Friday, December 2, 2022

Murdered South African businessman linked to Botswana financial scandal

A South African businessman who signed a multi million Pula contract with the government of Botswana that is at the centre of Directorate on Corruption and Economic Crime (DCEC) investigations was shot dead four months before his partners were charged with money laundering.

Documents passed to the Sunday Standard show that a meeting of the Board of Directors of Basis Points Capital held in Gaborone on 15th December 2015 resolved that Vusi Mhlanzi in his capacity as Managing Director of the company was authorised to sign the agreement between the Department of Energy and Basis Point Capital. He was shot dead in September this year in what the South African media suspected was a hit.

Vusi signed on behalf of Basis Points Capital while former Director of Department of Energy Kenneth Kerekang signed on behalf of the department. Kerekang has since been charged with money laundering alongside Vusi’s business partners, Bakang Seretse and Botho Leburu.

According to the resolution of the Basis Points Capital Board of Director, “The said Vusi Mhlalazi be and is hereby authorised , from time to time, to review this Agreement, renegotiate it with the Department of Energy and sign for any amendments and/or adjustments as may be agreed by the parties in accordance with the provisions hereof.”

The resolution further states “that in his or her sole and absolute discretion the said Vusi Mhlalazi be and is hereby authorised to appoint and mandate any representative(s) as may be necessary in consequence thereof.”

According to the Memorandum of Agreement between the department and Basis Point Capital, the latter was to manage monies due and received in respect of levies charged under the Control of Goods, Price and other Charges (Petroleum Products (Levy) Regulations and from other sources.

Basis Points Capital was also to operate current and call accounts as necessary to allow for payments of daily activities of the National Petroleum Fund (NPF) which mostly cover maintenance costs of the two government strategic deposits.

Basis Points Capital was also expected to invest monies of NPF in investments as directed by the National Petroleum Committee to ensure that the funds are kept fully invested at maximum rates available in the market at all times.

It was also to ensure payment of all expenditures of the NPF including its auditors as authorised by the National Petroleum Committee and prepare and submitting monthly statements of transactions and of final accounts on quarterly basis to the client (department of energy) through the National Petroleum Fund Management Committee.

The department paid Basis Points Capital P15 million.


Read this week's paper