EnergyGlass Africa hits back at Bank of Botswana
EnergyGlass Africa have reacted angrily to an order to ‘ cease and desist’ issued to them by the Bank of Botswana on the 24th of August 2021 describing it as “malicious”. The order purportedly followed investigations conducted on EnergyGlass Africa’s flagship initiative ‘ The Global Citizen Energy Investment Scheme’ crowd- funding campaign, which BoB accuses the company of running an illicit and illegal banking operation. Managing Director of EnergyGlass Africa Lemolemo Collins Mudadi contends that the banking regulator has in fact committed a criminal act as the allegations are “fabricated and outright false”. Mudandi intimated that they have suffered irreparable harm from the fabricated and unlawful allegations which have led to a “distasteful perception of our exclusive continental reputation”. He said the allegations have further led to their mother company - SAF- GLAS LLC, the proprietary owners of EnergyGlass in the USA- terminating “our lifetime partnership agreement” which is worth an annual turnover of $ 500 million dollars. In written responses to Botswana Guardian enquiries dated September 21 which were also reduced into a press release, BoB head of communications and information services, Dr. Seamogano Mosanako said their probe into the EnergyGlass Africa was prompted by enquiries and complaints from members of the public. She accused EnergyGlass Africa of purporting to raise money from the public for the purpose of undertaking a glass manufacturing operation and promising to “pay exceptionally high monthly returns soon after subscription in the form of a bond of P1 000.00”. Dr Mosanako said that the investigations established that the nature of the company’s operations, especially on account of a promise of a return of P2 700.00 per month on a P1 000.00 bond investment, constitutes “illegal deposittaking from the public, in contravention of Section 3( 1) of the Banking Act ( Cap. 46: 04) ( Banking Act). “This provision of the Banking Act restricts transacting banking business and/ or advertising for or soliciting deposits of money to licensed banks. “It is also a criminal offence, punishable by law, or any person to promote the aforementioned illegal activities in Botswana, as that constitutes advertising for or soliciting deposits of money without a valid licence. Section 5( 1) of the Banking Act empowers the Bank to investigate a person or entity suspected to be conducting unlicensed banking business and/ or illegal deposit- taking activities” the BoB said. But Mudadi dismisses these accusations as wrongful prosecution based on deliberately falsified charges by an institution that is constitutionally enjoined to protect citizens. He said the allegations have caused him trauma that will have far- reaching detrimental effects throughout “my lifetime due to the magnitude of the cancelled partnership and contract I have lost”. In fact, Mudadi said this has caused “me a great number of negative psychological trauma including severe depression”. Mudadi argues that the government of Botswana, the Bank of Botswana and the Non Banking Financial Institution and Regulatory Authority ( NBFIRA), do not regulate crowdfunding neither is it prohibited in any way or form. The MD said this therefore contradicts the issued cease and desist order addressed to EnergyGlass Africa by “attempting to overlap the act of receiving investments from the public by so doing biasedly insinuating the aforementioned accusations to be free of errors and omissions”. Dr. Mosanako’s response did not say whether BoB regulates crowd- funding which method EnergyGlass Africa says it is using to raise investments, or does not. Mudadi argued that crowd- funding, has since its conception, had restrictions caused by endless governmental regula
tions throughout the world thereby hindering it to reach its utmost potential in all aspects. However, he said that the Global Citizen Investment Scheme has been “uniquely structured to surpass those boundaries”. EnergyGlass Africa is currently weighing its legal options following the cease and desist order by BoB. The First National Bank has also closed GCIS bank accounts.