PM forms commission to probe Frazer deal

By Staff Reporter

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.

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.

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.