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PRESS RELEASE

PRIVATISATION UNIT

2^nd Floor Lesotho Bank Mortgage Division Bldg.
Private Bag A249
Maseru.100
Contact: Makalo Ntšasa
Tel: 317902 Fax: 317551

Email: mntsasa@adelfang.co.za 

For immediate Release

Wednesday, 15^th October, 2002 

VISIT OF HONOURABLE MINISTER OF FINANCE AND DEVELOPMENT PLANNING TO PRIVATISATION UNIT 

The Honourable Minister of Finance and Development Planning, Dr.Timothy Thahane, today visited the offices of the Privatisation Unit for the first time since he was sworn in as a Minister in July this year.  The purpose of the visit was to be enlightened on the activities of the Privatisation Unit that is currently in its second phase of the economic restructuring programme with the Utilities Sector Reform Project. 

The Honourable Minister was welcomed by the Director of Privatisation Unit Mr. Mothusi Mashologu who conveyed the delight of the staff of the Privatisation Unit as this was the first visit by a Minister of Finance ever since the Privatisation Unit was established in 1995. He recalled that Dr. Thahane was the founder and first principal secretary of what was then called the Ministry of Development Planning. He went on to explain that the Honourable Minister spent 16 years as the Vice President of the World Bank and its affiliates, and served as Deputy Governor of the South African Reserve Bank from 1996, until he retired from the post in March last year. 

The Director mentioned that the Privatisation Unit comprises a small team of economists, accountants, and lawyers with specific assignments and it is complemented by the support staff. Currently the staff of the Privatisation Unit is engaged in implementing the Lesotho Utilities Sector Reform Project whose main focus is the restructuring of Lesotho Electricity Corporation. Implementation of the Project includes establishment of the Lesotho Electricity Authority and strengthening of Lesotho Telecommunications Authority that is already in place. 

Mr. Mashologu emphasised that even though the Project implements the Policy of Government, it is marked by controversy due to opposition from various quarters within the country on political grounds by people who use the restructuring of the economy as an instrument to attack the present Government. Some oppose it on ideological grounds, as they believe that the privatisation process is the tool of the World Bank and IMF to make the already poor nation even poorer. Nevertheless, he reiterated that the public awareness campaign would continue in order to explain to the nation the objectives of the restructuring of the economy. On behalf of the staff of the Privatisation Unit, he thanked the Honourable Minister for taking the time off his busy schedule and mentioned that the staff looked forward to the Honourable Minister’s stewardship and leadership on the difficult task ahead. 

In his observations, the Honourable Minister said that he had followed the Privatisation Process since is inception in 1995. He noted that the process itself is not economic but political in nature, hence it evokes responses from the labour sector, Government and other vested interests resulting in very complex issues.  

He explained that since the state had failed to adequately manage the productive sector, it became necessary to rebalance the powers of the state by engaging the private sector through the privatisation process. The limited resources available to the state needed to be channeled in such a way that they benefit the nation at large, thereby allowing the private sector to run its course.  

On the issue of restructuring Lesotho Electricity Corporation (LEC), he cautioned that the process has to be approached in a disciplined and structured manner with a clear framework to be taken. He noted the sensitive nature of the process and highlighted the need for flexibility regarding the political nature of the process. 

The Honourable Minister reaffirmed the Government’s commitment to the policy of restructuring former state enterprises to involve the private sector in their operations.
 

KETELO EA LETONA LE KHABANE LA LICHELETE LE NTŜETSO-PELE EA