Africa-Press – Lesotho. The long drawn court case between the government and Frazer Solar Company continues to gain momentum. The government had through the statement issued by the Prime Minister’s office said their “worst fears have been realised” following
the latest move by the Frazer Solar wherein it has reported to have used the testimony given at the parliament’s Public Accounts Committee (PAC) to pounce
on government. Meanwhile the PAC had suspended its hearings on the matter following the legal advice from the Auditor General. Also, the Commission of Inquiry which is going to investigate
the controversy in this matter had suspended its investigation. Some of the people whom the PAC heard their testimonies include the former Minister in the Prime
Minister’s Office Hon. Temeki Tšolo and the former Government Secretary Moahloli Mphaka. In a Frazer Solar GMBH vs Kingdom of Lesotho (CIV 2020/33700) is being heard at
the Gauteng Division of the High Court in South Africa (SA) where the former is the applicant and the latter is the respondent. The government had in 2018 allegedly entered into energy equipment supply deal running to the tune of
M2 billion with the Frazer Solar GMBH. The Frazer Solar GMBH was to supply the government with 350 000 solar lanterns, 40 000 SWHs equipment (Solar Water Heating) to replace electric geysers and about 1, 5
million LED light (Light Emitting Diode). According to the reports, the German government were to finance this project, and the then Minister of Finance, now Prime Minister Dr.
Moeketsi Majoro backed down from signing such contract. Meanwhile, it is alleged that the then Minister in the Prime Minister’s Office signed such a contract
on behalf of the government, the signature which he had disputed to be his further rubbishing the order of names appearing in that contract exonerating
his involvement in such exercise. He told the then committee that he writes his names as Temeki Phoenix Tšolo not Tšolo Temeki Phoenix as appears in the contract.
Solar Frazer had sued the government for alleged breach of contract and it is seeking damages running to the tune of M850 million. The government’s assets attached to this lawsuit are: revenue from the Trans-Caledon
Tunnel Authority (TCTA), an entity authorised by SA to pay Lesotho’s royalties from the water supplied to that country, the Lesotho Electricity Company (LEC)
accounts with Eskom, Lesotho’s shares held in West Indian Ocean Undersea Cable Company which is in Mauritius and the Lesotho Highlands Water Project accounts
held in SA. With the local power utility company (LEC), the Frazer Solar had since delisted them and the TCTA filed the application for stay. “The government wishes to reassure the public that as a
sovereign state, its properties locally and internationally are safe and protected from seizure. ” The government had filed a notice of intention to oppose after the German based
energy company was awarded a garnishee order against the government. Frazer Solar has also applied for execution of the arbitration award in countries such
as SA, Mauritius, the United State of America (USA) and the United Kingdom (UK). The case has been scheduled for 9 and 10 November later this year. “In
the interim, Frazer Solar GMBH has undertaken to take no further steps to execute the order granted by the High Court of South Africa (Gauteng Local Division, Johannesburg) on May 03, 2021 and any writ of execution or notice of
attachment issued pursuant to that order, pending finalisation of the Kingdom’s application for stay. There is a consent draft order of court to that effect.
“Moving on to the United Kingdom, there is also a consent order similar to the one
granted in South Africa. In the United States, Frazer Solar GMBH has only filed a petition, not an actual application. That petition is just a preliminary step
to which the Kingdom of Lesotho does not have to react or respond. The Kingdom of Lesotho will only respond to the actual application as and when it has been filed in court and served upon the Kingdom,” says the statement from the PM’s Office.
