Oliver Modise
28 March 2008
Gaborone — Mosele Legal Services and its underwriter Botswana Insurance Company (BIC) have reached an agreement to settle an audit dispute between them out-of-court.
BIC wants a forensic audit of Mosele Legal Services after allegations of fraud, money laundering and illegal insurance practices by Mosele's directors, Base Sebonego and Motha Kaang.
Currently the Botswana police have been probing Mosele and have frozen the company's business account. Yesterday, BIC lawyer Tshiamo Rantao and Sardique Kebonang for Mosele agreed before High Court judge Isaac Lesetedi for a new account be opened to avoid possible adverse effects on the subscribers and Mosele's business while investigations are still going on. The new account is to be opened at Barclays Bank. It will operate as a temporary distribution account for both BIC and Mosele. Lesetedi said PriceWaterHouse Coopers will continue with its audit of Mosele that began last week Tuesday. He has asked BIC and Mosele to each nominate two signatories for the new account. Mosele is to deposit its share of the premiums into the account. The court has ruled that each party should pay its costs.
BIC took Mosele to court on suspicion that the company or its directors might be diverting subscribers' funds for personal use and not disclosing all its premiums. Ex- Mosele employees Roseline Panzirah, Abdul Kgengwenyane, Onah Mangwane and Thandi Mooka revealed in an interview with South African insurance investigators Insguard that the company's directors were involved in possible fraudulent activities.
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