The Botswana Stock Exchange Listed Botswana Insurance Holding Limited is caught up in the ongoing investigations against Botswana Insurance Company.
BIC and its holding company TA Holdings are part of Zimbabwe’s President Emerson Mnangagwa’s alleged oligarch, Shingai Mutasa’s huge empire.
Seven years ago, Mutasa’s Masawara Plc bought TA Holdings which was listed on the Zimbabwean Stock Exchange and took it out of the public glare, enabling the BIC holding company to carry out its business in secrecy.
The de listing of the company from the Zimbabwean stock exchange in 2015 meant BIC did not have to disclose its related party transactions as per requirements of the Zimbabwean bourse.
Sunday Standard can however reveal that BIC is a subsidiary of the BSE listed BIHL which has disclosure obligations on related party transactions as a listed company. BIC alongside other alleged partners in crime, Hollard and Old Mutual are currently being investigated by the Consumer and Competition Authority and the Non-Bank Financial Institutions Regulatory Authority for suspected collusion and a range of other excesses.
It is on record that Botswana Insurance Holdings Limited Group (BIHL Group) as a listed entity with Botswana Stock Exchange (BSE) wholly owns subsidiaries Botswana Life, Bifm and Legal Guard. Associated companies include BIC-50 percent, FSG 36.6 percent, Nico Holdings Limited 25.1 and Letshego Holdings Limited at 26 percent.
With Competition Consumer Authority investigating BIC, it remains to be seen how BIHL will react to the findings of CCB and that of NBFIRA.
Sunday Standard can reveal that a number of panel beaters who gathered at Grand Palm Hotel had raised discomfort with some insurance companies especially directing them to buy parts only at a specific company preferred by Insurance Company.
During the meeting, the panel beaters revealed that it was very unfair to direct almost more than 25 or more panel beaters to buy parts only at Auto boys Pty Ltd and Claims Assessing service as they suspected the said companies were fronting for BIC and Hollard, their CEO’s or MD’s or some management of the said companies.
When responding to Sunday standard questions, Competition and Consumer Authority Spokesperson Gideon Nkala confirmed investigations against BIC, Hollard Insurance, and Old Mutual amongst others.
The Non-Bank Financial Institutions Regulatory Authority (NBFIRA, the authority confirmed this week that they were aware of Competition and Consumer Authority investigations the non bank financial institutions.
“The Authority is aware of the investigation by the Consumer and Competition Authority on the said matter. Separately, the Authority is addressing the matter from a governance perspective, ‘said Boa Ntebele
Ntebele revealed that, the Regulatory Authority has received some information, on the same issue following the recent media coverage. The information is currently being evaluated.
Ntebele, said, “the Authority takes with utmost seriousness the mandate to contribute towards the stability of the local financial system. This includes fostering high standards of business conduct amongst regulated entities as well as Market Conduct Regulation, whichprioritizes the protection of consumers by promoting the fair treatment of customers by regulated entities and averting/deterring abusive business practices within the NBFI sector,” said Ntebele
Ntebele further stated that they respect CCA investigation and will also be guided by the results thereof.The Regulatory Authority, therefore, does not condone acts of non-compliance, whatever their nature, once they have been verified and that there is a display of non compliance which includes market abuse and the flouting of corporate governance principles then action can be taken against such insurance companies.
Ntebele also said the Consumer and Competition Authority which has the mandate to address anti competitive practices in the economy is to be commended for their recent investigations into the said matter.
Asked if NBFIRA was aware that BIC CEO Newton Jazire is a director in a company called, Claims Assessing Bureau Proprietary Limited, which is a shareholder in Parts Portal Proprietary Limited, and that BIC has shareholding in Claims Assessing Bureau Propriety Limited and is directing penal beaters/clients to buy spare parts from Auto Boys (a company with shareholding at Parts Portal (Pty) Ltd. And if this does not amount to conflict of interest or violation of corporate governance?
NBFIRA said Jazire was approved as a controller by the Regulatory Authority in May 2018, afterfulfilling the requirements and at which time the Authority was not aware of any conflict of interest or failure to disclose information.
Parts Portal Proprietary Limited and Claims Assessing Bureau Proprietary Limited wereincorporated/or registered in 2019 and 2020, respectively. This was after Jazire was approved by NBFIRA as Chief Executive Officer of BIC.
“The business structure linking BIC, Parts Portal Proprietary Limited and Claims AssessingBureau Proprietary Limited has not been disclosed to nor approved by the Authority. Non-bank financial institutions are obliged to notify the Regulatory Authority forthwith of any events or circumstances that have occurred subsequent to their initial assessment of fit and proper person that might change the assessment or at least have a material bearing on it, ”said Ntebele
Sunday standard can reveal that section 25 and 27(1) of the CCA tribunal determines that where a breach of the aforementioned has occurred, the Tribunal shall give an enterprise or enterprises involved in any of the activities prohibited by section 25 and 27(1) such direction as are necessary to bring the breach of the prohibition to an end, including a direction to terminate or modify the agreement in question if it is still in force.
The section further reads, the Tribunal may, in addition to, or instead of giving a direction make an order imposing a financial penalty on the enterprise and should not exceed 10 percent of the turnover of the enterprise during the breach of the prohibition up to a maximum of three years.
