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How businessman unfroze bank account

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Walim Ashraf, the man charged in connection with the M7.4 million heist that rocked two big companies, forced FNB Lesotho to unfreeze his account and then continued to use the money even as he was being investigated for fraud.
Ashraf, a businessman of Indian descent based in Mafeteng, is allegedly part of a syndicate that used a fake email instruction to mislead Econet officials to transfer M7.4 million into his FNB account at a Mafeteng branch.

The amount was a payment for the electricity that customers had bought from LEC through Econet’s Ecocash platform.

Econet reported the fraud to FNB a few days after the incident and opened a case with the Directorate on Corruption and Economic Offences (DCEO) this week.

thepost can reveal that the DCEO instructed FNB to freeze Ashraf’s account to block him from making more transfers while it investigated the matter.

When the account was frozen Ashraf sued the bank in the Mafeteng Magistrate’s Court, claiming that he and his business were “suffering irreparably”.

In his affidavit, seen by thepost, Ashraf claimed that when he demanded answers the bank told him that the account had been frozen on suspicion of fraud.

He said he told the bank that the money that had come into his account was a deposit of a property he had sold in South Africa.

He said he told the bank that he could not submit proof of the property deal because the transaction was not yet finalised.

FNB promised to get back to Ashraf but did not reopen the account. Ashraf claimed he was approaching the court on an urgent basis because it had been a month since his account was frozen.

He said he was “suffering irreparably as I am without food and other basic needs”. He also said his business was not operating “since there are no funds”.

“I have exhausted all the money that was in hand for the past month,” he said, adding that he was not being investigated for fraud.

The court ordered FNB to reopen the account.

The order also interdicted the bank from freezing Ashraf’s account “unless by due process of law”.

It is not clear if FNB was given a chance to respond to Ashraf’s application.

He however told the court in his affidavit that he was approaching the court ex parte. Sources close to the investigation said once the account was reopened Ashraf continued making huge transfers to local and South African banks.

Sources close to the investigation said Ashraf transferred about M4.5 million to three bank accounts in South Africa.

The rest was distributed to accounts held by companies and individuals in Lesotho.

The transfers to South African accounts were in 44 batches of M99 000, just below the threshold M100 000 that usually attracts the attention of banking authorities.

thepost can reveal that one of the banks immediately froze M1.4 million that came into one account.

Another bank flagged M3.1 million for fraud and money laundering and returned it to FNB Lesotho.

But with his account now open, Ashraf allegedly quickly transferred that M3.1 million to several local accounts.

Ashraf appeared in the Magistrate’s Court on Tuesday facing fraud and money laundering charges. It is not clear if his suspected accomplices will be arrested or have turned state witnesses.

He remains in remand prison after failing to pay the M500 000 bail and surrender surety of a property worth more than a million. His lawyer is set to appeal the bail amount and conditions in the High Court.

In the Magistrate‘s Court his lawyer had suggested a M1 000 bail, surety and some reporting conditions. He argued that Ashraf was not a flight risk because he is a Mosotho with a business and property in Mafeteng.

The prosecution however insisted that he pays half a million and surety, arguing that Ashraf was facing serious charges, there was overwhelming evidence and he was also a South African citizen.

Ashraf initially told the court that his wife and three children were living in South Africa. He however later changed after the prosecution saying his family was in India.

When questioned by his lawyer, he said it was a “slip of the tongue” as he meant to say India instead of South Africa.

Staff Reporter

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MP defies party, backs opposition

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MOHLOMINYANE Tota, the only MP for the United for Change (UFC), has defied the party’s order to stop voting with the opposition in parliament.
Tota, the UFC’s deputy leader, told thepost this week that he will vote, guided by his own conscience, and not the party’s instructions.

His defiance comes after the party publicly chastised him for voting with the opposition in parliament.
A fightnight ago, Tota angered his party when he sided with the opposition to vote against the government’s motion to continue discussing the reforms’ Omnibus Bill despite that it was being challenged in the Constitutional Court.

The government however won with 57 votes against the opposition’s 50.
The UFC issued a statement reprimanding Tota for defying its decision to always vote with the government.
But Tota told thepost this week that he was unfazed by the party’s warning.

“I will continue to vote with the opposition where need be, and I will also vote with the government where need be,” Tota said.
He said he respects the party’s position but “I also have a right to follow my conscience”.

This, he added, is because “it is not mandatory for an MP to toe the party line even when his conscience does not allow it”.
He said whether he will vote with the government or the opposition will depend “on the issue on the table”.
He said his conscience would not allow him to vote with the government on the Omnibus Bill motion.

“It was wrong,” Tota said.
“I will do the same again given another chance.”

Tota’s response comes three days after the UFC issued a statement distancing itself from his stance in parliament.
The party said its national executive committee had an urgent meeting over the weekend to discuss Tota’s behaviour.
It said its position is to always support Prime Minister Sam Matekane’s coalition government.

“‘The issue has caused a lot of confusion in the party and among Basotho at large,” the statement reads.

The party also said Tota did not bother to inform the national executive committee about his decision so that he could get a new mandate.

“He did not even inform the committee before voting,” the statement reads.
“The national executive committee held an intensive meeting with Tota about the matter because the purpose of the party is to support the government,” it reads.
The UFC said where the government goes wrong “the party will continue to confront it with peace and not with a fight” (sic).

“We have confidence in the current government because it was voted in by Basotho.”
The UFC’s statement makes it clear that the party “will not support anything against the government”.

Nkheli Liphoto

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Inside plot to oust Matekane

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THE plot to topple Prime Minister Sam Matekane thickened this week amid allegations of brazen vote-buying ahead of the opposition’s planned vote of no-confidence.

The opposition is said to be ready to push out Matekane when parliament reopens sometime in September. They accuse Matekane’s government of incompetence, nepotism, corruption and using the security forces to harass opposition MPs.

But as the lobbying and touting of MPs reaches fever pitch, there are now allegations of each side using bribes to secure votes crucial in the vote to remove the government.
Democratic Congress leader, Mathibeli Mokhothu, this week accused the government of bribing its MPs to defeat the motion against Matekane.

Mokhothu, who made the allegations at the opposition’s press conference yesterdday, did not give further details or names of those bribed and those bribing.
But on Monday, the Revolution for Prosperity (RFP) MP, Puseletso Lejone, told thepost that Mokhothu offered him a M2.2 million bribe to support the opposition’s motion to upend the government.

Lejone said Mokhothu made the offer at a secret meeting, attended by almost all opposition leaders on August 14, at Monyane Moleleki’s house in Qoatsaneng.
The Thaba Moea MP said the leaders claimed that 60 MPs were supporting the motion against Matekane and wanted his vote to make it 61.

“The money was to come directly from Mokhothu,” Lejone said.
“They asked me to provide them with my bank account so that they could transfer the money.”
Mokhuthu denied the allegations, saying he wondered if Lejone “was smoking socks”.

Lejone repeated the same allegations on the sidelines of yesterday’s press conference where Matekane assured Basotho that his government has enough numbers to fend off the opposition’s attempt to push him out.
He said apart from Moleleki and Mokhothu, other political leaders who attended the meeting were Lekhetho Rakuoane, Machesetsa Mofomobe, Nkaku Kabi, Professor Nqosa Mahao, Teboho Mojapela, Tefo Mapesela and Tšepo Lipholo.

He said the leaders gave him a document showing that six RFP MPs had pledged to support the vote of no confidence. Lejone however refused to name the RFP MPs, saying he still wants them to remain in the ruling party.
He said four MPs from parties in the RFP-led coalition had signed.

They are Mohlominyane Tota (UFC), Reverend Paul Masiu (BAENA), Mokoto Hloaele (AD) and Motlalepula Khahloe (MEC).
The deal, Lejone said, was that Mokhutho would become prime minister and be deputised by Dr Mahali Phamotse.
He said the RFP’s faction was going to be rewarded with 10 ministerial seats for their role in toppling Matekane.
Nearly all the political leaders mentioned by Lejone denied attending the meeting at Moleleki’s house.

“By the living God, I have never been in a meeting with that man (Lejone),” Mokhothu said, adding that Lejone’s allegations are “defamatory”.

Mahao said he last visited Moleleki’s house, which is up the road from his, 22 years ago. Mofomobe said Lejone is lying about the meeting because he wants to curry favour with Matekane, whom he had been criticising for months.
Mofomobe said all his meetings with Lejone were at the BNP Centre and their agenda was toppling Matekane.

“We were discussing his (Matekane) incapability to rule this country,” Mofomobe said.

Rakuoane and Mapesela said they have never been to Moleleki’s house.
So did Kabi who implied that Lejone could have smoked something intoxicating “to talk about a meeting that never happened”.
Lipholo, Rev Masiu, and Tota said they were not at that meeting while Moleleki said he had “no comment”.

Staff Reporter

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Matekane abusing state agencies, says opposition

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THE opposition has accused the government of weaponising security agencies to harass and intimidate their MPs.
The accusations come as the opposition plots to push a vote of no confidence against Prime Minister Sam Matekane when parliament re-opens in September.

Opposition leaders told a press conference yesterday that the government has resorted to using the army and the police against its MPs because it is afraid of the motion.
Democratic Congress (DC) leader, Mathibeli Mokhothu, said the security bosses have been willing tools for the government because their bosses are desperate for Matekane to renew their employment contracts.

He was talking about Police Commissioner Holomo Molibeli, army boss Lieutenant General Mojalefa Letsoela and National Security Service (NSS) boss Pheello Ralenkoane.

“Employment contracts for the security agencies’ bosses are the ones causing these problems because the commanders end up working towards pleasing the government for their contract extension,” Mokhothu said.

He said the army has also started setting up roadblocks closer to parliament to search MPs. Mokhothu said the army searched Nkaku Kabi and Advocate Lebohang Maema KC at the parliament premises last week.

“The government is now bringing back the security agencies into party politics,” Mokhothu said.
“This was the first time the army entered the parliament premises to search members and other people there. It is an embarrassment.”
“The responsibility of our soldiers is to guard the borders and ensure security, not to enter politics or set up roadblocks on the parliament roads.”
“They are now running the country like a shop or a company.”

Basotho National Party leader, Machesetsa Mofomobe, alleged that Matekane had a meeting with the security bosses in Teya-teyaneng to discuss how they could use their institutions to clip the opposition’s wings.

“The LDF, LMPS and NSS boss’s contracts have expired, and now they are using the institution to get extensions,” Mofomobe said.
“The LDF and LMPS are doing this deliberately to protect the government.”
thepost could not independently verify this allegation.

Tefo Mapesela, the Basotho Progressive Party leader, said Matekane’s government is taking Lesotho back to 2014 when the army was wooed into politics.
He warned that officers who allow themselves to be used as pawns in political fights might find themselves in jail while their political handlers enjoy freedom.
He referred to Lieutenant General Tlali Kamoli who has been in remand prison for seven years as he faces charges of murder, attempted murder and treason.
Mapesela however said the opposition will not be intimidated because it is their democratic right to bring a motion of no confidence against the government.

“When there is time to enter a motion of no confidence it is time, it is written in the law, there is nothing wrong there,” Mapesela said.
“I once launched a motion of no confidence in the previous parliament, but I was never arrested or threatened.”

“We do not owe Matekane anything. When the time has come he has to go. We will lobby others as it is not a crime.”

The Basotho Action Party’s Nqosa Mahao criticised the police for issuing a press statement with political undertones.

In a controversial statement last week, Commissioner Molibeli said the police were aware that some MPs were coercing their colleagues to support their plot to topple the government.
Molibeli also said they were aware that such MPs were surrounding themselves with armed groups.

“Police warn those perpetrating these acts to stop immediately to avoid action that could be taken to protect the country,” Molibeli said.

Matekane made the same allegations at his press conference yesterday.
Professor Mahao said the statement shows that the police have now been entangled in politics.

“Every time parties experience internal problems the leaders conspire with the security agencies,” he said.
“The opposition leaders are now being harassed because the government wants to stop them from exercising their rights.”

The opposition’s charge sheet against Matekane

  •  Filling of statutory positions despite the reforms aiming to change the system.
  • Corruption
  • Nepotism
  • Using security agencies to deter MPs from ousting Matekane.
  • Job losses.
  • Lack of job creation.
  • Failure to fulfil campaign promises.
  • Protecting mining companies’ interests at the expense of Basotho.
  • Incompetence and lack of communication skills.
  • Arrest of MPs by the police.
  • Cherry-picking reforms that insulate his government.

Staff Reporter

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