Matt Kane risks losing public trust

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ohOne of the reasons why the Basotho flocked to vote for the Revolutionary Prosperity Party (RFP) to power was that they believed the rhetoric of its main supporters that they were already too rich and all they wanted now was to devote the rest of their lives to the Basotho people.

We hate to say it. But the fact is, this week’s announcementLocal Government, Emirate, Interior and PoliceMinister Lebona Lephema will now be the beneficiary of majority stake in the Mothae mine, with the government owning 30 per cent, proving those who said the Basotho people were being cheated right.

After all, there is never enough money. People with money always want more. So, contrary to what the RFP says, its ministers are in it for themselves.

WestWe agree with the opposition who condemned the deal between Mr Lephema and Mothae owner Lucapa Diamonds as stinking.

Of course, one hears the usual rumour that Mr Lephema is not actually that involved in the operations of Mothae and will not be involved in its day-to-day running. His son will be in charge of the project, as Natural Resources Minister Moleko Mohlomi suggests elsewhere in this article. However, this misses the point. It makes an already bad situation even worse.

Ministers use their positions to benefit their own sons? Does that look worse? In fact, ministers elected on a promise to fight corruption should not be negotiating deals for themselves and their families, especially on projects in which the government they lead has an interest.

televisionThe government had promised to buy the Mothae stake, develop the mine and then transfer it to a trustworthy Basotho consortium. That would have been a better option. Alternatively, one would have expected the 70% stake to be auctioned off in a transparent public process. At least that is what the government should have insisted on. But the cabinet members appear to have wisely decided to empower their own people.

We therefore join everyone in condemning the corruption of this deal. From a simple business perspective, one could assume that Lucapa is free to sell its majority stake to whomever they want. That is the nature of business. But this is wrong. The situation is not that simple. Mothae is an asset in which the state has invested. The more transparent the operations, the better. If the situation were simple enough that Lucapa was free to make its own commercial agreements with whomever it wanted, it would not have to first ask the government for approval to dispose of its shares. We do not know what the actual agreement between the government and Lucapa regarding the right of first refusal was. But the law requiring the government to hold a stake in a mining operation is intended to empower the government to oversee the extraction of minerals in the county for the benefit of the state.

Indeed, Lucapa is as reprehensible as all those involved in the Mosa corruption case. Its decision to cut a sweetheart deal with Mr Lefima is outrageous. But it is also a testament to Africa’s resource curse and the destructive tendencies of Western mining groups whose main mission is to plunder Africa’s resources. When things don’t go their way, they vote with their feet, as Lucapa is doing now.

Granted, Lucapa is a commercial enterprise with commercial decisions to make. But its lack of sensitivity in rushing to reach an agreement with cabinet ministers for a business that has only been operating for a reasonable period of time and is often closely associated with mining operations is problematic.

Needless to say, we urge Mr. Matken to start reining in his ministers or risk losing the trust of the Basotho people who believe he can change their destiny. How will all those who believed in his promise to be their saviour feel when they see his government facilitating prime national assets to his ministers?

ASerialong Qoo, spokesman for the Democratic Congress Party, rightly asked: “Didn’t Mr. Matekane and his fellow RFP travelers promise that they were here to donate wealth to the poor Basotho? Didn’t they promise to use their own equipment to help repair the country’s roads to prove that they were here to serve the people? Did that really happen?”

The good thing about the Basotho is that they have proven to be among the most active political citizens in the world. If you sell them fake goods, they will punish you at the next opportunity.

Mr. Matken himself set a good example by withdrawing his investmentIn the lake.

His Mattcairn Mining Investments (MMIC) reached a mutual agreement to terminate the prime minister’s lucrative contract with Letseng on November 15, 2023 – a full 11 months before it expired.

Mr. Matheken’s move immediately shocked critics who had said that the reason Mr. Matheken entered politics was to protect the contract that had discredited him for years. Before the Prime Minister plunged into politics for the October 2022 general election, there were rumors that the DNC would have won the election without the RFP, but the DNC planned not to renew Mr. Matheken’s contract and instead split it among more local players to benefit more Basotho people, not just one person.

televisionHe had thought Mr Lefima would follow his lead and divest from Mothae to avoid the obvious conflict of interest. But it is shocking how Mr Mateken could allow one of his key ministers to do something that is the exact opposite of the good example he set.

Adding to the confusion, Minister Moleko argued that there was no conflict of interest in a company run by Mr Lefima or his son in which the government was a shareholder.

“People should not bring up the Letson matter in Mothae…” because the two issues are different, the minister tells us elsewhere in this issue.

No, Minister, you are completely wrong. The issues are no different. Just like Mr. Matken, Mr. Lefima’s company has been providing earthwork services to Mosa for a long time.

When Mr. Mateken wisely decided to divest from Letseng when he entered politics, Mr. Lefima should have followed suit when he joined the Cabinet.

To try to refute this is sophistry. Minister Moleko also wants everyone to believe that this deal is all about saving jobs in Mose. That’s fine. But how does one conclude that Minister Lefima’s company is the best vehicle for investment and saving jobs in the mines? What exactly is he advocating?

IIsn’t it the need to save jobs that dictates that the mine be sold in a transparent and responsible manner to select the best people/company to achieve this? How do we know Mr Lephema’s deal is the best for Mothae when Mothae is forced to compete only with itself? The fact that he provided services at the mine is irrelevant?

We unequivocally urge Mr. Matken not to approve the deal and ensure that the sale of Mothae to someone outside the Cabinet is done through a transparent public process. His government must not approve the sale of the Lucapa stake to Mr. Lephema. If it does, we have no doubt that the opposition will be given a campaign tool to effectively argue that Basotho has been ripped off. Ministers of the RFP came to power to defend and promote their interests, which will be the new slogan given to the opposition. Mr. Matken and the RFP will soon lose the trust of the people. In fact, the entire RFP project will fail. It is time for Mr. Matken to decisively rein in his increasingly unruly ministers. Lesotho deserves better. Ministers must focus on their jobs, not negotiating private deals. Minister Lephema’s performance has been particularly disappointing. He is in charge of an important position. He can either focus on his job or go back to business at any time.