As bad-blood continues to publicly play itself out between the BPOPF (Botswana Public Officers Pension Fund) on one hand and asset managers, CMB (Capital Management Botswana) on the other, details are beginning to emerge on how the BPOPF took sides with CMB against BPOPF management.
Internal papers seen by Sunday Standard indicate that BPOPF management was from the beginning uneasy about issuing P500 million to CMB but was overruled by the Board.
After accessing the P500 million, CMB came back to BPOPF to make a presentation the net effect of which was to get an additional P600 million.
This was after identifying new opportunities, which however could not be seized as there was a “funding shortfall.”
This too was rejected by BPOPF management because, as they put it the fund raising period had elapsed, “having expired 12 months after the First Closing Date”.
BPOPF thus told CMB that “due to expiration of the fund-raising period, the BPOPF cannot accede to the proposal for additional funding.”
CMB was further advised that if there was to be an extension of Fund Raising period, it had to be done by the Advisory Board and not BPOPF.
BPOPF further stated that if CMB is minded to pursue such a proposal, it had to be done through the Advisory Board.
“The BPOPF understands that a proposal for additional funding is intertwined with a proposal for extension of the funding-raising period and believes that it would be prudent that the parties adhere to the correct procedure as per the Partnership Agreement.”
Two weeks later, CMB wrote BPOPF management excitedly extolling their success with the Board.
“We are pleased to advise you that at a meeting of the Botswana Opportunities Partnership Advisory Board held on September 2016, a resolution was passed the effect of which is to extend the Final Closing Date of the BOP to November. The minutes of the meeting are attached for your reference. “
CMB then urged BPOPF to implement this decision.
“In our view, should the BPOPF be agreeable to increasing its capital commitment to the BOP, this may be effected by way of confirmatory letter from yourself to the BOP.”