. . . as opaque payment system triggers uproar….
MASERU – STONE Shi could be pulling a fast one on Basotho wool farmers through an elaborate payment system that looks dubious, an investigation by the thepost has revealed.
The opaque system seems to have been designed to confuse the farmers when it comes to payments.
It is the main reason why farmers are getting far less than what they used to be paid for the same amount of wool at the auctions in South Africa.
Documents show that Shi’s company, Maseru Dawning, is paying farmers for what it calls “conditioned weight”.
Invoices seen by thepost show that Shi is invoicing only 10 900kgs for every 19 000kgs of wool he ships to his buyers in China.
An example of this murky payment system is a packing list for the wool consignment Maseru Dawning shipped to a Chinese company called Zhangjiagang Free Trade Zone Yulian Wool Industry Co, Ltd in February.
The packing list shows that the shipment had a gross weight of a little over 17 000kg while the net weight was recorded at 16 900kg.
Curiously, one column of the packing list shows the “conditioned weight” to be 10 900kg. On the same day Maseru Dawning invoiced Zhangjiagang for 10 900kg.
That invoice doesn’t mention anything about the net weight shipped to the Chinese company. It shows that Maseru Dawning will be paid US$10.20 per kgs of the “conditioned wool”, bringing the total of the invoice to US$111 088 for 10 900kg.
The invoice has notes showing that it was prepared according to International Wool and Textile Organisation (IWTO) standards. Is says according to those standards wool in that consignment has an average yield of 64 percent. It also mentions the microns (the strength of the fibre) as 17.3.
So what has happened to the other 6 000 kg of wool in the consignment?
Shi is telling the farmers that it was only dirt like soil, faeces and vegetable matter.
If that explanation is correct it means the Chinese buyer was prepared to pay for the shipment in which 36 percent is just rubbish.
There are several problems with Shi’s explanation to the farmers.
First, the term “conditioned weight” sounds unfamiliar to most farmers who have always known that they are paid for the weight of the greasy wool.
At the shearing sheds each bale is pressed and weighed. By the time the wool leaves the shed each farmer has a clear record of how much greasy wool they have delivered.
They don’t talk about “conditioned weight” but just the “weight” because that is how they have sold their wool for decades.
At auctions in South Africa the buyers pay for the weight not the “conditioned weight”.
Second, by “conditioned weight” Maseru Dawning is referring to what is internationally called “clean weight”.
The trouble with that explanation is that it is not backed with credible test results of each bale of the wool sold.
Shi has not provided those test results.
Without testing certificates, a standard requirement at all wool auctions in the world, it is impossible to know what Maseru Dawning is calling the “conditioned weight” (clean weight) of wool.
The test certificates are supposed to be handed to the farmers before the auctions because they are what determines the price of the wool.
There is a testing certificate for every bale on the auction floors. Maseru Dawning’s invoice shows the “average yield” of a consignment.
What the company calls “average yield” could be just a thumb-sucked figure.
At the auctions the testing certificate of each bale is displayed for the buyers.
In the absence of a credible laboratory test the “conditioned weight” Shi is quoting on his invoices look dubious.
That, in part, explains why the farmers are up in arms against Maseru Dawning over payments. Most don’t believe Shi’s numbers and feel cheated.
Their worries and grumbles are not overdone.
There is no way the farmers can verify if Shi’s telling the truth because they don’t get the test certificates as they do at the South African auctions.
In an interview this week Shi said his figures are credible because the wool is tested at a laboratory in New Zealand.
“Every bale is tested. There is no way we can sell the wool without the tests,” Shi said.
He said he has testing reports to prove that his payment system is above board.
“We are sending the samples to New Zealand by air or ship,” he said.
What we get from the laboratory are testing reports, he said.
But internationally wool, especially at auctions, is not sold using testing reports but testing certificates. The difference between a report and a certificate in the wool sector is crucial.
A testing report does not specify from which bale the sample has come from and does not identify the source of the wool.
The testing bureau does not necessarily supervise the sampling and therefore does not put its head on the proverbial block.
A testing report merely mentions the findings but does not specify from whom it comes and from which bale it originates.
What really matters to buyers are the testing certificates with have all the details. It is a testing certificate that the factories want because it assures them of the quality of the product they are buying.
Put simply, the distinction between a testing report and a testing certificate is the same as the difference between a chief’s letter and a birth certificate.
A chief’s letter confirms that you are a resident of a village while the birth certificate gives exact details about you, your parents and place of birth.
thepost has not established if Shi is indeed testing Lesotho’s wool in New Zealand.
But if he is doing so just to get testing reports several issues arise.
The first is that testing reports don’t specify the bale.
Which then begs the question: from which bale does he get the 64 percent as the yield?
Shi is using averages in an industry that has exact numbers as its cornerstone.
The other issue is that for a testing report the laboratory is not supervising the collection of the samples from each bale. It is Shi himself who collects the samples and sends them to the laboratory.
The credibility of those samples cannot be independently verified.
The laboratory is testing what he gives them. The problem with that is that Shi then becomes a player in a process that he is supposed to be independent.
Unsupervised, he can cherry-pick the samples to determine the results.
IWTO standards state that for a test to be credible the testing bureau should collect the samples without the involvement of the broker.
In Lesotho’s case the broker collects the samples, packs and ships them to the testing centre. And he doesn’t share the results with the farmers who own the wool.
Farmers who spoke to thepost said it is highly unlikely that as much as 36 percent of a wool consignment could be dirt.
“Not even a 1000 kgs of that 17 000 is dirt. It cannot be above 20 percent,” said a Mokhotlong farmer who has been involved in the sector for more than 20 years.
“The reality is that you never sell wool that way. We have never heard of conditioned wool,” he said.
Shi said he is explaining to the farmers because they don’t seem to understand his system.
“It’s the first year so they might not understand our system. We are having a meeting to explain how our system works,” Shi said.
RFP douses fires
MASERU – THE Revolution for Prosperity (RFP) was thrown into a fire-fighting mode this week after disgruntled party members protested over the party’s “undemocratic practices” in picking election candidates.
The members who won primary elections to stand for the party in the October 7 general elections were however blocked by the party’s leadership, torching protests by the grassroots supporters.
The group says it now wants party leader, Sam Matekane, to explain the criteria used to pick election candidates.
In defending the process, the RFP has argued that it picked the candidates on the basis of meritocracy insisting these were the best qualified candidates for the constituencies, an argument the group says lacks transparency.
Shortly after the party’s secretary general, Nthati Moorosi, announced the list of the chosen ones last week, scores of RFP members flocked the party offices demanding answers why their elected candidates were left out.
On Tuesday morning, the RFP went all out to reassure the disgruntled members that they were still valued members of the party. thepost understands that the party held a counselling session with the group.
However, a few hours later the group held a press conference in Maseru where they said even though they still supported the party all they wanted was transparency.
The disgruntled members are ’Mampho Seutloali from Stadium Area, Monohi Ralentsoe from Makhaleng, Chopho Lekhoabane from Khafung, Morakane Monate from Hlotse, Kobeli Rethabile Letlailane from Lithoteng, Thabo Moloi from Machache, Mahali Phamotse from Matlakeng and ‘Mamako Mohale-Lerata from Matelile.
The group said Matekane should explain the criteria the party used to pick candidates. Earlier the party had said the candidates would be selected based on their educational backgrounds, business successes or other social achievements in their communities.
Most of all these people Matekane left out have solid academic credentials and are successful in other sectors of society. Letlailane, reading their joint statement at the press conference, said they are demanding the document drafted by their leader while shortlisting the candidates.
“We believe that these documents are the only ones that can end the outcry that is coming from members who elected us in the constituencies,” Letlailane said.
“Members are worried that the results do not have transparency. This has caused loss of members in some constituencies,” he said, adding that some had already started re-joining parties they had defected from.
He said they wanted Matekane to give them answers so that they could go back and convince members that all is still well in the party. He said the documents would allay the fears of the people in the party.
“We aim to help our party to stop losing members on account of this,” he said.
Letlailana got 28 votes but Matekane picked Siera Letsoela who got only 12 votes. Phamotse received a stunning 96 votes but the party picked a relatively unknown Kenny Ntoane who only got 10 votes.
Letlailane said the RFP should be a beacon of transparency because many people had left their parties to join it because they were not transparent.
“The people are asking the RFP to live by what it preaches.”
He stated that most of the candidates who won primary elections but were not chosen do not want to defect together with the people in the constituencies who have started defecting.
“We aim to work hard to build this party, to get things right so that people do not leave,” he said.
He said their other aim is to prove to the nation and the people that the results were transparent. Dr Phamotse said by asking for the criteria “the angry people will understand and stop defecting”.
“We are helping by asking for accountability as there are some constituencies that have also launched similar complaints,” she said.
She said there are 30 aggrieved candidates who won primaries but were not picked to stand in their constituencies.
“They are not happy and we do not want them to leave,” she said.
Dr Phamotse said what makes matters worse is that members do not have the party constitution and they do not know if they have any legal basis to complain. The people, she said, base their decisions on democracy as they know it.
“We are representing others who are also not happy, especially those who won the primary elections.”
The Stadium Area primary election winner, ’Mampho Seutloali, said the candidates have huge supporters behind them.
“They are expecting to know what will be done as they voted for people and the party chose otherwise,” Seutloali said.
She stated that they had been negotiating with members not to defect.
“We are telling our people that the RFP is still powerful,” she said.
Matelile’s Mohale-Lerata said they signed a document to be members, therefore, they have a right to speak on matters affecting the RFP.
“But the constitution has not yet reached our constituencies,” Mohale-Lerata said.
A day earlier, Qacha’s Nek constituency members stormed the party premises demanding answers over the party’s undemocratic selection of candidates.
The members who had traveled from Qacha’s Nek to seek answers were not allowed to enter the office until around 4pm when a security guard finally let four of them in.
One of their representatives, Kokolia Mosothoane, told thepost that the leader chose ’Maatang Chaka who lost the primary elections.
“We demand to know how our leader picked this nobody, who stays in Maseru and knows nothing about us,” Mosothoane said.
“We will not tolerate this,” he said.
The members left the offices without answers.
On Sunday, the party co-founder Tlohang Sekhamane defended the party’s stance at a rally in Qeme constituency. Sekhamane said change is a beautiful thing as it goes along with developments.
“Change is not delicious on some people’s palates. We must embrace change,” Sekhamane said.
Sekhamane said Matekane has pointed out who should represent which constituency and “people lash at him for that”.
“That is why Lesotho is a poor country because we do not want to do the right things,” he said.
He said Matekane is doing what he knows by changing the ways things have been done in the country in the past.
He stated that Matekane wants to work with people he trusts the most.
“We thank you for allowing him to do so,” he said.
He said members “should change their old ways”.
“Stop believing that a parliament is an employment place where people go to eat with their families.”
He urged the members not to leave when unhappy because their party is doing this for their sake and the sake of the entire country.
“Matekane should be allowed to show and lead the way, he wants new things for your sake.”
Why Thabane case flopped
MASERU – THE murder case against former Prime Minister Thomas Thabane and his wife, ‘Maesaiah, collapsed this week because it hinges on the testimonies of four key witnesses the prosecution could not find. thepost can reveal that those witnesses have been playing ‘hide and seek’ with the prosecution for more than two years.
The police and the prosecution have so far failed to track down those witnesses, according to sources close to the case.
The four, who are Basotho based in South Africa, are said to be reluctant to give statements to the prosecution.
“They are not clearly saying that they don’t want to testify but they are always giving excuses,” said a source involved in the investigation.
thepost understands that attempts by the police to meet some of the suspects in South Africa last week failed.
“I am told one of them said he was rushing to Lesotho for an emergency. When the police came back to Lesotho, the witness said he was already back in South Africa.”
The source said two of the witnesses are famo music gang members that have information on the people who carried out the hit on Lipolelo Thabane.
The other two know how the murder was planned. Sources told thepost that for the past three weeks the police and the prosecution have been debating on how to proceed with the case against Thabane and his wife.
“We have some good information from the other 35 witnesses but the evidence from those four is crucial to this case.”
The source said the prosecution and the police have been racing against time to get the witnesses before the Thabanes’ legal team applies for the case to be dismissed due to lack of prosecution.
“They don’t know when those witnesses will be available. It’s not like those witnesses can be simply subpoenaed to give their statements,” the source said.
“The prosecution knew that the defence was now planning to apply for acquittal on the basis that the cases had been delayed for too long and the case against ‘Maesaiah is not proceeding.”
“If the prosecution had charged Thabane it meant he had to enter a plea and the case would have to proceed. But the trouble was that the prosecution is still struggling to get the four key witnesses.”
He said the withdrawal was the prosecution’s only option.
“It’s a strategic retreat rather than surrender. The charges have not been dropped so they can still be reinstated when the witnesses are available.”
There are however fears within the prosecution and the police that those witnesses might no longer be willing to testify and could disappear off the radar.
The police, another source said, are worried that those witnesses might be intimidated or induced to refuse to cooperate with the prosecution.
Two of ‘Maesaiah’s co-accused have died.
Molibeli in new bid to hold on to post
MASERU – COMMISSIONER of Police Holomo Molibeli says Prime Minister Moeketsi Majoro no longer has the power nor mandate to advise the King to retire him. This is contained in a new application he filed in the Constitutional Court on Tuesday.
In the application, Commissioner Molibeli says the Prime Minister cannot advise the King to fire him after parliament was dissolved two weeks ago.
He argues that following the dissolution of parliament, Majoro has become a caretaker Prime Minister without powers to make any major decisions in the interim.
He said section 83 (7) of the Constitution of Lesotho says a Caretaker Prime Minister “is limited to maintaining the status quo existing before the dissolution” of the 10th Parliament.
Commissioner Molibeli pleaded with the court to order that Majoro’s advice to King Letsie III to retire him from the office “during the caretaker period be considered unconstitutional, null and void for being contrary to section 83(7) of the Constitution”.
He added that the court should “interdict and restrain the King from acting on any advice of the Prime Minister or having the effect of advising His Majesty to require” him to retire.
In his founding affidavit, Commissioner Molibeli said that when the 10th Parliament was dissolved on July 13, the government assumed the caretaker role and with effect from July 14, “the Prime Minister became a caretaker Prime Minister presiding over the caretaker government”.
“The Prime Minister during the caretaker period is constitutionally prohibited from, among others, removing or effecting changes to key positions as the heads of securities, the judiciary, other law enforcement agencies such as Lesotho Revenue Authority and Directorate on Corruption and Economic Offences,” Commissioner Molibeli said.
“As the Commissioner of Police, I am the head of and superintend the LMPS and its operations in Lesotho,” he said.
He said the 9th Amendment of the Constitution, which prohibits significant changes to key positions in the government “was inspired not only by the need to express the constitutional convention to that effect but also to specifically deal with the specific incidents influenced by collation politics since 2012”.
He said these are “matters of common knowledge and which the court is entitled to take judicial notice of”.
He said during the reforms process, the constituent popular sovereignty of the people of Lesotho was expressed in the Plenary II Report.
“There should be no appointments or removals to the heads of securities (LMPS, LDF and NSS) including the Commissioner of Police in the interim,” he said.
He emphasised that as the occupier of the office of the Commissioner since 2017, he is entitled to exercise and perform the functions of that office until otherwise removed by both the constitution and the law authorities.
“I have a right to prevent illegal and unconstitutional means of removing me from that office, and therefore to approach the court for purpose,” he said.
He said his dignity, reputation and self-worth are also derived from the performance of the functions of the office of the Commissioner of Police which he is currently holding.
“I have a right to prevent my unconstitutional and illegal removal from office,” he said.
He said the unconstitutional and illegal removal from office will cause irreparable harm not only to the integrity of the constitution, maintenance of the rule of law but will effectuate constitutional injustice to him and trample upon and render illusory and worthless his non-material rights.
RFP douses fires
Why Thabane case flopped
Molibeli in new bid to hold on to post
Makgothi, Sello will not seek re-election
Moleleki accuses DC of looting state resources
Rough ‘justice’ for Lipolelo
The battle over damaged houses
Such women are a rare breed
Justice system in deep crisis
Literature and poesy
Prayer for the losers
A new online loan scheme!
The RFP’s rough play
The scourge of early marriages
I made Matekane rich: Moleleki
Musician dumps ABC
MP dumps party, joins Matekane
South Africa won’t tolerate illegal immigrants
Row over army secrets
MP charged with stock-theft
End of the road for Letsatsi
Testy exchange in Mahao trial
Nthane acquitted of murder charges
Babolai ba Ha-Tsolo baa ahloloa
Metsing strikes ‘deal’ to return
Lesotho ease travelling restrictions
Mofomobe attacks RFP
A maize threshing machine
Thabane And Wife Go Scott-Free
Lesotho Soldier Dies In Mozambique
China-UNFPA Gift Lesotho With Sexual Health Commodities
TRC boss holds a presser
COMPOL Holomo Molibeli loses yet another court battle
MISA Lesotho blasts parliament
Molibeli licks the dust
Retired DCP Hlaahla Takes a Stand in The Mahao Murder Trial
Retired DCP Keketso Monaheng gives evidence in the Mahao murder trial
Compol Holomo Molibeli appears in court
RFP e roka lipitsi
I will Not Abdicate My Powers, Says Chief Justice
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Thabane in court: trial set for July
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