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Anger over Chinese businesses

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FORMER Mining Minister, Lebohang Thotanyana, says Lesotho is shooting itself in the foot by allowing Chinese companies that win major construction tenders to import everything from China.

Thotanyana was speaking at the Basotho Business Empowerment Forum on Tuesday.

The forum was organised by the Micro, Small, and Medium Enterprise (MSME) Association.

Thotanyana told the forum that of all the Southern African Customs Union (SACU) countries, Lesotho is the one benefitting the least from hiring Chinese-owned companies for major infrastructure projects. 

 

Thotanyana said Chinese companies tend to “import everything save menial labour” in every government job they win.

 

“We only benefit minimally with the labour force,” Thotanyana said, adding that “more money goes back to the countries that have brought their own machinery”.

 

“This is exactly what is happening at the Polihali Dam which is under construction.” 

 

“There should be a value chain so that the economy grows.”

 

Tempers flared at the forum as local business owners accused the government of failing to protect them against Chinese businesses. 

 

The forum revealed the growing frustration among local business owners who feel the government is not doing enough to protect them against Chinese business muscling them out of sectors reserved for them. 

 

The local business owners criticised the government for failing to implement the Business Licensing and Registration Act 2019 that reserves certain businesses for indigenous Basotho. 

 

They told the Principal Secretary of the Ministry of Trade, Thabo Moleko, together with a handful of MPs in attendance, that their patience had worn out.

 

“We want our business from the Chinese and Indians,” Thobei Motlere, the president of the MSME Association said.

 

“We are not afraid of these Chinese,” he added, adding that they could approach them head-on.

 

“We want to see the Act implemented now, not tomorrow or any other time. We want to push them out of the business peacefully. We want peace.”

 

Motlere said they have been pushed out of business by the Chinese yet there is a law to protect them “against unfair competition”.

 

“We have elected you as MPs but you are doing nothing to save us from the competition yet there is a law in place,” Motlere said.

 

The MPs tried to respond to some of the issues people but they were booed and heckled. 

 

“This is not the right place to answer. You should address this in parliament, not here,” said one woman in the crowd. 

 

Some MPs walked out of the forum in protest but were eventually coaxed to return to their chairs. 

 

’Maremi ’Mabathoana, a street vendor, said the Chinese sell almost every item.

 

“We buy from their shops so that we can sell small items. But the Chinese also sell small items,” ’Mabathoana said.

 

“When we sell a sweet for M1, they sell it for 50c,” she yelled.

 

“When we sell apples for M4, the Chinese sell them for M2. This is unfair.”

 

Moeketsi Motšoane, the Mafeteng MP who is the chairman of the parliament’s Natural Resources committee, said he is also facing similar challenges in his home district.

 

Trying to calm the irked traders, Motšoane said he could bet that some people were being used by the Chinese to kick Basotho out of business.

 

“There are such people amongst you who are being used by the Chinese to knock Basotho out of business,” Motšoane said.

 

He told the Ministry of Trade to move swiftly to implement the Act.

 

“If you do not implement the Act, we will drag you before the committee to account,” he said.

 

 Moleko, the principal secretary of Trade,  promised to implement the law. 

Majara Molupe

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More pain for customers

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Customers should brace themselves for more pain next week. Lesotho Flour Mills has announced a 15 percent price hike on all maize products with effect from Monday.

The hike comes less than a month after the country’s biggest milling company announced a seven percent price increase on mealie-meal and Samp, which are all basic commodities.

Chief executive Fourie Du Plessis told customers in his latest statement that the adjustment is due to a further surge in the price of raw white maize.

Du Plessis said there had been a 39 percent increase in the price of raw white maize between January 31 and March 31.

He said the spike is “attributed to the adverse effects of the drought caused by low rainfall and hotter than usual weather during the past season”.

Du Plessis said when they announced the seven percent increase in April they were “hopeful” that “raw white maize prices would stabilise during April following rainfall late in the season”.

“Unfortunately, the rainfall was too late to impact the crop yields and prices surged further up to levels of M5.500 per metric ton during the past week,” Du Plessis said.

In his March statement, Du Plessis warned customers to expect “further price increases in early May, with wholesale prices projected to reach up to M8, 800 per metric ton.”

The increase in the price of raw white maize is likely to have a knock-on effect on many other products in its value chain.

Because Maize is the anchor raw for animal feed, there is likely to be an increase in the prices of all protein.

The drought, which has devastated crops in the entire Southern Africa, has also triggered steep increases in the prices of other basic commodities.

The increases are a continuation of a trend that started during the Covid-19 pandemic when bottlenecks in the global value chain stifled production.

The Russia-Ukraine war made the situation worse. So has the power crisis that has hit productivity in South Africa.

The trouble has been unrelenting for customers, most of whom have squirmed as their meagre earnings have been eroded by inflation and continue to lag behind the galloping prices of basic commodities. Just this week the Petroleum Fund announced an increase in fuel prices.

A few weeks ago it was the Lesotho Electricity Company announcing a 9.6 percent increase in power tariffs. Other producers of basic products have quietly reviewed their prices to keep up with the increase in production costs.

Alarmed, the opposition has called on the government to subsidise basic commodities.

The government is yet to respond but pressure is mounting on it to intervene.

Nkheli Liphoto

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Rape suspect told to stay put

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An Ethiopian man who paid M40 000 to a woman who had accused him of rape has been blocked from leaving Lesotho on Sunday.

The police intercepted Langano Meleselambedo just as he was about to board the plane at Moshoeshoe I International Airport.

Meleselambedo’s troubles started two weeks ago when a woman who works as a cleaner at a camp in Polihali accused him of rape.

Meleselambedo, who is a senior expatriate at a company working on the Polihali project, was arrested but didn’t appear in court.

Instead, he offered to pay his victim M40 000 to drop the case.

Negotiations were before the area chief and Meleselambedo paid his alleged victim M40 000.

Meleselambedo thought the matter had been closed but the police stopped him at the airport.

Police spokesperson Senior Superintendent Kabelo Halahala said they have taken Meleselambedo back to Mokhotlong.

“We want the prosecutor to give this matter a considerate thought,” Senior Superintendent Halahala said.

“This case could land in the Director of Public Prosecutions (DPP)’s office if need be.”

He said alleged victims should not receive incentives to drop cases against a suspect.

“The victim has to drop the case unconditionally”.

Advocate Motiea Teele KC said although the rape is a crime against the state it is “possible to settle out of court.”

He however said such arrangements don’t apply to minors and people living with disability because they can not give consent.

Adv Teele KC argued that much as the state has interest in such a matter to protect the victim, rape is a personal matter where the victim can forgive the suspect.

He said some victims can accept out of court settlement to avoid court processes which are generally not victim- friendly.

Majara Molupe

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Ambassador fired

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LESOTHO’S ambassador to Canada, Molise Tšeole, has been fired over a Facebook post criticising the government.

Tšeole was fired on Wednesday, the same day he was found guilty after a virtual disciplinary hearing held last Friday.

Tšeole was informed of his termination by Principal Secretary of Foreign Affairs, Thabang Lekhela. Lekhela said the Tšeole’s termination and recall from the embassy in Canada was with immediate effect.

The letter instructs Tšeole to wrap up his affairs and “report to the Headquarters on or before” May 7.

Tšeole got himself in hot water after he made a Facebook post, on April 13, disparaging the government.

“This is the government of the rich. They see the poor as nothing,” Tšeole’s post reads.

“Now they take all the funds meant to help the people and share them among themselves.”

“There is no buying power, there is no money in circulation.”

The reaction from his bosses in Maseru was as instant as it was thundering.

Six days after that post Tšeole was before a disciplinary panel chaired by the Principal Secretary of the Ministry of Communications, Kanono Ramashamole.

He was accused of “failure to have absolute and undivided loyalty to the constitution and lawfully constituted government”.

Other charges were that he failed “to support and maintain the government of Lesotho according to the constitution and other laws of Lesotho”, “caused damage that brought public service into disrepute” and “wrote and circulated a vexatious statement with malicious intent”.

All charges emanated from Tšeole’s Facebook post.

The disciplinary panel found Tšeole guilty and ruled that he is not fit for office.

“The accused is not fit to continue to represent Lesotho internationally, therefore he must be recalled from the embassy,” Ramashamole said in the judgement.

During the virtual disciplinary hearing, parts of which were heard by thepost , Tšeole is heard questioning the credibility of the panel that tried him.

Tšeole kept having a back-and-forth with Ramashamole throughout the intense hearing
Tšeole told the committee that the proceedings should not be high-jacked, insisting that it should be held in a way that will make him feel satisfied.

“I want to know the reasons you are made the chairman of this committee,” Tšeole asked Ramashamole.

Ramashamole kept telling him that he should allow him as the chairman to speak but Tšeole kept talking.

“Do not interrupt me so that I read the charges for you. Let me work using the proper procedure,” Ramashamole said. But Tšeole kept interjecting.

Tšeole later kept quiet and Ramashamole read the charges.

He however argued that the case should be before the courts rather than the disciplinary committee.

Before Ramashamole could respond, Tšeole said he first had to be sure if the committee would bring justice to him.

“I want to be sure that your court is fairly constituted before anything else.”

Ramashamole tried to respond saying they were following the law but Tšeole said that was not true.

Tšeole said he wanted to be represented by a lawyer.

Ramashamole told him that if he did not allow the hearing to continue he would be denying himself a chance to defend himself.

Tšeole insisted that he wanted a legal representative.

Ramashamole told Tšeole that he would continue with the case despite his objections.

Tšeole’s lawyers, Astute Chambers, demanded that another hearing should be held within 48 hours from yesterday or else they would have “no other option but to approach the courts of law”.

Tšeole has written a separate letter appealing against the judgement, saying Ramashamole ignored him when he made it clear that he was not guilty.

“I was present at the hearing, I was willing to have a fair hearing,” he said.

“Your panel cannot make the decision as if I was absent.”

Nkheli Liphoto

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