LAST week we reported about the sale of Mothae Diamond Mine to a company owned by Minister Lebona Lephema. Australia’s Lucapa Diamond Company said it had sold its 70% stake in Mothae to Lephema’s Executive Transport Company for a nominal A$10 000 (about M121 000).
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It would also take A$1 million (M12 million) from Mothae for “outstanding technical services payments”.
In a statement last week, Lephema’s Executive Transport said the acquisition of the mine “will facilitate retention of jobs in the midst of a depressed economy that has consistently shed jobs”.
Lehlohonolo Lephema, the Managing Director for Lephema Executive Transport, said the company is “excited about the prospects that this acquisition presents and the value it will bring to our shareholders, employees, partners, and the communities in which we operate”.
He said the acquisition will pave way for sustainable growth in the mining sector “and the broader Lesotho economy as we lead increased participation by Basotho companies into international investors’ domain”.
In ordinary circumstances, this should have been welcome news. Basotho should have celebrated the acquisition as a stunning deal that seeks to empower local businessmen and consolidate the process of indigenizing the local economy.
A transfer of wealth from international mining conglomerates into the hands of Basotho is highly welcome.
But the circumstances surrounding the sale of Mothae are not ordinary.
It is for that reason that the sale of the mine has generated fierce debate on the political scene and on social media.
What makes the transaction raise a storm is the fact that Lephema, who owns the company, is a serving minister in a government led by Prime Minister Sam Matekane.
That alone is deeply concerning for Basotho who see the transaction as highly questionable. That may be a question of perceptions.
But we know that perceptions matter.
The transaction has arguably sent a wrong message on issues dealingwith conflict of interest. So far, ordinary Basotho are questioning the deal. They want answers. They want to know why their own government did not exercise its right and buy the shares.
They want to know why a private company, with links to a sitting government minister, got the deal.
The perception is of ministers taking advantage of their proximity to power to seal deals for themselves and their families. That perception is quite strong.
It is precisely why the government must explain the circumstances of the deal or risk being dragged to court as the opposition has threatened.
We are not surprised that opposition parties are livid over the transaction. They argue that the deal was wrong at all levels and now want to challenge it in courts of law.
Machesetsa Mofomobe told this newspaper last week that he is curious to know why the government did not exercise its right to buy the 70% stake in Mothae Mine once it was put on sale.
Mofomobe has sensationally branded the deal “corrupt and not in the national interest”.
He said he wants to know if Lephema sat in the Cabinet meeting that decided to pass off the chance to buy the shares.
The people are saying a government minister can’t be a player and referee at the same time.
These are legitimate concerns that Basotho are raising.
Rather than contemptuously dismiss these concerns, the government must provide cogent answers to ally the people’s fears.
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