Phafane quits MKM

Phafane quits MKM

MASERU – ADVOCATE Salemane Phafane KC has resigned as chairman of the MKM creditors’ meeting after false allegations that his wife was an investor in a trust that pushed for the liquidation of the Ponzi scheme. The allegations were widely aired during a local radio stations’ phone in programme, with some callers claiming that Phafane has a conflict of interest.
Phafane was appointed by the High Court to oversee the transformation of MKM into a company owned by about 10 000 creditors who lost their monies.
Under the proposed arrangement creditors will receive shares in lieu of their funds because the MKM estate cannot fully repay them.
The new company will own MKM properties scattered across the country.

The properties include land and buildings.
Registration of claims closed on June 29 and Phafane was preparing for the first creditors’ meeting in the next few weeks.
But that will not happen because Phafane said the allegations against him and his wife make it impossible for him to continue as chairperson even if they are not true.
Phafane told thepost that although he managed to convince radio station managers that his wife had nothing to do with the investors’ trust involved in the MKM saga he felt uncomfortable remaining as chairperson of the meetings.

The radio stations later apologised to Phafane.
He said his wife has been a subject of ridicule because of the allegations.
“There was a massive allegation on radios that the investors trust is owned by my wife who doesn’t even know the trust nor has anything to do with this trust,” Phafane said.
“Anything which touches my wife touches my life.”

Phafane said he had avoided being involved in the saga since 2007 when the Central Bank of Lesotho closed MKM in 2007 on allegations that it was running banking and insurance businesses without licences.

He said he only agreed to be appointed chairperson of the investors’ meeting in April because he thought the dust had settled.
“It was a very narrow area to participate in a meeting but since I thought the saga had died down, I took the offer,” he said.

“I was appointed to assist not to litigate. Over the past ten years when the saga started, I never showed any interest in litigations for and against any party involved in the MKM saga,” he said.
He explained that he has written a letter to the court and to the liquidators officially announcing his resignation.

Phafane’s resignation could mean that the creditors’ meeting will be delayed as the liquidators look for a replacement.
That means the formation of the new company is likely to be delayed.

Senate Sekotlo

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