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The Botswana directorate of public prosecutions has once again failed to stop a South African-based Malawian businessman from accessing his money.
But it scored a partial victory this week when the Botswana Court of Appeal in Gaborone granted it leave to appeal a Lobatse High Court decision that granted Simbi Phiri’s civil engineering company, Khato Civils, access to its money pending an investigation into money-laundering.
Khato Civils headquarters are in Midrand, and Phiri has been establishing a branch in Gaborone, Botswana.
The directorate wanted the court of appeal to rule that Khato Civils should not access its money until the appeal into the matter was heard and finalised.
Phiri successfully applied for a variation order – which allowed his company access to its cash – after the Botswana anti-corruption unit, the Directorate on Corruption and Economic Crime, obtained a restraining order in April 2016 that froze Khato Civils accounts pending an investigation on money-laundering charges.
The directorate decided to investigate Phiri after he deposited $886 000 (about R11.8 million) cash from South Africa into the Stannic Bank account of Khato Civils.
The directorate alleged that Phiri did not declare $86 000 of the amount at the border gate. They also alleged that Phiri entered Botswana on July 26 2015 and declared $300 000, but deposited $500 000 in the bank.
Phiri insisted that it was an oversight on his part to under-declare but there was nothing underhanded, because he took the money legally from forex agencies in South Africa and had documents to prove it. Hence, there was no criminal case against him in South Africa.
Justice of Appeal, Isaac Lesetedi, granted the director of public prosecutions, Advocate Abraham Keatshabe, leave to appeal on Tuesday because there seemed to be “clear gaps” in the Lobatse High Court’s decision.
“The applicant [director of public prosecutions] is granted leave to appeal [but] the application for stay of the execution of the variation order is refused”, Judge Lesetedi ruled.
The judge also ordered the Lobatse High Court to carry out comprehensive analysis of factors in variation applications.
Directorate on Corruption and Economic Crime spokesperson, Nlayidzi Gambule, did not respond to questions emailed to him yesterday.
The directorate has until the end of June to finalise its investigation on money-laundering against Phiri, according to the Lobatse High Court’s ruling.
Phiri believes that his company was being frustrated from being awarded tenders through the court processes.
“They keep on doing these things. I’m happy that we can still apply for more money to establish the company in Botswana”, he said.
Phiri said the directorate targeted him because he refused to give shares in Khato Civils Botswana to his cousin, Kagiso Makgekgenene, who is married to deputy director-general of the directorate, Botlhale Makgekgenene.
Khato Civils has a contract to deliver the R2.2 billion presidential water project in Limpopo’s Mopani district.
The company also has a $500 million water contract in Malawi.
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