Phori has sold his soul to the Chinese

Phori has sold his soul to the Chinese

This week, I want us to examine a statement issued by the Ministry of Small Businesses last week, on its official Facebook page advertising an opportunity of shares for Basotho Meat Enterprise PTY Ltd:
“We will cut the long story and go straight to the point.
The Meat Wholesale Company is now here; 70% Investor, 10% Allocation to Association of Butcheries (Lesotho). The Association will not be required to pay anything now, investment will be settled by future dividends, Thanks to the Government of Lesotho insisting on local ownership, plus 20% is available to the general Indigenous Basotho Public, especially Small Businesses/Cooperatives. The required overall investment is M8 000 000 and therefore, One share is M80 000.

If interested, register your name, amount intended to be invested with contact details. Call +266 5678 6779 (PS Secretary) or +266 5878 4130 (Director Small Business)
First window will be closed on 31 May 2019
We are also happy to Announce that there is 40 million investment in the feedlot business…very, very soon. If that is not development, then we don’t know.”

No, this is not development, the Minister of Small Business must stop misdirecting himself, it’s not his mandate to tout investors on behalf of a privately owned enterprises. His love for Chinese has devoured his logic. I have spoken to few friends of mine and some argue that this is an incredible and noble idea coming from the Ministry.
Their submission is that Basotho are being offered an opportunity to buy shares from the meat wholesale company. I disagree with the Ministry of Small Businesses and friends of mine and thereof wish to submit the following facts:
I want us to determine what the abbreviation “Pty” stand for. “Pty”, usually used in conjunction with “Ltd”, thus “(Pty) Ltd”, stands for “(Proprietary)”. “Pty” representing “Proprietary” means “private ownership”. In a Pty Ltd Company, the shareholders are not publically declared, only their directors, therefore the ownership is private.

What does “Ltd” stand for? “Ltd”, as used in the designation of a private or public company, for example, either “Matlosa (Pty) Ltd,” it stands for “Limited” and refers to the limitation on the liability of company shareholders and directors. The company is responsible for its own debts, unless the shareholders or directors sign as surety.
If Basotho Meat Enterprise Pty Ltd is a proprietary, which means it’s privately owned, what business does the ministry have on a privately owned business to advertise availability of shares on its behalf?

We must also note that the statement says 70 percent shareholding is reserved for investors, 10 percent Allocation to Association of Butcheries (Lesotho) and 20 percent general Indigenous Basotho Public. This came as a shock and I wanted to know who is this investor? So I decided to visit the Companies registration site, www.obfc.org.ls to determine the actual shareholding. It will interest you to know that the company has a total shares of 1000.

Shareholding is structures in this fashion:
1. Mrs. Xiaoyi Yao has 250 shares
2. Mr. Stefan Engelbrecht has 350 shares
3. Mr. Mosito Nicholas Khethisa has 400 shares

It does not need a genius to make a connection between Basotho Meat Enterprise PTY Ltd and Meraka Lesotho (Pty) Ltd. Mrs. Xiaoyi Yao owns the second largest shares in Meraka Lesotho (Pty) Ltd. She is the wife to controversial Chinese Yan Xie, who is the coalition government’s trade advisor.
Yan Xie also known as John, is a naturalised Mosotho of Chinese origin, was appointed Head of Special Projects and the Prime Minister’s Special Envoy and Trade Advisor on China-Asia Trade Network in August 2017 by Prime Minister Thomas Thabane. Mr Mosito Nicholas Khethisa is the Managing Director of Meraka Abattoir. I want to argue that Basotho Meat Enterprise PTY Ltd is an extension of Meraka Lesotho PTY) Ltd.

Last year, the Ministry of Small Businesses stopped beef imports and gave Meraka Abattoir a monopoly. Meraka Abattoir was granted the right to be the sole beef supplier in Lesotho. The same ministry is advertising an opportunity of shares for Basotho Meat Enterprise PTY Ltd. Don’t you see the connection?
I am also very concerned with the price of each share. Who sets the stock prices and how are they calculated? In simple terms, the stock price of a company is calculated when a company goes public, an event called an initial public offering (IPO). It is clear that Basotho Meat Enterprise PTY Ltd is in need of M8 million capital and would like to use IPO to raise money.

Having said that, I strongly wish to argue that the price per share of M80 000 is ridiculous. If Basotho Meat Enterprise PTY Ltd was to go public through the Maseru Security Market (MSM) and starts trading on the exchange, its price would be determined by supply and demand for its shares in the market.
If there is a high demand for its shares due to favourable factors, the price would increase. If the company’s future growth potential doesn’t look good, sellers of the stock could drive down its price.
I am disappointed that Basotho Meat Enterprise PTY Ltd is raising their M8 million through 20 percent shares reserved for Basotho. If 200 shares were to be bought at the price of M80 000 each, the company would have raised M16 million. So what is the contribution of the so-called investors who take the lion’s share of the company?

The Ministry of Small Businesses has delivered the red meat, wool and mohair industries to the Chinese on a golden platter. The government is deliberately putting the interests of the Chinese before those of Basotho.
The coalition government clearly operates in silos. The Ministry of Small Business should know it’s imitations. IPO’s are instruments within the powers of the Central Bank of Lesotho. The Central Bank has Maseru Securities Exchange which is a platform created for any company that needs to sell shares to the public.

Why is the Ministry of Small Businesses not using the Maseru Securities Exchange? The Central Bank of Lesotho must call the Ministry to order.
I wish to conclude by categorically stating that the Ministry of Small Businesses has no business operating and regulating IPOs. It is clear the Minister of Small Businesses and his Principal Secretary have sold their souls on the altar of Chinese interests.

Ramahooana Matlosa

Previous In love with his taxi job
Next Declare war against sexual violence

Warning: count(): Parameter must be an array or an object that implements Countable in /home/thepostc/public_html/wp-content/themes/trendyblog-theme/includes/single/post-tags-categories.php on line 7

About author

You might also like

Insight

Brazil: the hard right wins again

A man who makes Donald Trump look like a bleeding-heart liberal will almost certainly be Brazil’s next president. Jair Bolsonaro won 46 percent of the vote in Sunday’s first round

Insight

Lesotho: Beyond colonial legacy and apartheid

The viability of states constructed on the basis of territorial units established by colonial rule must now be scrutinised. Southern Africans need to look ahead and recommend steps in preparation

Uncategorized

‘Evoke constitutional powers and swear in Mosito’

……This is a petition that was submitted to the Honourable Minister of Justice, Human Rights and Correctional Services last week. Dear Honourable Minister We are patriotic Basotho men and women