Inside Botswana’s Tobacco Industry’s multi-million Pula legal battle

Botswana’s state regulatory and intelligence agencies are embroiled in a high-stakes legal dispute with Riotrade Enterprises (Pty) Ltd and its Managing Director, Isaac Danda, who allege unlawful actions aimed at crippling their business.

The conflict involves the Botswana Unified Revenue Service (BURS), the Directorate of Intelligence and Security (DIS), and the police. Court documents reveal the saga began in June 2026, with Danda’s arrest and escalated when BURS sealed Riotrade’s bonded warehouse, halting the movement of its raw tobacco.

The matter quickly moved into the courts, where Riotrade successfully challenged BURS’s decision. The trouble started in June when Senior Superintendent Ranchi Olebile of Lobatse Police arrested Danda in Gaborone over a 17-year-old charge of obtaining money by false pretences. Despite Danda’s offer to repay P18,000 to the complainant — who later formally withdrew the case — he was detained overnight. Police reportedly informed him he was wanted by security operatives.

An agreement was reached for Danda, who was reportedly unwell, to see a doctor. Instead, he was taken to DIS offices in Sebele, where he claims he was held without charge until late at night. Danda alleges that DIS officers, including one identified as Nkwane, threatened and assaulted him while demanding passwords to two seized mobile phones. He was released that night, but his phones remained in DIS custody.

The dispute then shifted to Riotrade’s business operations. On July 10, 2026, acting under authority from Acting Commissioner General Phodiso P. Valashia, a BURS official issued a preservation notice, sealing Riotrade’s bonded warehouse and halting the movement of raw tobacco, citing concerns under Section 15 of the Customs Act.

After receiving the notice on July 13, Danda sought legal counsel and filed an urgent application on July 15 at the Lobatse High Court to overturn the shutdown. The court granted an initial rule nisi on July 17, setting a return date for July 28. Riotrade argued that BURS had acted unlawfully, asserting that Section 15(3) of the Customs Act requires the tax agency to have reasonable grounds to believe a crime has occurred or is imminent before sealing a facility. The shutdown, they said, imposed severe financial strain on the company.

Court filings detail Riotrade’s monthly financial obligations, including P251,915.46 toward a P30 million loan from Bank Gaborone, P443,819.44 toward a P5 million Letlotswa Investment loan, repayments on an ABSA revolving credit facility, P160,000 in vehicle loans, and roughly P1 million in monthly tax commitments to BURS. The company also pays about P600,000 monthly in wages to its 120 local employees.

On August 7, Justice Rueben Lekorwe ruled in favor of Riotrade, finding that “pending clarity” was insufficient grounds to justify sealing the warehouse. The judge stayed BURS’s suspension notice and granted the company access to its raw materials to resume manufacturing. Riotrade was ordered to file a formal review application within 30 days, while BURS was directed to cover the legal costs.

But the legal fight did not end there. On August 17, Danda’s lawyers issued a Statutory Notice of Intention to Sue the DIS and the police, demanding P3,050,000 in damages: P1 million for unlawful arrest, P1 million for alleged violations of his constitutional right to privacy, and P1.05 million for alleged deprivation of property. The state has 30 days to respond before the lawsuit proceeds.

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