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Why the Chinese are winning tenders

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MASERU – PUBLIC Works Minister Prince Maliehe says the government’s hands are tied when it comes to giving lucrative tenders to Chinese owned companies without going through tender processes. Maliehe told a press conference last week that in most cases the government is bound by agreements it signed with Chinese financiers.
Under the terms of the concessional loan agreements, the Chinese government insists that Lesotho source service providers from China.
A concessional or soft loan is a loan that you pay no interest or where a country pay a below-market rate of interest.

They are often given by multinational development banks, affiliates of the World Bank and government agencies to developing countries that would be unable to borrow at the market rate.
Soft loans on the other hand are loans that have lenient terms, such as extended grace periods in which only interest or service charges are due.
Soft loans typically offer longer amortisation schedules (in some cases up to 50 years) and lower interest rates than conventional bank loans, according to Investopedia.
Maliehe said Lesotho often finds itself accepting the conditions that are attached to the soft loans from China.

He however swiftly said the funders select contractors in China and therefore they are not bound by Lesotho’s procurement regulations.
Maliehe and his Principal Secretary Mothabathe Hlalele were trying to deal with a public relations backlash after local construction companies accused the two of dishing money-spinning jobs to Chinese companies.
The press conference also came a week after opposition parties claimed the Chinese had “captured the state”.
Hlalele however refuted allegations that they favoured Chinese-owned companies over Basotho companies.

“These accusations in the social media and elsewhere, in newspapers and radio stations are baseless,” Hlalele said.
“They say we only give jobs to foreign companies and I want to tell you that we do not,” he said.
“Our aim is to improve the lives of Basotho, how can we not give them jobs if we have any means to do that? Please do not be misled, we offer good jobs to Basotho because we want to reduce the rate of poverty in the country.”

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Hlalele said the projects that his ministry is undertaking in the country “almost 99 percent of them are done by local companies”.
Maliehe singled out some projects that were done with the help of the Chinese, amongst many others that the government did with help from other funders.
He referred to the building of the new State House built at a cost of M190 million “and 100 Basotho had the opportunity to get employment out of that construction”.
“Besides that, we are still in the process of building a Stop Shop Vehicle Testing Station at Ha-Foso, which will help to make sure that cars are still in good condition for the safety of the people,” Maliehe said.

“The amount of M65 million is being budgeted for this project and at the end of this year the construction will come to an end,” he said.
Maliehe said the ministry is also in the process of designing the Maputsoe cross border station which will be opened in the new year.
“When constructing roads we also make trade easy between Lesotho and other countries nearby, while on the other hand government buildings help to bring services to the communities,” he said.
He also said the road between Tele and Alwynskop, a 10 kilometre bitumen road which cost M118 million has been built.

He said a Lesotho contractor, Matekane Group of Companies, was the one given the contract.
“Although we are trying by all means to do our work, but we still have some challenges such as lack of funds,” he said.
He also mentioned the controversial 62 kilometre long road from Marakabei and Monontša – which sparked much discontent from local companies after they learnt that it was given to ChinaGeo Company through selective tendering.

Some of the projects that were financed and done by the Chinese include a national network for telecommunications in which Lesotho used a US$60 million (about M828 million) concessional loan given by the Chinese to help Econet Telecom Lesotho.
The job was given to a Chinese company called Zhongxing Technologies (ZTE) and Econet Telecom Lesotho in 2010.

Other completed projects are the National Convention Centre, now the main venue for many international and regional conferences hosted by Lesotho, the Butha-Buthe Industrial Park, the National Library & Archives Building, the New Parliament Building Project and two secondary school projects in remote areas of Thaba-Tseka and Qacha’s Nek.
The Chinese have also built a new modern China-Lesotho friendship school at the top of Berea Plateau in Thuathe.

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Projects that are in the pipeline include the Radio and Television Network Expansion Project and the construction of the Maseru District Hospital, which will replace Queen Elizabeth II Hospital, and the Eye Clinic Project.

There is also the Ha-Mpiti to Sehlabathebe road in Qacha’s Nek, Hlotse Multi-purpose Dam and Mafeteng’s 70 MW Solar Power Plant among others.
According to a paper titled Eastern Promises: New Data on Chinese Loans in Africa, between 2000 and 2007, concessional loans were always denominated in Chinese RMB, and required at least 50 percent of the goods and services procured under the loan to come from China.

Thooe Ramolibeli

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Knives out for Molelle

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MASERU

KNORX Molelle’s appointment as the Director General of the Directorate on Corruption and Economic Offences (DCEO) in February 2023 could have been illegal.

The Law Society of Lesotho has told Prime Minister Sam Matekane that Molelle was appointed without being admitted as a legal practitioner in Lesotho, as required by law.

The society claims the information came from a whistleblower on January 2 and was corroborated by its roll of legal practitioners in Lesotho.

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The society says the appointment violates section 4 of the Prevention of Corruption and Economic Offences Act 1999 which states that a person shall not be appointed as the DCEO director general unless they have been admitted as a legal practitioner in terms of the Legal Practitioners Act.

In the letter, Advocate Ithabeleng Phamotse, the society’s secretary, tells Matekane that this requirement “is not a mere procedural formality but a substantive qualification essential to the lawful appointment of the Director General”.

“The absence of such qualification fatally impairs the appointment ab initio, rendering it null and void from the outset,” Advocate Phamotse says in the letter written on Tuesday.

The society argues that if left unaddressed the illegality undermines the credibility, effectiveness and legality of the DCEO’s operations and exposes the kingdom to serious risks, including challenges to the lawfulness of decisions and actions made by Molelle.

“Should it be confirmed that the appointment was made in contravention of the mandatory legal requirements,” Advocate Phamotse said, “we respectfully urge you to take immediate corrective action to rectify this glaring irregularity”.

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Advocate Phamotse tells the prime minister that if the appointment is not corrected, the society would be “left with no alternative but to institute legal proceedings to protect the interests of justice and uphold the rule of law in Lesotho”.

“We trust that you will accord this matter your highest priority and act decisively to avert further damage to the integrity of our governance structures.”

The Prime Minister’s spokesman, Thapelo Mabote, said they received the letter but Matekane had not yet read it yesterday.

Matekane is on leave and is expected back in the office on January 14.

Questions over the validity of his appointment come as Molelle is being haunted by the damaging audio clips that were leaked last week.

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The clips were clandestinely recorded by Basotho National Party leader, Machesetsa Mofomobe.

In some of the clips, Molelle appears to be describing Matekane and his deputy Justice Nthomeng Majara as idiots. He also appears to be calling Law Minister Richard Ramoeletsi a devil.

In other clips, he seems to be discussing cases. thepost has not independently verified the authenticity of the audio clips.

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Massive salary hike for chiefs

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MASERU

THE government has increased the salaries for traditional leaders by a massive 88.5 percent.

This means that a village chief not appointed by a gazette will now earn M3 001 a month, up from the previous salary of M1 592. That means village chiefs will now earn an extra M1 409 per month.

A village chief, or headman, appointed by a gazette has moved from M1 966 to M3 567 per month.

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Above a village chief is one with jurisdiction over a small cluster of villages, a category three chief, who now moves from M3 768 to M5 181 per month.

A category four chief, known as ward chief, has moved from M4 455 per month to M7 993.

The category five chief, who reports directly to a principal chief, will now earn M10 674, up from M9 939 per month.

There is no increment for principal chiefs.

The government says the budget for chiefs’ salaries has moved from M129.4 million to M208.3 million annually.

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The hike follows a series of discussions between the Lesotho Workers Association, representing the chiefs, and the Ministry of Local Government and Chieftainship.

The revised salaries will be implemented with effect from April 1, 2025.

According to the settlement agreement, a discussion about raising the lowest salary of M6 000 for the lowest-ranking chiefs will be revisited in October 2025.

Chiefs who spoke to thepost have expressed satisfaction with the hike, saying it will significantly improve their lives.

Chief Mopeli Matsoso of Ha-Tikoe in Maseru said his previous salary of M1 500 per month would now be doubled, which would improve his life and help provide smoother services to the community.

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He stressed that they used to close the offices while going out looking for jobs to compensate for their little salaries.

“Now the people will get smoother services,” Chief Matsoso said.

“The offices will forever be open,” he said.

Chief Matsoso said the salary hike will also serve as a motivation for other chiefs.

Chief Tumo Majara of Liboping, Mokhethoaneng, also expressed his gratitude.

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Chief Majara acknowledge the positive impact the salary review would have, especially as a new officeholder.

“I guess we are all happy, that review will help a lot,” he said.

The Principal Chief of Thaba-Bosiu, Khoabane Theko, said the salary increase of chief is a welcome move by the government.

“I’m yet to study how the new salary structure looks like. But I welcome it as a good move by the government,”Chief Theko said.

Nkheli Liphoto

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Maqelepo says suspension deeply flawed

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MASERU

Motlatsi Maqelepo, the embattled Basotho Action Party (BAP) deputy leader and Tello Kibane, who was the party chairman, have rejected their suspension from the party arguing it was legally flawed.

The BAP’s central executive committee on Tuesday suspended Maqelepo for seven years and Kibane for five years. The suspensions became effective on the same day.

The party’s disciplinary committee which met last Wednesday had recommended an expulsion for the two but that decision was rejected with the committee pushing for a lengthy suspension.

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Maqelepo’s suspension will end on January 7, 2032 while Kibane’s will run until January 7, 2030.

Their suspension letters from the BAP deputy secretary general Victoria Qheku, say they should not participate in any of the party’s activities.

“In effect, you are relieved of your responsibility as a CEC member and BAP deputy leader,” Maqelepo was told in the letter.

“You were found guilty by default on all charges and the committee recommended your immediate dismissal from the party,” the letter reads.

On Kibane, the verdict states that the committee decided to mitigate the recommended sanction by reducing his suspension to five years.

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“In the gravity of the charges, the suspension affects your membership in the BAP parliamentary caucus from which you are removed as a chairman.”

They were suspended in absentia after they refused to attend the disciplinary hearing, which they said was illegal.

In response to the suspension, Maqelepo wrote a letter addressing the BAP members in general, defying the committee’s decision to suspend them.

He has called for a special conference, appealing to party constituencies to push for it, citing the ongoing internal fight that includes the leadership’s decision to withdraw the BAP from the coalition government.

Maqelepo also said the central executive committee is illegally in a campaign to dissolve committees in the constituencies and replace them with stooges.

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He reminded the members that there is a court case pending in the High Court seeking an interdiction to charge them in the party’s structures without approval of the special conference that he is calling.

He said the party leadership should have awaited the outcome of the case before proceeding with any disciplinary action.

“The party that is led by a professor of law continues to do dismissals despite the issue being taken to the courts,” Maqelepo said.

The party leader, Professor Nqosa Mahao, is a distinguished professor of law.

Maqelepo said they would write the central executive committee rejecting its decision to suspend them, saying they will continue taking part in party activities.

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He said their fate in the party is in the hands of the special conference.

He appealed to all the party constituencies to continue writing letters demanding the special conference.

Both Maqelepo and Kibane received letters on November 28 last year inviting them to show cause why they should not be suspended pending their hearing.

They both responded on the following day refusing to attend.

Maqelepo, Kibane, Hilda Van Rooyen, and ’Mamoipone Senauoane are accused of supporting a move to remove Professor Mahao from his ministerial position last year.

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They were part of the BAP members who asked Prime Minister Sam Matekane to fire Professor Mahao, who at the same time was pushing for the reshuffling of Tankiso Phapano, the principal secretary for the Ministry of Energy.

When Matekane ignored Professor Mahao’s demands, the latter withdrew the BAP from the coalition government much to the fierce resistance of the party’s four MPs.

Maqelepo started touting members from constituencies to call for a special conference to reverse Professor Mahao and the central executive committee’s decision.

The central executive committee issued a circular stopping Maqelepo’s rallies but he continued, with the support of the other MPs.

In the BAP caucus of six MPs, it is only Professor Mahao and ’Manyaneso Taole who are supporting the withdrawal from the government.

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