BITC confirms international anti-money-laundering screening of the proposed Kalahari City developer, but says the multibillion-dollar project has not received final approval.
BONGANI MALUNGA
The Botswana Investment and Trade Centre (BITC) has revealed that Zotus Group was subjected to international anti-money laundering and counter-terrorism financing screening as part of government due diligence on the proposed multi-billion-dollar Kalahari City project.
Responding to questions from The Botswana Gazette, BITC disclosed that corporate verification and reputational checks were conducted using World-Check reviews against global Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) databases. The screening was aimed at identifying potential litigation, sanctions and reputational risks associated with the developer.
“Corporate verification and reputational compliance checks have been conducted, including World-Check reviews against global Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) databases to identify potential risks such as litigation, sanctions, or reputational risks,” BITC stated.
VETTING PROCESS
The revelation offers fresh insight into the vetting process behind the proposed Zotus Kalahari City, which BITC says could attract between US$30 billion and US$50 billion in investment and generate more than 20 000 jobs. The proposed ownership structure envisages Zotus City Development Group holding 51 percent, government 10 percent and strategic investors 39 percent.
BITC stressed, however, that its accreditation of the development as a strategic investment initiative should not be interpreted as final project approval.
“Through this process, BITC has undertaken initial screening, coordinated inter-agency engagements, and continued to serve as the central facilitation body supporting the project. The accreditation does not constitute final project approval but signifies that the project has advanced to a structured facilitation and due diligence phase under Government oversight,” the agency stated.
UK Visit
The vetting went beyond database screening as BITC revealed that officials from the investment agency, Botswana’s High Commission in London and representatives of Botswana security agencies travelled to Zotus’ offices in Manchester, United Kingdom, for a due diligence visit.
BITC said the process remains ongoing and involves several state institutions before binding implementation arrangements are concluded.
“BITC continues to work closely with relevant government institutions to ensure that all due diligence requirements and steps are completed prior to the conclusion of any formal engagement or investment agreements,” the agency said.
The scrutiny comes as the government moves ahead with preliminary planning for the ambitious smart-city development, while feasibility studies, regulatory approvals and final land arrangements remain outstanding.