BPOPF terminates P3.9 billion contract with Kgori Capital

The Botswana Public Officers Pension Fund (BPOPF) has terminated the multi-billion pula asset management contract with Kgori Capital Pty Ltd. after one of its former directors Bakang Seretse was charged with money laundering.

Kgori Capital Pty Ltd, a bellwether in citizen empowerment in the grey haired industry, has, to date, managed domestic equities and fixed income on behalf of the P60 billion rich Fund.

Mr. Bakang Seretse

“Please take notice that the Board of Trustees of the BPOPF has taken a decision to terminate all its asset management contracts with Kgori Capital. The termination process has been initiated,” said BPOPF in a statement.

It was recommended that the equity portfolio be managed by Allan Gray while the fixed income portfolio be managed by African Alliance Botswana. A report leaked to the media revealed that the Investment and Risk committees had also suggested that the cash portfolio be managed in house.

Kgori Capital has fought tooth a nail to keep the mandate which was its bread and butter although it still manages other private funds. In a letter late last year, the relatively new asset management outfit presented itself as a victim of circumstances.

“At Kgori Capital, we take Corporate Governance extremely seriously. Any infringements of set policies are dealt with rapidly and with consequences. Issues such as non-disclosure of conflicts of interest are dismissible offences at Kgori Capital”.

Following the resignation of Seretse, Alphonse Ndzinge and Sharifa Noor were named joint executive managers of the company.

“Our shareholder’s agreement states that shares will only be held by those that are employed by Kgori Capital. Thus, we have already started the process of removing Mr. Seretse from our shareholders list; and At Kgori Capital, we take confidentiality extremely seriously”.

Seretse and his accused Botho Leburu and Kenneth Kerekang are currently on bail. It is alleged that the accused persons, between September, 05, 2017 and November, 27, 2017 in Gaborone, received over P250 million allegedly stolen from the National Petroleum Fund (NPF).

The Department of Energy has since withdrawn NPF funds from banks and investment institutions and proceeds of the Fund will now be deposited into the Government Remittance account held at Bank of Botswana.

“  ….. all commitments out of the Fund shall be routed through the Ministry of Finance and Economic Development for payment through the Government Remittance account. Meanwhile, the Security of Supply Margin shall be deposited into the Botswana Oil Limited account. These changes take effect immediately and shall remain until further notice”.