The investment management firm Kgori Capital has admitted that the litigation concerning its former Managing Director (MD) and co-founder Bakang Seretse has resulted in loss of confidence and some business.
The firm this week availed one of its co-founders, Alphonse Ndzinge as the new Managing Director. The appointment follows the resignation by Seretse late last year after he and two others were dragged to court over allegations relating to money laundering.
To date, Kgori Capital says it has lost four clients, one of which has significant and currently has 15 institutional clients.
Addressing the media this week, Ndzinge said a number of lessons have been learnt from the national petroleum fund financial saga.
Ndzinge says whilst they are confident of a strong control and governance framework, they are in the process of engaging an independent firm.
“We have a dedicated Compliance Manager. This is just one of the many control and governance protocols we have in place internally,” said Ndzinge.
He further stated that Seretse is no longer under the employ of Kgori Capital, and thus has been removed from their shareholder registry, as their shareholder’s agreement states that shares will only be held by those that are employed by Kgori Capital. He added that they are exploring how shares previously held by him will be managed.
“Seretse has no involvement whatsoever with Kgori Capital. He has resigned as Managing Director. He has been removed from the Board as a Director. He has also been removed from the Shareholder list,” said Ndzinge.
While the loss of some mandates amongst them that of BPOPF is saddening, Ndzinge says their focus is on continuing to deliver excellence for their many reputable clients.
Ndzinge says as at the end of December 2017, the value of Kgori Capital’s Assets Under Management was at P5 billion.