Friday, August 12, 2022

Businessman slaps BOCCIM president with a P20 million lawsuit

The president of the Botswana Confederation of Commerce Industry and Manpower (BOCCIM) is being sued for over P20 million by a partner in a company called Systems and Services Engineers (Pty) Ltd.
Letlhogonolo Monchusi is being sued in his personal capacity as Managing Director and so is the company for a litany of business losses suffered by Mosalagae Motshwane who, according to three High Court rulings, is the majority shareholder in Systems and Services Engineers (Pty) Ltd.
Monchusi was elected BOCCIM President in June last year after beating former Barclays Bank Botswana Chief Executive Officer, Thuli Johnson.

To this end, Judge Newman has ordered Monchusi to produce ten company documents beginning 2005 for the benefit of Motshwane.

Motshwane’s documents before the courts show that Monchusi, the managing director, failed to play by the rules of the game for several years and was in breach of the company’s memorandum and articles.

This was after the two directors had irreconcilable differences and Motshwane sold 52 shares to Monchusi.

The two entered into a Memorandum of Agreement on 26 February 2007 but had different interpretations on various clauses of their agreement, causing a stalemate.

In 2008, Monchusi was dragged before the courts by his partner, forcing him to convene a meeting to discuss the affairs of the company – an order that was granted by Judge Steven Gaongalelwe in the absence of Monchusi. When he was served with the order, the BOCCIM president applied to the court to have it set aside but the application was dismissed and a similar order was issued by the High Court.

On 19 June 2009 Monchusi filed another appeal against the two rulings of Judge Gaongalelwe out of time before Justices Twum, Howie and Lord Abernethy but once again it was dismissed with costs.
Monchusi said Friday that his company had settled the matter with Motshwane.

“We have paid Mr. Motshwane in accordance with the court orders the balance of P549, 984, which he was owed. By making other demands, he is trying to find technicalities. We interpreted things as we saw fit,” the BOCCIM president said.

Monchusi said the rest of the demands made by Motshwane are “not real but imagined”.

Through a court order granted by Judge David Newman, the aggrieved director demands to inspect the company’s Accounts and Books of Entry starting January 2006, Financial Statements starting from 2005, Bank Statements of all accounts operated by the company starting January 2007, Annual reports starting 2006, Tax Returns starting 2006, Balance Sheets starting 2006, Income and Profit and loss accounts Starting 2005, Declaration and Payments of Dividends, Directors Interest Register and Share Register.

Motshwane’s court documents show that chief among his business losses was wrongful omission from the share register caused by Monchusi, which would have shown that he is the majority shareholder in the company with 52 percent shares. As a result, he is demanding P10 million (P10 445 944.60) in damages from the BOCCIM president in his capacity as director for breach of agreement of 26 February 2007. The amount has been calculated as 52 percent of amounts Monchusi did not disclose.

Added to this amount, he demands P100 000 as interest on undisclosed amounts. He still has to pay P150 000 for Motshwane’s 52 percent share on amount set aside for creditors as per company culture.
Further, the BOCCIM President is being sued for over P3.6 million as money that would have accrued to his partner as dividends for the period 2005 and 2010 plus interest.


Read this week's paper