The ongoing interrogations into multi-million pula Bluthorn Fund Managers (BFM) ‘ponzi scheme’ have revealed how former Assistant Minister of Finance Vincent Seretse may have been roped in to influence the licensing of the company with the Non-Bank Financial Institutions Regulatory Authority (NBFIRA).
Seretse was awarded “free” shareholding of the company while serving as Assistant Minister, with his name appearing on the Directors’ list, and prospectus of the company that was submitted to the regulator for licensing. Seretse would later resign as Director shortly after the successful application of the license sometime around 2016.
Seretse is listed as one of the founding directors of Exponent Asset Management Limited which subsequently changed its name to Bluthorn Fund Managers.
“Around 2013/14 I was approached by colleagues in the name of (Jeffery) Sibisibi and Eune (Engelbrecht) about forming a company and asking for my interest to be part of that company,” Seretse said during interrogations. “After some time, I agreed to be part of that company, which to my understanding was to be an asset company. And it interested me because we had few asset companies in the country. I then instead of putting my name as individual, put my company as a shareholder to that company Exponent.”
Seretse was Assistant Minister of Finance from October 2012 to March 2014. NBFIRA, an independent regulatory agency for the non-bank financial institutions, falls under the Ministry of Finance. He would later serve as Minister of Trade from November 2014 to March 2018. Asked about whether they invited Seretse because of his political influence one of BFM’s founding Directors Jeffery Sibisibi was at pains to justify the free shareholding awarded to the then Minister.
“What would you say if somebody said to you, you approached Mr. Seretse to be a director and a shareholder because you wanted political mileage for him to assist you with the license?” Asked Sipho Ziga (attorney for BFM liquidator Kopanang Tshekiso), to which Sibisibi responded “I don’t know about the political mileage part of it.”
Ziga followed up with another question. “A cabinet minister in your prospectus. And the prospectus is submitted to a regulator, it carries more weight than if it were me, for instance, who is a no-body appearing in a prospectus? Isn’t that correct?” Ziga asked Sibisibi if he genuinely did not believe that if they had a prospectus with a name of a cabinet minister in it, they would stand a better chance to be licensed than if they have somebody who’s not.
“If you recall, when you asked me how I know Mr. Seretse, I’ve never started by saying, I know him, because he was a minister. I said I know him because he was with BHC (Botswana Housing Corporation),” Sibisibi responded.
“So, you invited a cabinet minister to join you in your business, which was to be licensed by NBFIRA?” Ziga asked, to which Sibisibi responded “I invited the Minister to meet with Mr. Engelbrecht so that they could start the conversation.”
Seretse told the court he “remembered” filling some forms for NBFIRA although he said he did not remember if he was filing them in his capacity as a director of the company. Seretse would later receive payments from BFM for consultancy services. The prospectus he signed was lodged with NBFIRA indicating how the investments of the company were going to be done. Seretse was presented as a director to NBFIRA.While he said he did not recognize the name BFM and its subsidiaries, records indicated he received payments amounting to P100,000 over a period of four months for consultancy services.
“I did work for a company… called Practical Housing. I was invited to consult for them because they had an opportunity to introduce a new technology, modular housing from Germany. They called on me because of my knowledge in housing matters. So, it was basically to do the feasibility of that type of product in the market. I think I did that for about three months or so, if my memory serves me well, but in the end it did not materialize because of the challenges with the with the primary supplier because the capital was very high.”
Seretse said he had been engaged by BFM founder Engelbrecht and as such he assumed Practical Housing was his company.
Seretse could not explain why he received payment from companies (BFM subsidiaries) that he did not directly provide any services for. “In terms of the money arriving for me, I was not at liberty to know whether it’s coming primarily from Practical Housing. And I’m explaining to you that when I did check, when this process was unfolding, I was given an understanding that Bluthorn had responsibility or took on the responsibility of making payments for all work that is done for all companies.”
Asked by lawyer Kabo Motswagole (representing one of the investors, BOSETU) if he could produce invoices for the payments he received Seretse said they agreed with the company that he did not have to issue invoices for the services rendered.
“You showed up there and you made an oral agreement and you left? The agreed sum was not written anywhere? So, is there anything that we can… we can look at as evidence of your relationship with Practical Housing. Anything that is written except these payments we have?” Motswagole asked, to which Seretse responded “No”.
