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Botswana: Lobtrans Manager in Mental Hospital
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Mmegi/The Reporter (Gaborone)
4 April 2008
Posted to the web 7 April 2008
Bame Piet
Gaborone
The High Court in Lobatse learned yesterday that Sam Asmal, manager of long-haul truck company Lobtrans has been admitted to a hospital in Cape Town, South Africa because of psychiatric problems.
Lobtrans and its sister company Lobatse Cash Store are in liquidation. A lawyer for the two companies, Reuben Kamushinda said that he was unable to communicate with his client because he is in a psychiatric ward. The news forced Justice Ian Kirby to postpone a case in which the Botswana Commercial and General Workers Union and Botswana Beverage and Allied Workers Union had made an application to the court to appoint a second liquidator for the two companies.
The two companies have opposed the application. A tense debate ensued between Kamushinda and Kirby who wanted to know what his client's interests are since he had conceded to the liquidation.
The judge also wanted Kamushinda to state the legal basis for his opposition to the appointment of a second liquidator. The lawyer insisted that he needed to take instructions from his client.
However, Steven Vivian for the unions contended that the Insolvency Act empowered the court to appoint a second liquidator who should protect the interests of all creditors impartially.
He said he was not impressed with the current provisional liquidator John Stevens' attitude accusing him of not communicating with employees of the two companies. He said that a lot was at stake since the liquidation involved millions of Pula and so many creditors.
However, Kirby enquired if he meant that all the creditors could make an application to the court to appoint a liquidator on their behalf and he answered in the affirmative.
Vivian said that it would be wise for the court to appoint a liquidator who resides in Botswana and South Africa to contact creditors in both countries.
Kirby acknowledged that the Insolvency Act empowered him to appoint a second liquidator but it did not specify what exactly he (Kirby) should do. Apparently the Register and Master of the High Court had turned down the application. In the afternoon Kamushinda confirmed that his client did not object to the appointment of a second liquidator.
Kirby confirmed the final winding up of Lobtrans and Lobatse Cash Store; that the statement of Assets and Liabilities from Group Creditors was not of much assistance to the court; and that there was prima facie evidence of high profile fraud involving tens of millions of Pula and several companies in Botswana and South Africa.
The judge confirmed the appointment of the second liquidator - Cyrian Ziman and that he should represent the interests of all creditors.
The defendants are to pay for the costs of the application. John Carr-Hartley is representing Barclays Bank of Botswana, who together with Standard Chartered Bank petitioned the High Court to put Lobtrans and Lobatse Cash Store under provisional liquidation.
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Local banks are reported to have lost hundreds of millions of Pula as a result of the collapse of the two companies.
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