PRESS RELEASE: BKB

 

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DATE: MONDAY 25TH JUNE 2018

 

BKB AND THE WOOL AND MOHAIR INDUSTRY IN SOUTHERN AFRICA – PARTNER OF CHOICE AT THE WOOL & MOHAIR EXCHANGE FOR GROWERS AND TRADERS FROM LESOTHO AT PORT ELIZABETH AUCTION HOUSE.

 

  1. Introduction

BKB is a South African Public Company that has consistently been a trusted brand by the growers and traders in Lesotho and other countries in Southern Africa as a broker of choice for the auction of wool and mohair.   BKB informs Basotho that it is not the only broker in the region and growers and traders have a choice to trade with whoever they wish as we all know that all persons in business transact in a free market enterprise and at free will with whomever they so choose and desire.

 

BKB is deeply concerned that the general public and Basotho are consistently being misinformed on social platforms and over media.

 

  1. BKB as a Trusted Home of Agriculture in Southern Africa

BKB has consistently been producers centric in its approach to all its business associates.  It is this producer centric approach that has made BKB a partner of choice for Basotho growers and traders at the point and port of auction at Port Elizabeth.  The trust and integrity we espouse has seen the Lesotho Wool and Mohair Growers Association (LNWMGA) and members of Farmers Rock association (an Association of Traders) choosing BKB as their Broker.

 

 

 

 

  1. Closure of BKB Account and re-opening of the Same Bank Account by an Order of Court

On or about the 23rd January 2018 BKB was served with an Order of Court, which Order was sought without notice to BKB on the following  allegations;

  • Money laundering
  • Financing of terrorism.

 

BKB consulted its Attorneys in Lesotho and instructed them to oppose and file court papers for opening of the said Bank Account.

 

The Court granted the Order in favour of BKB that read as follows;

“The Order granted by the 1st Respondent (Magistrate) on the 12th day 2018 freezing Account Number: 0140081106301 held with the 4th Respondent (bank) is set aside as being null and void ab initio.”

We wish to place on record that the Bank Account was not opened on the order or instruction of any person but by an Order of Court. Secondly the said account is meant for payment of all proceeds relating to wool and mohair to the beneficiaries who had sent their fibre to BKB in Port Elizabeth.

 

  1. Accusations of Tax Evasion and Money Laundering

BKB was again assessed by the tax authorities in Lesotho and sought advice from our Auditors and sent letters to the Lesotho Revenue Authority through our Lesotho Attorneys but to date a response is awaiting; though a follow-up letter was made and served on the LRA on 14th May 2018.

 

We wish to reiterate that BKB trades as a South African Broker in Port Elizabeth for the growers and traders of Lesotho and Other Southern African countries.

 

  1. Disclosure on contemplated business in Lesotho under negotiation with the Growers and Traders
  • BKB has been in negotiations with the growers and traders to open a Lesotho company that will act as a vehicle for amongst others addressing disease control on livestock through wholesale and retail sale of medicine and vaccination.
  • We have since stopped any process on activation of that company which is currently dormant.
  • The Company was never registered on invitation of Government but a shareholder view of BKB, the public company in South Africa.
  • The Company was registered on the 3rd April 2018 and the business extract is available for public scrutiny.
  • BKB is consulting with Board in South Africa about the Lesotho entity on whether to proceed with activation or de-registration.

 

  1. News Paper Article on BKB: Lesotho Times BKB owes government over 1 Billion Maloti in Taxes
  • BKB is in consultation with its lawyers on what it deems as slander relating to an allegation that it owes the government taxes accumulated over 40 years of its business with Basotho farmers.
  • BKB categorically denies the allegations and challenges government of Lesotho to prove its unfortunate allegations.

 

  1. What Determines the Prices of Wool and Mohair
  • International demand and supply determine the worldwide prices of wool and mohair.
  • BKB is a trusted and renowned brand that auctions the wool and mohair. It is in the best interest of BKB as well to achieve the highest price possible.
  1. We again place on record that we are in consultation with our Attorneys about the untruths levelled against our brand; and wish to extend our continued commitment to the growers and traders in Lesotho to ensure Lesotho wool and mohair still remains competitive at the auction house. We wish to inform the Basotho Nation that the partnership between BKB and its farming community extends to shearer seasonal workers who are contracted in South African farms through BKB; over 300 Basotho labourers get employment because of BKB.

 

  1. Long Live free market enterprise

For copies of this Press Statement contact:

Jacobus A le Roux – General Manager: Corporate Marketing & Public Relations

T: +27(0)41 503 3003

C: +27(0)82 411 6316

E: jacobus. leroux@bkb.co.za

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