By Poloko Mokhele
The minister of trade and industry, Thabiso Molapo, says the business licensing and registration regulations which resulted in a number of new conditions for used motor vehicles are justifiable.
Molapo was responding to an outcry from used motor vehicles dealers over what they feel are exorbitant licensing fees.
The licensing fee which is set at M150 000 for large enterprises and is expected to be renewed twice a year – translating to M300 000 a year – drew objection from the dealers who described it as too steep. The regulations were first published in August 2020.
However, Molapo indicated countered: “you will recall that there were complaints that the conditions are too strict and that the license fee is too high; the ministry was called on to review these conditions. We invited those who were complaining and the associations of used car importers for talks. At the end of the discussions, the associations agreed that the license fee be set at M150 000 and the ministry revised the conditions; an amendment to the 2020 regulations was published in September 2021.”
The regulations initially imposed a quota on the number of vehicles a dealer may import in a year and that the vehicles should be less than eight years old. But, after the amendment, the quota restriction, the eight-year restriction and the pre-inspection certificate were removed.
Molapo said the reason for the stiff fees was because Lesotho is a member of Eastern and Southern African Anti-Money Laundering group (ESAAMLG) and it has an obligation to combat money laundering and terrorist financing activities in the country.
“The motor dealer industry has been identified as a high activity for money laundering and terrorist financing by ESAAMLG and the ministry of trade and industry is responsible for monitoring this industry to combat activities of money laundering and terrorist financing. Monitoring of this nature requires intensive surveillance and inspections, hence the steep fees,” he said.
The minister also said Lesotho is involved in climate change negotiations and like all other member states in those negotiations, it has an obligation to minimise pollution, including carbon emissions brought by used cars.
