By ‘Majirata Latela
The director of project cycle management in the development planning ministry Mothobi Letooane has revealed that the government’s deal with Frazer Solar GmBH for the provision of up to 40 000 solar water heating systems, 20MW of solar photo-voltaic capacity, one million LED lights and 35 000 solar lanterns nationwide was never a good idea, looking at the M1.5 billion that Lesotho was to pay in 20 years.
Solar power company Frazer Solar GmbH was awarded a R855-million in damages by a South African court after the Lesotho government reportedly reneged on a contract, which was purportedly to be funded by the German government, as part of a wider programme to turn Lesotho into a net exporter of electricity.
A global enforcement action was filed in the District of Columbia in the US, paving way for the seizure of Lesotho’s assets around the world. These include royalties paid to Lesotho’s government by the Trans-Caledon Tunnel Authority as well as payments for power from Eskom Holdings SOC Ltd. Lesotho’s share in the Mauritius-based West Indian Ocean Cable Co. was also reported to have been provisionally seized.
Appearing before the parliamentary Public Accounts Committee (PAC) this week Letooane testified that the solar panels that were to be constructed on government buildings would perhaps phase out after 10 years while the country would still be servicing the loan although it would be difficult to maintain.
“The project to have followed the right procedures needs to have had the concept note from the ministry which will implement it not anyone else, and according to our understanding in this case the concept note should have come from the ministry of energy,
“When the matter is then approved, a feasibility study and all the other processes would follow. When all is done we would then look into the issue of environmental impact assessment. Then later we would make a recommendation to the minister of finance to mobilise resources for the project,” Letooane explained.
“But unfortunately with this one, the project itself comes from someone who calls himself a development partner or investor in an unsolicited manner which sometimes is not bad looking at who is going to handle the matter. The ministry of energy which was to be in the fore-front of the project was however not interested in the project or concept that was brought before it,” he indicated.
He showed that after the presentation at Durham Link participants were told to form a technical committee which he was part of but it did not continue with its task as it was expected that the team would be led by the ministry of energy skilled in the technical know-how.
He further indicates that if energy was to lead the technical committee then proper procedures would be followed as its members were knowledgeable in project implementation.
“I can remember vividly when Majoro who was the minister of finance asked us (the technical team) to work hard on the project so that we can later give them advise, but that did not happen and we asked ministry of energy whether it was interested in the very expensive project even though the country still failed to maintain the already existing robots.
“To me the money was too much and if we so much needed to improve electrification then we could take that lot of money to improve rural electrification.
“We have shown in many instances as officers that the initiative should come from the ministry which is directly linked to the project because when the project is run from somewhere by someone with interest there will be consequences like these ones to follow,” Letooane told the parliamentary committee.
The Principal Secretary Administration in the office of the Prime minister, Thabo Motoko completely denied knowing “anything about Frazer Solar and the deal that was signed”. Also, he added, the principal secretaries who occupied the office before him denied knowledge of the agreement.
On the one hand, the legal officer at the prime minister’s office, Advocate Seeng Matšosa also showed that the signatures that appeared on the supply agreement documents are those of former minister in the prime minister’s office, Temeki Tšolo and that of Robert Frazer.
“The people who have signed as witnesses are ‘Masentle Ntobaki who was the secretary to the minister and Hlophe Matla who was the personal secretary in the office of the former Prime minister, Motsoahae Thabane.
PAC member, Keketso Rantšo also showed concern that the principal secretaries were not invited to attend the presentation even though “they are the chief accounting officers and every decision that involves money has to go past them.”
She argued: “This shows that we are working on an individual issue here. How come that someone did not involve the PS in such a big project. I have been a minister and I do not remember a single instance in which my secretary signed documents on behalf of the whole country. Does it mean the secretary was part of all the meetings? We will have to find out.
“I was also part of the cabinet then and I don’t remember being called to discuss such an issue. How is it that the principal secretaries from the prime minister’s office claim not to know anything? This issue has to be investigated thoroughly, “she said.
A member of the PAC, Tefo Mapesela on the other hand said the project had to be presented to the ministry of planning through the ministry of energy not from the minister in the prime minister’s office.
He suggested that if proper procedures were followed, the minister of energy would have summoned the officers to explain in detail the project proposal in an informal cabinet meeting.
It was also revealed that court papers were served at the office of the government secretary instead of the office of the attorney general, causing a delay in the country to respond to the affidavits.
Moahloli Mphaka was the government secretary at the time.
The committee also noted that the ministry of finance was also summoned for the second time but failed yet again to appear before it.
It was not disclosed as to what steps the body would take against ministry’s officers.
and did not appear and they will look on to the matter and come up with the solution.
Former prime minister Thabane and former finance minister Majoro are also set to be summoned to appear before the committee possibly to explain their knowledge about the deal.
Meanwhile, Prime Minister Moeketsi Majoro has assembled a commission of inquiry into the ‘purported’ supply agreement between German company Frazer Solar GmBH and the government of Lesotho.
According to a government gazette published this week, the commission is tasked with probing events that led to the signing of the agreement of supply between the government and the services of notices in respect of the matter before arbitration and subsequent arbitration award.
The commission will be led by High Court Judge Justice Molefi Makara, while its other members are former government minister Mohlabi Tsekoa and Advocate Sekake Malebanye.
The commission will investigate how Frazer Solar GmBH was introduced to the government of Lesotho including the persons in the country who were involved in the events that led to the signing; and enabled the company to lodge claims against the government.
It will, among others, investigate whether the person or official who concluded the agreement on behalf of the government had the legal authority or approval from an authorised authority to do so and, if not, was there any undue interest or any influence received by any person.
