MASITARA FORENSIC
Money Laundering and Fraud Investigators (Pty) Ltd
DRAFT REPORT:
INVESTIGATION INTO REIMBURSEMENT OF
CLIAMS AGAINST THE HUMAN RESOURCE
DEVELOPMENT FUND
17 November 2015
Tel: +267 3133123/7 | Fax: +267 7130 0571
Email: masitarar1@yahoo.com
P O Box 60026 | Gabarone | Botswana
Plot 5999 Magwading Ward, Tlokweng
17 November 2015
Dr Patrick Molutsi
Chief Executive Officer
Human Resource Development Council
Plot 60113
Block 7, Ext 48
Gaborone
Botswana
Dear Dr Molutsi
DRAFT REPORT: INVESTIGATION INTO REIMBURSEMENT OF CLIAMS
AGAINST THE HUMAN RESOURCE DEVELOPMENT COUNCIL
We attach herewith our draft report on the abovementioned forensic investigation conducted into the
concerns related to alleged fraudulent activities by certain service providers and related parties/entities.
We confirm that our report and the findings herein, are for the exclusive use of yourselves and your
appointed legal representative(s). We await your feedback before finalisation of the report.
Yours faithfully
Robert Masitara
Director: Masitara Forensic (Pty) Ltd
Directors: Robert Masitara | Poloko Masitara |
Masitara Forensic Money Laundering and Fraud Investigators (Pty) Ltd | Company Registration Number: CO 2013/3017
Reimbursement of claims against HRDC Fund
17 November 2015
INDEX
ANNEXURES
III
DRAMATIS PERSONAE
VI
EXECUTIVE SUMMARY
IX
DETAILED REPORT
1
1.
1
INTRODUCTION
1.1
2.
BACKGROUND TO THE HUMAN RESOURCE DEVELOPMENT FUND (HRDF)
SCOPE AND MANDATE
2.1
2.2
1
2
SCOPE
MANDATE
2
2
3.
LIMITATIONS OF SCOPE
3
4.
METHODOLOGY
4
5.
REGULATORY ENVIRONMENT
6
6.
HUMAN RESOURCE DEVELOPMENT COUNCIL:
7
6.1
6.2
7.
CLAIMS SUBMITTED
7.1
7.2
7.3
7.4
7.5
7.6
7.7
8.
THE HUMAN RESOURCE DEVELOPMENT COUNCIL (HRDC)
HRDC CLAIMS / REFUNDS
7
7
12
RE-SEALING BOTSWANA (PTY) LTD
3 PIN SOLUTIONS (PTY) LTD
THE LAND MANAGEMENT GROUP (PTY) LTD
SLYFIVE INVESTMENTS (PTY) LTD
GARGINGER FARMS (PTY) LTD
BOMATHU INVESTMENTS (PTY) LTD
CLEAR PLANET (PTY) LTD
12
17
20
27
32
37
42
GENERAL OBSERVATIONS AND RECCOMENDATIONS
ii | P a g e
49
Reimbursement of claims against HRDC Fund
17 November 2015
ANNEXURES
REF
DESCRIPTION OF DOCUMENT
BUNDLE 1
A
General limitations
B1
Copy of Pilane Holdings (Pty) Ltd company registration document
B2
Copy of change of name from Pilane Holdings (Pty) ltd to Re-Sealing Botswana (Pty) Ltd
B3
HRDC claim submitted by Re-Sealing Botswana (Pty) Ltd
B4
Bakani Fane Certificate
B5
Copy of Bakani Fani’s National Identity Card
B6
Copy of expenses attached to Re-Sealing Botswana (Pty) Ltd claim
B7
Bambino Training College Student Attendance Register – Bakane Fani
B8
Copy of proof of salary expenses incurred by Re-Sealing Botswana (Pty) Ltd
B9
Bambino Training College Student Attendance Register – Chungi Moswang
B10
Bambino Training College Student Attendance Register – Gladys Motau
B11
Bambino Training College Student Attendance Register – Lame Seikanelo
B12
Copy of affidavit – Bakane Fani
B13
Copy of affidavit – Chungi Moswang
C1
Copy of company registration – 3 Pin Solutions (Pty) Ltd
C2
Copy of HRDC claim – 3 Pin Solutions (Pty) Ltd
C3
Institute of Commercial Management Certificate – Aselepele Ntamo
C4
Copy of National Identity Card – Aselepele Ntamo
C5
Bambino Training College Student Attendance Register – Aselepele Ntamo
C6
Proof of expenses incurred by 3 Pin Solutions (Pty) Ltd
C7
3 Pin Solutions (Pty) Ltd Proof of salary – Aselepele Ntamo
C8
Bambino Training College Student Attendance Register – Ogomoditse William
C9
Bambino Training College Student Attendance Register – Steven Makabe
C10
Copy of affidavit – Ogomoditse William
C11
Copy of affidavit – Aselepele Ntamo
iii | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
REF
DESCRIPTION OF DOCUMENT
D1
Copy of company registration – The Land Management Group (Pty) Ltd
D2
Copy of HRDC claim – The Land Management Group (Pty) Ltd
D3
Institute of Commercial Management Certificate – Sithembile Retshepile Denda
D4
Copy of National Identity Card – Sithembile Retshepile Denda
D5
Bambino Training College Student Attendance Register – Sithembile Denda
D6
Proof of expenses incurred by The Land Management Group (Pty) Ltd
D7
The Land Management Group (Pty) Ltd proof of salary – Sithembile Denda
D8
Bambino Training College Student Attendance Register – Poloko Masolobane
D9
Bambino Training College Student Attendance Register – Kidoh Moatlhodi
D10
Bambino Training College Student Attendance Register – Nametsegang Pooyane
D11
Bambino Training College Student Attendance Register – Tiro Segole
D12
Bambino Training College Student Attendance Register – Tepo Baaikile
D13
Copy of affidavit – Nametsegang Pooyane
D14
Copy of affidavit – Kidoh Moatlhodi
D15
Copy of letter to the HRDC from The Land Management Group
E1
Copy of company registration – Slyfive Investments (Pty) Ltd
E2
Copy of HRDC claim – Slyfive Investments (Pty) Ltd (Lesego Gabanakgotla)
E3
Copy of HRDC claim – Slyfive Investments (Pty) Ltd (Dineo Dikgang)
E4
Copy of HRDC claim – Slyfive Investments (Pty) Ltd (Moemedi Galekhutle)
E5
Copy of HRDC claim – Slyfive Investments (Pty) Ltd (Lame Letsholo)
E6
Copy of HRDC claim – Slyfive Investments (Pty) Ltd (Lesego Moatshe)
E7
Copy of HRDC claim – Slyfive Investments (Pty) Ltd (Ishmael Ncube)
E8
Copy of affidavit – Ishmael Ncube
E9
Copy of affidavit – Moemedi Galekhutle
E10
Copy of affidavit – Lesego Gabanakgotla
BUNDLE 2
F1
Copy of company registration – Garginger Farms (Pty) Ltd
F2
Copy of letter from Mr Pilane to the Registrar of Companies
iv | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
REF
DESCRIPTION OF DOCUMENT
F3
Amended copy of company registration – Garginger Farms (Pty) Ltd
F4
Copy of HRDC claim – Garginger Farms (Pty) Ltd (Biotumelo Malatlhwe)
F5
Copy of HRDC claim – Garginger Farms (Pty) Ltd (Tebogo Segereisi)
F6
Copy of HRDC claim – Garginger Farms (Pty) Ltd (Emmanuel Ketlhohegile)
F7
Copy of HRDC claim – Garginger Farms (Pty) Ltd (Bakgang Maseko)
F8
Copy of HRDC claim – Garginger Farms (Pty) Ltd (Lebogang Tsiamo)
F9
Copy of HRDC claim – Garginger Farms (Pty) Ltd (Kenanao Moilwa)
F10
Copy of HRDC claim – Garginger Farms (Pty) Ltd (Orapeleng Motswere)
F11
Copy of HRDC claim – Garginger Farms (Pty) Ltd (Kabaneilwe Mongale)
F12
Copy of HRDC claim – Garginger Farms (Pty) Ltd (Tumelo Palai)
F13
Copy of affidavit – Kabaneilwe Mongale
F14
Copy of affidavit – Tumelo Palai
F15
Copy of affidavit – Biotumelo Malatlhwe
F16
Copy of affidavit – Orapeleng Motswere
F17
Copy of letter to the HRDC from Garginger Farms (Pty) Ltd
G1
Copy of company registration – Bomathu Investments (Pty) Ltd
G2
Copy of HRDC claim – Bomathu Investments (Pty) Ltd
G3
Copy of HRDC claim – Bomathu Investments (Pty) Ltd
G4
Copy of affidavit – Boingotlo Mooki
G5
Copy of affidavit – Tshepiso Mabaya
H1
Copy of company registration – Clear Planet (Pty) Ltd
H2
Copy of affidavit – Mr Josiah Murity
H3
Copy of HRDC claim – Clear Planet (Pty) Ltd (Food Safety)
H4
Copy of HRDC claim – Clear Planet (Pty) Ltd (Team Building)
H5
Copy of HRDC claim – Clear Planet (Pty) Ltd (Customer Service)
H6
Copy of affidavit – Hazel Sebolao
H7
Copy of affidavit – Ms Victoria Damane
v|Page
Reimbursement of claims against HRDC Fund
17 November 2015
DRAMATIS PERSONAE
Abbreviation
Description
INDIVIDUALS
Ms Damane
Ms Victoria Damane – Director: Funding, Human Resource Development
Council
Mr Edward
Mr Keabetswe Edward – Former Training Officer: Bambino Training and
Development Institute
Mr Fane
Mr Bakani Fane – Student: Bambino Training and Development Institute
Mr Kankwenda
Mr Appolinaire Kankwenda – CEO: Bambino Training and Development Institute
Adv Labuschagne
Adv Francois Labuschagne – Director: Nexus Forensic Services (Pty) Ltd
Ms Mabaya
Ms Tshepiso Mabaya – Student: Bambino Training and Development Institute
Ms Makhura
Ms Shelly Makhura – CEO: Clear Planet
Ms Malathwe
Ms Boitumelo Malathwe – Student: Bambino Training and Development
Institute
Mr Masitara
Mr Robert Masitara – Managing Director: Masitara Forensic (Pty) Ltd
Ms Moatihodi
Ms Kidoh Moatihodi – Student: Bambino Training and Development Institute
Dr Molutsi
Dr Patric Molutsi – CEO: Human Resource Development Council
Ms Mooki
Ms Boingotlo Mooki – Owner: Bomathu Investments (Pty) Ltd
Ms Mongale
Ms Kebaneilwe Mongale – Student: Bambino Training and Development
Institute
Ms Moswang
Ms Chungi Moswang – Student: Bambino Training and Development Institute
Mr Ncube
Mr Annel Brian Ncube – Accountant: Clear Planet
Mr Ncube
Mr Ishmael Ncube – Student: Bambino Training and Development Institute
Ms Ntamo
Ms Asalepele Ntamo – Students: Bambino Training and Development Institute
vi | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Abbreviation
Description
Mr Palai
Mr Tumelo Palai – Student: Bambino Training and Development Institute
Ms Ramaabya
Ms Jennifer Ramaabya – Registered owner of Clear Planet
Ms Sebolao
Ms Hazel Sebolao – Owner: Karabo Training and Development Institute
Mr Steyn
Mr Werner Steyn – Senior Manager: Nexus Forensic Services (Pty) Ltd
Mr Willcock
Mr Maitland Willcock – Manager: Nexus Forensic Services (Pty) Ltd
vii | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Abbreviation
Description
ENTITIES
Bambino Training
Bambino Training College - Botswana
Bomathu Investments
Bomathu Investments (Pty) Ltd (registration number CO 2014/3524)
Clear Planet
Clear Planet (Pty) Ltd (registration number 2013/5622)
Garginger
Garginger Farms (Pty) Ltd (registration number CO 2007/4275)
HRDC
Human Resource Development Council
Karabo
Karabo Training and Development Institute
The Land Management
The Land Management Group (Pty) Ltd (registration number CO
Group
2014/6238)
Masitara Forensic
Masitara Forensic (Pty) Ltd
Re-Sealing
Re-Sealing Botswana (Pty) Ltd (registration number CO 2001/3316)
Slyfive Investments
Slyfive Investments (Pty) Ltd (registration number 2009/8382)
3 Pin Solutions
3 Pin Solutions (Pty) Ltd (registration number CO 2014/4445)
viii | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
EXECUTIVE SUMMARY
Based on our review of available information as well as interviews that we have conducted we have made the following findings in respect of the allegations
raised:
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
Re-Sealing Botswana (Pty) Ltd (Section 7.1)
It is alleged that the claimant
The company (Pilane Holdings (Pty)
From evidence obtained during the investigation,
submitted fraudulent claims and that
Ltd) was initially registered on 16
Masitara Forensic conclude that:
it contain claims for full monthly costs
August 2001 but the name was on 16
Repudiate the claim received from Re-Sealing for
August 2010 changed to Re-Sealing
Attendance
Botswana (Pty) Ltd. The registered
information submitted by Mr Pilane to the HRDC
director is indicated as Mr Joseph
are fraudulent.
Pilane.
Mr Pilane (on behalf of Re-Sealing)
Masitara Forensic recommends that the HRDC:
registers
and
salary
advice
the re-imbursement of training fees.
Place the names of the company and its directors
on a defaulters list whereby any future claims
At least two of the students reflected on the
submitted by the company or any of its directors
claim submitted to HRDC were never employed
are declined.
by Re-Sealing Botswana (Pty) Ltd.
submitted a claim to the value of
In terms of section 341 & 348 of the Botswana
P152,350.00 to the HRDC for re-
The students paid for the training themselves
Penal Code , open a criminal case of forgery and
imbursement of training fees.
and Re-Sealing never refunded the fees.
uttering against Mr Keabetso Edward for falsifying
Mr Pilane submitted the claim to the HRDC with
Attendance registers (attached to the
claim as proof of training) is for various
periods, of which two falls outside the
the intention to defraud the HRDC in the
amount of P152,350.00.
the attendance registers and certifying it as true
and correct.
In terms of section 312 of the Botswana Penal
Code, open a criminal case of conspiracy to
defraud against Mr Keabetso Edward in that he
ix | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
claim period (1 April 2013 – 31 March
Mr Edward intentionally falsified (forged)
conspired with Mr Joseph Pilane to create
2014).
information on the attendance registers
fraudulent attendance registers to be used in a
fraudulent claim against the HRDC.
Mr Edward confirmed that he forged
the attendance registers and then
Open a criminal case against Mr Joseph Pilane for
intentionally and unlawfully,
certified it as a true copy.
o
Both, Mr Bakani Fane and Ms Chungi
In terms of section 348 of the Botswana Penal
Code, submitted a fraudulent claim to the
Moswang confirmed that they were
HRDC.
contacted by Re-Sealing and requested
to submit their CV’s, certificates and
o
Code, conspired to commit an offence.
proof of payment for the training fees
in order to be considered for positions
In terms of section 312 of the Botswana Penal
o
In terms of section 341 and 342 of the
at the company.
Botswana
Both, Mr Bakani Fane and Ms Chungi
information
Moswang
employees to be used in the fraudulent claim.
denied
having
any
Penal
in
Code,
respect
forged
of
the
salary
various
knowledge of the company and stated
that they never received any money
(salary or refund for tuition fees) from
the company nor were they employed
by the company.
x|Page
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
3 Pin Solutions (Pty) Ltd (Section 7.2)
It is alleged that the claimant
3 Pin Solutions was registered on 16
From evidence obtained during the investigation,
submitted fraudulent claims and that
April 2014, after the proposed claims
Masitara Forensic conclude that:
it contain claims for full monthly costs
period by HRDC had expired.
Repudiate the claim received from 3 Pin Solutions
Attendance
registers
and
salary
advice
The claim amounted to P149,600.00
information submitted by Mr Kgetse to the
(P37,400 per employee).
HRDC are fraudulent.
Whilst
3
Pin
Solutions
was
Masitara Forensic recommends that the HRDC:
only
registered on 16 April 2014, attendance
for the re-imbursement of training fees.
Place the names of the company and its
director(s) on a claimant’s defaulters list whereby
The students reflected on the claim submitted
any future claims submitted by the company or
to HRDC were never employed by 3 Pin
any of its directors are declined.
Solutions (Pty) Ltd.
In terms of section 341 & 348 of the Botswana
registers submitted as part of the claim
to HRDC, indicated that the alleged
The students paid for the training themselves
Penal Code , open a criminal case of forgery and
employees attended training during the
and 3 Pin Solutions (Pty) Ltd never refunded
uttering
period September 2013 to April 2014.
them the fees.
falsifying the attendance registers and certifying
Mr Kgetse submitted the claim to the HRDC
Mr Edward confirmed that he forged
the attendance registers and then
certified it as true copies.
against
Mr
Keabetso
Edward
for
it as true and correct.
with the intention to defraud the HRDC in the
In terms of section 312 of the Botswana Penal
amount
Code, open a criminal case of conspiracy to
of
P149,600.00
(P37,400
per
employee).
Both, Ms William and Ms Ntamo
Mr Edward intentionally falsified information on
confirmed that they were contacted by
the attendance registers.
defraud against Mr Keabetso Edward in that he
conspired with Mr Mogotsi Kgetse to create
fraudulent attendance registers to be used in a
fraudulent claim against the HRDC.
a company representing Re-Sealing
and requested to submit their CV’s,
Open a criminal case against Mr Mogotsi Kgetse
certificates and proof of payment for
for intentionally,
xi | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
the training fees in order to be
considered
for
positions
at
o
the
In terms of section 348 of the Botswana Penal
Code, submitted a fraudulent claim to the
company.
HRDC.
Both, Ms William and Ms Ntamo denied
having
any
knowledge
of
3
o
In terms of section 312 of the Botswana Penal
Code, conspired to commit an offence.
Pin
Solutions and stated that they never
o
received any money (salary or refund
In terms of section 341 and 342 of the
Botswana
for tuition fee) from the company.
information
Mr Kgetse confirmed that he was the
Penal
in
Code,
respect
forged
of
the
salary
various
employees to be used in the fraudulent claim.
director of 3 Pin Solutions but declined
to answer any questions in relation to
the company
The Land Management Group (Pty) Ltd (Section 7.3)
It is alleged that the claimant
The Land Management Group was
From evidence obtained during the investigation,
submitted fraudulent claims and that
registered on 2 June 2014, after the
Masitara Forensic conclude that:
it contain claims for full monthly costs
proposed claims period by HRDC had
expired.
Repudiate the claim received from The Land
Attendance
registers
and
salary
advice
information submitted by Mr Pilane to the HRDC
The claim amounted to P235,600
(P39,266.66 per employee) and was for
the reimbursement of training fees
Masitara Forensic recommends that the HRDC:
are fraudulent.
Management Group (Pty) Ltd for the reimbursement of training fees.
Place the names of the company and its
The students reflected on the claim submitted to
director(s) on a claimant’s defaulters list whereby
HRDC were never employed by The Land
any future claims submitted by the company or
Management Group (Pty) Ltd.
any of its directors are declined.
xii | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
allegedly
incurred
for
CONCLUSION
six
(6)
employees.
Whilst The Land Management Group
was only registered on 2 June 2014,
attendance
registers
and
payroll
RECOMMENDATION
The students paid for the training themselves and
In terms of section 341 & 348 of the Botswana
The Land Management Group (Pty) Ltd never
Penal Code , open a criminal case of forgery and
refunded them the fees.
uttering
Mr Pilane submitted the claim to the HRDC with
the intention to defraud the HRDC in the amount
of P235,600 (P39,266.66 per employee).
information submitted as part of the
against
Mr
Keabetso
Edward
for
falsifying the attendance registers and certifying
it as true and correct.
In terms of section 312 of the Botswana Penal
Code, open a criminal case of conspiracy to
claim to HRDC, indicated that the
Mr Edward intentionally falsified information on
alleged employees attended training
the attendance registers.
during
to
In respect of the letter addressed to HRDC
fraudulent attendance registers to be used in a
November 2013, June 2013 to January
(Annexure D15), this letter is an attempt to
fraudulent claim against the HRDC.
2014 and March 2014 to November
distance The Land Management Group from any
the
period
April
2013
2013 respectively.
defraud against Mr Keabetso Edward in that he
conspired with Mr Mogotsi Kgetse to create
impropriety.
Open a criminal case against Mr Pilane for
intentionally,
Mr Edward confirmed that he forged
The letter signed by Mr Makhura misrepresented
the attendance registers and then
his capacity in the company and is an attempt to
certified it as true copies.
defeat the investigation and enforcement of the
Penal Code, submitted a fraudulent claim to
misrepresentations made to the HRDC in the
the HRDC.
Both, Ms Poonyane and Ms Moathodi
o
In terms of section 348 of the Botswana
submission of the fraudulent claim.
o
confirmed that they were contacted by
In terms of section 312 of the Botswana
Penal Code, conspired to commit an offence.
a company representing Re-Sealing
and requested to submit their CV’s,
o
In terms of section 341 and 342 of the
certificates and proof of payment for
Botswana
the training fees in order to be
information in respect of the various
Penal
Code,
forged
salary
xiii | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
considered
for
positions
CONCLUSION
at
RECOMMENDATION
the
employees to be used in the fraudulent
company.
claim.
Both, Ms Poonyane and Ms Moathodi
Open a criminal case against Mr Makhura for
denied having any knowledge of The
intentionally,
Land Management Group and stated
that they never received any money
o
In terms of section 339 and 342 of the
(salary or refund for tuition fee) from
Botswana
Penal
Code,
submitting
the company.
fraudulent letter to the HRDC.
Mr Pilane confirmed that he was the
director of The Land Management
Group but declined to answer any
questions in relation to the company.
We
noted
that
Annexure
D15
mentions that the particulars used in
the
claim
are
a
result
of
a
miscommunication and clerical errors.
However, we need to point out that, in
light of the admissions made by Mr
Edward in relation to the forged
attendance
registers
which
were
completed for the particular students,
the
explanation
seems
to
be
xiv | P a g e
a
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
opportunistic and clearly an attempt to
distance
the
company
from
the
fraudulent misrepresentations made to
the HRDC.
We are of the view that the content of
the
said
letter
contains
another
misrepresentation insofar as it refers to
the students as “employees” (sic).
Mr
Makhura
signed
the
letter
(Annexure D15) in the capacity as
Director
whilst
the
company
registration documents (Annexure D1)
provide to us does not reflect his name
as a registered director.
Slyfive Investments (Pty) Ltd (Section 7.4)
It is alleged that the claimant
Slyfive Investments (Pty) Ltd was
From evidence obtained during the investigation,
submitted fraudulent claims and that
registered on 9 October 2009 in the
Masitara Forensic conclude that:
it contain claims for full monthly
names of Mr Mogotsi Kgetse and Ms
costs.
Refilwe Sethibe.
Slyfive
(cost
purchased
of
HP
P5,803.68)
Notebooks
from
Solutions, one of the claimants.
3-Pin
The claim amounted to P312,550 and
was for the reimbursement of training
Masitara Forensic recommends that the HRDC:
Repudiate the claim received from Slyfive
Attendance registers, salary advice information
Investments (Pty) Ltd for the re-imbursement of
and proof of expenses submitted by Mr Kgetse
training fees.
to the HRDC is fraudulent.
Place the names of the company and its
director(s) on a claimant’s defaulters list whereby
xv | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
fees allegedly incurred for six (6)
The students reflected on the claim submitted
any future claims submitted by the company or
employees.
to HRDC were never employed by Slyfive
any of its directors are declined.
Investments (Pty) Ltd.
Proof of expenses for stationary and It
equipment
Bomathu
were
obtained
Investments
Solutions
and
respectively
from
3
–
Pin
The students paid for the training themselves
Penal Code , open a criminal case of forgery and
and Slyfive Investments (Pty) Ltd never
uttering
refunded them the fees.
falsifying the attendance registers and certifying
both
companies being managed by Mr
Kgetse.
Mr Edward confirmed that he forged
the attendance registers and then
In terms of section 341 & 348 of the Botswana
Mr Kgetse submitted six (6) claims to the
against
Mr
Keabetso
Edward
for
it as true and correct.
HRDC with the intention to defraud the HRDC
In terms of section 312 of the Botswana Penal
in the amount of P312,550.
Code, open a criminal case of conspiracy to
Mr Edward intentionally falsified information on
the attendance registers
defraud against Mr Keabetso Edward in that he
conspired with Mr Mogotsi Kgetse to create
fraudulent attendance registers to be used in a
certified it as true copies.
fraudulent claim against the HRDC.
Ms
Ishmael
Galekhutle
Ncube,
and
Mr
Ms
Moemedi
Lesegon
Open a criminal case against Mr Mogotsi Kgetse
for intentionally:
Gabanakgotla all confirmed that they
were
contacted
by
a
company
o
representing Re-Sealing and requested
In terms of section 348 of the Botswana
Penal Code, submitted a fraudulent claim to
to submit their CV’s, certificates and
the HRDC.
proof of payment for the training fees
in order to be considered for positions
at the company.
o
In terms of section 312 of the Botswana
Penal Code, conspired to commit an offence.
xvi | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
o
They all denied having any knowledge
of Slyfive Investments (Pty) Ltd and
stated that they never received any
money (salary or refund for tuition fee)
In terms of section 341 and 342 of the
Botswana
Penal
Code,
forged
salary
information in respect of the various
employees to be used in the fraudulent
claim
from the company.
Mr Ncube confirmed that he never
received a notebook computer from
Slyfive Investments (Pty) Ltd as per the
proof of expense attached to the HRDC
claim.
Mr Kgetse confirmed that he was the
director of Slyfive Investments (Pty)
Ltd
but
declined
to
answer
any
questions in relation to the company.
Proof of expenses attached to the
claims from Slyfive (accompany of
which Mr Kgetse is a director and which
is based in Tlokweng) indicated that it
bought
stationary from Bomathu
Investments, a company domiciled in
Lentsweletau (and managed by Mr
Kgetse
xvii | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
Garginger Farms (Pty) Ltd (Section 7.5)
It is alleged that the claimant
Garginger
submitted fraudulent claims and that
registered on 24 July 2007. On 6 June
it contain claims for full monthly
2014, the Registrar of Companies
costs.
amended the records and removed Mr
Attendance registers, salary advice information
Farms (Pty) Ltd for the re-imbursement of
Garginger Farms paid rental to the
Pilane as director of Garginger Farms
and proof of expenses submitted by Mr Pilane
training fees.
(Pty) Ltd.
to the HRDC is fraudulent.
owner
of
Re-Sealing
and
Land
Farms
(Pty)
Ltd
was
Management Group (Plot 2488)
From evidence obtained during the investigation,
Masitara Forensic recommends that the HRDC:
Masitara Forensic conclude that:
Repudiate the claim received from Garginger
Place the names of the company and its
Mr Pilane submitted the claims to the HRDC
director(s) on a claimant’s defaulters list whereby
without the knowledge of Mr Omphimetse
any future claims submitted by the company or
Dintwe.
any of its directors are declined.
that Mr Pilane submitted the nine
The students reflected on the claims submitted
In terms of section 341 & 348 of the Botswana
claims to the HRDC for reimburdement
to HRDC were never employed by Garginger
Penal Code , open a criminal case of forgery and
of training fees without the knowledge
Farms (Pty) Ltd.
uttering
of Mr Omphitlhetse Dintwe.
The students paid for the training themselves
Given the involvement of Mr Pilane as
described and in the light of the totality
of the evidence it is reasonable to infer
and Garginger Farms (Pty) Ltd never refunded
The
claim
amounted
allegedly
for
to
the
training
P532,955
incurred
for
fees
and
was
nine
(9)
employees.
them the fees.
Mr Pilane submitted nine (9) claims amounting
to P532,955 to the HRDC with the intention to
defraud.
against
Mr
Keabetso
Edward
for
falsifying the attendance registers and certifying
it as true and correct.
In terms of section 312 of the Botswana Penal
Code, open a criminal case of conspiracy to
defraud against Mr Keabetso Edward in that he
conspired with Mr Mogotsi Kgetse to create
fraudulent attendance registers to be used in a
Mr Edward confirmed that he forged
Mr Edward intentionally falsified information on
the attendance registers and then
the attendance registers.
fraudulent claim against the HRDC.
certified it as true copies.
xviii | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
Four students confirmed that they were
contacted by a company representing
Re-Sealing and requested to submit
RECOMMENDATION
Annexure F17 was written purely to avoid
Open a criminal case against Mr Pilane for
further
intentionally,
investigation
and
detection
of
fraudulent activities and ultimately possible
prosecution.
o
their CV’s, certificates and proof of
In terms of section 348 of the Botswana
Penal Code, submitted a fraudulent claim to
payment for the training fees in order
the HRDC.
to be considered for positions at the
o
company.
In terms of section 312 of the Botswana
Penal Code, conspired to commit an offence.
They all denied having any knowledge
of Garginger Farms (Pty) Ltd and stated
that they never received any money
(salary or refund for tuition fee) from
the company.
o
In terms of section 341 and 342 of the
Botswana
Penal
Code,
forged
salary
information in respect of the various
employees to be used in the fraudulent
claim.
Despite writing a letter to the Registrar
of
Companies
removed
as
requesting
director,
to
Mr
be
Pilane
Open a criminal case with the view to determine
the identity of the author of Annexure F17.
confirmed to Masitara Forensic that he
was the director of the company but
declined to answer any questions in
relation to the company.
We
noted
that
Annexure
F17
mentions that the particulars used in
the
claim
are
a
result
of
a
xix | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
miscommunication and clerical errors.
However, we need to point out that, in
light of the admissions made by Mr
Edward in relation to the forged
attendance
registers
which
were
completed for the particular students,
the
explanation
seems
to
be
opportunistic and clearly an attempt to
distance
the
company
from
the
fraudulent misrepresentations made to
the HRDC.
The content of Annexure F17 does
not explain how the company came in
possession of receipts, certificates and
copies of the identity documents and
the
reasons
for
such
possession
especially in circumstances where the
students denied any involvement in the
company.
Mr Spokes Dintwe signed the letter
(Annexure F17) in the capacity as
Managing Director whilst the company
registration
documents
(Annexure
xx | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
F3)
reflects
the
name
CONCLUSION
of
RECOMMENDATION
Mr
Omphitlhetse Dintwe.
Bomathu Investments (Pty) Ltd (Section 7.6)
It is alleged that the claimant
Bomathu Investments (Pty) Ltd was
From evidence obtained during the investigation,
submitted fraudulent claims and that
registered on 27 March 2014 under
Masitara Forensic conclude that:
it contain claims for full monthly
registration number CO2014/3524 with
costs.
Ms Boingotlo Mooki as only director.
Bomathu Investments (Pty) Ltd, a
company domiciled in Lentsweletau,
Mr Kgetse requested Ms Mooki to use
supplied
Slyfive
Bomathu as vehicle to submit tenders.
based
Ms Mooki ordered an official stamp and
stationery
Investments,
company
a
to
Tlokweng
Repudiate the claim received from Bomathu
Attendance registers, salary advice information
Investments (Pty) Ltd for the re-imbursement of
and proof of expenses submitted by Mr Kgetse
training fees.
to the HRDC is fraudulent.
Penal Code , open a criminal case of forgery and
submitted by Mr Kgetse.
uttering
Mr Edward intentionally falsified information on
the attendance register.
Ms Mooki was not aware of the two
The students reflected on the claims submitted
claims
to HRDC were never employed by Bomathu
amounting
to
P217,610
submitted on her behalf to the HRDC.
In terms of section 341 & 348 of the Botswana
Ms Mooki was not aware of the claims
handed it to Mr Kgetse for use on the
various tenders he was submitting.
Masitara Forensic recommends that the HRDC:
Investments (Pty) Ltd.
against
Mr
Keabetso
Edward
for
falsifying the attendance registers and certifying
it as true and correct.
In terms of section 312 of the Botswana Penal
Code, open a criminal case of conspiracy to
defraud against Mr Keabetso Edward in that he
conspired with Mr Mogotsi Kgetse to create
The students paid for the training themselves
fraudulent attendance registers to be used in a
Bomathu Investments (Pty) Ltd nor has
and Bomathu Investments (Pty) Ltd never
fraudulent claim against the HRDC.
she ever been employed by the
refunded them the fees.
Ms Tshepiso Mabaya does not know
company.
In terms of section 312 of the Botswana Penal
Code, open a criminal case of conspiracy to
defraud against Ms Refilwe Sethibe in that she
xxi | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
Mr Edward confirmed that he forged
the attendance registers and then
Mr Kgetse submitted two (2) claims amounting
conspired with Mr Mogotsi Kgetse to create
to P217,610 to the HRDC with the intention to
fraudulent HRDC claim forms on behalf of
defraud.
Bomathu Investments for the reimbursement of
certified it as true copies.
Mr Edward intentionally falsified information on
Mr Kgetse acknowledged that he was
not
the
director
of
RECOMMENDATION
the attendance registers.
Bomathu
Investments (Pty) Ltd but confirmed
Refilwe Sethibe of Slyfive Investments (Pty) Ltd
that he was managing the company. Mr
was involved in the fraudulent submission of
Kgetse however declined to answer any
the claims on behalf of Bomathu Investments
questions in relation to the company.
(Pty) Ltd.
training costs.
Open a criminal case against Mr Kgetse for
intentionally:
o
In terms of section 348 of the Botswana
Penal Code, submitted a fraudulent claim to
the HRDC.
o
Refilwe Sethibe, a director of Slyfive
In terms of section 312 of the Botswana
Penal Code, conspired to commit an offence.
Investments (Pty) Ltd, co-signed the
claims submitted on behalf of Bomathu
o
Investments (Pty) Ltd.
In terms of section 341 and 342 of the
Botswana
Penal
Code,
forged
salary
information in respect of the various
employees to be used in the fraudulent
claim.
Clear Planet (Pty) Ltd (Section 7.7)
It is alleged that the claimant
Clear Planet (Pty) Ltd (Clear Planet)
From evidence obtained during the investigation,
submitted fraudulent claims and that
was registered on 29 May 2013 under
Masitara Forensic conclude that:
it contain claims for full monthly costs
registration number CO2013/5622 with
Masitara Forensic recommends that the HRDC:
Repudiate the claims received from Clear Planet
(Pty) Ltd for the re-imbursement of training fees.
xxii | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
Ms Jennifer Lame Ramaabya being the
Open a criminal case against Mr Annel Brian
The 20 people did receive training free of
only director.
charge.
section 341, 342 & 348 of the Botswana Penal
Despite the fact that the company has
Mr Ncube, with the intention to defraud the
not been transferred in the name of Ms
HRDC, fraudulently altered the claims which
Makhura, Clear Planet submitted three
were prepared by Ms Makhura.
claims for reimbursement of training
fees to the HRDC totalling P453,000.
Ncube for forgery and uttering as described in
Code.
In terms of section 388 of the Botswana Penal
Code, attempted to commit an offence to wit
Mr Ncube submitted the claims, which he
fraud.
fraudulently increased, to the HRDC.
This included training fees as well as
Mr Ncube intended to, when the claims were
transport fees.
settled by the HRDC, transfer the fraudulent
Mr Ncube submitted these claims on 30
portion of the claims to a private account which
March 2015 on behalf of Clear Planet.
he still had to open at a commercial bank.
Although
Ms Sebolao of Karabo and Ms Makhura
of Clear Planet confirmed that the
training did take place, but indicated
that the amount charged to Clear
the
arrangement
and
payment
between Ms Sebolao and Ms Makhura seem to
be suspect, we are unable to conclude, on the
available evidence, that Ms Makhura made
misrepresentations to the HRDC.
Planet was P40,000 (excluding VAT &
transport) per training event and not
P150,000 (excluding VAT & transport)
as indicated on the invoices attached to
the
claims
submitted
to
HRDC.
Students confirmed that they indeed
xxiii | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
received free training conducted at
Karabo.
Mr Ncube, an assistant to Ms Makhura
at Clear Planet, confirmed that he
intentionally and fraudulently altered
and reproduced the original invoices
from Karabo to reflect an increased
amount of P150,000 per training event
– in contrast to the original amount of
only P40,000 per event as confirmed by
Ms Sebolao.
Mr Ncube indicated that his intension
was to, as soon as the claims were
settled by the HRDC, transfer the
additional P330,000 (P110,000 per
training event) to a private account
which he still had to open at a
commercial bank.
HRDC Criminal Matter:
Based on the information obtained
from Mr Ncube, Ms Victoria Damane –
xxiv | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
Director: Funding, Human Resource
Development Council deposed to an
affidavit wherein she detailed the
information received from Mr Ncube.
The affidavit was used to open a
criminal case at the Botswana Police
against the conduct of Mr Ncube and
wherein
they
were
requested
to
investigate the matter further.
GENERAL OBSERVATIONS
From the investigation conducted, Masitara Forensic makes the following
GENERAL RECOMMENDATIONS
From the investigation conducted, Masitara Forensic makes the following general recommendations:
observations:
Should the HRDC not currently have a list of claim defaulters in operation, it should immediately introduce
Many of the telephone numbers of alleged students reflected in the claims
submitted to the HRDC by Re-Sealing (Pty) Ltd, The Land Management
Group (Pty) Ltd, Garginger Farms (Pty) Ltd, 3 Pin Solutions (Pty) Ltd, Slyfive
such a list.
Record should be kept of the various companies which submit fraudulent claims, it’s directors and their
respective identity numbers to ensure that they are barred from submitting future claims.
Investments (Pty) Ltd and Bomathu Investments (Pty) Ltd are not the
correct numbers of the various students but that of the company or the
The HRDC to investigate all previous claims submitted by Clear Planet (Pty) Ltd, Re-Sealing (Pty) Ltd, The
director(s) submitting the claims.
Land Management Group (Pty) Ltd, Garginger Farms (Pty) Ltd, 3 Pin Solutions (Pty) Ltd, Slyfive
Investments (Pty) Ltd, Bomathu Investments (Pty) Ltd and any of these companies’ directors.
Masitara Forensic is currently in possession of credible information
indicating that a syndicate was / is in operation with the intention to
The HRDC to conduct investigations on a sample of the remainder of claims submitted during the last
defraud the HRDC.
two financial years.
xxv | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ALLEGATION
FINDINGS
CONCLUSION
RECOMMENDATION
Given the links drawn between the different role players there is reason to
The HRDC to embark on a fraud awareness training for staff members who are involved in the evaluation
believe that the HRDC is being targeted by syndicates and that several
of claims submitted for the reimbursement of training fees.
more fraudulent claims have been submitted the past few years. The
existence of a syndicate or that different role players act with a common
The HRDC should consider implementing a fraud and risk plan in order to prevent the payment of
fraudulent claims and to ensure that payment is done in the correct bank account.
purpose is illustrated by the following:
The HRDC should also consider a review and analysis of payments made to claimants during the past two
o
The mere fact that Annexures D15 and F17 was sent as one document
financial years. This review should be focused on duplicate payments and bank accounts and links
to the HRDC on 3 November 2015 whilst it contains reference to
between directors and entities.
different entities.
The HRDC should also consider creating a database with a review mechanism with the particulars of all
students training courses, students and subsequent reimbursed claims in order to ensure that student
particulars are not duplicated by subsequent and independent claimants.
xxvi | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
DETAILED REPORT
1.
INTRODUCTION
1.1
Background to the Human Resource Development Fund (HRDF)
1.1.1
The Human Resource Development Fund (HRDF) is governed by the Vocational Training
Regulations of 2008 and the Vocational Training Levy of 2008 read with the provisions of the
Human Resource Development Council Act of 2013.
1.1.2
The purpose of the fund is to reimburse employers for the cost incurred in training of their
employees. The Council is mandated to allocate funds to special groups who are exempted
from VAT registration and hence they are not paying the levies. These special groups are
allocated funds from the HRDF based on submitting a valid claim substantiated by proof of
expenses (i.e. salaries, travel, meals, etc.).
1.1.3
Recently claims have been received from seven (7) companies that seems to be fraudulent.
These claims amount to P 2,136,915.00 which represents approximately 90% of the total
claims. The claims relate to training conducted at three different training institutions within
Botswana.
1.1.4
It is alleged that the claims were fraudulently submitted and contain claims for the full monthly
costs.
1.1.5
It is also established that these claims are linked in the following manner:
Garginger Farms paid rental to the owner of Re-Sealing and Land Management Group
(Plot 2488);
Contact cell numbers of Land Management trainees are the same as the cell phone
number of one Boitumelo who is a trainee from Ganginger Farms (73704844).
Slyfive purchased HP Notebooks (cost of P5,803.68) from 3-Pin Solutions, one of the
claimants.
Bomathu Investments, a company domiciled in Lentsweletau, supplied stationery to
Slyfive Investments, a Tlokweng based company.
More detail was supplied in the terms of reference but it is not repeated herein.
1|Page
Reimbursement of claims against HRDC Fund
17 November 2015
1.1.6
The investigation commenced on 21 October 2015.
2.
SCOPE AND MANDATE
2.1
SCOPE
2.1.1
The scope of the investigation included (but was not limited to) a review of:
Whether the companies exist and if they were operational during the claiming period;
The directorship of the companies;
Possible linkages between the seven companies under investigation (and any other
that may exist);
Whether the trainees are employees of the said companies;
Whether training was indeed undertaken;
Validity of the costs incurred by the companies;
Whether there is any collaboration between the companies and the training providers;
2.2
MANDATE
2.2.1
Our mandate included the following steps:
Obtain all claimants’ company registration documentation;
Review information reflected in claims and verify same with company registration
documentation;
Interview and obtain statements (where necessary) from students reflected in each
claim and verify employment and expenses reflected;
Interview and obtain statements from the owners of the three training institutions
reflected in the various claims and where necessary, obtain statements from these
individuals;
Interview and confront all claimants with information obtained; and
Draft a forensic report substantiated with the necessary evidence obtained during the
investigation.
2|Page
Reimbursement of claims against HRDC Fund
17 November 2015
3.
LIMITATIONS OF SCOPE
3.1.
This report is subject to our general limitations as per Annexure A.
3.2.
The scope of our work was limited to an inspection and analysis of the documentation and
information obtained during the investigation. We have not verified the validity or authenticity
of the relevant records or documentation provided to us, other than the instances explicitly
indicated in the report.
3.3.
We have not performed an audit or review of audit standards. We have attempted to include
all the available and relevant information that has a bearing on the findings. It is, however,
possible that information exists which was not provided to us or which we were unable to
locate. Any documentation or information brought to our attention after the release of this
report that could affect our findings will require an adjustment and qualification of the report.
3.4.
We experienced the following specific limitations of scope:
3.4.1.
During a meeting with Masitara Forensic, both Mr Olebile Joseph Pilane and Mr Mogotsi Kgetse
declined to answer any questions in respect of the companies they were associated with. As
a result, Masitara Forensic were unable to verify certain information (i.e. names and signatures
of people completing claims, etc.) in respect of the various companies.
3.4.2.
Ms Hazel Sebolao – Owner: Karabo Training and Development Institute, failed to provide
Masitara Forensic with training attendance records conducted for alleged employees of Clear
Planet.
3.4.3.
Ms Hirley Makhura, acting on behalf of Clear Planet, failed to provide Masitara Forensic with
copies of the payment to Karabo Training and Development Institute as well as proof of the
alleged property transaction between the two companies.
3.4.4.
Despite an undertaking by Both Mr Pilane and Mr Kgetse to provide Masitara Forensic with
responses to the various issues raised, at date of this report, no responses were received.
3|Page
Reimbursement of claims against HRDC Fund
17 November 2015
4.
METHODOLOGY
4.1.
We interviewed and/or obtained information and/or obtained affidavits(*) from the following
individuals:
NAME
Ms Victoria Damane
DESIGNATION
Director: Funding, Human Resource Development Council,
Botswana (*)
Mr Bakani Fane
Student: Bambino Training and Development Institute (*)
Mr Appolinaire Kankwenda
CEO: Bambino Training College (*)
Mr Keabetswe Edward
Former Trainer: Bambino Training and Development Institute
Ms Lesegon Gabanakgotla
Student: Bambino Training and Development Institute (*)
Mr Moemedi Galekhutle
Student: Bambino Training and Development Institute (*)
Ms Tshepiso Mabaya
Student: Bambino Training and Development Institute (*)
Ms Shelly Makhura
Owner: Clear Planet
Ms Boitumelo Malathwe
Student: Bambino Training and Development Institute (*)
Ms Kidoh Moatihodi
Student: Bambino Training and Development Institute (*)
Ms Boingotlo Mooki
Owner: Bomathu Investments (Pty) Ltd (*)
Ms Kebaneilwe Mongale
Student: Bambino Training and Development Institute (*)
Ms Chungi Moswang
Student: Bambino Training and Development Institute (*)
Ms Orapeleng Motswere
Student: Bambino Training and Development Institute (*)
Mr Annel Brian Ncube
Accountant / Assistant: Clear Planet
Mr Ishmael Ncube
Student: Bambino Training and Development Institute (*)
Ms Asalepele Ntamo
Students: Bambino Training and Development Institute (*
Mr Tumelo Palai
Student: Bambino Training and Development Institute (*)
Ms Nametsegang Poonyane
Student: Bambino Training and Development Institute (*)
4|Page
Reimbursement of claims against HRDC Fund
17 November 2015
NAME
4.2.
DESIGNATION
Ms Hazel Sebolao
Owner: Karabo Training and Development Institute (*)
Mr Ogomoditse William
Students: Bambino Training and Development Institute (*)
We obtained and reviewed the following source documentation
Claims submitted by the various claimants (7 companies)
Company registration documents obtained from the Registrar of Companies in
Botswana in respect of the seven (7) companies who submitted claims
Application forms for training submitted by the students – documents obtained from
the training service providers
Original Attendance registers of the various students who allegedly attended the
training at the various training facilities.
5|Page
Reimbursement of claims against HRDC Fund
17 November 2015
5.
REGULATORY ENVIRONMENT
5.1.
We reviewed and considered the following relevant legislation in our investigation:
Human Resource Development Council Act, Act no 17 of 2013;
Vocational Training (Reimbursement) Regulations, No 8 of 2008
Vocational Training Act, No 101 of 2008
Constitution of Botswana
Proceeds of Serious Crime (Amendment) Act, No 13 of 2000
Botswana Penal Code
Corruption and Economic Crime Act
Financial Intelligence Act, No 6 of 2009
5.2.
For the sake of brevity, we have not repeated the provisions of the legislation. Where relevant,
we have referred to the regulatory framework in the detail of the report.
6|Page
Reimbursement of claims against HRDC Fund
17 November 2015
6.
HUMAN RESOURCE DEVELOPMENT COUNCIL:
6.1
The Human Resource Development Council (HRDC)
6.1.1
The Human Resource Development Council is a parastatal under the Ministry of Education and
Skills Development, established by the Human Resource Development Council, No 17 of 2013.
6.1.2
The Human Resource Development Fund (HRDF) is a training fund which has been established
for skills development in Botswana. The fund is operated through a levy grant system where
companies pay a levy into the Fund and in return are refunded costs incurred for the training
of their employees.
6.1.3
Training programmes and trainers for which refunds are claimed by levy payers must be
accredited with the Botswana Qualifications Authority (BQA). The costs for non-accredited
training programmes can be claimed by companies as longs as the claimant obtained preapproval from the HRDF.
6.1.4
Training levies are based on the employer’s (a person registered or liable to be registered
under the Value Added Tax (VAT) Act) turnover. A company that accumulates an annual
turnover of over the current VAT threshold (more than P500 000 per annum) must pay the
training levy.
6.1.5
As per Section 5(1) of the Vocational Training (Reimbursement) Regulation of 2008, the
Council is mandated to allocate the balance of the Fund to special groups (i.e. groups that are
not paying levies because they are exempted from VAT registration but are allocated a
proportion of the remaining funds as stipulated in the Regulations.
6.1.6
Claimable costs include amongst others, tuition or trainer fees, stationary costs, trainee
salaries (prorated to the number of days in training) and travel costs.
6.2
HRDC Claims / Refunds
6.2.1
During the early part of 2015, the HRDC (via public notice) informed the public of a remaining
P31,556,981.20 in the HRDF at the end of 31 March 2014 and requested eligible employers
to submit applications for reimbursement of training costs, for consideration by the HRDC.
7|Page
Reimbursement of claims against HRDC Fund
17 November 2015
6.2.2
According to the public notice, claims had to be submitted by 31 March 2015 and had to meet
the following requirements:
Completion of a complete reimbursement form
Training to have been completed at a BQA accredited institution or pre-approved
HRDF training facility
The training should have been completed during the period 1 April 2013 to 31 March
2014
Proof of payments (original receipts) and invoices of costs incurred and paid for
training to be attached to claims
Certificates, transcripts of progress reports to be attached to claims as proof of
completions of programmes
Certified copies of attendance registers to be attached
Certified copies of Omang (ID) to be attached to claims.
6.2.3
Claims from seven companies were identified as possible fraudulent claims. Masitara Forensic
was mandated to investigate the claims submitted by the following companies:
Re-Sealing
3 Pin Solutions
The Land Management Group
Slyfive Investments
Garginger Farms
Bomathu Investments
Clear Planet
6.2.4
An analysis of the company registration information revealed the following links between the
companies under investigation.
Re-Sealing (Pty) Ltd, The land Management Group (Pty) Ltd and Garginger Farms
(Pty) Ltd are linked in the manner as depicted in Illustration 1 below.
8|Page
Reimbursement of claims against HRDC Fund
17 November 2015
3 Pin Solutions (Pty) Ltd, Bomathu Investments (Pty) Ltd and Slyfive Investments
(Pty) Ltd are linked in the manner as depicted in Illustration 2 below.
9|Page
Reimbursement of claims against HRDC Fund
17 November 2015
ILLUSTRATION 1
10 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
ILLUSTRATION 2
11 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
6.2.5
The claims received from these seven (7) companies are discussed in detail in the section
below.
7.
CLAIMS SUBMITTED
7.1
Re-Sealing Botswana (Pty) Ltd
Background
7.1.1
Pilane Holdings (Pty) Ltd (registration number CO2001/3316) was registered on 16 August
2001 by Joseph Olibile Pilane (Mr Pilane) (Annexure B1). During a special resolution and in
terms of section 34(4)(b) of the Companies Act, 2003, the name was changed on 16 August
2010 to Re-Sealing Botswana (Pty) Ltd (Annexure B2). Mr Pilane remained the director of
the company.
Claim submitted:
7.1.2
On 31 March 2015, Mr Pilane from Re-Sealing submitted a claim to the Human Resource
Development Council (HRDC) for training of employees who allegedly completed a course in
Health Safety Management at Bambino Training College (Bambino) during the period 1 April
2013 to 1 March 2014 (Annexure B3). The claim, which amounts to P152,350.00 indicates
that thefollowing four (4) employees attended training at Bambino:
Chungi Moswang
Gladys Motau
Lame Seikanelo
Bakani Fane
7.1.3
Attached to the claim were copies of the four employees’ training certificates, identification
documents, proof of training expenses, training attendance certificates and copies of salary
advices. For the sake of brevity, please find only an example of each document referred to,
attached and marked as Annexure B4, B5, B6 1, B7 & B8.
1
The copy attached is not clearly visible, but the name of Bakani is legible.
12 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.1.4
The claim indicates that the training was conducted during the period 1 April 2013 to 31
March 2014. However, an analysis of the Bambino attendance registers attached to the claim
from Re-Sealing indicate that the employees attended training on the following dates:
Name
Chungi Moswang
Gladys Motau
7.1.5
Period
Public Holidays
Annex
3 June 2013 – 31 January 2014
6 days
B9
4 March 2013 – 29 November 2013
7 days
B10
Lame Seikanelo
7 January 2014 – 29 August 2014
7 days
B11
Bakani Fane
1 April 2014 – 29 November 2014
8 days
B7
The attendance registers for Lame Seikanelo and Bakani Fane were thus outside the time
period stipulated in the public notice from HRDC.
7.1.6
Since the attendance registers were obtained from Bambino, Masitara Forensic conducted an
interview with Mr Appolinaire Kankwenda (Mr Kankwenda) – CEO: Bambino Training and
Development Institute. Mr Kankwenda confirmed that the signature which certified the
attendance registers was that of Mr Keabetswe Edward – Former Training Officer: Bambino
Training and Development Institute. Mr Kankwenda however denied that the attendance
registers were an official document from Bambino and stated that their attendance registers
contained all students’ names which attended a class during the same month.
7.1.7
Masitara Forensic contacted Mr Edward on 5 November 2015 and requested a meeting to
clarify the attendance registers. During the meeting, Mr Edward admitted to the investigators
lead by Mr Masitara, that he indeed forged the contents of the attendance registers and then
certified it. According to him, Mr Mogotsi Kgetse (Mr Kgetse) accompanied by Mr Joseph Pilane
came to Bambino, looking for students to employ in their company. Mr Kgetse indicated that
they were willing to refund the students their training fees and thus needed proof of attending
the courses. Mr Kgetse brought him the blank attendance registers and he merely completed
the information on it without any supporting / source information. Mr Edward denied receiving
any payment from Mr Kgetse for this and merely did it to assist the students.
7.1.8
Masitara Forensic contacted the individuals listed on the claim form of Re-Sealing and
conducted consultations with Mr Bakani Fane (Mr Fane) and Ms Chungi Moswang (Ms
Moswang). During these consultations, both Mr Fane and Ms Moswang deposed to affidavits
in relation to their names which had been used in the claim submitted by Re-Sealing (see
attached Annexure B12 & B13).
We have summarised the content of affidavits deposed to by both individuals and it reflected
the following sequence of events:
13 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
On or about 20 March 2014 they received an sms text message from an unknown
number. Unfortunately they do not have the number any more. The message
indicated that the person was introducing Re-Sealing as a company to them. It further
stated that the company was looking for new employees and if they were interested
they had to deliver their certificates and all expenses paid for the training to a certain
“Edward” at Bambino. The expenses would then be later refunded to them should
they be employed by Re-Sealing.
They took their documents to Bambino and handed it to Edward, but they never
received any feedback or offer of employment from Re-Sealing.
They have never worked for the company as indicated on the attached salary slips
and never received any salary payments from Re-Sealing.
The payment for the training was made by themselves and not by Re-Sealing. The
attendance registers indicate that they attended classes on a weekly basis and
sometimes on public holidays. Ms Moswang did however only attend class on Saturday
mornings and never on public holidays whilst Mr Fane only attended class on a weekly
basis during the period April 2014 to July 2014. During the period August 2014 to
completion of the training (November 2014) he was doing an internship at Princess
Marina Hospital and then only attended class once a week and also only at night.
Interview – Mr Pilane
7.1.9
On 5 November 2015, Masitara Forensic invited Mr Pilane to a consultation, thereby affording
him the opportunity to respond to the concerns identified during the investigation. During this
consultation, Mr Pilane acknowledged that he was the director of Re-Sealing but declined to
respond to any concerns / questions raised by the investigation team. He did however indicate
that he would be willing to listen to the questions / concerns and respond formally by
Wednesday 11 November 2015. To date of this report, Masitara Forensic received no response
from Mr Pilane.
Findings:
7.1.10
The company (Pilane Holdings (Pty) Ltd) was initially registered on 16 August 2001 but the
name was on 16 August 2010 changed to Re-Sealing Botswana (Pty) Ltd. The registered
director is indicated as Mr Joseph Pilane.
7.1.11
Mr Pilane (on behalf of Re-Sealing) submitted a claim to the value of P152,350.00 to the HRDC
for re-imbursement of training fees.
14 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.1.12
Attendance registers (attached to the claim as proof of training) is for various periods, of which
two falls outside the claim period (1 April 2013 – 31 March 2014).
7.1.13
Mr Edward confirmed that he forged the attendance registers and then certified it as a true
copy.
7.1.14
Both, Mr Bakani Fane and Ms Chungi Moswang confirmed that they were contacted by ReSealing and requested to submit their CV’s, certificates and proof of payment for the training
fees in order to be considered for positions at the company.
7.1.15
Both, Mr Bakani Fane and Ms Chungi Moswang denied having any knowledge of the company
and stated that they never received any money (salary or refund for tuition fees) from the
company nor were they employed by the company.
Conclusion:
7.1.16
From evidence obtained during the investigation, Masitara Forensic conclude that:
Attendance registers and salary advice information submitted by Mr Pilane to the
HRDC are fraudulent.
At least two of the students reflected on the claim submitted to HRDC were never
employed by Re-Sealing Botswana (Pty) Ltd.
The students paid for the training themselves and Re-Sealing never refunded the fees.
Mr Pilane submitted the claim to the HRDC with the intention to defraud the HRDC in
the amount of P152,350.00.
Mr Edward intentionally falsified (forged) information on the attendance registers.
Recommendation:
7.1.17
Masitara Forensic recommends that the HRDC:
Repudiate the claim received from Re-Sealing for the re-imbursement of training fees;
Place the names of the company and its directors on a defaulters list whereby any
future claims submitted by the company or any of its directors are declined
15 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
In terms of section 341 & 348 of the Botswana Penal Code , open a criminal case of
forgery and uttering against Mr Keabetso Edward for falsifying the attendance
registers and certifying it as true and correct
In terms of section 312 of the Botswana Penal Code, open a criminal case of
conspiracy to defraud against Mr Keabetso Edward in that he conspired with Mr Joseph
Pilane to create fraudulent attendance registers to be used in a fraudulent claim
against the HRDC
Open a criminal case against Mr Joseph Pilane for intentionally and unlawfully,
o
In terms of section 348 of the Botswana Penal Code, submitted a fraudulent
claim to the HRDC.
o
In terms of section 312 of the Botswana Penal Code, conspired to commit an
offence.
o
In terms of section 341 and 342 of the Botswana Penal Code, forged salary
information in respect of the various employees to be used in the fraudulent
claim.
16 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.2
3 Pin Solutions (Pty) Ltd
Background:
7.2.1
On 16 April 2014, 3 Pin Solutions (Pty) Ltd (registration number CO2014/4445) was registered
in the name of Mr Mogotsi Kgetse (Mr Kgetse) (Annexure C1). When registering the
company, Mr Kgetse indicated his postal address to be PO Box 30795, Tlokweng.
Claim submitted:
7.2.2
HRDC requested claims to submitted by companies for the period 1 April 2013 to 31 March
2014. Despite the company only being registered on 16 April 2014, as indicated in par 7.2.1
(supra), Mr Kgetse submitted a claim to the HRDC on behalf of his company, 3 Pin Solutions
(Annexure C2) on 30 March 2015,. The claim amounts to P149,600.00 (P37,400 per
employee) and is for the reimbursement of training fees incurred for the following four (4)
individuals who were alleged employees of 3 Pin Solutions:
Asalepele Ntamo
Ogomoditse William
Steven Makabe
Mmapula Tiro
7.2.3
Attached to the claim, were various copies of training certificates, copies of identity
documents, attendance registers, proof of training expenses and proof of salaries ostensibly
earned by the alleged employees. For the sake of brevity, please find only an example of each
document referred to, attached and marked as Annexure C3, C4, C5, C6 & C7.
7.2.4
Despite the company only being registered on 16 April 2014, the claim indicated that company
incurred training expenses on behalf of their employees during the period September 2013 to
April 2014 (Annexure C2). The claim from 3 Pin Solutions however only contained the
following three (3) attendance registers:
Period
Public Holidays
Annex
Asalepe Ntamo
Name
2 September 2013 – 31 April 2014
3 days
C5
Ogomoditse William
2 September 2013 – 31 April 2014
3 days
C8
Steven Makabe
2 September 2013 – 31 April 2014
3 days
C9
17 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.2.5
Upon a cursory examination of the attendance registers it became clear that apart from the
learner detail, these 3 documents are identical in appearance.
7.2.6
Mr Kankwenda from Bambino Training and Development Institute confirmed that the
signature of the person who certified the attendance registers was that of Mr Edward, a
former training officer at Bambino. Mr Kankwenda however denied that the attendance
registers were official documents from Bambino and stated that all their attendance registers
contained the various students’ names which attended a class during the same month.
7.2.7
During a meeting with Masitara Forensic on 5 November 2015, Mr Edward admitted that he
indeed forged the contents of the attendance registers and he gave the same explanation
alluded to above. (paragraph 7.1.7 supra)
7.2.8
Masitara Forensic contacted the individuals listed on the claim form 3 Pin Solutions and
conducted consultations with Ms Ogomoditse William (Ms William) and Ms Asalepele Ntamo
(Ms Ntamo). During these consultations, both Ms William and Ms Ntamo deposed to affidavits
in relations to their names and detail which had been used in the claim submitted by 3 Pin
Solutions (see attached Annexure C10 & C11)
7.2.9
We have summarised the content of affidavits deposed to by both individuals and it reflected
the following sequence of events:
Ms William indicated that she did received training from Bambino for which she paid
herself. The training was conducted during the period February 2013 to December
2013 and not as indicated on the attendance registers during the period September
2013 to April 2014.
On or about 20 March 2014 she received a call from 72990408. The person indicated
that my documents are needed from Bambino Training.
Ms Ntamo
indicated that she received an sms text message from number
+26774394623. It further stated that the company (Re-Sealing) was looking for new
employees and if they were interested they had to deliver their certificates and all
expenses paid for the training to Bambino. The expenses would then be later refunded
to them should they be employed by Re-Sealing.
They have never worked for the company as indicated on the attached salary slips
nor have they ever received any salary payments from 3 Pin Solutions.
They have paid for the training themselves and payment was not made by 3 Pin
Solutions.
18 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Interview – Mr Kgetse
7.2.10
On 5 November 2015, Masitara Forensic invited Mr Kgetse to a consultation, thereby affording
him the opportunity to respond to the concerns identified during the investigation. During this
consultation, Mr Kgetse acknowledged that he was the director of 3 Pin Solutions but declined
to respond to any concerns / questions raised by the investigation team. He did however
indicate that he would be willing to listen to the questions / concerns and respond formally by
Wednesday 11 November 2015. To date of this report, Masitara Forensic received no response
from Mr Kgetse.
Findings:
7.2.11
3 Pin Solutions was registered on 16 April 2014, after the valid claims period proposed by
HRDC had expired.
7.2.12
The claim amounted to P149,600.00 (P37,400 per employee).
7.2.13
Whilst 3 Pin Solutions was only registered on 16 April 2014, attendance registers submitted
as part of the claim to HRDC, indicated that the alleged employees attended training during
the period September 2013 to April 2014.
7.2.14
Mr Edward confirmed that he forged the attendance registers and then certified it as true
copies.
7.2.15
Both, Ms William and Ms Ntamo confirmed that they were contacted by a company
representing Re-Sealing and requested to submit their CV’s, certificates and proof of payment
for the training fees in order to be considered for positions at the company.
7.2.16
Both, Ms William and Ms Ntamo denied having any knowledge of 3 Pin Solutions and stated
that they never received any money (salary or refund for tuition fee) from the company.
7.2.17
Mr Kgetse confirmed that he was the director of 3 Pin Solutions but declined to answer any
questions in relation to the company.
Conclusion:
7.2.18
From evidence obtained during the investigation, Masitara Forensic conclude that:
Attendance registers and salary advice information submitted by Mr Kgetse to the
HRDC are fraudulent.
19 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
The students reflected on the claim submitted to HRDC were never employed by 3
Pin Solutions (Pty) Ltd.
The students paid for the training themselves and 3 Pin Solutions (Pty) Ltd never
refunded them the fees.
Mr Kgetse submitted the claim to the HRDC with the intention to defraud the HRDC
in the amount of P149,600.00 (P37,400 per employee).
Mr Edward intentionally falsified information on the attendance registers.
Recommendation:
7.2.19
Masitara Forensic recommends that the HRDC:
Repudiate the claim received from 3 Pin Solutions for the re-imbursement of training
fees.
Place the names of the company and its director(s) on a claimant’s defaulters list
whereby any future claims submitted by the company or any of its directors are
declined.
In terms of section 341 & 348 of the Botswana Penal Code , open a criminal case of
forgery and uttering against Mr Keabetso Edward for falsifying the attendance
registers and certifying it as true and correct.
In terms of section 312 of the Botswana Penal Code, open a criminal case of
conspiracy to commit fraud against Mr Keabetso Edward in that he conspired with Mr
Mogotsi Kgetse to create fraudulent attendance registers to be used in a fraudulent
claim against the HRDC.
Open a criminal case against Mr Kgetse for intentionally,
o
In terms of section 348 of the Botswana Penal Code, submitted a fraudulent claim
to the HRDC.
o
In terms of section 312 of the Botswana Penal Code, conspired to commit an
offence.
o
In terms of section 341 and 342 of the Botswana Penal Code, forged salary
information in respect of the various employees to be used in the fraudulent claim
by 3 Pin Solutions (Pty) Ltd.
20 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.3
The Land Management Group (Pty) Ltd
Background:
7.3.1
On 2 June 2014, Mr Olebile Joseph Pilane (Mr Pilane) registered The Land Management Group
(Pty) Ltd (registration number CO2014/6238) (Annexure D1). The registration documents
indicate that Mr Pilane is the only director of The Land Management Group.
7.3.2
As stated, The Land Management Group was only registered on 2 June 2014, despite
submitting a claim for the reimbursement of training fees allegedly incurred during the period
1 April 2013 to 31 March 2014. The claim will be discussed in detail in the section below.
Claim submitted:
7.3.3
On 30 March 2015, Mr Pilane submitted a claim to the HRDC on behalf of his company, The
Land Management Group (Annexure D2). The claim is however signed under section 6 by
one “Kabelo Phirie”. During a meeting on 5 November 2015 with Masitara Forensic, Mr Pilane
confirmed that he was the only director of The Land Management Group but declined to
answer any other questions in respect of the claim submitted to the HRDC. Masitara Forensic
was thus unable to confirm the identity of the signatory – “Kabelo Phirie”. The claim is for six
(6) students and amounts to P235,600 (P39,266.66 per employee) and is for the
reimbursement of training fees incurred for the following alleged employees of The Land
Management Group:
Poloko Masolobane
Sithibile Denda
Kidoh Moatlhodi
Nametsegang Pooyane
Tiro Segole
Tepo Baaikile
7.3.4
Attached to the claim were various copies of training certificates, copies of identity documents,
attendance registers, proof of training expenses and proof of salaries ostensibly earned by the
21 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
alleged employees. For the sake of brevity, please find only an example of each document
referred to, attached and marked as Annexure D3, D4, D5, D6 & D7.
7.3.5
Despite the company only being registered on 2 June 2014, the claim indicated that the
company incurred training expenses on behalf of their employees during the period 1 April
2013 to 1 March 2014 (Annexure D2). The claim from The Land Management Group
contained the following six (6) attendance registers which, in contrast to the dates referred to
on the claim, indicated that training were provided between the periods April 2013 to
November 2013 and June 2013 to January 2014:
Name
Sithembile Denda
Poloko Masolobane
Kidoh Moatlhodi
Nametsegang Pooyane
7.3.6
Period
Public Holidays
Annex
1 April 2013 – 29 November 2013
8 days
D5
8 days
D8
8 days
D9
1 April 2013 – 29 November 2013
1 April 2013 – 29 November 2013
3 June 2013 – 31 January 2014
4 days
D10
Tiro Segole
1 April 2013 – 29 November 2013
8 days
D11
Tepo Baaikile
1 April 2013 – 29 November 2013
8 days
D12
We again showed the attendance documents to Mr Kankwenda from Bambino Training and
Development Institute and he gave the same response as already alluded to above.
7.3.7
These registers were also showed to Mr Edward on 5 November 2015 and he gave the same
explanation referred to above.
7.3.8
Masitara Forensic contacted the individuals listed on the claim form from The Land
Management Group and conducted consultations with
Ms Nametsegang Poonyane (Ms
Poonyane) and Ms Kidoh Moathodi (Ms Moathodi). During these consultations, both Ms
Poonyane and Ms Moathodi deposed to affidavits in relations to their names which had been
used in the claim submitted by The Land Management Group (see attached Annexure D13
& D14)
7.3.9
We have also summarised the content of these affidavits as follow:
They received a sms text message from an unknown number. The message indicated
that the person was introducing Re-Sealing as a company to them. It further stated
that the company was looking for new employees and if they were interested they
had to deliver their certificates and all expenses paid for the training to “Edward” at
Bambino.
They have never worked for the company as indicated on the attached salary slips
nor have they ever received any salary payments from The Land Management Group.
22 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
They have paid for the training themselves and no payment was made by The Land
Management Group.
Interview – Mr Pilane
7.3.10
On 5 November 2015, Masitara Forensic invited Mr Pilane to a consultation, thereby affording
him the opportunity to respond to the concerns identified during the investigation. During this
consultation, Mr Pilane acknowledged that he was the director of The Land Management Group
but declined to respond to any concerns / questions raised by the investigation team. He did
however indicate that he would be willing to listen to the questions / concerns and respond
formally by Wednesday 11 November 2015. To date of this report, Masitara Forensic received
no response from Mr Pilane.
Communication between the Land Management Group and the HRDC:
7.3.11
During the course of the investigation the HRDC provided us with a letter which was faxed to
them on 3 November 2015 (Annexure D15), which was signed by Mr Philip Makhura in the
capacity as “Director – The Land Management Group”.
7.3.12
This communication was sent shortly after we met and interviewed Mr Kankwenda from
Bambino Training and Development Institute. We cannot exclude the possibility that
Mr Kankwenda informed The Land Management Group about the investigation.
7.3.13
We noted that the letter indicates the following:
“the employees used on that we not for that claim and were something else”
7.3.14
The implication is that the students were indeed employees of the company.
Findings:
7.3.15
The Land Management Group was registered on 2 June 2014, after the valid claims period
proposed by HRDC had expired.
7.3.16
The claim amounted to P235,600 (P39,266.66 per employee) and was for the reimbursement
of training fees allegedly incurred for six (6) employees.
7.3.17
Whilst The Land Management Group was only registered on 2 June 2014, attendance registers
and payroll information submitted as part of the claim to HRDC, indicated that the alleged
23 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
employees attended training during the period April 2013 to November 2013 and June 2013
to January 2014 respectively.
7.3.18
Mr Edward confirmed that he forged the attendance registers and then certified it as true
copies.
7.3.19
Both, Ms Poonyane and Ms Moathodi confirmed that they were contacted by a company
representing Re-Sealing who then requested them to submit their CV’s, certificates and proof
of payment for the training fees in order to be considered for positions at the company.
7.3.20
Both, Ms Poonyane and Ms Moathodi denied having any knowledge of The Land Management
Group and stated that they never received any money (salary or refund for tuition fee) from
the company.
7.3.21
Mr Pilane confirmed that he was the director of The Land Management Group but declined to
answer any questions in relation to the company.
7.3.22
We noted that Annexure D15 mentions that the particulars used in the claim are a result of
a miscommunication and clerical errors. However, we need to point out that, in light of the
admissions made by Mr Edward in relation to the forged attendance registers which were
completed for the particular students, the explanation seems to be opportunistic and clearly
an attempt to distance the company from the fraudulent misrepresentations made to the
HRDC.
7.3.23
We are of the view that the content of the said letter contains another misrepresentation
insofar as it refers to the students as “employees” (sic).
7.3.24
Mr Makhura signed the letter (Annexure D15) in the capacity as Director whilst the company
registration documents (Annexure D1) provide to us does not reflect his name as a registered
director.
Conclusion:
7.3.25
From evidence obtained during the investigation, Masitara Forensic conclude that:
Attendance registers and salary advice information submitted by Mr Pilane to the
HRDC are fraudulent.
The students reflected on the claim submitted to HRDC were never employed by The
Land Management Group (Pty) Ltd.
24 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
The students paid for the training themselves and The Land Management Group (Pty)
Ltd never refunded them the fees.
Mr Pilane submitted the claim to the HRDC with the intention to defraud the HRDC in
the amount of P235,600 (P39,266.66 per employee).
Mr Edward intentionally falsified information on the attendance registers.
In respect of the letter addressed to HRDC (Annexure D15), this letter is an attempt
to distance The Land Management Group from any impropriety.
The letter signed by Mr Makhura misrepresented his capacity in the company and is
an attempt to defeat the investigation and enforcement of the misrepresentations
made to the HRDC in the submission of the fraudulent claim.
Recommendation:
7.3.26
Masitara Forensic recommends that the HRDC:
Repudiate the claim received from The Land Management Group (Pty) Ltd for the reimbursement of training fees;
Place the names of the company and its director(s) on a claimant’s defaulters list
whereby any future claims submitted by the company or any of its directors are
declined.
In terms of section 341 & 348 of the Botswana Penal Code , open a criminal case of
forgery and uttering against Mr Keabetso Edward for falsifying the attendance
registers and certifying it as true and correct.
In terms of section 312 of the Botswana Penal Code, open a criminal case of
conspiracy to defraud against Mr Keabetso Edward in that he conspired with Mr
Mogotsi Kgetse to create fraudulent attendance registers to be used in a fraudulent
claim against the HRDC.
Open a criminal case against Mr Pilane for intentionally,
o
In terms of section 348 of the Botswana Penal Code, submitted a fraudulent
claim to the HRDC.
o
In terms of section 312 of the Botswana Penal Code, conspired to commit an
offence.
25 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
o
In terms of section 341 and 342 of the Botswana Penal Code, forged salary
information in respect of the various employees to be used in the fraudulent
claim.
Open a criminal case against Mr Makhura for intentionally,
o
In terms of section 339 and 342 of the Botswana Penal Code, submitting a
fraudulent letter to the HRDC.
26 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.4
Slyfive Investments (Pty) Ltd
Background:
7.4.1
Slyfive Investments (Pty) Ltd (registration number CO2009/8382) (Slyfive Investements) was
registered on 9 October 2009 in the names of Mr Mogotsi Kgetse and Ms Refilwe Sethibe
(Annexure E1).
Claims submitted:
7.4.2
On 23 March 2015, Slyfive Investments submitted to the HRDC the following six (6)
reimbursement claims. These claims were signed by a certain “Tshiamo Seitshiro” on behalf
of Slyfive and the total of the claims amounted to P312,550. The detail of the claims are as
follow:
Name
Lesego Gababakgotla
Centre
Period
Amount
Annex
Bambino
1 April 2013 – 30 November 2013
P66,700
E2
Dineo Dikgang
Bambino
1 April 2013 – 30 November 2013
P67,200
E3
Moemedi Galekhutle
Bambino
1 April 2013 – 30 November 2013
P62,800
E4
Lame Letsholo
Bambino
1 April 2013 – 30 November 2013
P64,650
E5
Lesego Moatshe
Bambino
1 April 2013 – 30 November 2013
P65,150
E6
Ishmael Ncube
Bambino
7 September 2013 – 27 April 2014
P66,050
E7
TOTAL
7.4.3
P312,550
The claims contained various substantiating documentation including copies of identification
documents, training certificates, proof of training expenses, training attendance registers and
salary advice information.
7.4.4
As per the images reflected in the table (Extract 1) below, most notable of the expenses
included in the claims are that for stationary and for notebooks:
27 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Extract 1
7.4.5
From the proof of expense for stationary, (Cash Sale receipt 07 dated 03/06/13) it purports
to be obtained from Bomathu Investments. Mr Kgetse confirmed during an interview with
Masitara Forensic on 5 November 2015 that Bomathu Investments is a company managed by
him.
7.4.6
The receipt for a notebook computer (refer Extract 1) indicates that it was obtained from 3
Pin Solutions. As discussed in section 7.2 above, Mr Kgetse confirmed that he is the director
of 3 Pin Solutions. During a meeting with Masitara Forensic, Mr Ishmael Ncube (an employee
who allegedly received such a notebook computer) denied having ever received such a
computer from Slyfive. According to Mr Ncube, he do not know the company and have never
received any computer from them.
7.4.7
Masitara Forensic contacted the individuals listed on the claims from Slyfive and conducted
consultations with Ms Ishmael Ncube (Mr Ncube), Mr Moemedi Galekhutle (Mr Galekhutle)
and Ms Lesegon Gabanakgotla (Ms Gabanakgotla). During these consultations, they deposed
to affidavits in relations to their names which had been used in the claims submitted by Slyfive
(see attached Annexure E8, E9 & E10)
7.4.8
We summarised the information obtained from these individuals and it reflected the following
sequence of events:
28 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
They received a sms text message from an unknown number. The message indicated
that if they were interested in employment they had to deliver their certificates and
all expenses paid for the training to Bambino. The expenses would then be later
refunded to them.
They have never worked for the company as indicated on the attached salary slips
nor have they ever received any salary payments from Slyfive.
They have paid for the training themselves and no payment was made by Slyfive.
In addition, Mr Ncube confirmed that he never received any IT equipment (i.e.
notebook computer) from Slyfive. He also did not attend training on weekends (two
days per week) as per the attendance register but only once a week – on Saturdays.
7.4.9
The attendance registers were also shown to Mr Kankwenda from Bambino Training and
Development Institute and he provided the same explanation in relation to these registers.
7.4.10
During a meeting with Masitara Forensic on 5 November 2015, Mr Edward was also showed
the attendance registers referred to above and he also confirmed that he indeed forged the
contents of these attendance registers and then certified it. He gave the same explanation as
referred to above.
Interview – Mr Kgetse
7.4.11
On 5 November 2015, Masitara Forensic invited Mr Kgetse to a consultation, thereby affording
him the opportunity to respond to the concerns identified during the investigation. During this
consultation, Mr Kgetse acknowledged that he was the director of Slyfive but declined to
respond to any concerns / questions raised by the investigation team. He did however indicate
that he would be willing to listen to the questions / concerns and respond formally by
Wednesday 11 November 2015. To date of this report, Masitara received no response from
Mr Kgetse.
Findings:
7.4.12
Slyfive Investments (Pty) Ltd was registered on 9 October 2009 in the names of Mr Mogotsi
Kgetse and Ms Refilwe Sethibe.
7.4.13
The claim amounted to P312,550 and was for the reimbursement of training fees allegedly
incurred for six (6) employees.
29 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.4.14
Proof of expenses for stationary and It equipment were obtained from Bomathu Investments
and 3 Pin Solutions respectively – both companies being managed by Mr Kgetse.
7.4.15
Mr Edward confirmed that he forged the attendance registers and then certified it as true
copies.
7.4.16
Ms Ishmael Ncube, Mr Moemedi Galekhutle and Ms Lesegon Gabanakgotla all confirmed that
they were requested to submit their CV’s, certificates and proof of payment for the training
fees in order to be considered for employment.
7.4.17
They all denied having any knowledge of Slyfive Investments (Pty) Ltd and stated that they
never received any money (salary or refund for tuition fee) from the company.
7.4.18
Mr Ncube confirmed that he never received a notebook computer from Slyfive Investments
(Pty) Ltd as per the proof of expense attached to the HRDC claim.
7.4.19
Mr Kgetse confirmed that he was the director of Slyfive Investments (Pty) Ltd but declined to
answer any questions in relation to the company.
7.4.20
Proof of expenses attached to the claims from Slyfive (a company of which Mr Kgetse is a
director and which is based in Tlokweng) indicated that it bought stationary from Bomathu
Investments, a company domiciled in Lentsweletau (and managed by Mr Kgetse).
Conclusion:
7.4.21
From evidence obtained during the investigation, Masitara Forensic conclude that:
Attendance registers, salary advice information and proof of expenses submitted by
Mr Kgetse to the HRDC are fraudulent.
The students reflected on the claims submitted to HRDC were never employed by
Slyfive Investments (Pty) Ltd.
The students paid for the training themselves and Slyfive Investments (Pty) Ltd never
refunded them the fees.
Mr Kgetse submitted six (6) claims to the HRDC with the intention to defraud the
HRDC in the amount of P312,550.
Mr Edward intentionally falsified information on the attendance registers.
30 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Recommendation:
7.4.22
Masitara Forensic recommends that the HRDC:
Repudiate the claim received from Slyfive Investments (Pty) Ltd for the reimbursement of training fees;
Place the names of the company and its director(s) on a claimant’s defaulters list
whereby any future claims submitted by the company or any of its directors are
declined.
In terms of section 341 & 348 of the Botswana Penal Code , open a criminal case of
forgery and uttering against Mr Keabetso Edward for falsifying the attendance
registers and certifying it as true and correct.
In terms of section 312 of the Botswana Penal Code, open a criminal case of
conspiracy to defraud against Mr Keabetso Edward in that he conspired with Mr
Mogotsi Kgetse to create fraudulent attendance registers to be used in a fraudulent
claim against the HRDC.
Open a criminal case against Mr Mogotsi Kgetse for intentionally,
o
In terms of section 348 of the Botswana Penal Code, submitted a fraudulent
claim to the HRDC.
o
In terms of section 312 of the Botswana Penal Code, conspired to commit an
offence.
o
In terms of section 341 and 342 of the Botswana Penal Code, forged salary
information in respect of the various employees to be used in the fraudulent
claim.
31 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.5
Garginger Farms (Pty) Ltd
Background:
7.5.1
On 24 July 2007, Garginger Farms (Pty) Ltd (Garginger Farms) was registered (registration
number CO2007/4275 (Annexure F1). On 6 June 2014, Mr Joseph Pilane drafted a letter
addressed to the Director of Garginger Farms (Pty) Ltd whereby relinquishing his directorship
in the company (Annexure F2). On 6 June 2014, the Registrar of Companies amended the
records and removed Mr Pilane as director of Garginger Farms (Pty) Ltd which left the
company with only one remaining director namely Omphitlhetse Dintwe (Annexure F3).
Claims submitted:
7.5.2
On 23 March 2015, the Company submitted to the HRDC the following nine (9) reimbursement
claims on behalf of Garginger Farms amounting to P532,955:
Name
Centre
Period
Annex
Biotumelo Malatlhwe
Bambino
1 September 2013 – 30 April 2014
P64,200
F4
Tebogo Segereisi
Bambino
1 January 2014 – 30 August 2014
P60,000
F5
Emmanuel Ketlhohegile
Bambino
1 January 2014 – 30 August 2014
P57,900
F6
Bakgang Maseko
Bambino
1 January 2014 – 30 September 2014
P56,100
F7
Lebogang Tsiamo
Bambino
15 January 2014 – 15 October 2014
P58,355
F8
Kenanao Moilwa
Bambino
1 March 2014 – 30 November 2014
P59,650
F9
Orapeleng Motswere
Bambino
1 March 2014 – 30 October 2014
P58,100
F10
Kebaneilwe Mongale
Bambino
1 January 2014 – 30 August 2014
P60,400
F11
Tumelo Palai
Bambino
1 March 2014 – 30 October 2014
P58,250
F12
TOTAL
7.5.3
Amount
P532,955
During a meeting with Masitara Forensic on 5 November 2015, Mr Omphitlhetse Dintwe
(Mr Dintwe) indicated that he was indeed a director of Garginger Farms. During around June
2014, Mr Dintwe and Mr Pilane had a fall-out where after Mr Dintwe resigned from the
company. According to Mr Dintwe, Mr Pilane did not submit the change of directorship
documents to the Registrar of Companies. Mr Dintwe denied having any knowledge of the
HRDC claims submitted by Mr Pilane and indicated that he and Mr Pilane did not have contact
anymore.
7.5.4
The HRDC claims contained various substantiating documentation including copies of
identification, training certificates, proof of training expenses, training attendance registers
and salary advice information.
32 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.5.5
We have consulted with Mr Kankwenda from Bambino Training and Development Institute
and Mr Edward and the related documentation was showed to both of them. Both confirmed
the version they gave earlier in respect of the attendance registers.
7.5.6
Masitara conducted interviews with the following four alleged employees reflected on the
Garginger Farms claims. They also deposed to affidavits in respect of the claims submitted in
their names:
Name
7.5.7
Annex
Kebaneilwe Mongale
F13
Tumelo Palai
F14
Biotumelo Malatlhwe
F15
Orapeleng Motswere
F16
We also summarised the information obtained from these individuals and it reflected the
following sequence of events:
They received a sms text message from an unknown number. The message indicated
that the person was introducing Re-Sealing as a company to them. It further stated
that the company was looking for new employees and if they were interested they
had to deliver their certificates and all expenses paid for the training to Bambino. The
expenses would then be later refunded to them should they be employed by ReSealing.
They have never worked for the company as indicated on the attached salary slips
nor have they ever received any salary payments from Garginger Farms (Pty) Ltd.
They have paid for the training themselves and not by Garginger Farms (Pty) Ltd.
Interview – Mr Pilane
7.5.8
On 5 November 2015, Masitara Forensic invited Mr Pilane to a consultation, thereby affording
him the opportunity to respond to the concerns identified during the investigation. During this
consultation, Mr Pilane acknowledged that he was the director of Garginger farms (Pty) Ltd –
This was contrary to the information obtained from the Registrar of Companies as well as the
letter of 6 June 2014 (Annexure F2). Mr Pilane however declined to respond to any concerns
/ questions raised by the investigation team. He did however indicate that he would be willing
to listen to the questions / concerns and respond formally by Wednesday 11 November 2015.
To date of this report, Masitara Forensic received no response from Mr Pilane.
33 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Communication between the Garginger Farms (Pty) Ltd and the HRDC:
7.5.9
During the course of the investigation the HRDC provided us with a letter which was faxed to
them on 3 November 2015 (Annexure F17), which was signed by “Spokes Dintwe” in the
capacity as “Managing Director – Garginger Farms (Pty) Ltd”.
7.5.10
This communication was sent shortly after we met and interviewed Mr Kankwenda from
Bambino Training and Development Institute. We cannot exclude the possibility that Mr
Kankwenda informed Garginger Farms (Pty) Ltd about the investigation.
7.5.11
We noted that the signature of “Spokes Dintwe” on the letter does not resemble the signature
of Mr Omphimetse Dintwe on the company registration documentation.
7.5.12
We also noted that Annexure F17 was faxed together with Annexure D15 (pages 1 & 2 of
the fax). This strengthens the inference that the role players between The Land Management
Group and Garginger Farms are linked.
7.5.13
Annexure F17 indicates that the claim which was submitted erroneously contained the
names of people who were in fact intended for another project.
Findings:
7.5.14
Garginger Farms (Pty) Ltd was registered on 24 July 2007. On 6 June 2014, the Registrar of
Companies amended the records and removed Mr Pilane as director of Garginger Farms (Pty)
Ltd.
7.5.15
Given the involvement of Mr Pilane as described and in light of the totality of the evidence it
is reasonable to infer that Mr Pilane submitted the nine claims to the HRDC for reimbursement
of training fees without the knowledge of Mr Omphitlhetse Dintwe.
7.5.16
The claim for the training fees amounted to P532,955 and was allegedly incurred for nine (9)
employees.
7.5.17
Mr Edward confirmed that he forged the attendance registers and then certified it as true
copies.
7.5.18
Four students confirmed that they were contacted by a company representing Re-Sealing and
requested to submit their CV’s, certificates and proof of payment for the training fees in order
to be considered for positions at the company.
7.5.19
They all denied having any knowledge of Garginger Farms (Pty) Ltd and stated that they never
received any money (salary or refund for tuition fee) from the company.
34 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.5.20
Despite writing a letter to the Registrar of Companies requesting to be removed as director,
Mr Pilane confirmed to Masitara Forensic that he was the director of the company but declined
to answer any questions in relation to the company.
7.5.21
We noted that Annexure F17 mentions that the particulars used in the claim are a result of
a miscommunication and clerical errors. However, we need to point out that, in light of the
admissions made by Mr Edward in relation to the forged attendance registers which were
completed for the particular students, the explanation seems to be opportunistic and clearly
an attempt to distance the company from the fraudulent misrepresentations made to the
HRDC.
7.5.22
The content of Annexure F17 does not explain how the company came in possession of
receipts, certificates and copies of the identity documents and the reasons for such possession
especially in circumstances where the students denied any involvement in the company.
7.5.23
Mr Spokes Dintwe signed the letter (Annexure F17) in the capacity as Managing Director whilst
the company registration documents (Annexure F3) reflects the name of Mr Omphitlhetse
Dintwe.
Conclusion:
7.5.24
From the evidence obtained during the investigation, Masitara Forensic conclude that:
Attendance registers, salary advice information and proof of expenses submitted by
Mr Pilane to the HRDC are fraudulent.
Mr Pilane submitted the claims to the HRDC without the knowledge of
Mr Omphitlhetse Dintwe
The students reflected on the claims submitted to HRDC were never employed by
Garginger Farms (Pty) Ltd.
The students paid for the training themselves and Garginger Farms (Pty) Ltd never
refunded them the fees.
Mr Pilane submitted nine (9) claims amounting to P532,955 to the HRDC with the
intention to defraud.
Mr Edward intentionally falsified information on the attendance registers.
Annexure F17 was written purely to avoid further investigation and detection of
fraudulent activities and ultimately possible prosecution.
35 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Recommendation:
7.5.25
Masitara Forensic recommends that the HRDC:
Repudiate the claim received from Garginger Farms (Pty) Ltd for the re-imbursement
of training fees;
Place the names of the company and its director(s) on a claimant’s defaulters list
whereby any future claims submitted by the company or any of its directors are
declined.
In terms of section 341 & 348 of the Botswana Penal Code , open a criminal case of
forgery and uttering against Mr Keabetso Edward for falsifying the attendance
registers and certifying it as true and correct.
In terms of section 312 of the Botswana Penal Code, open a criminal case of
conspiracy to defraud against Mr Keabetso Edward in that he conspired with Mr
Mogotsi Kgetse to create fraudulent attendance registers to be used in a fraudulent
claim against the HRDC.
Open a criminal case against Mr Pilane for intentionally,
o
In terms of section 348 of the Botswana Penal Code, submitted a fraudulent
claim to the HRDC.
o
In terms of section 312 of the Botswana Penal Code, conspired to commit an
offence.
o
In terms of section 341 and 342 of the Botswana Penal Code, forged salary
information in respect of the various employees to be used in the fraudulent
claim.
Open a criminal case with the view to determine the identity of the author of Annexure
F17
36 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.6
Bomathu Investments (Pty) Ltd
Background:
7.6.1
Bomathu Investments (Pty) Ltd was registered on 27 March 2014 under registration number
CO2014/3524 (Annexure G1). The registered director is indicated as being Ms Boingotlo
Mooki (Ms Mooki).
Claims submitted:
7.6.2
On 27 March 2015, two claims (which appears to have been submitted by Ms Mooki),
amounting to P217,610 were submitted to the HRDC for reimbursements of employees’
training costs (Annexure G2 & G3). The claims include various copies of certificates,
identification documentation, proof of training expenses, training attendance registers and
salary advice information.
7.6.3
We noted that the claims were co-signed by Refilwe Sethibe in the capacity as supervisor /
manager. We also noted that Refilwe Sethibe is listed as a director of Slyfive Investment (Pty)
Ltd.
7.6.4
During a meeting with Masitara Forensic on 5 November 2015, Ms Mooki denied having any
knowledge of the said claims. Ms Mooki deposed to an affidavit (Annexure G4) explaining
her involvement in the Bomathu Investments (Pty) Ltd (Bomathu). According to her, since the
registration of the company in 2014, Bomathu never operated and as a result, she has
submitted zero tax returns every two months.
7.6.5
During the beginning of 2015, Mr Kgetse approached her and requested to use Bomathu as
he wanted to submit various tenders and did not have a company from which he could do it.
Since the company was not operating, she was happy with the idea but also suggested that
he could buy her company. This sale however never materialised because they could never
reach a mutual agreement on the sale amount.
7.6.6
During approximately March 2015, Mr Kgetse enquired if she had an official Bomathu stamp
as he needed to stamp the tender documents he wanted to submit. Since she did not have
one, she ordered a stamp from Express Copy Shop in Gaborone on 9 March 2015. After
receiving the stamp, she handed it to Mr Kgetse for his use and only took it back approximately
two to three months thereafter.
37 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.6.7
According to Ms Mooki, at one stage Mr Kgetse also asked to use her bank account as he
anticipated receiving some payments on the tenders he submitted. When shown the claims
submitted by Bomathu (Annexure G2 & G3), Ms Mooki denied having any knowledge of the
claims and disputed that the signatures reflected thereon were hers. Mr Mooki again stressed
that Bomathu was never operational and thus never employed any person.
7.6.8
Mr Kankwenda from Bambino Training and Development Institute confirmed that the signature
which certified the attendance registers were that of Mr Edward, a former training officer from
Bambino. Mr Kankwenda however denied that the attendance registers were an official
documents from Bambino and stated that all their attendance registers contained the various
students’ names which attended a class during the same month.
7.6.9
During a meeting with Masitara Forensic on 5 November 2015, Mr Edward also confirmed that
the attendance registers in support of the claims in the name of Bomathu were forged similarly
as those alluded to earlier. He also indicated that it was Mr Kgetse accompanied by Mr Pilane
who came to Bambino, looking for students to employ in their company. According to Mr
Edward, Mr Kgetse indicated that they were willing to refund the students their training fees
and thus needed proof of attending the courses. Mr Kgetse brought him the blank attendance
registers and he merely completed the information on it. Mr Edward denied receiving any
payment from Mr Kgetse or Mr Pilane for this and indicated that he merely did it to assist the
students.
7.6.10
Masitara Forensic conducted an interview with Ms Tshepiso Mabaya (Ms Mabaya) – a person
whose name was reflected on the claim from Bomathu (Annexure G5). Ms Mabaya confirmed
the following sequence of events:
On 20 March 2015, she received an sms text message from +26774394623. The
message indicated that the person was introducing the company to her. It further
stated that the company was looking for new employees and if she was interested
she had to deliver her certificates and proof of all expenses paid for the training to
“Edward” at Bambino. She duly complied with this request.
After that, she never heard from the company again.
She has never worked for the company as indicated on the attached salary slips nor
has she ever received any salary payments from Bomathu.
Bomathu has never paid for her training as she paid for it herself.
38 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Interview – Mr Kgetse
7.6.11
On 5 November 2015, Masitara Forensic invited Mr Kgetse to a consultation, thereby affording
him the opportunity to respond to the concerns identified during the investigation. During this
consultation, Mr Kgetse indicated that he was not the director of Bomathu Investments (Pty)
Ltd but that he responsible for the operations of the company. Mr Kgetse however declined
to respond to any concerns / questions raised by the investigation team. He did however
indicate that he would be willing to listen to the questions / concerns and respond formally by
Wednesday 11 November 2015. To date of this report, Masitara Forensic received no response
from Mr Kgetse.
Findings:
7.6.12
Bomathu Investments (Pty) Ltd was registered on 27 March 2014 under registration number
CO2014/3524 with Ms Boingotlo Mooki as only director.
7.6.13
Mr Kgetse requested Ms Mooki to use Bomathu Investments (Pty) Ltd as vehicle to submit
tenders. Ms Mooki ordered an official stamp and handed it to Mr Kgetse for use on the various
tenders he was submitting.
7.6.14
Ms Mooki was not aware of the two claims amounting to P217,610 submitted on her behalf to
the HRDC.
7.6.15
The claims were submitted in the name of Bomathu Investments (Pty) Ltd in respect of training
conducted during the period April 2013 to November 2013. However, it is significant to note
that the company was only incorporated and registered in March 2014.
7.6.16
Ms Tshepiso Mabaya does not know Bomathu Investments (Pty) Ltd nor has she ever been
employed by the company.
7.6.17
Mr Edward confirmed that he forged the attendance registers and then certified it as true
copies.
7.6.18
Mr Kgetse acknowledged that he was not the director of Bomathu Investments (Pty) Ltd but
confirmed that he was managing the company. Mr Kgetse however declined to answer any
questions in relation to the company.
7.6.19
Refilwe Sethibe, a director of Slyfive Investments (Pty) Ltd, co-signed the claims submitted on
behalf of Bomathu Investments.
39 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Conclusion:
7.6.20
From evidence obtained during the investigation, Masitara Forensic conclude that:
Attendance registers, salary advice information and proof of expenses submitted by
Mr Kgetse to the HRDC is fraudulent.
Ms Mooki was not aware of the claims submitted by Mr Kgetse.
Mr Edward intentionally falsified information on the attendance register
The students reflected on the claims submitted to HRDC were never employed by
Bomathu Investments (Pty) Ltd.
The students paid for the training themselves and Bomathu Investments (Pty) Ltd
never refunded them the fees.
Mr Kgetse submitted two (2) claims amounting to P217,610 to the HRDC with the
intention to defraud.
Mr Edward intentionally falsified information on the attendance registers.
Refilwe Sethibe of Slyfive Investments was involved in the fraudulent submission of
the claims on behalf of Bomathu Investments.
Recommendation:
7.6.21
Masitara Forensic recommends that the HRDC:
Repudiate the claim received from Bomathu Investments (Pty) Ltd for the reimbursement of training fees;
In terms of section 341 & 348 of the Botswana Penal Code , open a criminal case of
forgery and uttering against Mr Keabetso Edward for falsifying the attendance
registers and certifying it as true and correct.
In terms of section 312 of the Botswana Penal Code, open a criminal case of
conspiracy to defraud against Mr Keabetso Edward in that he conspired with Mr
Mogotsi Kgetse to create fraudulent attendance registers to be used in a fraudulent
claim against the HRDC.
In terms of section 312 of the Botswana Penal Code, open a criminal case of
conspiracy to defraud against Ms Refilwe Sethibe in that she conspired with Mr
40 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Mogotsi Kgetse to create fraudulent HRDC claim forms on behalf of Bomathu
Investments for the reimbursement of training costs.
Open a criminal case against Mr Kgetse for intentionally,
o
In terms of section 348 of the Botswana Penal Code, submitted a fraudulent claim
to the HRDC.
o
In terms of section 312 of the Botswana Penal Code, conspired to commit an
offence.
o
In terms of section 341 and 342 of the Botswana Penal Code, forged salary
information in respect of the various employees to be used in the fraudulent
claims.
41 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.7
Clear Planet (Pty) Ltd
Background:
7.7.1
Clear Planet (Pty) Ltd was registered on 29 May 2013 under registration number CO2013/5622
(Annexure H1). The registered director is indicated as being Ms Jennifer Lame Ramaabya
(ID number: 376325708). The physical address of Clear Planet is indicated as being Wardens
Flat 454, University of Botswana, Gaborone.
7.7.2
During the investigation we were informed by Ms Ramaabya that Clear Planet now belongs to
Ms Shirley Makhura who bought it as a shelf company from her for P1,000. During the
interview with Masitara Forensic, Ms Ramaabya was accompanied by Mr Josiah Murity
(Mr Murity), who indicated in a sworn affidavit that he was the Managing Partner of Express
Consortium Agencies, a company offering Accounting and Secretarial services to the public
(Annexure H2). Mr Murity confirmed that Ms Ramaabya purchased the company as a shelf
company and that she had sold it to Ms Makhura for P1,400 (P1,000 for the company and
P400 for registration and transfer costs).
7.7.3
According to Mr Murity, the changes to the ownership of the company was never completed
as Ms Makhura’s Omang (identity document) expired and the transfer thus could not be
completed. Ms Makhura also owed a balance of P800 on the transaction.
7.7.4
During October 2014, Ms Makhura requested permission from Mr Murity to use Clear Planet
for her catering business. According to Mr Murity, he granted her permission but indicated
that the company documents would remain in his possession until such time as she had settled
the outstanding balance and submitted her new Omang.
7.7.5
Ms Makhura, during an interview with Masitara Forensic on 4 November 2015, confirmed this
information and verified her address as being Plot 6380, Ramfurwa, Tlokweng.
7.7.6
An inspection in loco of the company verified that the business is currently being operated
from a residential address as per the photo below:
42 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
Claims submitted:
7.7.7
The following three (3) claims were submitted by Clear Planet to the HRDC for reimbursement
of training fees allegedly completed at Karabo Training and Development Institute (Karabo):
Training Programme
Value
No of Students
Food Safety for Manufacturing and Retail
P151 000.00
20
Annel Brian Ncube
H3
Team Building
P151 000.00
20
Annel Brian Ncube
H4
P151 000.00
20
Annel Brian Ncube
H5
Customer Service
Total Claim
7.7.8
Completed by
Annex
P453 000.00
The photo below indicates that Karabo is currently being operated from a residential address
in the Tlokweng district:
43 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.7.9
The total of the three claims submitted to the HRDC amounts to P453 000.00 and were
completed on 30 March 2015 by Mr Annel Brian Ncube. The claims consisted of the HRDC
application form, an invoice from Karabo, an invoice for transport and copies of certificates
and ID documents of the various trainees.
7.7.10
During a meeting with Ms Hazel Sebolao (Ms Sebolao) – Owner: Karabo Training and
Development Institute, she confirmed that the training with Clear Planet was indeed
conducted. According to a sworn affidavit by Ms Sebolao (Annexure H6), the cost for the
training was P2,000 per trainee with 20 trainees attending the three different training
programmes. The total cost of the invoicing from Karabo thus amounted to P40,000 per
training event.
7.7.11
We showed Ms Sebolao invoices (Annexure H6 / HS07, HS08, HS09) submitted by Clear
Planet in support of their claims against the HRDC. Ms Sebolao denied that these invoices
were original Karabo invoices since the amounts were P150,000 per training event whilst the
original Karabo invoices were only P40,000 (excluding VAT) per event. Ms Sebolao also
indicated that the signatures reflected on the three invoices were not hers.
44 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.7.12
During the investigation, Mr Annel Brian Ncube (Mr Ncube), who introduced himself as the
accountant employed at Clear Planet, contacted the Masitara investigation team and requested
an urgent meeting. During the meeting (on 26 October 2015) Mr Ncube indicated that he
became aware of the investigations and wanted to provide the investigation team with some
information in relation to the Clear Planet claims..
7.7.13
Mr Ncube admitted that he submitted the claims on behalf of Clear Planet and that he had
intentionally and fraudulently inflated these claims with P110,000 each. He indicated that,
upon payment by the HRDC, he would have transferred the P330,000 fraudulent portion of
the invoiced amounts (P110,000 per invoice) to a private account which he would have opened
at a commercial bank.
7.7.14
Mr Ncube indicated that he copied the header of an old (previous) invoice from Karabo, and
reproduced three separate invoices which contained the increased amounts. Using a Karabo
stamp, which he stole from Ms Shelly Makhura’s (Ms Makhura – of Clear Planet) car, he added
a stamp and fraudulent signature to these invoices as to make it appear more legitimate and
official (see image below).
7.7.15
Mr Ncube was however not clear as to how the stamp from Karabo ended up in Ms Makhura’s
(Clear Planet) car. According to Mr Ncube, he immediately, after using the stamp, replaced it
in Ms Makhura’s car.
7.7.16
After the consultation, Mr Ncube requested Mr Werner Steyn (Mr Steyn) of Masitara Forensic
not to inform Ms Makhura of his comments in respect of the fraudulent claims submitted by
him on behalf of Clear Planet. Mr Ncube stated that Ms Makhura was not aware of his
fraudulent actions, and if she became aware, she would immediately contact the Botswana
Authorities. The admissions made by Mr Ncube were freely and voluntarily made by him and
45 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
the meeting with Mr Ncube was conducted in a public area. These admissions were made in
the presence of Mr Masitara.
7.7.17
On 4 November 2014, Masitara met with the owner of Clear Planet, Ms Shirley Makhura
(Ms Makhura). During the consultation Ms Makhura was questioned about the claims for
reimbursement submitted by Clear Planet.
7.7.18
Ms Makhura indicated that she had bought Clear Planet as a shelf company from the previous
owner during 2014 (Some time after March 2014). She could however not recall the exact
date of the transfer of the company. During January 2014, she sent 20 temporary staff
members for training on Food Safety, Customer Service and Team Building at Karabo. These
staff members were not fully employed by Clear Planet a the company was not operational,
but were trained as she anticipated that Clear Planet would secure a couple of catering tenders
during 2014.
7.7.19
Karabo charged Clear Planet P2,000 per attendee for each training event. This amounted to a
total of P120,000 (excluding VAT and travel) for the three training events. Clear Planet did
however not secure the anticipated catering events and as a result, she had to make
arrangements with Karabo for the payment of the P120,000 (excluding VAT) due. Ms Makhura
arranged with Ms Sebolao to pay Karabo P20,000 via internet transfer and transfer commercial
rights of a plot as full and final settlement of the outstanding P100,000. She effected the
payment during November 2014 or December 2014 from another company she owns –
Kgaitsadi Society of Botswana. Despite various requests, at time of this report, Ms Makhura
has not provided Masitara Forensic with any proof of payments or copy of the agreement on
the property.
7.7.20
During March 2014, Ms Makhura became aware of an advertisement from the HRDC indicating
that it had funds left over from their 2013/2014 budget and which called on Special Groups to
submit claims to the fund for the reimbursement of training fees incurred during the period 1
April 2013 to 31 March 2014. She was however not sure if she was informed about the
advertisement by Ms Sebolao or if had seen it herself in the newspapers.
7.7.21
Assisted by Ms Sebolao of Karabo, she completed three HRDC claim forms for the
reimbursement of the training fees incurred. According to Ms Makhura, she completed the
claim forms herself with only selected information left open for Ms Sebolao to complete. After
Ms Sebolao completed the sections relevant to Karabo, she instructed Mr Ncube to collect the
forms from Karabo and to hand it in for processing at the HRDC. Mr Ncube later informed her
that the claims were rejected by HRDC as certain identity documents had expired.
46 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
7.7.22
When shown the claims forms submitted to HRDC, Ms Makhura indicated that, whilst she
earlier confirmed that she had completed the applications forms, these were not her
handwriting but that of Mr Ncube, her assistant. Ms Makhura also indicated that the invoices
attached to the three claims submitted to the HRDC, were not correct as the amounts reflected
indicated costs of P150,000 (excluding VAT) per event whereas the correct amount was only
P40,000 (excluding VAT) per event. According to Ms Makhura she was not aware of these
fraudulent claims as she thought that all Clear Planet’s claims were rejected by the HRDC.
7.7.23
When questioned about the stamp affixed to the fraudulent invoices, Ms Makhura confirmed
that she was in possession of a Karabo stamp. According to her, Ms Sebolao handed her one
of Karabo’s stamps when some students wanted a Karabo stamp on the photo copies of their
certificates. The stamp was in her car and confirmed thus the statement of Mr Ncube. Ms
Sebolao confirmed that she handed Ms Makhura a Karabo stamp.
Findings:
7.7.24
Clear Planet (Pty) Ltd (Clear Planet) was registered on 29 May 2013 under registration number
CO2013/5622 with Ms Jennifer Lame Ramaabya being the only director.
7.7.25
Despite the fact that the company has not been transferred in the name of Ms Makhura, Clear
Planet submitted three claims for reimbursement of training fees to the HRDC totalling
P453,000. This included training fees as well as transport fees.
7.7.26
Mr Ncube submitted these claims on 30 March 2015 on behalf of Clear Planet.
7.7.27
Ms Sebolao of Karabo and Ms Makhura of Clear Planet confirmed that the training did take
place, but indicated that the amount charged to Clear Planet was P40,000 (excluding VAT &
transport) per training event and not P150,000 (excluding VAT & transport) as indicated on
the invoices attached to the claims submitted to HRDC. Students confirmed that they indeed
received free training conducted at Karabo.
7.7.28
Mr Ncube, an assistant to Ms Makhura at Clear Planet, confirmed that he intentionally and
fraudulently altered and reproduced the original invoices from Karabo to reflect an increased
amount of P150,000 per training event – in contrast to the original amount of only P40,000
per event as confirmed by Ms Sebolao.
7.7.29
Mr Ncube indicated that his intension was to, as soon as the claims were settled by the HRDC,
transfer the additional P330,000 (P110,000 per training event) to a private account which he
still had to open at a commercial bank.
47 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
HRDC Criminal Matter:
7.7.30
Based on the information obtained from Mr Ncube, Ms Victoria Damane – Director: Funding,
Human Resource Development Council deposed to an affidavit wherein she detailed the
information received from Mr Ncube (Annexure H7). The affidavit was used to open a
criminal case at the Botswana Police against the conduct of Mr Ncube and wherein they were
requested to investigate the matter further.
Conclusion:
7.7.31
From evidence obtained during the investigation, Masitara Forensic conclude that:
The 20 people did receive training free of charge.
Mr Ncube, with the intention to defraud the HRDC, fraudulently altered the claims
which were prepared by Ms Makhura.
Mr Ncube submitted the claims, which he fraudulently increased, to the HRDC.
Mr Ncube intended to, when the claims were settled by the HRDC, transfer the
fraudulent portion of the claims to a private account which he still had to open at a
commercial bank.
Although the arrangement and payment between Ms Sebolao and Ms Makhura seem
to be suspect, we are unable to conclude, on the available evidence, that Ms Makhura
made misrepresentations to the HRDC.
Recommendation:
7.7.32
Masitara Forensic recommends that the HRDC:
Repudiate the claims received from Clear Planet (Pty) Ltd for the re-imbursement of
training fees;
Open a criminal case against Mr Annel Brian Ncube for forgery and uttering as
described in section 341, 342 & 348 of the Botswana Penal Code.
In terms of section 388 of the Botswana Penal Code, attempted to commit an offence
to wit fraud.
48 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
8.
GENERAL OBSERVATIONS AND RECOMENDATIONS
8.1
From the investigation conducted, Masitara Forensic makes the following specific
observations:
Many of the telephone numbers of alleged students reflected in the claims submitted
to the HRDC by Re-Sealing (Pty) Ltd, The Land Management Group (Pty) Ltd,
Garginger Farms (Pty) Ltd, 3 Pin Solutions (Pty) Ltd, Slyfive Investments (Pty) Ltd and
Bomathu Investments (Pty) Ltd are not the correct numbers of the various students
but that of the company or the director(s) submitting the claims.
There is sufficient reason to believe that fraud has been, and still is, being committed
against the HRDC. This believe is based upon credible information obtained during
the course of the investigation.
Given the links drawn between the different role players there is reason to believe
that the HRDC is being targeted by syndicates and that several more fraudulent claims
have been submitted the past few years. The existence of a syndicate or that different
role players act with a common purpose is illustrated by the following:
o
The mere fact that Annexures D15 and F17 was sent as one document to the
HRDC on 3 November 2015 whilst it contains reference to different entities.
8.2
From the investigation conducted, Masitara Forensic makes the following general
recommendations:
Should the HRDC not currently have a list of claim defaulters in operation, it should
immediately introduce such a list.
Record should be kept of the various companies which submit fraudulent claims, it’s
directors and their respective identity numbers to ensure that they are barred from
submitting future claims
The HRDC to investigate all previous claims submitted by Clear Planet (Pty) Ltd, ReSealing (Pty) Ltd, The Land Management Group (Pty) Ltd, Garginger Farms (Pty) Ltd,
3 Pin Solutions (Pty) Ltd, Slyfive Investments (Pty) Ltd, Bomathu Investments (Pty)
Ltd and any of these companies’ directors.
The HRDC to conduct investigations on a sample of the remainder of claims submitted
during the last two financial years.
49 | P a g e
Reimbursement of claims against HRDC Fund
17 November 2015
The HRDC to embark on a fraud awareness training for staff members who are
involved in the evaluation of claims submitted for the reimbursement of training fees.
The HRDC should consider implementing a fraud and risk plan in order to prevent the
payment of fraudulent claims and to ensure that payment is done in the correct bank
account.
The HRDC should also consider a review and analysis of payments made to claimants
during the past two financial years. This review should be focused on duplicate
payments and bank accounts and links between directors and entities.
The HRDC should also consider creating a database with a review mechanism with
the particulars of all students training courses, students and subsequent reimbursed
claims in order to ensure that student particulars are not duplicated by subsequent
and independent claimants.
50 | P a g e