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Dear Editor,

This letter is in response to an article in “Mopheme” newspaper which reported the Senate discussion of the Lesotho Electricity Bill 2001. Some senators remarked about a sharp departure from previous privatisation initiatives where state-owned companies were sold to foreign entrepreneurs at the expense of the locals. The letter went on to purport that hope was lost for Basotho businessmen as enterprises such as PVPS and Lesotho Telecomms Corporation were sold to outsiders and Basotho were not given an opportunity to purchase.

These reported allegations by the executive senators are unfortunately misleading because the Privatisation Act requires that all state-owned enterprises due for privatisation should be advertised in the Government Gazette and in local newspapers. Furthermore, the approved Privatisation Programme and Policy Guidelines clearly show that even though public participation in restructuring enterprises will depend on negotiations between Government and prospective privatise investor, the objective of these negotiations will be to maximise Basotho ownership wherever possible without compromising the need to maintain strong corporate leadership. And further, the guidelines state that enterprises which are small will be offered to nationals in the first instance on a competitive basis.

To further reiterate this policy, a press release has just been released to the media to indicate that the formerly government-owned Marakabei Lodge has just been sold to MCM Enterprises, which is owned by a Mosotho businessman, Mr. Moteane. In mid-September a press statement was issued which informed the public that the Orange River Lodge which is situated in Quthing has been sold to a Mosotho businessman, Mr. Kou. In the telecommunication sector, a consortium comprising Basotho nationals are in the final stages of completing purchase of 12 percent shareholding in Vodacom Lesotho.

The Privatisation Unit together with Standard Bank Lesotho Unit Trust Management Company are currently conducting an aggressive roadshow to educate the public about a new investment vehicle, the Lesotho Unit Trust, through which Basotho can purchase shares in privatised enterprises through affordable means. The establishment of the Lesotho Unit Trust was in realisation that Basotho often do not have the financial muscle to buy huge blocks of shares of the larger enterprises such as Lesotho Flour Mills and Lesotho Telecomms Corporation. In the past, Basotho nationals often expressed  desire to purchase some of the enterprises on offer but were unable to because of the high purchase price of the particular enterprises.

Currently, preparations are underway in Lesotho Flour Mills to create an Employee Share Ownership Scheme through which employees of Lesotho Flour Mills can own shares in the company. AON Lesotho is in the final stages of successfully implementing the scheme.

It is sad to realise that despite many endeavors that have been done up to now to inform the public about the privatisation process in Lesotho, many people remain ill-informed, or somehow prefer to cling to negative perceptions which send mistaken signals to the nation at large.

Makalo Ntsasa

Senior Information Officer

Privatisation Unit