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JUNE 08 - 14, 2018
EST. 1997 | Vol 21 Nõ 22
Auditor General breathes fire PAGE 4
CONTACTOR DROPS BOMBSHELL PAGE 2
2
Public Eye
Friday June 8, 2018
News
Contractor drops bombshell . . . alleges Chinese companies have captured state tenders BONGIWE ZIHLANGU
M
AS E RU – A l o c a l construction company this week dropped a bombshell when it queried about 10 multi-million maloti government jobs allegedly awarded to Chinese c o m pa n i e s u n d e r d u b i o u s circumstances at the expense of capable and liquid indigenous firms, raising the spectre of state capture. The Lesotho Steel Products (LSP) in a detailed letter to the government watchdog, parliament’s Public Accounts Committee (PAC), laments the loss of income to local companies and thousands of jobs that would have been created for locals on the main jobs and in downstream industries. The miffed giant construction c o m p a n y “ p ro p o s e ( d ) t h e appointment of independent c o n s u l ta n ts to rev i ew t h e tender evaluations done where projects were awarded to Chinese contractors”. Government immediately pushed back insisting most public sector jobs were awarded to local firms with just a tiny fraction going to foreign firms, including the Chinese. In a 5 June letter to PAC Chairman, Movement for Democratic Change (MEC) leader Selibe Mochoboroane, the LSP conveyed concerns over the number of government construction projects “being awarded to Chinese contractors”. Reliable PAC officials also told Public Eye this week that before writing the letter, LSP officials met Mochoboroane to express their concerns. Mochoboroane yesterday confirmed meeting LSP officials over the matter. “I haven’t seen the letter yet because it must be in parliament. However, I can confirm that the LSP approached me as the PAC Chairman with those concerns and I advised them to write a
PAC Chairman Selibe Mochoboroane formal letter detailing everything,” Mochoboroane said. LSP lists several Chineseowned companies that have been given work by government, at the expense of locally-owned construction companies which are reportedly capable of handling the jobs, including LSP and Sigma Construction. “It is our opinion that there has been excessive and inexplicable awards by the State and parastatals of contracts to Chinese construction companies. We herewith urgently request your good office to investigate the situation as mentioned above,” reads the letter. LSP noted that UNIK, China Geo, Mango Tree, Ground Water Consult (GWC), had inched ahead of local companies although the majority of contracts were being awarded to China Geo and UNIK, which LSP claims is in most cases paired with GWC. To level the playing field, LSP adds, the PAC should facilitate for the establishment of a tender review and evaluation panel “especially where GWC are consultants”. “We propose the appointment of independent consultants to review the tender evaluations done
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where projects were awarded to Chinese contractors and especially where GWC were the consultants,” LSP pleads with PAC. Moreover, LSP raises concern that despite getting the bulk of large-scale contracts, Chineseowned companies bring in Chinese workers to manage the projects and for skilled labour, despite required skills being available locally. This, LSP says, is detrimental to Lesotho’s economy as the companies “neither invest in the country nor stimulate its economy”. “Chinese contractors employ very little, if any local skilled labour. The vast majority of management, professionals, artisans and operators are all Chinese citizens. This raises the issue of work permits,” LSP says. According to LSP, while it is difficult for construction companies to secure work permits for foreign employees, it seems relatively easy for Chinese-owned companies to secure the same for their Chinese employees. “Local construction companies find it very difficult to obtain work permits for specialist expatriates. Contrary to this, we believe the vast majority of Chinese employees working for construction companies
have work permits. “There appears to be an inconsistency, or bias, in the approval of work permits. Chinse contractors invest very little, if any, in Lesotho. They import as much as possible from China and do not stimulate or add anything of great significance to the local economy,” the letter reads. LSP further provides a list of tenders it claims were awarded to Chinese owned companies. The first tender that LSP has concern with, is Contract No. MCA-2017/18-WASCO-L5T-01 of the Water and Sewage Company (WASCO), for the construction of water supply infrastructure for Butha-Buthe and Hlotse. While the tender was eventually awa rd e d to t h re e C h i n e s e contractors, namely; UNIK, China Geo and Mango Tree, LSP claims it has it on good authority that LSP and Sigma were initially recommended for the tender, only for WASCO to somersault and appoint the three foreign companies, with the consultants being a joint venture between Mot MacDonald (MM) and Ground Water Consult (GWC). “There appears to be a significant trend throughout where
GWC is the consultant and UNIK are being awarded the project. The relationship between GWC and UNIK needs to be investigated. One enquires how many contracts have been awarded to UNIK where GWC was the consultant,” LSP claims. The second contract that they had an issue with, LSP submits, is RFB No. LNDC/RFB/001/2017, for the construction of Ha-Belo Infrastructure and Factory Shells in Butha-Buthe District, which was also awarded to UNIK with GWC as consultants, despite the LSP/Aveng quotation being the lowest yet competitive in terms of “technical ability, experience, resources, availability and financial capacity”. “Again, the consultant is GWC and the contract was awarded to UNIK. During the public tender opening, LSP/Aveng JV tender price as read out was the lowest. Together with Aveng, LSP offered a highly competitive tender not only as far as price was concerned, but also in terms of technical ability, experience, resource availability and financial capacity,” LSP maintains. The LSP/Aveng Joint Venture, LSP adds, should have won the contract as they had available capital in excess of R800 million in cash, available at tender stage, despite recording losses over the past couple of years “which is not unique and is a common trend among large construction companies in South Africa”. “The personnel the JV proposed had sufficient similar experience and/or qualifications as called for by the tender requirements. The circumstances under which the contract was awarded are questionable. First of all, it was tendered in May 2017, just before the elections in Lesotho on 3 June 2017,” LSP alleges. “Secondly, a new LNDC Board was appointed and shortly after that, the contract was awarded. The contract was awarded to UNIK, a foreign Chinese-owned company. It is a well-known fact that they employ Chinese expats as managers and skilled labour. They import the vast majority of plant and equipment from China, including material.” Another contract the LSP has gripe with is the Proposed Renovation of Devcourt Flats for Lesotho National Development Corporation - Contract No: LNDC/ Continues on page 5
Public Eye
Friday June 8, 2018 3
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Public Eye
Friday June 8, 2018
News LAWRENCE KEKETSO
M
ASERU - Shambolic financial statements from government departments have irked the Auditor General who has charged this could be either be caused by error or attempts to cover fraud. Auditor General Lucy Liphafa said in a statement this week those tasked with the oversight powers should work diligently to restore normalcy in the financial reporting process. “My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material mis-statement, whether due to fraud or error,” said Liphafa in a statement. She reminded accounting officers that fraudulent or erratic mis-statements could influence economic decisions, which could lead to a recipe of policy implementation based on a false financial position. Chief among her concerns in her report on the 2016-17 financial statements, Liphafa cites misrepresentation, disagreement of figures in the financial statements, as well as non-compliance with the appropriation legal framework and, in some instances, total disregard of the laws at hand in the management of public funds. “In my opinion, . . . the accompanying consolidated f inancial statements do not present fairly the f inancial position of the government as at 31 March 2017, and its financial position of the cash flows for the year then ended,” the Auditor General said. To illustrate the gravity of noncompliance during the reporting period, she gave an example of the case of M450 million transferred from the Trust Monies Account to the Consolidated Fund in contravention of the requirements of the Public
Auditor General breathes fire Spotlight on faulty govt financial statements Financial Management and Accountability Act 2011, as there was no evidence that the money in question remained unclaimed for a period of five or more years. “The same amount of M450 million was later transferred from the Consolidated Fund to the Recurrent Expenditure Account, contrary to the requirements of Section 112 of the Constitution of Lesotho,” she said. Liphafa further explained that the Constitution requires that an Appropriation Act should approve the issuance of funds from the Consolidated Fund to
. . . sketchy proof for contingent expenditure raises eyebrows LAWRENCE KEKETSO MASERU – R evellers at celebrations to mark the country’s 50th independence anniversary in 2016 gobbled nearly M1 million worth of food, although there is no evidence to back this, official records show. Raising concerns on u n ex p l a i n a b l e ex p e n d i t u re sequences, especially with some government a ctivities funded of a contingency nature, the Office of the Auditor General, said there was greater need now more than ever before to tighten internal controls and reporting mechanisms.
This will enable government departments to furnish necessary d o c u m e n ta t i o n to s u p p o rt reported expenditure. In her report of the 2016/17 financial year, the Auditor General Lucy Liphafa has questioned the Ministry of Home Affairs for amongst others, two separate state activities which cannot pass any audit. She said this was because of a lack of clarity in the management affairs and expenditure related to two activities by the ministry. R ep orting on the gran d celebration of the 50th Anniversary of Lesotho’s Independence on October 04, 2016, the office is left
meet expenditure under separate votes for the heads of expenditure, which she said was not the case in this instance. The Auditor General further raises alarm on the continued misappropriation of advance warrants from the contingency funds, of which she said to date, since fiscal year 2009/10 are now in excess of M1 billion. “…allocations to heads of expenditure are to be made only on the basis of Appropriation Act. This issue recurred on an annual basis since 2009/10 and a total amount of M1,048 billion for eight
financial years ended 31 March, 2017 is yet to be regularized through Supplementary Appropriation Acts,” she said. Liphafa further disclosed that in the reporting year alone, some M123.8 million was irregularly allocated by cabinet or ministers responsible without following proper procedures. At the heart of the audit report 2016/17, the Auditor General reveal, a series of callous acts by government officials and management whose serial inappropriateness has continued to dog audit reports in Lesotho.
The Audit Report 2016/17 comes hot on the heels of the current open hearings of the Public Accounts Committee, which have become popular among Basotho, especially with the open media coverage and live televising of the hearings. The new report will, among others, bring about issues of the controversial Bidvest fleet management saga, the f inal ca l c u l a t i o n s o f t h e go l d e n h an d sh ake o f fo rm e r army commander, Lt. General Tlali Kamoli as well as a series of misdeeds among the government departments and on donor funded projects.
frustrated as to the authenticity of the stated expenditure against what is available as proof of such. “Since this was a planned occasion, I had expected to be provided with a plan indicating activities to be carried out and expenditure thereon. “However, there was no plan or cabinet Memorandum provided for audit and therefore I could not ascertain whether activities carried out were compliant with the intentions of Cabinet,” Liphafa said. The audit report questions, among others, high figures for catering services for the occasion, w i t h a re p o r te d re c u r re n t expenditure of M1,332,584 on catering services and other items. “The amount of M900,000 incurred on catering services for 3,000 people could not be verified as there were no controls in place, such as issuance of coupons, to validate the number of people fed,” states the Auditor General in the report. She also questioned how the
Home Affairs Ministry had also at its disposal a fund that was a result of good will contributions at Lesotho Post Bank, to the tune of M6,073,594 whose accounting cannot provide clear proof of expenditure nor any kind of evidence that the monies were put to expected proper use. “The Ministry of Home Affairs issued instruction letters bearing purpose for withdrawal to the bank for cash withdrawals to the amount of M181,500.00 … I was not provided with evidence that the money was actually received by bona fide beneficiaries or used for items actually received,” lamented the Auditor General. S h e f u rt h e r b r i n gs i n to question high expenses reported for the official burial of former minister Ntsukunyane Mphanya, where catering costs in the amount of M427,852.90 for 4,662 people was reported. While arguing that some of these wasteful expenditures could have been avoided, the Auditor General is further perplexed by
the fact that in most instances, advanced monies were requested for services even before invoices were received. “My audit established that an advance of M498,483.00 from the Contingencies Fund was granted to the Ministry of Home Affairs in April 2016 for an official funeral of a former minister,” she said, adding that what was also of concern was that there was no Cabinet Memorandum for an official burial of this particular minister, while there appears to be no clear government policy on official funerals, thereby leaving a gap on the appropriateness of the said expenditure within the parameters of the law. While also raising questions on the legality of caterers engaged, with some licensed in completely different fields from catering, in both instances of the two Home Affairs activities in 2016, the Auditor General also says it is very abnormal that invoices are raised even before the purchase orders are issued to the suppliers.
Public Eye
Friday June 8, 2018 5
News
Contractor drops bombshell Continues from page 2 RVP/003/2017, which LSP alleges Sigma had been recommended for by the tender evaluation panel, only for the board to overrule the panel’s decision. “The LNDC Board, however, overruled the recommendation and the entire project is now being re-tendered,” LSP adds. The Rural Water Supply from Metolong to Berea, LSP claims, was yet another contract “awarded to UNIK with the consultant being GWC”. LSP also expresses concerns about the tender for the construction of the M900 million Marakabei to Mononts’a road in Butha-Buthe, which was selectively awarded to China Geo. This contract was however withdrawn when the Consortium of Lesotho Contractors (CLC) challenged the Minister of Public Works and Transport over the irregular awarding of the job to China Geo without going to tender. “CLC and its members, being very diligent in looking for construction tender opportunities in the press and media as a whole, do not recall seeing the advertisement of this project in any of the weekly local newspapers. “We are aware that your
Ministry works in line with the Government of Lesotho (GoL) Public Procurement Regulations 2007, in particular, Public announcement of invitations to tender, Clauses 22(1) to (5), hence this inquiry,” CLC Chairman Mokhele Likate said. “We, therefore, request you with humility, Honourable Minister, to give clarity to how the awarding of the M900 million Marakabei Monontša Road Project could have followed due process and denied Basotho contractors work opportunity that would bring relief to a number of Basotho families.” In this instance, however, LSP laments that despite the contract being refloated, China Geo is still at an advantage over local companies because it has been on site for several months and has set up camp, thus has become familiar with the surrounding than local contractors. “This project was initially awarded to China Geo for M900 000 000.00, without having gone out to tender. The award was subsequently cancelled and the project is being re-tendered now,” LSP submits. “China Geo however has a huge (and unfair) advantage, because they are already fully established on site. This makes it extremely
difficult for any other contractor to submit a competitive tender against China Geo.” A source who sought anonymity but was part of last month’s tour of the construction site by contractors with the public works ministry, on Wednesday told this paper that most contractors were disillusioned by the China Geo camp. He added that the China Geo team seemed disinterested when contractors were being addressed by the ministry of public works “probably because they know that the tour was just a façade to appease contractors who complained about the tender being selective”. “They were busy conversing amongst themselves, not paying attention to what was being said. If they were not busy on their mobile phones, they were making noise talking in the meeting,” the source, who is a contractor, alleged. Other tenders that LSP is miffed over because they have been awarded to Chinese companies UNIK and China Geo, include the WASCO Pipeline the Police Training College (PTC) to Khali Hotel in Maseru, which was awarded to UNIK, and the contract for the construction of the Roads Directorate-Thaba-Tseka Road which went to China Geo. “The Wasco pipeline project
in repercussions including the awarding of contracts to foreign companies, due to Basotho-owned companies not making the cut as they were only three in category A. “This is very worrying. The main challenge now is empowering and capacitating Basotho contractors in the large-scale construction of roads and buildings. As things stand, Basotho contractors’ financial incapacity hinders their potential,” Maliehe said. “In order to address this challenge, my ministry together with engineering organisations, have wrapped up the formulation of a policy document aimed at capacitating and empowering Basotho contractors, to enable them to compete with world class contractors and win large scale construction contracts. “I will soon table the policy document before cabinet.” Also addressing a similar media briefing as Maliehe, the ministry’s Principal Secretary (PS) Mothabathe Hlalele, submitted that “over 99.9 percent of their tenders were awarded Basotho”, further providing a chart of current tenders, indicating that only six out of 60 contractors engaged in road projects were foreign companies. “Hence, whoever claims that tenders are being awarded to foreigners are misleading Basotho, they are not based on factual information. The fact is that most of contracts are awarded to Basotho companies,” Hlalele said.
was awarded to UNIK without being put out to tender. The Roads Directorate-Thaba-Tseka Road was tendered and, according to our information, one of the contractors submitted an alternative proposal, which was the cheaper price read out at tender stage. The project was awarded to China Geo, but with the alternative proposal submitted by the other contractor,” LSP laments. “The Roads Directorate – Maputsoe Road project was tendered and China Geo was also awarded the project at a cost of M45 million more than the lowest tender. “As for the tender for the Renovation of the Moshoeshoe I Airport VIP Lounge, BDS recommended the award of this project to three unknown Chinese contractors. This project has not gone out to tender.” Addressing a media briefing on Wednesday, Minister of Public Works and Transport Maliehe Prince Maliehe, said while their intention was not to marginalise native Basotho contractors, it was also his ministry’s responsibility to register and categorise contractors based on their experience and skill. According to Maliehe, it seemed that most of Lesotho’s contractors belonged to lower categories, which he added resulted
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Public Eye
Friday June 8, 2018
News
Shaddy company linked to mines minister ‘We are no longer close business associates’ KANANELO BOLOETSE
M
ASERU – The directors of the company implicated in a questionable drilling and blasting tender involving the Liqhobong Mining Development Company are closely connected to mining minister Keketso Sello, Public Eye has learnt. In 2017, a joint venture between a South Africa-based Basil Read and a local company linked to the then Commissioner of Mines Tšeliso Ntabe – Makamics Pty (Ltd) – was controversially awarded the tender by the Liqhobong Mine. Last month Public Eye revealed details of how Ntabe was linked to the beneficiary companies and how he was allegedly intimately connected to the deal. When confronted with the information Ntabe denied any wrongdoing. Makamics, whose business activities include “mining of ores” and “mining of other non-ferrous metal ores”, is equally owned by three businesses, namely; Makana Mining and Civils (Pty) Ltd, ‘Mesamohloane Investment Cooperative Society and Merero Mining Group (Pty) Ltd. Public Eye this week discovered that Merero Mining group is owned by, among others, mining minister Sello’s close business associate and taxi mogul Tšeliso Sekhoacha. Sello and Sekhoacha co-own at least three mining companies, Skhova Mining and Civil Works, Mincons Inc. and Theluji Mlima Investment. T h e c o m pa n i e s reg i st ry records show that Sello, who was appointed Mining Minister in July 2017, has not relinquished his directorship in the aforementioned companies. He acknowledged to Public Eye on Tuesday that he holds a stake in the three companies adding however that he did not relinquish his directorship because “all the mentioned companies are dormant”. He said it would be unfair to bar other people from competing for jobs in the mining sector only “because they used to be my business partners”. He said: “I did business with a lot of people before I became a cabinet minister, hence it would not be very unfair to deny such people mining tenders. If that was to be done, many people would be barred from doing business in this sector because I know most of them.” On Wednesday, Sello told this paper that though he “still coowned dormant companies” with Sekhoacha, they “were no longer close business associates”. “We are completely apart at the moment. I was aware that
he has interest in the contract because at some point he talked to me about the job but I showed no interest in that,” the minister said. The mining minister’s shares in the mining companies might imply a conflict of interest, whether or not the companies in question are dormant. Asked how he would manage this, the minister said: “I cannot relinquish my shares now because it would seem I am trying to hide something.” He said he will immediately resign if his business colleagues decided to resuscitate the companies. Asked specif ically about the Liqhobong mine tender, he responded: “I queried the award of the same tender to Basil Read and Makamics though I was not aware at that time that even the then commissioner of mines was involved in the matter.” He added: “I requested to be furnished with all documents showing how the companies were evaluated. I was not happy with the whole tender process.” The minister also revealed that “even though Basil Read is registered in Lesotho, it was only registered after the contract had been awarded”, and members of the mining board “were made to sign for this deal yet they did not know much about it”. Public Eye has found that Basil Read was registered on October 12, 2017 and the Lesotho
Continues from page 5
subsidiary is wholly owned by South African Basil Read Mining. He said when he “queried these things”, some people went to Prime Minister Thomas Thabane “to say I had received bribes” from one of the bidding companies. “They told the Prime Minister that I wanted to influence the tendering process to favour the company that had allegedly bribed me. These were lies but they did not frustrate my efforts to find out how the contract was awarded. I even invited the DCEO (Directorate of Corruption and Economic Offences) to investigate,” he said. “I always believed the tender was awarded fraudulently; it was suspicious,” he added. Upon registration in December 2016, Makamics had only two directors, Makana Mining and C iv i l s a n d ’ Me sa m o h l oa n e Investement Cooperative Society, with each entity owning 500 shares. Merero Mining Group only came on board nine months later, in September 2017, and was allocated Makanamics shares amounting to 33 percent immediately after it (Merero) was officially registered in the same month. It was around this time, according to this paper’s sources, that the joint-venture of Basil Read and Makamics appended their signatures on a final mining drill and blast contract with the Liqhobong mine. Questions sent to both the
Basil Read and Liqhobong Mine in May have still not been answered. Sources privy to circumstances surrounding the tender told Public Eye last month that Merero’s “primary business was acting as a conduit for profits” which flowed from the Liqhobong Mine drilling tender to “people who have close relations with prominent people within the current government”. Liqhobong Mine is partly owned by the United Kingdom (UK)-based Firestone Diamonds through a 75 percent shareholding. The Lesotho government owns the residual shares. The mining lease that
Firestone Diamonds holds is reportedly valid until June 2021, with options to renew it by two additional periods of 10 years. The project primarily involves the development of an open-pit mine to a depth of 393m and construction of a main treatment plant (MTP). The mine is considered to be the world’s third biggest u n d e rd eve l o p e d k i m b e rl i te resource, based on the contained carats. As of September 2015, it was estimated to contain probable reserves of 36.04 million tonnes (Mt) of ore.
TENDERS BEING QUERIED BY LSP:
1.
TENDER FOR CONTRACT NO MCA-2017/18 - WASCO-L5T-01 FOR THE CONSTRUCTION OF WATER SUPPLY INFRASTRUCTURE FOR BUTHA-BUTHE AND HLOTSE: We were informed on good authority that Sigma and LSP were recommended for award by the evaluation panel. WASCO however changed the recommendation and appointed UNIK, China Geo and Mango Tree, all Chinese companies. It should be noted that the consultants for this project consist of a Joint Venture between Mot MacDonald (MM) and Ground Water Consult (GWC). There appears to be a significant trend throughout where GWC is the consultant and UNIK are being awarded the project. The relationship between GWC and UNIK needs to be investigated. One enquires how many contracts have been awarded to UNIK where GWC was the consultant. 2.
Mining minister Keketso Sello
CONSTRUCTION OF BELO INFRASTRUCTURE AND FACTORY SHELLS IN BUTHA BUTHE DISTRICT, RFB No. LNDC/ RFB/001/2017: Again the consultant is GWC and the contract was awarded to UNIK. During the public tender opening, LSP/Aveng JV tender price as read out was the lowest. Together with Aveng, LSP offered a highly competitive tender not only as far as price was concerned, but also in terms of technical ability, experience, resource availability and financial capacity. We are of the opinion that: A. LSP/Aveng JV price should not have been changed and was correct as per tender opening. B. Aveng had in excess of R800 million in cash available at tender stage. The fact that they recorded losses over the past couple of years is not unique and is a common trend amongst the large construction companies in South Africa. C. The personnel the JV proposed had sufficient similar experience and/or qualifications as called for by the tender requirements. i) The circumstances under which the contract was awarded are questionable. First of all, it was tendered in May 2017, just before the elections in Lesotho on 3 June 2017. Secondly, a new LNDC Board was appointed and shortly after that, the contract was awarded. ii) The contract was awarded to UNIK, a foreign Chinese-owned company. It is a well-known fact that they employ Chinese expats as
managers and skilled labour. They import the vast majority of plant and equipment from China, including material. 3.
PROPOSED RENOVATION OF DEVCOURT FLATS FOR LESOTHO NATIONAL DEVELOPMENT CORPORATION – CONTRACT NO.: LNDC/RVP/003/2017: The tender process for this project was concluded and according to our information, Sigma was recommended by the tender evaluation panel. The LNDC Board however overruled the recommendation and the entire project is now being re-tendered. 4.
Rural water supply from Metolong to Berea: Again this contract was awarded to UNIK with the consultant being GWC. 5.
Marakabei to Mononts’a road: This project was initially awarded to China Geo for M900 000 000.00, without having gone out to tender. The award was subsequently cancelled and the project is being re-tendered now. China Geo however has a huge (and unfair) advantage, because they are already fully established on site. This makes it extremely difficult for any other contractor to submit a competitive tender against China Geo. 6. WASCO pipeline from Police Training College to Khali Hotel in Maseru: This project was awarded to UNIK without being put out to tender. 7. Renovation at Moshoeshoe 1 Airport VIP Lounge: See attached correspondence. BDS recommended the award to this project to three unknown Chinese contractors. This project has not gone out tender. 8. Roads Directorate – Thaba Tseka road: This project was tendered and, according to our information, one of the contractors submitted an alternative proposal, which was the cheaper price read out at tender stage. The project was awarded to China Geo, but with the alternative proposal submitted by the other contractor. 9. Roads Directorate – Maputsoe Roads This project was tendered and China Geo was awarded the project at a cost of M 45 000 000.00 more than the lowest tender.
Public Eye
Friday June 8, 2018 7
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Public Eye
Friday June 8, 2018
News
Justice PS denies ombudsman access to files ’MATHATISI SEBUSI
M
ASERUThe standoff between the Ombudsman and the Lesotho Correctional Services (LCS) escalated this week when a top justice official at the heart of the tiff blocked the government wa t c h d o g f r o m a c c e s s i n g documents crucial to ending the impasse over the promotion of 60 officers. Justice ministry principal secretary Lebohang Mochaba this week refused the Ombudsman accesses to personal files of the officers promoted controversially, including her husband. Mochaba, whose name has become synonymous with the ongoing investigation, justified her actions by saying the law regul a ti n g t h e LCS ba r red from sharing the institution’s confidential information with anyone outside the service. Her argument flies in the face of section 135 of the constitution of Lesotho, which empowers the Ombudsman to investigate actions taken by any officer or authority in cases where it is alleged that a person has suffered injustice in consequence of that action. The section further states that the Ombudsman may probe any department of government or any member of such a department; any local government authority and the members and officers of a local government authority and any statutory corporation and the members and persons in the service of a statutory corporation. On May 30, the Ombudsman summoned LCS’ human resource manager ’Marelebohile Ramaisa to appear before a panel of officials from the Ombudsman’s office to shed light on the questionable promotions. The summons read: “You are hereby summoned and required to appear in person before the Ombudsman or his lawful deputy at the Ombudsman’s office to explain, testify or answer such questions as may be put to you to the satisfaction of the Ombudsman or his lawful deputy, in regard to all facts within your knowledge relating to the inquiry being undertaken by the Ombudsman regarding promotions within Lesotho Correctional Services. “You are specifically requested to bring along documents relating to the recent promotions of Lesotho Correctional Services officers.
“Failure to comply with these summons constitutes an offence, punishable by imprisonment for twelve months or a fine of M1000.00 or both,” summon noted. Upon receipt of the summons, Ramaisa informed her superiors, including Mochaba, who in turn responded that it was against the law to issue summons to a member of LCS ordering such an officer to disclose information concerning the institution without authority, especially from the commissioner of LCS. This was not the first time that Mochaba had persuaded an LCS official to defy the Ombudsman. The f irst time was when the then acting commissioner Thabang Mothepu was sent a restraining order to stop processing the promotions that had caused a ruckus within the LCS with some officers accusing management of nepotism and bias, adding the promotions were politically influenced. Mochaba ordered Mothepu, who has since been confirmed as commissioner, to go ahead with the promotions, citing inmates’ safety. During a commission hearing last month to probe the questionable promotions, it emerged Mochaba only insisted on the promotions because her husband, Lebohang Senekane, a correctional services officer benefitted from the elevations. The commission heard how Senekane, who at the time held the rank of a Sergeant, was promoted to a senior position of Assistant Superintendent, skipping the rank of a Chief Officer. However, Mochaba rubbished the accusations saying she only learnt about her husband’s promotion when she endorsed the rest of the officers’ promotions. O n e o f t h e o u tsta n d i n g concerns was that the promotions skipped long serving officers some who had been in the service for as long as 20 years and focused on their younger colleagues some of whom had only served a few months. One of the LCS officers who testified before the commission Sergeant Bokang Ramotena was later suspended from active duty for speaking to the media without permission. Ramotena presented the letter signed by her supervisor officer, Senior Superintendent Francis Khama to the O mbudsman Advocate Leshele Thoahlane on May 28.
Ombudsman Advocate Leshoele Thoahlane Thoahlane in turn contacted Khama and ordered him to withdraw the suspension saying it interfered with on-going investigations. “Kindly be advised that S e rge a n t R a m o te n a wa s authorised by the Ombudsman to give a brief summary of correctional officers’ complaint before the Ombudsman as media houses wanted to hear all sides of the complaint. “Your letter of restriction amounts to frustration of the Ombudsman’s investigations as it threatens the witnesses in to refraining from freely giving evidence and that act of yours amounts to an offence as per section 20(e) of the Ombudsman act 9 of 1996 which notes that the Ombudsman is at liberty to conduct as per the law, his investigations the way he sees fit. “The Ombudsman has seen it fit to invite different media houses in Lesotho to attend the inquiry and as such allowed interviews by such media houses personnel. Your office is therefore advised to
withdraw the interdiction letter with immediate effect,” the letter read. But Khama responded that he only acted on orders issued by his superior officers, adding he had no authority to revoke the suspension. He t h e re fo re re q u e s te d the O mbudsman to forward t h e c o n c e r n to t h e a c t i n g commissioner of LCS. Ramotena later told Public Eye in an interview that she snubbed the suspension and returned to duty because her interdiction letter had not been signed. Apart from that, she said she has since been terrorised on social media by a group calling itself Alliance of Democrats supporters who accuse her of insulting their leader on media platforms. The attack launched against her, she added, was sparked by a cabinet minister who she suspects is pushing his own agenda although that minister does not belong to the AD. When the office of the
Ombudsman learnt about this latest development, it issued a press statement condemning the intimidation saying this constituted criminal conduct as it was tantamount to tampering with ongoing investigations into the officers’ complaint. “The public is warned that the issue of intimidation against witnesses has already been reported to the police and it will be dealt with legally,” the statement reads. Human rights lawyer Advocate Lepeli Moeketsi has attributed the bickering between the ministry of justice and Ombudsman on the lack of clarity on the separation of powers between government departments. “The constitution establishes the Ombudsman and the very law gives the executive executional powers which they feel are exclusive,’’ he said, adding that “there was need to clearly separate these powers and clear the administrative confusion with constitutional functionality,” Moeketsi said.
Public Eye
Friday June 8, 2018 9
News
INVESTMENT MESSAGE Top
10
reasons to invest in equities
01
01 Beat inflation
Inflation erodes the purchasing power of your money over time. You know the hamburger story - in 1990 your hamburger cost M10, today M50. If you want to afford that, and a salad on the side, you need an inflation beating investment. That is equities. For five years ending 30 April 2018, the FTSE/JSE All Share Index returned 11.74%. Inflation in those five years was highest in 2016 at 6.4%, averaging 5.25% for the period 2014 to 2018.
02 03
02 Beat the bank
The STeFI Composite Index returned 7.01% for ten years ending 30 April 2018, the All Share Index 9.79%. You might be more familiar with the bank, but equities have a track record of delivering higher returns than money markets and savings accounts in the long-term.
03 You can invest forever
Equities don’t know your age, and they don’t care whether or not you are retired, or of an age where you should conform to investment guidelines. When you retire, you may want to continue investing or start investing as a hobby. There is no upper age limit. And you might even have a nice nest egg to leave your family, and get them interested in investing in the stock market.
04 Two wealth building opportunities capital growth and dividends
04 05
Investing in equities broadens your wealth building opportunities because you grow wealth through capital growth, when the price of your shares increases, and when you are paid dividends.
05 Share the profits
Investors share in the profits of a business when it declares dividends. You can use your dividends as income, or you can reinvest them, increasing your investment in the company. Reinvesting is one of the smartest ways to grow your wealth.
STANLIB Lesotho Equity Fund
Contact: +266 2232 6821 Email: stanliblesotho@stanlib.com web: stanlib.com/lesotho
06 Buy the brands you love
06
Always drink a particular brand of coffee, or wear a certain type of shoe? Buying part ownership of companies you admire is as easy as buying a few shares – if it is a listed company. So not only can you invest in the brands you use, you can also share in the profits. And, you don’t have to get involved in the day to day management of the company.
07 Sticking out the bad times can be very rewarding
07
Yes, equities like long-term partners are frequently rewarding. Let’s take the JSE All Share Index. Today the value of the index is over 58 000, but in 2003, the index was below 10 000. What does that mean for your money? You could buy Standard Bank shares for around M40 a share in 2003, today one share will cost M213. If you bought 1000 shares for M40 000, those are now worth over M213 000.
08 09 10
08 Regulation protects your interests
Equity markets are highly regulated, companies have to comply with rules and regulations, transparency is a must, and they are regularly held to account for their actions by authorities and shareholders.
09 Diversification
Don’t think just because you invest in one asset class you aren’t holding a diversified investment. Equities span a range of different companies and industries and their customers support them from different countries and continents. And you can invest in both new companies that can grow their share price, and established companies that offer good dividends.
10 You’ve got a voice
Either as a direct or indirect shareholder you have a say in the companies you invest in. Shareholders can attend annual meetings, and large shareholders – STANLIB in your unit trust funds for example, can meet with management and discuss any concerns they have.
10
Public Eye
Friday June 8, 2018
News
Taxi operators defy government, hike fares MATHATISI SEBUSI
M
A S E R U – Ta x i operators will press ahead with plans to hike fares to M10 per trip on July 1 despite a government moratorium on increases following a public outcry. Public Eye can report government flip-flopping over the contentious 35 percent fare hike announced on Monday has caused consternation among both commuters and operators. Operators yesterday, however, vowed to dig in and defy the government directive insisting the fare increase would boost their earnings that have plummeted since the last hike in 2013. Spokesperson of the Maseru Region Taxi Association (MRTO) Lebohang Moea said Minister Prince Maliehe froze the hike because due process was not followed when the decision was made. “The minister indicated that commuters who are important stakeholders in the matter were not consulted when the increases were made,” Moea said. He wa s , h owever, qu ick to add that notwithstanding this decision the taxis and bus operators would implement the new fares next month. This would set the operators on collusion course with government. “That will help boost efficiency and the standard of service offered in the industry. The fares are actually supposed to be reviewed annually but has not been done in a long time for reasons unknown to us. “The current fares are not enough; because of the constant traffic congestion, it is difficult to make several trips a day. So the increased fare will somehow balance the situation for us,” Moea said. He a d d e d : “ C o m m u te rs should support the transport industry bearing in mind that the fares have not been reviewed for the past five years while on the other hand there had been salary increments. “All they can do now is fix their budgets and accept that the taxi industry also needs to be improved as well as treated fairly like any other sector.” He said while the increase sounds hefty, the commuters will without doubt manage the new prices because they have been getting salary increments over the years when the fares remained the same. Most commuters interviewed complained about the already high cost of living, with some saying that their salaries barely support them. They said they were already struggling to make ends meet and increasing the fares will only aggravate their desperate situation.
“This only means more hard days of starvation and long walks to and from work and school; I foresee nothing but increased hardships in future,” said Moliehi Lenkoe, a commuter who travels to work in a taxi every day. The executive director of Consumer Protection Association (CPA) Nkareng Letsie said the decision to adjust public transport fares by the margins that were published on Monday June 4 was a huge mistake, adding it was only going to cause havoc in the lives of already struggling commuters. “The decision was made with total disregard of the plight of the majority of Basotho who live in abject poverty. There is a universal measure of poverty commonly known as the poverty line of a dollar and half per day, roughly M20.00. The deferred fares were going to make a round trip sharing on a saloon car to cost the same M20.00 per person. “This would mean that people who have to commute on a daily basis to make ends meet would find it difficult to survive even on the poverty line,” Letsie noted. She said the decision would have made transport costs to swallow the poverty line, thereby redefining the existing poverty line with just one irresponsible policy decision. “Security guards, street vendors, pensioners, students, unemployed, people living with disabilities, helpers and cleaners are some of the people who were going to be adversely affected by such a steep hike in bus fares. These are the people who hardly have any source of income and M20 return trip per day was just not going to be sustainable,” she added. C PA a p p e a l s t o t h e government to make pro-poor policies as the poorest people are the most vulnerable and the role of government is to distribute resources from the well-off to those who cannot afford the lavish lifestyle. “ I n a s fa r a s e c o n o m i c justice is concerned, it is the primary role of government to have redistributive policies. It is this basic premise of economics that empowers government with regulatory tools such as deciding bus fares. “We hope government will consider all factors to ensure that when it attempts to empower public transport operators, it does not do so at the expense of the poor,” she said. “If government wants to address the wrongs of the past where public transport operators were not given annual adjustments, we think the best way is to subsidise public transport operators directly rather than shifting the whole burden to the
consumers. “We wish to bring to the attention of the government that it has just increased VAT from 14% to 15% just because it would be an administrative nightmare to have two different tax rates in Lesotho and RSA while we know that RSA made the adjustments to finance higher education. “We do not know where that money will be reinvested in Lesotho. We urge government to use that extra revenue that will be raised from the VAT hike to subsidize public transportation,” Letsie added. “We also appeal to our government to abolish steep stipends paid to public officials travelling abroad. There are other working models such as where accommodation for public officials is paid by government and public officials given nominal daily meal allowances, Ministerial Credit Cards that will be used for emergencies, transportation and other accountable. “This could save a lot of money for government and the savings could be used to make public transportation more efficient in Lesotho,” she added. Letsie also noted that they are aware of the close relationship between some politicians and public transport operators who in actual fact have made a fortune from the industry and continue to do so. She appealed to the gove r n m e n t to re d u c e t h e ministerial fleet of three vehicles to one vehicle per minister noting that the savings that would come from this could be channelled towards making public transportation a formal industry that will maximize the returns while reducing costs for owners. “The Minister of Finance had proposed that the Ministers and other government off icials f ly
The decision was made with total disregard of the plight of the majority of Basotho who live in abject poverty. There is a universal measure of poverty commonly known as the poverty line of a dollar and half per day, roughly M20.00 economy class and only necessary public officials would travel for government business abroad. “We challenge the government to implement that policy and avail the resources for the public transport industry. In this way politicians would be able to make personal sacrifices which will be directly used to benefit an industry that supports many lives in the country.
“We urge government to reconsider the decision to set new fares where it has put them. It would be very important if consumers and operators come out of the engagement process with a win-win solution and believe that in order to achieve that all of us have to make sacrifices and ensure that the little resources we have as a country are evenly distributed amongst citizens,” Letsie said. Public transport associations had initially proposed to increase l o ca l ta x i fa re s to M15 but after long deliberations with the relevant ministry, the new fares were set at M10 for cabs (4+1) and M9 for mini buses.
Public Eye
Friday June 8, 2018 11
News
12
Public Eye
Friday June 8, 2018
News Analysis
Why are suspects vanishing under cops’ watch? BONGIWE ZIHLANGU
M
ASERU – The Lesotho Mounted Police Service (LMPS) was this week thrust into the spotlight again following the disappearance from their custody of ‘Makarabo Mojakhomo, the director of First Lady ‘Maesaea Thabane’s Trust Fund accused of defrauding the charity of M125 000. Mojakhomo, who is also accused of swindling several donors of M17 000 which she had requested on behalf of the trust fund, dropped out of sight two days after handing herself over to police. She was wanted for allegedly swindling Decorat Art Furnishers of M65 000 which she had collected claiming it would go towards funding the First Lady’s 41 st Birthday celebrations. She also, allegedly, netted a further M85 000 purchase order from the same company. Her disappearance has sent a cold shiver down the government spine, which has scrambled its agents to try to calm a restive population already speculating about Mojakhomo’s whereabouts. T h e d o m i n a n t n a r ra t i ve emerging on social media is that she has met the same fate as former police constable Mokalekale K h e t h e n g wh o wa s b r u ta l ly murdered by fellow officers and unceremoniously buried in a shabby grave in Maseru. Although authorities insist Mojakhomo willfully escaped from justice, civil society and her family want her found quickly – dead or alive. This, they say, would reassure the nation that the new government had – as its leader Tom Thabane vowed at his inauguration last July – broken with the past and was acting earnestly to end impunity by restoring the rule of law and upholding human rights. A speedy resolution of the Mojakhomo affair would send a clear signal to rogue elements within the security sector – if her disappearance was not voluntary – that impunity which blighted the Pakalitha Mosisili government would not be tolerated. The Mojakhomo affair has reignited fears of the reenactment of the Kheteng murder allegedly by Leribe police in March 2016 and a return to the lawlessness that scarred the country between 2014 and 2017. Suspects in Khetheng’s murder, whose case is scheduled to be heard this month, include former Minister of Defence and National Security Ts’eliso Mokhosi, Senior Superintendent Thabo Ts’ukulu, Senior Inspector Mabitle Matona, Sub-Inspector Haleokoe Taasoane and Inspector Mothibeli Mofolo who have been charged with the murder of PC Khetheng on March 26, 2016 at Ha-Mokhalinyane, Maseru District. Khetheng was stationed in Mokhotlong and was last seen alive when he was arrested by his colleagues at a traditional feast in Sebothoane, Leribe on March 25, 2016. His corpse was recovered in a mass grave at Lepereng, Maseru last year.
TRC Director Tsikoane Peshoane His father Thabo Khetheng, lodged a habeas corpus application in the High Court on 18 July 2016 demanding the authorities produce his son “dead or alive”. Khetheng had been arrested and charged on allegations of burning the house of his superior in Mokhotlong, the Butha-Buthe Pitso House and a popular chain store. The police had opposed the habeas corpus application arguing that Khetheng had left Hlotse police station without permission, but his family was adamant that the police knew his whereabouts because he had disappeared while in their custody. Following Khetheng’s almost decaying corpse’s discovery, bodies of three Basotho men suspected of murdering a soldier in a crossfire at the Maseru Border Post - Khothatso Makibinyane, Molise Phakela and Leshoele Noko - were retrieved from the Mohale Dam. They had been kidnapped by members of the Lesotho Defence Force (LDF) between May 13 and 17 last year. One of the men was said to have been abducted from a bus in Teyateyaneng, after being released from police custody. He had been arrested in connection with the soldier’s shooting. The other two who were believed to be brothers-in-law, were snatched just outside the gate of the police station. Following their disappearance and abduction by the army, their families also lodged a habeas corpus application against the military. The accused in the murders of the trio are; Sergeant Lekhooa Moepi, Captain Mahlehle Moeletsi, Lance Corporal Mahlehle Moeletsi, L a n c e C o r p o ra l M a h l o m o l a Makhoali, Private Nthathakane Motanyane, Brigadier Rapele Mphaki, Mots’oane Machai, Liphapang Sefako, Nemase Fako and Private Tieho Tikiso. They are all in prison pending trial. Mojakhomo’s lawyer Advocate Letuka Molati, this week lodged a habeas corpus application on behalf
of her family to force the police to “produce her dead or alive”. In his certificate of urgency, Molati stated that while Mojakhomo is alleged to have disappeared from police custody shortly before her court appearance, she had been in police custody beyond the prescribed 48 hours “without a warrant for further detention”. Molati described his client’s prolonged detention as “unlawful continuous detention without being brought a court of law”. He added in his submission of urgency, that speculation was now rife on social media, contrary to the police account that Mojakhomo escaped from custody, she had actually been murdered during interrogation. Molati submitted that ‘Mojakhomo was detained on Tuesday May 29 and disappeared on May 31st, leading to her husband Thabang Mojakhomo’s arrest on the same day. Thabang has since appeared in court on charges of working with his wife to defraud the ‘MaIsaiah Thabane Trust Fund and will appear again today for a bail application, which the police intend to oppose. Minister of Police and Public Safety ‘Mampho Mokhele, this week expressed concern over Mojakhomo’s disappearance from police custody and announced a massive investigation to establish what transpired. According to Mokhele, serious measures would be taken, if it was established that Mojakhomo had disappeared from police custody due to negligence. “A team has been established to t h o ro u gh ly i nve st i ga te circumstances surrounding her disappearance. And, if it is e sta b l i s h e d t h a t ‘ Ma ka ra b o disappeared due to negligence on the side of the police, those liable will have serious measures taken against them,” Mokhele said. “I therefore make an appeal to the Basotho nation, to swiftly alert the police should they see ‘Makarabo, so that she can come
and face the law for the criminal charges levelled against her.” Top human rights lawyer Advocate Tekane Maqakachane blames the seemingly common trend of people disappearing while in the custody of security agencies on a “lack of leadership and weak institutions”. “All the security institutions, be they police, the army and National Security Services (NSS), have a mandate under the constitution. They are supposed to function under a legal framework and principles, that include respect for human rights,” Maqakachane said. “But the lack of strong leadership promotes opinion that the public is not safe. There is a serious need of leadership and issues that need to be interrogated to explain this lack of leadership. We also need to look into precepts of the law and the training of police officers,” said the Law Society of Lesotho president and National University of Lesotho (NUL) law lecturer. According to Maqakachane, Lesotho has for a while now faced serious institutional decay, where institutions fail to execute their mandate as stipulated by law, heightened by the political climate which Lesotho has faced in the past several years. “We have for a long time now been faced with institutional decay, where institutions fail to carry out their mandate as the law requires. Add that to the political climate that Lesotho has been faced with,” Maqakachane said. “We require strong leadership with targeted actions. We are faced with systemic and systematic problems within our institutions, which leads to the public losing hope and confidence.” He, however, commended Mokhele for launching an investigation into Mojakhomo’s disappearance, saying it was a starting point and “a show of good leadership”. However, he was quick to add that “it should not just stop with a declaration for an investigation”
but that the police should continue to take action while also engaging the public in the process. “It’s a starting point and shows good leadership. But it should not stop with a mere verbal declaration. The police must be proactive. By now we should have heard about new developments regarding this latest situation,” Maqakachane said. “By your lack of strong actions as a leader, you’re creating a fertile ground for people to create misleading narratives, some of which could take the political party trajectory. The police should be alert and on their toes all the time.” Transformation R esource Center (TRC) Director, Tsikoane Peshoane, told Public Eye last night that “the police should produce ‘Makarabo so that she can appear before the courts of law and face charges instigated against her”. According to Peshoane, while his organisation had noted a notable decline in violations of human rights in the military, they were concerned that there was significant rise of the same in the police. “The increase in the violation of human rights by police is becoming a serious problem which government has to address. Police have become perpetrators of the violation of human rights, and this must be dealt with,” Peshoane said. The TRC boss said he suspected that the violation of human rights by the police, was as a result of internal sabotage against new management. Commissioner of Police Holomo Mo l i b e l i , s u c c e e d e d fo r m e r Commissioner of Police Molahlehi Letsoepa, who has been in hiding in South Africa since July 2017. According to Peshoane, the lack of cohesion between Molibeli and his subordinates, has resulted in the Commissioner’s failure to settle, as a result of personnel who refuse to accept his authority. “This disappearance could have been perpetuated from within the police service, as some police officers struggle with transition from the old to the new, resulting in ordinary people becoming victims of the resistance,” Peshoane said. “As things stand, ‘Makarabo’s life is in the hands of the police because she disappeared while in their custody. They have an obligation to find her. It doesn’t make sense that a person who handed herself over to the police, could then flee. “But then again, she could have been intimidated by the police and fled. But, the fact that her family is looking for her, have sought TRC’s assistance and lodged a habeas corpus case, tells you that genuinely they don’t know where she is.” Peshoane further expressed concern that the police were seemingly going against their management’s pledge to end human rights violations, as actions of some rogue officers suggested “they seem to speak a different language from that of the commissioner”. “The police leadership express remorse, but on the ground officers continue to violate human rights. This tells you that there’s a problem of cohesion. It says the culture of human rights violations lingers on, despite the good intentions of the management,” Peshoane said.
Final Submission by the prospective Consulting Firms. Completed proposals must be submitted electronically by the deadline to: procurement-ls@pedaids.org or Hand delivered at EGPAF offices, LCA Complex, 30 Princess Margret Road, Old Public Eye Europa, Maseru, Lesotho
procurement office at 22251100
22nd June 2018
Completed proposals must be submitted either electronically to procurement-ls@pedaids.org or hand delivered in a sealed envelope in-person to: Elizabeth Glaser Friday June 8, 2018 13 Paediatric Aids Foundation, Attention: Procurement & Logistics Manager, 30 Princess Margaret Road, LCA Complex, Ground Floor, Maseru.
Final decision announced
06th July 2018
Contract executed and Services begin.
16th July 2018
FIRM DEADLINE: Friday, 22th June 2018 at 12:00 noon, Lesotho time. Late applications may be rejected without consideration.
LESOTHO ELCTRICITY COMPANY (PTY) LTD
NOTICE
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LESOTHO ELCTRICITY COMPANY (PTY) LTD
NOTICE
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Lesotho Electricity Company (PTY) Ltd invites Blasting Contractors to apply for registration for 2018/19 financial year. It is hereby notified for general information that LEC shall ONLY award jobs to Contractors that appear in the list approved by LEC Management.
Lesotho Electricity Company (PTY) Ltd invites Electrical Contractors to apply for registration for 2018/19 financial year. It is hereby notified for general information that LEC shall ONLY award jobs to Contractors that appear in the list approved by LEC Management.
Application forms are available from Procurement Office (Near Main Store) and all LEC office throughout the Country. Completed forms must be deposited in a tender box located at the LEC Management Block Reception, Headquarters on or before 28th June, 2018 at 14:15 noon.
Application forms are available from Procurement Office (Near Main Store) and all LEC office throughout the Country. Completed forms must be deposited in a tender box located at the LEC Management Block Reception, Headquarters on or before 28th June, 2018 at 14:15 noon.
Enquiries can be forwarded to Procurement Office LEC – Head Quarters 53 Moshoeshoe Road Industrial Area, Maseru
Enquiries can be forwarded to Procurement Office LEC – Head Quarters 53 Moshoeshoe Road Industrial Area, Maseru
Tel: Direct: 2360 Fax: Email:
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2231 2236 ext. 2127, 2146, 2219 and 2360 5227 2127, 5227 2146, 5227 2219 and 5227 2232 7647 monokoa@lec.co.ls & motloung@lec.co.ls
2231 2236 ext. 2127, 2146, 2219 and 2360 5227 2127, 5227 2146, 5227 2219 and 5227 2232 7647 monokoa@lec.co.ls & motloung@lec.co.ls
Our Valued Customer Notice of removal of FNB Lesotho ATMs Kindly be advised that the following ATMs will no longer be operational from 9 July 2018: • • • • • • • • • •
Lerotholi Polytechnic Fokothi Ha Pita ATM TY Thabo’s Fruits and Veg Mapoteng Thabang Store Peka Filling Station Pitseng London ATM Shoprite Building Hlotse Hlotse Excel Garage Butha-Buthe Excel Garage Lower Moyeni Store
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Maseru Maseru Berea Berea Leribe Leribe Leribe Leribe Butha-Buthe Quthing
Notice of relocation of FNB Lesotho ATM Kindly be advised that the ATM located at KFC bus stop Maseru will be relocated to Highway Shopping Centre across the road at the corner of main North 1 and Motsamai Street from 9 July 2018. For more information please call 2224 1000 or visit your nearest branch Thank you for banking with us. Terms and conditions apply First National Bank of Lesotho Limited - A Subsidiary of FirstRand EMA Holdings Limited and a member of the FirstRand group of Companies. An authorised Financial Services Provider. Reg No: 2008/729
16
Public Eye
Friday June 8, 2018
Feature News MATHATISI SEBUSI
M
AS E RU - L e s o t h o ’s decision to view medical cannabis as a revenue booster to the nation, instead of an illegal drug, is a practical move aimed at boosting the country’s fledgling economy. Lesotho the first African country to permit the legal cultivation, production and processing of medical cannabis. By virtue of being naturally endowed with abundant clean water, clean air andlargely pesticide-free soil, Lesotho’s barely industrialised environment is ideal for production and export of top quality cannabis. In 2016 Lesotho made the pioneering step on the continent by issuing licenses to companies for cultivation, extraction and export of cannabis for medicinal purposes. Monaphathi Makara, Principal Secretary in the ministry of health and social welfare, observes cannabis is a drug crop from the dagga family with low tetra hydro cannabin (THC). “ T h i s d r u g i s c u l t iva te d using seeds that are specifically formulated to produce medical cannabis. “Cannabis in Lesotho is illegal for recreational use, but production is allowed for medical uses under license only,” Makara notes. He says legalising cannabis for medical purposes could become a model for the rest of the continent and countries might tap into the lucrative global cannabis industry. The challenge, he adds, will however be in regulating the industry, an area where few African countries have acquited themselves well in. Research shows cannabis is used to treat a wide range of illnesses including, among others, childhood epilepsy and glaucoma; the drug has also been confirmed to cure cancer and seizures. I t i s a l s o sa i d to re d u c e inflammation, nausea, pain and studies are under way to determine its efficacy in controlling mental illness and addiction. Information officer of Medigrow Lesotho (PTY) Ltd Mpho Sefali says Lesotho being the first African nation to begin awarding medical cannabis licenses has naturally drawn a lot of interest to people hoping to use it as a spring board to meet demand in other countries throughout the world. Medigrow Lesotho ((Pty) Ltd is one of the companies that are licensed to grow cannabis in Lesotho. The company, which originates from Canada received its own licence in April 2018 to manufacture intermediate and final cannabis products for export to international customers. “What has also become a topic of interest is the fact that Lesotho has a number of competitive advantages which could lead to it becoming a world leader in the production of high quality, contaminant-free medical cannabis,” Sefali says. According to Green Camp, the hub of Africa’s cannabis industry report of March 22, 2018 Africa holds great opportunities and a bright future for medical cannabis operations. “ Its geog ra p hi cal fa cto rs place it in good stead to provide a favourable environment for cultivating cannabis in addition
Medical cannabis is a specialised field: experts to the fact it has special landrace strains which other countries may not have. “It also shows that Lesotho is a major traditional grower of cannabis on the African continent and has an ideal climate to cultivate cannabis and unique local strains found nowhere else in the world. One thing is certain; the country can definitely reap the benefits of this first mover advantage,” the report shows. B a s e d i n H a M a ra ka b e i , located 2 000m above sea level, Medigrow Lesotho (Pty) Ltd is uniquely positioned for growing high grade medical cannabis, free of contamination. Ac c o rd i n g to S e fa l i , t h e gove r n m e n t o f L e s o t h o h a s regularised steps required to create an enabling environment for players who are prepared to sink fortunes in the highly sophisticated sector. She says the country’s cold early mornings, few insects, dry air and intense ultra violet (UV) sunlight add to the numerous advantages it possesses. She says Medigrow Lesotho is gearing towards being one of the largest producers of high quality contaminant-free medical cannabis to the benefit of the local community and the country as a whole. The company, she showed, currently has over 75 workers in its employ, mainly women, with a minimum salary of M2, 500 per month. “It is anticipated that the project and ancillary industries jobs will scale up to over 3 000 in the next 24 months,” Sefali says. According to the chief operating off icer of Medigrow Lesotho,
Relebohile Liphoto, the land their facilities are situated on and the surrounding is leased from 105 owners in Ha Marakabei who are paid per annum and given a 7% escalation per year. “For this matter, the land owners are given the first priority for employment at Medigrow, a chance to start businesses around Medigrow facilities and are included in decision-making meetings that are held on a monthly basis on matters that affect the community,” Liphoto says. He discloses that Medigrow Lesotho has started improving sanitation facilities in Ha Marakabei and has already built toilets and plans to bring in more developments in the area. Apart from employing the local community, the company also hires graduates from the National University of Lesotho and some from the Lesotho Agricultural College to help develop the project. Medigrow’s chief executive officer, Andre Bothna says the project will have a significant impact on developmental benefits such as banks, health facilities and improved communication networks. He adds: “Not leaving behind the societal impact such as development of facilities, easier access to electricity and empowering scientific projects.” Bothna notes that they strictly want to use Basotho citizens in the planting and extraction of the cannabis. “A n e nv i ro n m e n t f re e o f c o n ta m i n a t i o n i s o u r goa l ; inside, around and outside our facilities. We are determined to produce medical cannabis fit for
people’s consumption and free of contamination,” he says. He also notes that by 2019, everyone will be allowed to buy shares in the industry and Basotho will be given a chance to buy international shares as well but internationals are not allowed to buy Lesotho shares since the aim is to keep the cannabis business strictly Lesotho-owned. The Green Camp report also states that the growing of cannabis for medicinal purposes is not a new initiative, adding that scientific and medical research into the cannabis started in the early 1990s with the discovery of the body’s Endocannabinoid system. According to Medigrow Lesotho President, Francois Fereirra, it has been scientifically established that the cannabis plant produces substances called cannabinoids that can interfere with the human endo-cannabinoid system which once consumed the external cannabinoids (both THC and CBD) found in Medical Marijuana interact with the human body’s internal endo-cannabinoid system to cause the desired medicinal effects of relieving various conditions. Fereirra says more than 500 different chemicals that are contained by cannabis offer a panacea for patients with different medical conditions ranging from epileptic seizures, killing certain cancer cells, treating mental illnesses, reducing nausea and pain. “For this reason, it is highly anticipated that provision will be made for medical cannabis products to be consumed locally. “Medigrow offers medicinal cannabis patients safe, simple,
and efficient solutions for indoor cannabis cultivation”, he says. Cornel Van der Wait, the master grower at Medigrow, says their growth systems use the highest quality lighting, equipment, and nutrients, resulting in a safe, quiet, reliable, and odour controlled environment that optimizes the quality and yield production of your medicine. “Medigrow is dedicated to educating and mentoring its clients. Whether you are a beginner or have experience. “It is the first company in Canada serving medicinal cannabis to patients that are considering growing their own medicine at home. Authorized by healthcare practitioners to access cannabis for medical purposes, the Access to Cannabis for Medical Purposes Regulations (ACMPR) allows for individuals to produce a limited amount of cannabis for their own medical purposes, or designate someone to produce it for them,” he says. He says growing cannabis is not as easy as it sounds since several steps are taken to ensure that the cannabis is safe from contamination and meets the standard that it needed to produce medicines. He notes that before planting the cannabis, several tests are done to remove tetrahydrocannabinol (THC) from the cannabis and leave only the required amount while also ensuring that the needed cannabidinol (CBD) is available in the female cannabis to make medicines. According to him, it takes almost 84 days for cannabis to be ready for extraction; that is from rooting stage to the last day of the flowering process. “We practice in-house planting where we control the f lowering process, using artificial lights, enough water and nutrients the plants need and make sure that the place and its surrounding is contamination free. This method allows us to plant six times a year instead of once a year,” he says.
Public Eye
Friday June 8, 2018 17
Interview News
Volunteer takes it upon herself to arrest dongas L
esotho is staring at possible food shortages due to erratic rainfall patterns, massive soil erosion and added pressure on arable land. This, according to a recent study, could leave the country short of arable land on which to grow enough food to feed itself by 2040. Strikingly, arable land could disappear completely within 200 years if the rate of erosion is not checked. According to a 2013 study by Miles Durand the country needs to crank up efforts to reclaim gullies, control soil conservation, and halt encroaching desertification through sustained community-driven conservation and farming projects. In this way, food shortages which currently stalk some communities in arid areas such as Mohale’s Hoek can be pushed back. With the country experiencing some of the worst soil erosion in southern Africa due to rapidly spreading dongas that are sweeping in excess of 40 million tonnes of the country’s food producing top soil into rivers and out of the country, Basotho ought to be alarmed. Pontšo Tšoeunyane, a former resident of Maseru South West 1 (MASOWE 1), has taken it upon herself to kick-start the drive to reclaim gapping gullies that are threatening to swallow entire villages if corrective measures are not implemented sooner. Public Eye reporter ‘Masentle Makara spoke to her about her endeavours to not only close the dongas and reclaim eroded land, but also to conscientise people in the locality about the need to take more care of the environment. In this connection, she has been organising workshops to drive home to participants the need for concerted efforts to roll back the effects of climate change and soil erosion. PE: How did you find out about the MASOWE 1 situation? PT: I used to rent a duplex in the area and it was located next to a donga, by the time I left the place, the donga had moved much closer to the site. Heavy rains eroded most the soil in the donga until it became very big. PE: How do dongas situated next residential places affect residents? PT: People tend to use dongas close to their homes as dumping areas for garbage and unused household items. They dump used sanitary pads, used condoms and other refuse that destroys the environment. Children like playing in dumping places and they catch diseases from such areas. Even animals are affected because they also graze in these unhealthy places. Apart from that as dongas stretch due to soil erosion, they eat up residential areas and fertile land suitable for agriculture. What drove me to act was when I saw people building houses on the edges of the dongas. I saw that
happen in Roma and you should see the damage that occurs when heavy rains fall. Lives are at great risk because anything can happen in situations like that. PE: You are no longer stay in MASOWE 1, but responded anyway, why? PT: Nobody bothered to take control of the situation, so as a community leader, I took responsibility to rehabilitate the donga. PE: What do you mean by “as a leader?” PT: I am a YALI trainee, and I am a volunteer at heart so I took the initiative to bring a change and to impact on the lives of residents of MASOWE. There are many children in the area and I was worried that they would fall into some of them as they play on the edges of dongas. PE: Are the residents doing something to assist you? PT: There are some people who are taking the initiative to also make a difference. They use anything available to rehabilitate the donga. Some use old car tyres while others use things like old cement. It is imperative that people should learn about climate change and environmental conservation and the best ways to respond to these two challenges. I held public gatherings to teach residents about climate change but when that proved to be inadequate, I held workshops and tried very hard to pass the message across. PE: What is the main cause of the soil erosion that you mentioned? PT: The heavy rains are the main culprit; they wash away all the tyres and old cement bags used to control the eroding of the soil. PE: So what is the solution to this serious problem? PT: There is need for a collective initiative because all the effects of the climate change harshly affect the donga, as it keeps stretching and cracking. Then I went to the local chief and sought permission to rehabilitate the damaged land as well as educate the community on how to go about it. That chief referred me to another chief. PE: Did you succeed? PT: Of course I did and I thereafter wrote some proposals to a number of local business people asking for funds to finance the project. PE: What exactly do you need funds for? PT: I need support in terms of resources to be used in rehabilitating the donga. For example, gabions and stones. I approached the Ministry of Forestry, Range and Soil Conservation but they complained about their poor budget saying the targeted project was too big. PE: But what really makes you so devoted to community
development? PT: In my association, we advocate for no poverty and zero hunger. It is through projects like these that communities are able to create employment through the first phase of rehabilitating the donga and the second phase where the once degraded land turns into a green pasture, thus agricultural industry established which aims to employ more than 70% of the residents who remain unemployed today. PE: So what steps did you take after being allowed to start your project? PT: I saw the need to hold a workshop for residents of MASOWE 1 and it was very successful. PE: Do you regard yourself as an expert in climate change and land rehabilitation? PT: No, I only did a climate change related course online which taught the little I know about the two topics. I needed someone who is knowledgeable about climate change, so I went to the meteorology off ice to request assistance. People from the ministry came to address the villagers and we also invited Ntate Lekhooa Letsatsi a passionate volunteer on community development affairs. PE: What was the workshop about? PT: We had community development presentations because we wanted to show MASOWE 1 people the importance of working together drawing on the Sesotho proverb that many hands make light work. The whole emphasis on community development is to try and make sure that people work as a team to build solidarity and a harmonious environment so as to embark on this project without conflict. PE: How will the project benefit MASOWE 1 community? PT: This is a community-based project and we are aiming at bridging the social gaps and mistrust that are created by physical distortions of the land by dongas which can divide one community into two. This calls for strong social capital, social cohesion, solidarity and a sense of oneness mounted on Ubuntu and Pan Africanism which are valuable aspects of the Africa We Want, Agenda 2063. For me, conflict isn’t just the absence of peace but where there is no ability of communities to work together and live together harmoniously. Creating these strong communities with these attributes of communalism and togetherness will help us achieve peace, justice and strong institutions. In order to achieve these goals, we should form an integrated network from the grassroots level. This can only start with us in our respective villages - to national level. PE: Are residents going to volunteer in rehabilitating the land or they are going to get paid?
PT: It is high time Basotho personalized all these international goals and strategies that Lesotho has ascribed to and start implementing them from community level. Basotho can’t just focus on the government to do things for them and feel helpless, yet they are blessed with unique different talents and competences. Change starts now with me, you and us. PE: Did you accomplish what you had planned through the workshop? PT: I managed to conduct some interviews, but the workshop assisted us to get to the roots of the matter which contributes to the land damage and how to solve that. We considered it (the workshop) to be successful as people were able to air their opinions. Some people had given up on rehabilitating the land because there was no collaboration among the community and I recall one participant saying he gave up trying to rehabilitate a donga alone. He said he told himself he was glad that by the time the donga would swallow his house, he would have died. PE: How did people respond to this attitude? It must be discouraging. PT: There were shocking responses from the workshop. I found out that four women were flushed away down a donga during heavy rains. There are factories in MASOWE and these ladies were coming from work. They tried crossing the donga like they did daily to and from work - two of them died while two escaped. A lady at the workshop also pointed out that armed intruders broke into her house. After raising the alarm and when neighbours came
they could not find the robbers and it is suspected that they hid in the donga. One of the attendees at the workshop said a friend’s car fell into the donga. PE: Do you think the media is doing enough to report about dongas? PT: I remember newspapers and radios reported about two girls that were murdered and thrown into another donga at MASOWE 1. This is one of the bad things about the dongas as even in our culture a donga is known as a horrible place and most crimes and evil deeds occur in dongas. Even the community showed that people have illicit sexual intercourse in those dongas which is not healthy for their children. PE: Don’t you think the government should take responsibility for the donga reclamation programme? PT: Though there are people responsible for land rehabilitation, I believe that more effort should be made instead of waiting for the authorities. I feel we are a bit reluctant when coming to rehabilitating the land and I believe it is high time we started taking these programmes very seriously because there is a closer connection between soil erosion and climate change and they should be treated together. PE: After you have left, is the community still doing something on land rehabilitation? PT: The MASOWE 1 community is currently working on this matter collectively and as soon as resources are available they are ready to start rehabilitate land.