an otherwise working system of government.

 

 
Festus Mogae took over on a platform of strengthening the people’s belief in the government to not just work for their interests but to deal with wrongdoers equitably. In other words, Mogae, by cracking the whip without any political considerations, would further strengthen the public trust in government.

 

 
Khama inherited the Office with a certain level of circumspection. The man had been watched with much suspicion from his early days in politics when he was controversially recruited into the Botswana Democratic Party (BDP) to work behind the scenes during Mogae’s term. Through his placement of close relatives to strategic positions, he dispensed with the semblance of proper government that Mogae had left. He became and is now cumulatively a crack team of family and friends, dedicated not so much to the steer the national course but the paradigm crafted by Khama for Khamas.

 

 
The public’s mistrust took a turn for the worse after the murder of John Kalafatis. The Kalafatis killing and subsequent reaction from the public and government indicates that the state really under-estimated the value of attending to issues of public concern in a timely manner.

 

 
After the fatal shooting, nothing was heard from either the police or other security institutions for close to a week. The minister in charge of security, Ramadeluka Seretse and his then communication counterpart, Pelonomi Venson-Moitoi held a closed press conference for government media only. Seretse expressed concern at the way the media was reporting the incident, especially the allegations that connected Khama with the crime. In the uproar that resulted from the controversial press conference, he organised another briefing for the private media at which he announced that an inquest would be held into the Kalafatis killing.

 

 
More revelations following the Kalafatis case indicate that the killing may have had more than scant connection to the political leadership. The suspicious and even self-interested way in which government handled the crime had serious repercussions. The Kalafatis case introduced something beyond the initial mistrust – paranoia – the irrational mistrust and worse still fear of government. In other words, Batswana did not just believe that some were abusing office but rather that government is out to torment innocent people. Furthermore the state could not be believed to deliver an iota of truth on serious matters that threatened those in political office. In the post-Kalafatis period, government would not be trusted to tell the truth again. In fact government was “trusted” to victimise innocent individual to protect the narrow interests of those in political office.

 

 

Batswana did not just believe that some were abusing office but rather that government is out to torment innocent people

 

 
Thus the government, of its own doing was stuck with a nation of conspiracy theorists. It was in this context that the still puzzling Louis Nchindo death occurred. The subsequent theorising on the causes of his death further indicate how distrustful of government most Batswana were. While reporting on the Nchindo death, it was always obvious that many Batswana believed that outside forces may have been at play. Most Batswana said point blank that Nchindo may have been killed by security operatives under the orders of the ‘big boys’ to get rid of the truth that he had threatened to and was in the process of revealing.

 

 
Many indicate that Nchindo had secrets concerning people in the current government and that those in the echelons of power wanted such information kept under wraps. Just before his death, it was revealed that he had facilitated a loan from De Beers to rescue a financially embarrassed Masire when he was president. This greatly damaged the reputation of Masire and caused consternation. Masire came out with a somewhat feeble explanation, whose major point was the confirmation of the assistance.

 

 
From then on, it is said, Nchindo was on a collision course with the political establishment. He lost the last batch of his most ardent friends at that point, as he veered into a direct collision with the political holy cows. Mogae divulged more – Nchindo had tried to blackmail him into using his presidential powers to stop the criminal case against him. Nchindo explained that he had not been the source of the Masire revelation, while denying Mogae’s accusations.

 

 
At Nchindo’s memorial service, his son Garvas did not cast aspersions or raise suspicions about what might have led to his father’s demise. He simply stated that he concurred with the initial findings of the investigations on his father’s death.  Thus Nchindo junior seemed to indicate to the public that he was not suspicious of the state in the death. But public suspicions of the government had become so ingrained that, at that point, the public turned to mistrusting the Nchindos themselves.

 

 
Conspiracies flew thick and fast that perhaps the man could have faked his own death, with the assistance of government of course, so the gruesome affairs of the BDP could never reach the ears of the public.

 

 
In that transitional period between Mogae and Khama, and the subsequent decade, public trust in government institutions has collapsed. But this mistrust is the mistrust of the man at the head of the government, and his willingness to use his powers to serve his own personal interests.

 

 
Khama inherited from the formers Presidents, his father, Masire and Mogae a typical colonial legacy in the form of a constitution that perpetuated an authoritarian style of rule. Unlike his predecessors however, who had deep convictions and a belief in the rule of law and democratic values, a result of their specific Setswana upbringing, Khama because of his own unique upbringing and social dislocation saw governance through a different lens.

 

 
One way of reading his psychology is to use his military background as a guide, but even then it is only a small portion of that calculus. It merely adds to the totality of his make-up. As with any young officer cadet, Khama was taught to assess an enemy’s weaknesses and exploit them, whether such weaknesses were in the form of military or governance would not have been material, so long as it served the purpose of gaining the desired objective. By the same training Khama would have been taught to assess his own organisational structures and military capabilities and once again use those to his advantage.

 

 

As with any young officer cadet, Khama was taught to assess an enemy’s weaknesses and exploit them

 

 
His training was done by his former colonial masters who still maintained colonies around the world. It was this colonial system, extremely paternalistic to the African native that was an ideal form of government for a military trained officer. It created a façade of democracy; a façade that gave credence to the call that such leadership was necessary to develop “a poor backward, lazy people” that needed “enlightened governance” to raise them from the doldrums of backwardness, an enlightenment that could only be provided by those that knew better.

 

 
So in a way Khama is as much a creation of that relationship as Batswana were. The creation of an overarching Presidency, is a product of that same racist colonial system, designed specifically to hold the fragile state together through an amenable “educated” native. One of the many insidious aspects of colonial rule was that it used legitimate institutions, such as parliament and the Courts to perpetuate its form of governance. The existing legislative frameworks and governance structures gave a veil of legitimacy against human rights abuses behind which the colonial powers could justify their actions to the people in the controlled territory and the international community.

 

 
Colonial rule had deliberately and systematically eradicated the traditional consultative processes between a chief and his councillors in the governance of a community, contrary to what existed under precolonial rule. Colonial rule, based on military concepts of governance replaced a traditional consultative process with autocracy; colonial rule replaced the traditional ruler’s interdependence with the community, to an elite rule which depended upon the colonial power for survival to enforce unpopular policies and laws using its governance and legislative framework backed by the ever present threat of force.

 

 
But Seretse, Masire and Mogae, in spite of inheriting the constitutional and legislative frameworks that allowed for neo-patrimonialism, at least to some degree avoided these pitfalls in their respect for the rule of law and democracy. The legislative frameworks however continued to exist, awaiting for the day they could be exploited; a ticking time bomb imbedded in the Constitution waiting for a charismatic autocratic leader with a sanctimonious sense of entitlement to usurp the constitutional powers to himself in the interest of the people who lacked “work ethic” were “lazy” and “unpatriotic”. So our constitutional arrangement was not built to self-correct against a leader of Khama’s specific complexes it encouraged them.

 

 
As a legacy, colonialism left open to abuse, legislative loopholes for anyone inclined to use them, in the inherited constitutions and the rule of law iwnstitutions; in both their application and in their structures. The recent Motumise case is a prime example. A forward looking interpretation of the Constitution would look at contemporary world values of an open democratic society and understand the importance of judicial oversight over the other arms of Government. Khama, in whom the public placed their trust by voting his party into office, is expected to advance policies and legislation that excludes an executive role in the judiciary. A true democrat recognises that the independence of the judiciary is critical for the promotion of the rule of law and a democratic society. To allow for arguments to be advanced on his behalf that undermine the judiciary is a dangerous foretelling of times to come. It exposes the weaknesses in our Constitution.

 

 
Khama has used the good will he inherited by divine right to use power as an end in itself, rather than for the public good; he has been indifferent to the progress of citizens (although anxious to receive our adulation); he is un-swayed by reason and employs venomous social stereotypes; his military training makes him perceive any criticism of his government as a personal affront. Like the colonial masters of pre-independence he fails to understand that criticism of government and its policies is a good thing that gives all a voice in the development of the society we want to establish. Khama is not our commander, he is not our father, he is the elected political leader and must by law advance our aspirations as a nation and not his own.  But Khama was never brought up in such a way as we have shown.

 

 
Under Khama our constitution has been subjected to its worst interpretations. It has been given its most literal meaning contrary to its intention of promoting an open democracy. Masire and Mogae operated under the same constitution, and while we may have had questions as to some of their policies, Batswana were never exposed to the wholesale abuses of power. And public trust in government has never before reached such incredible lows.

 

 

Like the colonial masters of pre-independence he fails to understand that criticism of government and its policies is a good thing that gives all a voice in the development of the society we want to establish.

 

 
Khama has exposed our inadequacies to his advantage, and therefore we ought to be grateful so that we do not allow for the same mistakes to be made again.

 

 
From his childhood Ian Khama was never raised to thrive in this Botswana he is attempting to lead. It was this childhood that developed a basis of the military heroism and savior complex which later had a dominant influence in his personal policy posture. Anti-intellectual, suspicious of a questioning black intelligentsia; compulsively praise-seeking while patronizing of the poor; self-absorbed and disciplinarian- Khama is in most characteristics his mother’s child more than his father’s. After Ruth’s death, overburdened with the Khama tag and the hero status adorned him by Batswana, the shy and inward looking Ian Khama found solace in the familial, hence his trust of kith and kin and those with a strong historical connection to him.  In that regard, the socially naïve Khama became a victim of his own blind dependence on loyalty. Having subsumed the Presidency as an institution into his overwhelming personage finds that his legacy as a president is inexorably linked to himself and as a result, despite his attempts, his frailties and human flaws have engulfed the institutional make-up of this society.

 

 
Ultimately Khama was never the right man for the job. And in some warped way he was just the right man for the job.

LUCARA ROYALTY PAYMENTS INCREASE

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Lesedi la Rona Diamond (Pic:robbreport.com)

Lucara Diamond Corporation, the owners of Karowe Diamond Mine has revealed in its latest consolidated financial statements for the years ended December 31, 2016 and 2015 that it paid the Government of Botswana $29.5 million (P295) in royalties, compared to $22.4 million in previous year.

 

 
Directors of Lucara say their company is subject to a variable tax rate in Botswana based on a profit and revenue ratio which increases as profit as a percentage of revenue increases. “The lowest variable tax rate is 22 percent while the highest variable tax rate is 55 percent only if taxable income were equal to revenue.” Directors note that the company has estimated the variable tax rate to be at 34.38 percent for the deferred income tax following the updated Karowe 43-101 technical report and current financial performance.

 

 
They further stated that Lucara has not recognized deferred tax liabilities in respect of historical unremitted earnings. These earnings, from foreign subsidiaries that the Company is able to control the timing of the remittance are considered by the Company to be a reinvested for the foreseeable future. “At December 31, 2016, these earnings amount to $98.8 million compared to $177.3 million in 2015. All of these earnings would be subject to withholding taxes if they were remitted by the foreign subsidiaries.”

 

 
Directors say as part of the company’s environmental obligation under the Karowe Mine, the Government of Botswana required a reclamation bond for the Mine. “On July 1, 2015, Standard Chartered Bank Botswana Limited has provided the Government of Botswana with a reclamation bond of Botswana Pula 100.0 million ($9.3 million) for Boteti Mining (Pty) Ltd, a wholly owned subsidiary with respect to the Karowe Mine,” Directors stated, adding that consequently, the company has provided a guarantee for a maximum amount of Botswana Pula 80.0 million ($7.5 million) with Standard Chartered Bank Botswana Limited. In addition, Directors stated that the company has deposited P20.0 million ($1.8 million) with Standard Chartered Bank Botswana Limited, accounted for in non-current other assets.

 

 
Meanwhile, Lucara says it is subject to commodity price risk. “Diamonds are not a homogenous product and the price of rough diamonds is not monitored on a public index system. The fluctuation of prices is related to certain features of diamonds such as quality and size. Diamond prices are marketed in U.S. dollars and long term U.S. dollar per carat prices are based on external market consensus forecasts.” Lucara Directors’ further stated that the company does not have any financial instruments that may fluctuate as a result of commodity price movements.

 

 
Directors also noted that the company is exposed to the financial risk related to fluctuating foreign exchange rates. They say all sales revenues are denominated in U.S. dollars, while directly related costs are denominated in Botswana Pula. “At December 31, 2016, the Company is exposed to currency risk relating to U.S. dollar cash held within the Company. Based on this exposure, a 10 percent change in the

TO THE COURT OF APPEAL – REMOVE THE VEIL OF DARKNESS IN APPOINTING JUDGES

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When an institution declines to abide by basic dictates of fairness, good governance and transparency, and instead insists on operating under a veil of darkness, like a wicked society, supplying no valid excuse to justify its compulsion to doing things in the dark, one is naturally bound to be suspicious – to think that the institution is hiding something – to think that there are impure motives and possibly corruption, all of which thrive in the darkness of the night when nobody is there to see. This cannot bode well for an institution of justice, which, as all know, survives on public trust and confidence.

 

 
It is the Court of Appeal that operates in this matter.
Out of the many wrongs, sins and other ugly things one can think of about the Court of Appeal, the one that disgusts one’s mind is that the appointment of judges, these unelected men, is done in complete secrecy – like we do when we hang convicted murders on the neck until they die.

 

 
We, the people of Botswana, possess no knowledge of how these men are approached, we do not know who approaches these men, and we have not been informed of the criteria of selection that he who approaches these men uses to choose.

 

 
In a Court of Appeal that consists of foreign judges as the majority the local attorneys who might be interested in the job do not even get to know when there is a vacancy – like any other mortal, they wake up to the appointment of a foreign judge on their bench like their forefathers did many years ago during colonization. This is a distasteful state of affairs.

 

 
It is distasteful because the transparency rule only applies to the High Court. When judges of the High Court are recruited the posts are advertised – those interested get to see the adverts Because of localization at the High Court it is as if this measure is designed for locals. Those appointed at the Court of Appeal, the majority of whom are foreigners, are not expected to answer to public invitations, rather for them, the treatment that befits them is private invitation.

 

 
It gets even more bizarre. In terms of the law, judges of the High Court are also judges of the Court of Appeal. This means there are instances when those appointed by public invitation seat with those appointed by private treaty. There exists no satisfactory reason for treating these two courts differently.

 

 
Not so long ago, a justification for this differential treatment was proffered. I gathered that it worried the Judge President that extending the same treatment to candidates of the Court of Appeal judges is likely to politicize the process of appointing judges. Obviously, considered from all angles, this is not sound reasoning. First, making the appointment process transparent at the High Court has not politicised the process. Second, operating under the veil of darkness is what politicises the appointment through its baseless discrimination and providing an opportunity for favours and other corrupt ills. All Batswana who qualify to serve as justices of appeal are entitled to be invited to apply. If not, then we should be told that the Court of Appeal is a private society because public bodies don’t operate like that.

OF MASCOM AND ITS POLITICAL IMMUNITY

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There are characteristics of blanket immunity that can discerned from the Mascom Wireless/ BOCRA dispute. The largest private telecommunications company in Botswana has an air ofbeing untouchable as exemplified, so much that it can refuse to implement a directive by its regulator, Botswana Communications Regulatory Authority (BOCRA), an authority that has licensed Mascom to operate in Botswana. By all indications, any regulatory authority is revered, because they have the power to take away a license and collapse a business completely for failure to comply with statutory requirements.

 

Mascom together with other Mobile phone operators, Orange Botswana, and a government owned Botswana Telecommunications Limited (BTCL) were issued a directive by the regulator, to scrape extra charges when calling off-net numbers. All of them obliged, or at least were cooperating and willing to comply with BOCRA’s statutory requirement, save for Mascom.

 

The company, which is by far the most profitable in its field, valued at over P5 billion, did not cooperate. BOCRA had an option to punish Mascom, but they elected not to, or could not. The reason is simple, Mascom could simply refuse to follow the regulator’s orders because they have enjoyed immunity. Just like that kid who has a backing of the notorious squad. By placing Mascom under a microscope one can understand that they have enjoyed political immunity due their importance to the Government of Botswana, or a very powerful elite group of political persons that rule this small diamond led country.

 

Mascom is owned 40 percent by Botswana Public Officers Pension Fund (BPOPF), the wealthy civil service pension fund that is of great interest to government due to its P55 billion liquid assets. MTN has a 53 percent controlling stake. The remaining 7 percent is held by Econet Joint Venture (Based in Mauritius), which is in partnership with Kagiso Mmusi, a local entrepreneur. These shares however are not directly held, they are owned through a company called DECI Investments. Government has until recently had a tight grip over BPOPF, so much that it influences major decisions about the fund’s financial decisions as well as appointments, which are potentially influenced to meet political objectives.

 

placing Mascom under a microscope one can understand that they have enjoyed political immunity due their importance to the Government of Botswana, or a very powerful elite group of political persons that rule this small diamond led country

 

Due to the indirect 40 percent stake in Mascom, Government has been influencing Mascom’s corporate direction, to the extent of placing Carter Morupisi, (as head of Directorate of Public Service Management (DPSM) as chairman, a capacity he enjoyed at both BPOPF and Mascom.

 

Morupisi recently left the Mascom Board under pressure. Just a few months back, Mascom, then still chaired by Morupusi donated houses in Morupisi’s home village. At the time, Mascom approved the donation of those houses, and then invited Morupisi now as Permanent Secretary to the President (PSP) to receive the houses at the other end. He approved the donation to his village as chairman of Mascom, then received it at the other hand as PSP. There have been several reports in the media that Morupisi has political ambitions with his home village as his base. Sources say that such a donation was one of his ways to get closer to the people, romancing the political seat.

 

Mascom is currently headquartered at Tsholetsa House, a building owned by Botswana Democratic Party (BDP), situated at Plot 4705/6 Botswana Road Main Mall Gaborone. Tsholetsa House was previously used as the party headquarters housing the Botswana Democratic Party Secretariat before it was taken over by Mascom.

 

Since Mascom assumed occupancy of the office complex, the company has spent millions of Pula to refurbish the building to match its corporate status while, as at now, paying an overly-inflated monthly rental of over P340, 000 to the BDP. The over-inflation is said to have been deliberate to make sure that BDP enjoys an undeserved, but cool P4 million plus, annually from Mascom. This is despite Mascom Wireless owning a P180 million state-of-the-art building at Phakalane, named the Mascom Innovation Centre (MIC).

 

Investigations by The Business Weekly & Review found that the Phakalane offices are approximately 40 percent underutilized (occupation is sitting at only 60 percent), which means that Mascom could stop spending money on rentals at the BDP owned offices and occupy the Phakalane offices. The offices were constructed in 2012 and were expected to serve as Mascom’s main technical centre. Sources reveal that Mascom’s rental of the Tsholetsa House is just an indirect donation to the ruling party, which is why the multi-billion company is reluctant to vacate Tsholetsa House.

 

Morupisi’s recent exit from the Mascom chair faced considerable pushback as Morupisi had preferred to remain there, despite that majority of BPOPF board of trustees wanting him out.

 

Sources indicate that Morupisi, maintains that he has unfinished business at Mascom. However , at a BPOPF board meeting in February Morupisi refused to explain the unfinished assignment at Mascom.

 

The Business Weekly & Review at the time, met Morupisi in his plush office at Office of The President (OP) where he said that he was not refusing to leave the Mascom position, saying that he had to wind up assignments that he was tasked with by the board before handing over to someone else.

 

One of the assignments, he indicated was a dispute emanating from the termination of a management contract with Portugal Telecomm Group. There was a disagreement on some aspects of the contract between the parties, said Morupisi, indicating that there was no time frame set for the resolution of the matter.

 

Sources reveal that Mascom’s rental of the Tsholetsa House is just an indirect donation to the ruling party, which is why the multi-billion company is reluctant to vacate Tsholetsa House.

 

When the contract between Portugal Telecom and Mascom came to an end expectations were that MTN, a major shareholder could also provide technical expertise. Then, MTN Dubai tendered for the contract and won it, but Mascom decided not to appoint MTN Dubai. Morupisi is also said have vociferously argued against MTN taking over all shares at Mascom.

 

When Portugal Telecom exited Mascom, Chief Executive Officer (CEO) José Couceiro was re-appointed the CEO of Mascom, now under the direct employment of Mascom Wireless effective 1st October 2015. To date, there is no citizen understudy for the CEO at Mascom. Morupisi was key in having the CEO re-employed, now directly. The CEO is responsible for all major decisions on valuable contracts.

 

Sources report that the personal cellphone numbers of President Ian Khama, top government officials and political powers are housed at Mascom, which means that Mascom has the history of all their communications history, which the political powers want to be kept a closely guarded secret. That can only be done when government has such an indirect control over Mascom.

 

The biggest fight Mascom has had so far is with the regulator – which seeks to reduce costs of services in the telecom sector. Mascom is opposed to such a reduction, because it would cut into the telecom giant’s revenue. To understand Mascom’s philosophy one needs to understand what special position the telcom giant occupies in the industry. With about 60 per cent of the market Mascom seldom moves under any duress. And the money keeps coming. A recent study by BOCRA indicates that the telecos bear a cost of about P0.26 per minute for every call made, both within and across their network. Mascom charges P1.20 per minute for calls made within its network, a cool 4.6 times the cost. But Mascom makes more cash than that, it charges P1.50 for any call made from its own network to another telecom company such as Be Mobile or Orange Botswana. There is a self-preservationist logic to Mascom’s logic in this – as the dominant player it only makes sense that it dis-incentives those within the company’s network from calling those outside of it. If the people within its network are a substantial group, and they are, it encourages any new subscriber to get a Mascom simcard, as a way to reach the relatives, friends and family members who are likely to be in the Mascom network.

 

BOCRA Acting CEO Tshoganetso Kepaletswe calls this behavior the Club Effect. “Club Effect is where a service provider, normally, large operators, creates distorted pricing such that more and more customers are attracted to subscribing to this network because it offers the cheapest On Net prices. The Club Effect drives small operators like Mobile out of business as consumers would choose to move to Mascom, competition will die and it means Mascom would become a monopoly service provider establishing itself as the only service provider in the market. Monopoly is not desirable since it leaves consumer with no bargaining power,” explains Kepaletswe in the papers he submitted in the recent case by Mascom against the regulator in which the market leader was challenging the forced tariff reduction. “Given that the cost of providing an On-Net call (I.e. 26 thebe/min) is the same as the cost of providing an Off Net call (I.e. 26 Thebe/min) there is no justification that service providers much charge Off Net differently from On Net calls. The consumer has been paying the unjustified premiums for years and (BOCRA) rules that consumers must continue paying the unjustified premiums up to June 2018 as opposed to a longer period” submits Kepaletswe.

 

In a way, having cornered the market so far, Mascom has no enthusiasm to encourage competition in the industry, hence its vehement opposition to the tariff reduction. In a way, Kepaletswe argues, Mascom as the dominant player seeks to retain the status quo not just because it accrues substantial revenue from this arrangement but most importantly it has worked for Mascom because it keeps potential competitors at arm’s length, and the dominant player can continue to milk the customer. But BOCRA makes a more sinister allegation, that Mascom seeks to deploy the regulator as an accomplice in this mugging of the customer. BOCRA acknowledges that by allowing the continuing of these rates for even an extra day is an accomplice in the daylight robbery of ordinary people who are the users of telecom services.

 

BOCRA is prepared to pace the reduction in tariffs for a period stretching to until June 2018, thereby Kepaletswe says, saving the telecom possible sudden losses. But he is agreeing to rubberstamp the continued overcharging of customers. “Service providers like Mascom and others will continue enjoying the proceeds from the unjustified premiums up to June 2018.BOCRA had an option to direct immediate removal of Off-Net premium, however, BOCRA opted to protect the business/revenues of service providers by seeking implementation over an extended period of 2 years as opposed to 1 year”. the regulator is prepared to bend backwards to cushion the shock of revenue reduction to Mascom, even against the threat that other players may close down between now and June 2018, when the reduction would have taken full effect.

 

Mascom is asking for 3 years more of the transition. In a way Mascom is asking that it be allowed to milk the customer a little bit longer.

 

 

This on its own makes Mascom a politically sensitive and valuable company. The CEO of BOCRA would also think twice, because upsetting Mascom is indirectly upsetting his employers.

A NEW (LEGITIMATE) PEOPLES’S CONSTITUTION IS AN IMPERATIVE OF OUR TIME

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I have been asked by Tshireletso Motlogelwa, the Editor of the Business Weekly & Review, to write a guest column on “the future of the constitution” for the publication as part of the 50th Anniversary celebrations of the Republic. I was restricted to 1200 words, which constitutes a serious limitation to do justice to the subject matter. This then is my piece. It is crafted with an eye for the future and it must be read and understood in the context of the above limitation and goal.

 

In this piece, I reflect on our constitution, and the need to improve it so that it may meet the demands of our contemporary society; and possibly a generation yet to be born. The many thoughts crammed in this brief piece are drawn from my experience as a practicing lawyer, academic, and judge both locally and internationally, and from my participation in many judicial conferences on constitutions, constitutional making and constitutionalism. A constitution occupies a special place in the life of a nation. Constitutional making or reforms is a pre-eminently political act. I would also suggest that constitution making or reforms is in some way a scientific enterprise; at least to the extent that the constitutional engineers and designers must be knowledgeable about the principles that normally underpin constitutions, such as separation of powers, the independence of the judiciary and the rule of law.

 

Conceptual framework
I must of necessity sketch in broad strokes the constitutional framework that underpins this piece. A constitution is the supreme law of our republic. It has amongst its essential functions, the distribution of power amongst the various organs of the state. The manner of distribution of power is a function of the country’s history and the future aspirations of the nation. A constitution is the glue that keeps the nation together, irrespective of the social standing of its people, religious beliefs and political affiliations. A constitution should respect and protect the rights of every person. In this way every person can seek refuge under the constitution. It is for this reason that the constitution is often referred to as the mirror” or “ soul” of the nation. It is useful to see the constitution as a full body mirror. It must reflect everyone without exception, including the poor and the marginalized. If it reflects only the image of the privileged then it is a constitution of only those people and not all the people.

 

A brief historical background
Botswana’s independence constitution was a product of negotiations between the colonial rulers and the nationalist leaders. It marked a symbolic end of colonialism and the ushering in of a republican state. Section 1 is the shortest and most profound section of the constitution. It declares that, “Botswana is a sovereign republic” That declaration marked a ringing and decisive break with the past feudal mode of governance that governed various communities that constituted the Botswana nation.At its minimalist conceptualization republicanism is an ideological commitment to liberty and a rejection of hereditary rulers at the helm of the state.

 

Botswana’s constitution is a classic post-colonial document that only entrenches civil and political rights. It is on the main modelled along the European Convention on Human Rights of 1950; that came into effect on the 3rd of September, 1953. As every historian and constitutionalist well knows, our constitution was not a product of any deliberation by the people. However, it is fair to say, that on the main, it has served us well in the last 50 years.

 

An imperative for change
There is no constitution that is perfect in the world. Even the constitutions considered amongst the best in the world such as those of South Africa, Malawi and Kenya have flaws. Botswana’s constitution is old and time barred. It must be fundamentally improved if it is to remain relevant to the aspirations of the people. Piecemeal amendments are not desirable if we want to position ourselves as a continental leader in democracy as we ought to be, and minimize the risk of the people disowning it as no longer relevant to their lives.Batswana now have a golden opportunity to correct the historical injustice of a constitution that was fashioned without their participation. The legitimacy of the constitution derives from being a product of the people. Contemporary constitutional making or reforms demands that the process be given as much importance as the content of the constitution. It is imperative that the process be as inclusive and participatory as possible; involving all stakeholders. This inclusive process engenders ownership of the constitution by the people.

 

What is to be done?
In this section I reflect on what needs to be done to fashion a constitution fit for the 21st century and the aspirations of our people. I submit that the constitution stands to be improved by effecting the reforms stated below. These can be summarized under 2 main points:

Point 1: A transformative bill of rights
Our constitution contains a generous suite of traditional civil and political rights. However, a possible improvement could be an addition of rights which protect and facilitate access to information, just administrative action, and access to the courts. These will help promote a humane, vibrant participatory democracy in which ordinary people are able to hold public and private actors accountable and responsive. It may be worth debating making the state a role model for society and demonstrate its own respect for human life and dignity by denying permission to take away the lives of criminals. The aspect of the Bill of Rights on equality and discrimination may be strengthened by increasing grounds upon which it is not permissible to discriminate and include grounds such as gender, marital status, disability, sexuality, health status; and make it clear that the list is an open one that leaves room for emergence of new grounds of potential unfair discrimination.

 

It may be necessary, going forward, to improve our bill of rightsby adding socio-economic rights. It is a matter of debate whether such rights must be progressively realizable subject to availability of resources or the state must be obliged to meet the minimum or core content of such rights. It seems to me that however formulated, it may be a progressive idea to render socio-economic rights justiciable. The rationale for including socio-economic rights on an equal basis to civil and political rights in the Bill of Rights has to do with the insight that rights are interrelated and interdependent; and that one cannot effectively protect one set of rights without also protecting the other. The old argument that only civil and political rights must be justiciable because they do not involve budgetary considerations is now widely discredited. Take as an example the right to vote and expenses that go into realizing that right. We do not want freedom without water, nor do we want water without freedom. We are obliged, as a nation, to do all we possibly can, to provide for all the fundamental rights and freedoms associated with a democratic society.

 

The application provision of the constitution must make it clear that the Bill of Rights applies to all law, binds the Executive, Legislature, the Judiciary and all departments of the state and applies vertically and horizontally. It must make it clear that when developing the common law or customary law, every court or tribunal must promote the spirit, purport and objects of the Bill of Rights. In other words, all forms of law must be subject to the transformative influence of the constitution.

 

A transformative Bill of Rights requires an intellectually transformed Judiciary. History teaches that an intellectually untransformed Judiciary is the gravest threat to a transformative ambition of the Constitution, as the debate in Kenya clearly demonstrates.

 

Point 2: Governance structure
Batswana must debate whether they want a stronger Executive or Parliament; issues of the direct election of the President; who should have the authority to dissolve Parliament, the President or the majority of parliamentarians? They must debate whether they want to give the President a blank cheque in appointing and dismissing ministers and other senior government officials; They must re-visit the nature, name and composition of the House of Chiefs and its functions. They must carefully delineate the power of the Judiciary in the broader constitutional scheme and decide what checks and balances they want to infuse into the Constitution. They must answer the question whether it is necessary to restructure the court system, have a unitary Judiciary headed by the Chief Justice or maintain the current set up where the court of appeal is headed by the Judge President? Do they want to have a constitutional court; do they want the President of the Republic to simply rubber stamp judicial appointments? They must debate what other oversight institutions they want to establish. Other countries have, Human Rights and Gender commissions, Office of Public Protector, Auditor General, Independent Electoral Commissions, Public Accounts Committee as constitutional creations. Do they also want a constitutional body overseeing the media and police or security agencies’ work?
With respect to oversight institutions, the Constitution may define their structure, composition and functions in a manner that ensures that there is no undue interference with their operations. An additional constitutional provision that any legislation, measures or conduct which undermines the essential purpose of accountability and transparency that the institution is designed to achieve must be declared nulland void by the courts may be helpful.

 

 

Batswana must debate whether they want separation of mandates between the Cabinet and Parliament and say whether they are happy with double loyalities to Cabinet and Parliament; whether they want a merit based system of appointment of the civil service including the head of the civil service. They must debate the electoral system they desire. A more inclusive formulation promotes stability and is in keeping with the modern trend. The choice of an electoral system depends on where you come from as a nation, and where you want to go. It is perhaps advisable that a constitution of the 21st century must entrench the right to free and fair elections. It is perhaps high time that the Constitution must recognize the basic rights and duties of political parties; which are currently not mentioned in our Constitution. The advantage of constitutionalizing their status is that they will come under public scrutiny at all times not just during elections.
The matter of distribution of power should be debated carefully. Issues of devolution of power to local governments are important as part of deepening democracy. This may result in the phenomenon of executive mayors for instance.

 

 

Conclusion
Space constraints did not permit an elaborate discussion on a number of important issues raised in this piece. The article makes the point that, in our context, constitution making is about improving our constitution that is clearly time barred; it is about strengthening the institutions that support democracy. The future of our country is predicated on the development of constitutional arrangements that guarantee a better life for all our people. In this article I pose a number of questions that are of grave import to our future. Our constitution must limit, but not paralyse, government in its operations.

 

 

The need to limit and control the powers of government, especially, the executive, has philosophical roots in the notions of democracy which emphasize that government has no right to govern, save with the consent of the governed. Botswana is a Republic. This means we have shifted away from traditional mode of governance. In traditional African societies power is perceived as personal, mystical and pervasive. The chief is a ruler who usually rules for life; often serving as judge, legislator, priest, rainmaker and more. We moved away from feudal mode of governance about 50 years ago. We must modernize or perish.

 

 

Oagile Bethuel Key Dingake read Law at the University of Botswana, in London and in Cape Town. He has been an admitted and practicing attorney of the courts of Botswana for many years. His career straddles academia, legal practice, the corporate world and the judiciary. He is an accomplished scholar and jurist and currently serves as judge of the High Court. Judge Dingake is an author of several books including Administrative Law in Botswana Cases, Materials and Commentaries(2008. He is the current Chairperson of the Law Reporting Committee. He was recently conferred with the status of “Extra-Ordinary Lecturer’ by the University of Pretoria.

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