The Botswana Development Corporation (BDC) has suspended two senior executives over an alleged conflict of interest in a private equity tender worth more than P1 billion issued by the Botswana Public Officers Pension Fund (BPOPF).
Towards the end of last year, BPOPF, the country’s largest pension fund by assets, invited bids for Private Equity Asset Management Services (Incubation), Tender No: BPOPF/INV 008/2024-25. The tender is designed to support emerging asset management firms under BPOPF’s incubation program, which seeks to grow citizen-owned firms with strong technical capabilities so they can compete internationally.
Under the leadership of Managing Director Cross Kgosidiile, BDC expressed interest in the tender and assigned its investment management team, led by Chief Investment Officer Kudzani Pickup, to apply. However, sources indicate that instead of submitting an application on behalf of BDC, Pickup and Investment Principal Lorato Keseabetswe applied independently using their own companies.
A total of 19 companies submitted proposals for the tender, among them Native Capital Partners (Pty) Ltd, owned by Pickup, and Lotus Partners (Pty) Ltd, co-owned by Keseabetswe. BDC itself did not submit a bid.
Company records show that Native Capital Partners was registered on November 19, 2024, shortly after BPOPF issued the tender. Pickup holds a 60 percent stake in the firm, while Urban Basima Dabutha owns the remaining 40 percent. Similarly, Lotus Partners was incorporated on November 18, 2024, with Keseabetswe owning 45 percent and Kamogelo Mowaneng, CEO of Letlole La Rona (LLR), holding 55 percent. LLR, notably, is partially owned by both BPOPF and BDC.
Both Native Capital and Lotus Partners are still in the running for the tender, which has yet to be awarded.
Upon learning that Pickup and Keseabetswe had applied for the tender personally rather than on behalf of BDC, the corporation’s leadership, led by its CEO, suspended both executives pending disciplinary action. Their suspension took effect last Friday.
BDC management maintains that the two violated their contractual obligations, which require employees to avoid conflicts of interest and declare any external business activities. There is also concern that BDC may have lost a strategic opportunity to secure the BPOPF tender and expand its private equity investments.
When contacted for comment, both Pickup and Keseabetswe declined to speak and referred all inquiries to BDC. BDC’s Head of Corporate Affairs, Boitshwarelo Lebang-Kgetse, also declined to confirm the suspensions, stating that, as a matter of corporate governance, BDC does not comment on internal employee matters. She, however, emphasised the company’s commitment to upholding integrity, governance, and accountability in all its operations.
BPOPF’s Corporate Communications Director, Alan Ranthepha, confirmed that the private equity tender was issued late last year and has undergone the first stage of evaluation. The next step involves a review by the Management Tender Committee, followed by further processes before a final decision is made by the board. A total of 19 companies responded to the tender, but shortlisting is still ongoing.
Ranthepha stated that their target is to present a proposal to the board by May 2025, assuming there are no delays in the evaluation process. He further explained that a minimum of P500 million has been allocated per asset manager. The final number of selected managers will depend on the strength of the bidders and the available risk budget, but a maximum of two companies will be awarded the contract.
BPOPF launched its Incubation Program eight years ago to empower citizen-owned asset management firms. Since its inception, six tenders worth approximately P6 billion have been awarded under the program. Among the firms that have benefited are 5th Quarter Investment Managers, SeventyFive Degrees (Pty) Ltd, Thusano Capital, K-Hill Property Developers, Africa Lighthouse Capital, and Aleyo Capital.
Of these, Aleyo Capital and Africa Lighthouse Capital have successfully completed the program, while the others remain in earlier stages of development. Two additional incubation tenders were issued in late 2024 and are currently under evaluation.
