Lesotho PM Majoro sets up commission of inquiry into R850m deal with German firm
German firm Frazer Solar said they signed an agreement but the kingdom didn’t keep its end of the deal, but Lesotho said it never approved or signed.
JOHANNESBURG - Lesotho Prime Minister Moeketsi Majoro has on Tuesday launched a commission of inquiry to establish whether the country is obliged to pay R850 million to German firm Frazer Solar.
Critics, however, said he was wasting taxpayers’ money to delay arresting his comrades in the governing All Basotho Convention (ABC) party.
Frazer said they signed an agreement but the kingdom didn’t keep its end of the deal, but Lesotho said it never approved or signed.
The High Court in Johannesburg awarded the company damages following a failed arbitration in which the country never responded and was not represented.
Frazer is now seizing Lesotho assets in South Africa, Mauritius, the UK and the USA.
Majoro was finance minister in 2018 when Lesotho signed an agreement with Frazer Solar.
But he said while he met with the company, cabinet never approved the proposal so to his knowledge the agreement is null and void.
The agreement shows the name of then minister in the office of former Prime Minister Tom Thabane - Temeki Tsolo - but he said his signature was forged.
Lesotho has applied for a stay of execution in South Africa and for its case to be heard on 29 June.
At the same, time Majoro has set up a commission to find out who concluded the agreement, if they had the authority and which public officials failed to act during the signing and the arbitration.
But the prime minister is already being criticized for using taxpayers’ money, while he treats the obvious culprits - Thabane and Tsolo - with kid gloves because they are members of the governing All Basotho Convention party where he is deputy leader.