Former BAMB CEO, Morakaladi’s contract termination mismanaged- Report

An investigative report on ‘Maladministration, Corruption, and Fraud Allegations at BAMB’ has found how the Botswana Agricultural Marketing Board (BAMB) Board of Directors mishandled the termination of former CEO Leonard Morakaladi’s contract.

The report found that the Board’s actions created a legitimate expectation by Morakaladi to have his contract of employment extended by a further two years.

Morakaladi was employed through the direction of a letter from former Permanent Secretary in the Ministry of Agriculture Molefi Keaja in which he informed then Board Chairperson Dr Gloria Somolekae that the Minister had approved his appointment as the BAMB Chief Executive Officer (CEO) for a period of three years dating from March 1^st, 2018 to February 28, 2021.  Consequently Somolekae offered and signed a contract of employment, including a performance contract.

“On the 19^th of November 2020, upon recommendation of the Human Resources Committee and approval of the Board  on the 18^th July 2019, the Chairperson informed the CEO of the amendment of the contract of employment which extended the expiry date of the contract to 4 March 2023,” the ,report says, adding “On the 24^th of February 2021 the Acting Board Chairperson of the Board Ms Ruth Mphathi wrote a letter to the former CEO informing him that his contract expires on the 4^th of March 2021, and there was no reference to the Human Resources Committee recommendations or the Board Decision.”

In response, the report says, Morakaladi questioned the decision, and the Acting Board Chairperson Mphathi quoted Section 9 of the BAMB Act Which prescribes the approval of the Minister in the appointment a CEO. “In the letter the Acting Chair inaccurately claimed that the extension of the contract was a decision of the former Chair, disregarding the fact that there was documented recommendation from the Recruitment Committee and approval by the Board. It is clear from these events that the Board mismanaged the issue of the contract of the CEO and may have created a legitimate expectation on his part to have his contract extended by a further 2 years.”

As a consequence, the report recommends that matters relating to the appointment of a CEO should be channelled to the Minister of Agriculture at all times.

“The issue of the contract of the former CEO was grossly mismanaged by the Board. The former Chairperson of the Board had amended the CEO’s contract to expire in March 2023, following a recommendation by the Human Resources Committee and approval by the Board. Upon the expiry of her tenure as Chairperson, the Acting Chairperson reversed this decision and cited the BAMB Act on appointment of CEO being the prerogative of the Minister,” the report says in Conclusion. “There was, however, no reference to a Board discussion around the decision of the Acting Chairperson. This indicates that Board Members disregarded the law in deciding on this matter and may have implications of some Directors acting alone in decision making.”