Molebatsi denies fraud allegations
Mpho Mokwape | Monday April 8, 2024 06:00
The Minister, however, has vehemently denied all accusations levelled against him. Molebatsi, who is also the Member of Parliament (MP) for Mmadinare, is accused of being a 'fraudster' and 'costing' one businesswoman, Ethel Gampone, P1.8 million she allegedly paid for the said shares.
According to court papers filed before the Gaborone High Court on March 27, 2024 by the aggrieved businesswoman, Molebatsi, who is cited together with a company called Afritech Deports Proprietary Limited, allegedly entered into a contract with Gampone in 2018 in relation to shares for the same company.
He was reportedly the director of the company at the time the contract was signed and he had received the full amount through through the company from Gampone. Gampone’s particulars of claim and cause of action against the Assistant Minister is that he is a liability for fraud/reckless conduct of business because he willfully misrepresented himself to his partner and committed fraud. In claim A, being the principal claim, is that on September 5, 2018 a contract was signed by Molebatsi with Gampone for a sale of 10% shares of the Afritech company valued at P1, 800, 000.
“A full payment of the above amount was executed by Gampone to Molebatsi. This was despite existing preconditions in the agreement to doing so, which were not followed due to Molebatsi indicating to personally be bound to the transaction,” reads the court papers. Accordingly the Assistant Minister is accused of willfully misrepresenting to his business partner, Gampone that the Afritech company had secured profitable business and motivated a small 10% share to be at the hefty valuation of P1.8m. Gampone alleged that Molebatsi willfully misrepresented that there was finalisation of an agreement in favour of the company in a Radisele Storage Tank Project and that there would be written confirmation of securing four hectare land in respect of the Project all in favour of the company. “In contrast, none of the above took place despite Molebatsi being in full receipt of the P1.8m,” said Gampone. She said shockingly, the MP then proceeded on November 30, 2021 to cease to be a director of Afritech secretively. Gampone pointed out that the behaviour was further perpetuation of the fraud by Molebatsi as there was no brief or handover of project to her on his ceasing to be the director, or any suggestion that the company was continuing with the contract and more importantly, the Radisele Storage Tank Project.
Gampone maintained in her court claim that at all times Molebatsi secured the funds, he stated in the matter under willful misrepresentation and implemented his scheme by deliberately proceeding to falsely market the company as having a new business that inflated its share price and exiting the company as a director. “I therefore, maintain that the agreement entered into in relation to this matter were all a ruse orchestrated by Molebatsi and should therefore be declared void as I would not have entered the contract if the company was not marketed in the manner it was at the instance of the Assistant Minister,” she said. According to claim B, which is the alternative claim, the businesswoman further maintained that Molebatsi has fraudulently or recklessly conducted business, premised on a lie and is personally liable as per the Companies Act.
He is said to have to be liable because he purported to sell shares which he did not own, he personally received the entire P1.8m before mischievously withdrawing as director of the company when he still had outstanding obligations to the client and that by personal receipt and disposal of the funds for personal purpose instead of company purposes is patent indicator that the funds were secured from the business partner under false pretences. “Despite lawful demand, Molebatsi has failed or neglected to make payment of the above fraudulently procured funds back to me,” Gampone complained. In conclusion, the businesswoman in the relief she seeks, wants the purported contract entered into by her and Molebatsi be declared void on the basis of his fraud, that Molebatsi be personally ordered to pay her back the sum of P1.8 with interest thereon at 10% per annum and the costs of suit. The MP has been given 14 days to defend the suit. In his response to allegations of wilful misrepresentation, fraud and reckless conduct in relation to an agreement signed between him and the plaintiff, Molebatsi vehemently denied allegations levelled against him.
His explanation is that, 'I was looking for a partner to assist in financing the project preparation stage of a fuel bulk storage facility project. The Plaintiff expressed interest in participating in the project by way of purchasing 10% shares of the company, Afritech Depots (PTY) Ltd. The parties went through a negotiation process facilitated by the defendant and the plaintiff lawyers. The assumption is that the plaintiff did a comprehensive due diligence exercise on both the first and second defendant before committing to the project.' He further avers that any investor takes the responsibility to ascertain the security of their investment and does not wait for five years to complain that there has been fraud and reckless conduct in the investment she is participating in. He observed: 'The statement that the first defendant made wilful misrepresentation, fraud and reckless conduct in relation to an agreement signed between the two parties is defamatory and does not represent the intentions of the defendants in dealing with the plaintiff in this project.' Molebatsi further explained: 'As a willing buyer who had expressed interest in the project, the plaintiff was given all the documentation describing the project. The plaintiff was made aware that the first defendant was raising funds to pay for activities relating to the development of the project and hence was looking for an Investor to raise funds in exchange of 10% shares in the project. The activities that required funding included: completion of EIA studies, feasibilities studies, technical reports and preliminary designs, consultancies on making application of licenses from the Energy Regulator and market analysis studies.
From the onset there was transparency in dealing with the plaintiff.' Molebatsi is insistent that the decision to resign as a director and shareholder in Afritech Depots and other companies was made in good faith and was done considering best practices of corporate governance. 'I took the responsibility to inform the plaintiff that I had taken a decision to step aside from participating actively in the business in order to protect the integrity of both the company and its directors and shareholders including the plaintiff. Basing on good legal advice and adhering to good corporate governance international practices, he explained.
He added: 'I took a decision to resign from all the companies that I was actively involved in and was likely to offer government goods or services. The decision to resign from Afritech Depots came after being appointed to Cabinet. As a Cabinet minister I am expected to advice Cabinet and the President on issues relating to the petroleum Industry and as a way of promoting and reinforcing integrity and accountability in public office, the defendant took a decision to resign. I felt I would be compromised when Cabinet took policy decisions on matters relating to the sector. This decision was communicated well to the plaintiff,' further reads Molebatsi's explanatory letter.