P49 million: Mupane owe workers 

Botswana Mine Workers Union (BMWU) has pleaded with government to order Mupane Gold Mine-a citizen owned company currently under liquidation, to pay workers a cumulative debt of P49,117 ,932.00 in unpaid salaries, terminal benefits, and retrenchment packages. 

BMWU president, Joseph Tsimako said on Monday that out of the P49 million owed to employees P14, 437,645.26 million is owed to unionised members worked for the company. He said other creditors include Government and its State-Owned Enterprises (SOEs) being Botswana Unified Revenue Service (BURS), Botswana Power Corporation (BPC) and Water Utilities Corporation (WUC). He said Mupane Gold Mine is a beneficiary of Citizen Economic Empowerment Programme (CEEP), hence there is a need for government to closely monitor developments at the mine. 

According to Tsimako, financial mismanagement and other liabilities made the company insolvent. “The company was initially placed under provisional liquidation, however the Directors started disposing off the mine assets whilst proceedings against the company were pending before the High Court,” he said. 

Tsimako said the union intervened swiftly, interdicting these unscrupulous Directors from dissipating the assets of the estate and securing them for payment to creditors, particularly the workers as preferential creditors.

Meanwhile, Tsimako said the issues started when Mupane Gold Mine sale was announced. He said the union flagged the merger notice and sale of Mupane Gold Mine at the Competition Authority, Ministry of Trade and Industry and Ministry of Minerals and Energy. 

He explained that a public interest third-party notice was filed with the Competition Authority objecting the sale of Mupane. “Our position is that Mupane Gold Mine or Hawks Mining, a citizen owned Company, was a beneficiary of the Minerals Policy and Citizen Economic Empowerment Policy (CEEP). The liquidation of Mupane Gold Mine is an indictment on government’s policy on citizen economic empowerment and inclusion in the Botswana mining industry and its value chain,” Tsimako emphasized. 

Furthermore, Tsimako said they are disappointed with the sluggish response, and note the lack of capacity and inefficiency of mining regulatory institutions in their enforcement laws and policies against foreign and particularly citizen owned mining companies. He said Mupane Gold Mine’s failure is indicative of the glaring gaps in the implementation and monitoring of CEEP and Minerals Policy. 

Tsimako also said to achieve economic transformation through the mining sector requires a multi-pronged and multi-stakeholder approach, which is inclusive of the union. 

“Whilst financial mismanagement and non-compliance with business ethics was a major factor in the liquidation of Mupane, the Union propose a business rescue scheme or scheme of compromise which includes a setting off of all liabilities especially those owed to Government,” he added. 

Alternatively, he pointed out that these liabilities can be converted to equity in the company with the new owner to pay them off through profit splits. The Patriot on Sunday could not verify claims made by BMWU as efforts to reach Mupane Directors to give them an opportunity to respond failed by the time of going to print.