How Kgafela ‘ate’,madi a morafhe

Confidential FNB statements reveal how millions of Pula from Moruleng flowed into Bakgatla tribal leader, Kgafela Kgafela II personal account, writes BG REPORTER, NTIBINYANE NTIBINYANE.

A trail of evidence seen by Botswana Guardian reveals highly improper financial transactions from Bakgatla-Ba-Kgafela Royal Trust account to Bakgatla tribal leader, Kgosi Kgafela’s personal account.

New and dramatic disclosures from the First National Bank of Botswana (FNBB) and Stanbic Bank of Botswana show in detail daily financial transactions between the royal trust and Kgosi Kgafela. The transfer exceeds P4 million and is allegedly subject of intense Botswana Unified Revenue Services (BURS) surveillance.

Statements from the FNB would have formed the central source of the wrangle between Kgafela and his royal uncles in Moruleng. Kgafela was late last year granted South African citizenship after avoiding authorities in Botswana on charges of unlawful flogging and avoiding arrest. He denies the charges saying they are politically motivated.

According to statements seen by Botswana Guardian Kgafela made at least 72 separate transfers from tribe’s account into his personal account between May 2012 and October of the same year. At a time when he challenged the legality of the constitution, Kgafela was also transferring millions of Pula into his FNB account at Broadhurst Industrial.

Take for example on the 19th May 2012 and 19 June 2012 when he made a total of 18 transactions which resulted in more than P1.3 million flowing into his account No. 62258450974 in a space of 30 days. It is not clear whether Kgafela used the funds for personal use or for the wellbeing of the tribe.

However, royal sources in Mochudi said Kgafela was the sole signatory to Bakgatla-Ba-Kgafela Royal Trust account. Repeated efforts to speak to Kgafela have been futile including sending questions through his associate, Victor Modimakwane in Rustenburg.

The frequency of the transfers also raises eyebrows. During the time when the transactions were made, Kgafela was having difficulties with authorities in Botswana. Documents seen by this newspaper show that in most cases when funds are deposited into the tribe’s trust account, immediately some were transferred into Kgafela’s personal account.

For example on the 22 March 2011 P1.5 million was deposited into the tribe’s trust account, but within a few hours some funds were transferred into Kgafela’s account. According to the statements millions of Pula were deposited into the tribe’s trust account at least quarterly following a December 2009 resolution by the Bakgatla-Ba-Kgafela Tribal Authority in Moruleng to carry the expenses of Bakgatla-Ba-Kgafela Tribal Authority in Mochudi with P5 million quarterly.

Further, the funds were to be used to cover Kgafela’s subsistence allowance, operating costs of the tribal authority and renovations of the tribal offices in Mochudi.

A topnotch lawyer Wycliffe Ernest Thipe Mothuloe was instructed to disburse funds to Mochudi through his law firm Mothuloe Attorneys. The FNB and Stanbic bank statements however show that besides Mothuloe, funds were disbursed by several other sources. On the 7th December an account of Lexshell- a company owned by Bakgatla in Moruleng transferred P1 621 621.62 to the tribe’s trust account at FNB Broadhurst Industrial.

It would appear Moruleng tribal leadership also had lapses in maintaining corporate governance. On the 13 July 2011 BBKTA head of corporate service Lorraine Masipa used her personal account to transfer P426.944.97 to Mochudi.

Meanwhile, according to the bank statement, Mochudi monthly salary bill hovered around P400 000. BURS refused to be drawn into the matter citing possible breach of confidentiality with its customers. “You wouldn’t want the public to know about your personal accounts and taxes, would you?” said an officer who pleaded not to be identified as she did not have authority to respond to newspapers. However,  efforts to get response from BURS management drew a blank.

A tax analyst said this week that if it is true that Kgefela used the money for personal gain, he could be prosecuted for corruption and tax evasion. “There is no evidence that he was paying tax. At least from these statements,” the analyst said. The penalty for avoiding Pay As You Earn (PAYE) includes freezing offenders bank accounts.

It’s all about the wheels

Botswana Guardian can further reveal with authority that a few months before the fallout with Kgosi Nyalala Pilane in Moruleng, Kgafela bought two vehicles for himself and his family with the help of Nyalala.

A separate document reveals that on the 9th July 2012 the BBKTA allegedly under pressure from Kgafela bought Toyota Hilux Double Cab at Intertoy Toyota for Kgafela valued at R 440 999.83. A few days later on the 19th July 2012 another vehicle Toyota Double Cab was purchased at Rustenburg Toyota for Kgosikgolo valued at P441 617.13.

According to a correspondence seen by this newspaper, BBKTA refuses to pay for Kgafela’s Hummer H3 that was taken for maintenance [by BBKTA] in Johannesburg sometime in 2012 after it broke down. Kgafela’s royal Uncle Ramono Linchwe made a plea to BBKTA’s Kobedi Pilane to pay for the luxurious vehicle.

“Each day the vehicle sits at garage (sic) attracts costs and other risks. The BBK has a duty to pay for the release of the vehicle delivered by them,” read Linchwe’s letter dated 31 October 2012.

Mochudi broke

According to sources close to BBKTA, the tribe has since ceased to fund Bakgatla in Mochudi. According to a resolution by BBKTA in 2009 Mochudi was to receive P5 million from Moruleng at least quarterly. Following the internal squabbles between Kgosi Kgafela and Kgosi Nyalala Moruleng has since ceased to fund Mochudi.

In a letter to BBKTA traditional chairperson Kobedi Pilane, Ramono Linchwe painfully discusses the implications of not funding Mochudi. “Presently, our Mochudi office is without funds and if this payment is stopped, staff will not be paid salaries end of November [2012]. They all have family and other dependents. Other detrimental consequences will naturally follow this unlawful action,” read a letter by Linchwe.

According to the letter the finance office had prepared papers to disburse the funds to Mochudi on the 8th October but some senior BBKTA officials refuse to release the funds.

“The money has not reached Mochudi office up to this date. What worries me a lot sir is that your office does not honour the resolution taken by the traditional council to finance Mochudi office in time.”  

In his brief response to the worried Linchwe, Pilane called for both Mochudi and Moruleng to convene a meeting to address their differences. He however did not give any indication as to whether Moruleng will continue funding Mochudi.