SONNY SERITE
Following the noise that came with the arrest and charging of their former Managing Director Bakang Seretse on allegations of money laundering, the new man at the helm, Alphonse Ndzinge says Seretse’s case has taught them a lot of lessons. Below are his responses to some of the frequently asked questions since Seretse left Kgori Capital.
Q) What lessons have you learnt from the National Petroleum Fund Issue?
A) A number of lessons have been learnt from this unfortunate matter. Whilst we are confident of a strong control and governance framework, we are in the process of engaging an independent forensic audit.
Q) Do you believe the recent incident regarding the National Petroleum Fund and Bakang Seretse has impacted Kgori Capital’s competitiveness and standing in the market?
A) We understand that our brand has been tarnished to some degree by association, and this is most unfortunate. A number of inaccuracies were making the rounds in public domains, and we have worked to set the record straight as regards these. At the same time, however, we have a longstanding reputation for excellent work, transparency and trustworthiness. Thus we continue to always work in the best interests of our clients, with the utmost dedication and confidence to deliver on our every promise.
Q) What is the anticipated impact of the loss in mandates and Assets Under Management to Kgori Capital’s bottom line?
A) We have lost four clients, one of which was significant. We currently have 15 institutional clients. Kgori Capital has been deliberate in ensuring a healthy client mix to ensure that the business is not built around any single client.
Q) What is the status of the relationship with Bakang Seretse?
A) Mr. Seretse has no involvement whatsoever with Kgori Capital. He has resigned as Managing Director. He has been removed from the Board as a Director. He has also been removed from the Shareholder list.
Q) Has Bakang Seretse been paid out and what has been done with the shares he held?
A) Bakang Seretse is no longer under the employ of Kgori Capital, and thus has been removed from our shareholder registry, as our shareholder’s agreement states that shares will only be held by those that are employed by Kgori Capital. We are exploring how shares previously held by him will be managed.
Q) Do you have a Compliance Officer?
A) We have a dedicated Compliance Manager, Mrs. Elizabeth Ferguson, who has extensive experience in audit spanning over 13 years. This is just one of the many control and governance protocols we have in place internally.
Q) Do you have a Conflict of Interest Policy and if you do what is your declaration process?
A) We have a Conflict of Interest Policy and all staff, Directors and Shareholders, are required to declare all interests. Staff are required to make declarations on an annual basis. Directors are required to make declarations at every Board Meeting and there are six Board meetings per year. The Compliance Manager maintains a Declaration Register. Non-disclosure is a dismissible offense at Kgori Capital.
Q) What risk mitigation plans do you have in place for Politically Exposed Clients?
A) The business has taken a decision to profile all clients and add another layer of KYC for Politically Exposed Clients.