The Botswana Public Employees Union (BOPEU) through its investment arm, Babereki Investment has turned the heat on its former President Andrew Motsamai demanding compensation amounting to more than P43 million.
Motsamai who is also a former Executive Chairman of Babereki Investment had slapped his former employer with a demand letter for more P2.1 million payment and interest at the rate of 10%.
Babereki Investment has issued a counter claim for more than P 43 million in counter claim from its former Executive Chairman.
Babereki which has so far paid Motsamai more than P1, 2 million states in court papers that it would have held back the money had it been aware of the “facts and circumstances” that emerged later.
“Had the defendant known, the payment would not have been made as it is very clear that the defendant’s counter claim far much exceeds the Plaintiff’s claim,” states Babereki.
The voluminous counter claim reads like a criminal offence manual. Babereki accuses Motsamai contravening Section 127 of the Companies Act during the period December 2016 and before by overriding the decisions of Babereki Investment as he allegedly acted without the approval of the Board in respect of various transactions that Babereki Investment engaged into with third parties.
In 2017, Babereki Board reportedly resolved to fire Motsamai allegedly over millions of pulas gone down the drain via multi-million investments at its subsidiaries, Future Sustain International and Fly Mission Services.
Babereki Investment states that during the period September 2016, Motsamai signed a letter of guarantee in favour of Boditse (Pty) Ltd for liabilities of Future Sustaining International (Pty) Ltd.
“The liability aforesaid which was purportedly for Babereki investment (Pty) Ltd the company to which the Plaintiff was Chairman was to a sum of two million Pula,” states Babereki.
In signing the guarantee, Babereki Investment says, Motsamai was not authorized by the board nor was such decision subsequently ratified by the Board.
“In consequence of the conduct of as aforesaid the defendant herein was sued by Boditse (Pty) Ltd based on the guarantees and the case is currently before Justice Terrence Rannowane. The conduct of the plaintiff as aforesaid was not only in breach of the Companies Act as detailed above but a breach of his fiduciary duty to the defendant herein,” states Babereki Investment.
Therefore, Babereki says it is entitled to claim from Motsamai for the sum of two million Pula, representing “the guarantee signed by the Plaintiff on behalf of the defendant fraudulently and or unlawfully and or without authority of the defendant’s board.”
In second counter claim, Babereki Investment argues that Motsamai during the period September 2016 signed a letter of guarantee in favour of Hi-Lift (Pty) Ltd for the liabilities of Future Sustain International (Pty) Ltd for the sum of I million and he was not authorized by the board.
“In consequence of the conduct as aforesaid the defendant here in was sued by Hi-Lift Pty Ltd based on the guarantee aforesaid,” says Babereki.
It says Hi-Lift subsequently obtained judgment and attached and advertised the property of Babereki but an application for rescission and stay is currently pending before Justice Rannowane.
Babereki says it is entitled to claim from Motsamai for a sum P1 million representing the guarantee signed by the Plaintiff on behalf of the defendant fraudulently or unlawfully or without authority of the defendant’s Board.”
In the third counter claim, Babereki states that during period September 2016, Motsamai signed a letter of guarantee in favour 3G Mobile Botswana Pty Ltd for the liabilities of Future Sustain for the sum of P1,5 million without authority of the board. Therefore Bababereki Investment is demanding P1, 5 million from Motsamai.
In the fourth counter claim, Babereki Investment states that during period September, it entered into a written agreement with a certain company called Mamataz (Pty) Ltd which was then represented by Ernest Molome. The terms of the agreement among others were that Mamataz shall raise capital for and on behalf of Babereki Investment and that a 3 percent facilitation fee of the capital raised shall be paid by Babereki Investment. During the period 2016, Mamataz raised a sum of P50 million in favour of Babereki Investment and was later disbursed into the account of Babereki Investment by Botswana Life.
Babereki Investment further states that the said amount entitled Mamataz subject to other conditions being met to a payment of a sum of P1,5 million representing 3% of the capital raised.
“The above notwithstanding, Mamataz (Pty) ltd were paid a sum of thirteen million one hundred and four thousand Pula representing an excess payment of eleven million six hundred and four thousand Pula,” say Babereki Investment.
In another counter claim, Babereki contends that during the period August 2017, Motsamai signed a loan agreement with Flying Mission Pty ltd purportedly on behalf of Babereki Investment for a sum of P7, 886 000.00
“Prior to the signing of the agreement aforesaid and more particularly in June 2017, the defendant’s Board of Directors had specifically resolved that all investments in Flying Mission Pty ltd be stopped,” said Babereki Investment.
Motsamai is also accused of failing to stop the payments of a total sum of P4 827 698.00 to Flying Mission without the authority of the Board and another total sum of P5 809 729.21 disbursed to the same company prior to the decision to invest was taken.
As a result Babereki Investment is claiming P4 919 769.88 from Motsamai.
Motsamai is also accused of allowing Babereki Investment to enter into an agreement with Quality Builders and authorized a payment of a sum of P8 million to the latter notwithstanding that the title deed in respect of the property being plot 76660 is not and has never been registered in the names of the acclaimed property developer Quality Builders (Pty) Ltd. Therefore Babereki Investment demands a payment of P8 million from Motsamai.
In another counter claim, court records state that in September 2017, Babereki Investment Board took a decision to reject a proposal funding by Bona Life.
“Notwithstanding this, the plaintiff communicate to Bona Life that there has been an approval. This was false. Based on the misrepresentation aforesaid an action was instituted by Unit of time Pty Ltd against Babereki Investment on a claim of a sum of P15 million allegedly for commission payment. The plaintiff together with the then Chief Financial Officer supported the claim against the defendant,” says Babereki. Therefore, Babereki is demanding P15 million from Motsamai.