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Lesotho ditches SA construction firm

Publish date: 10 February 2020
Issue Number: 859
Diary: IBA Legalbrief Africa
Category: Trade

Lesotho’s Finance Ministry has cancelled government guarantees to secure R2.45bn in loans from little-known South African company Property 2000. The loans were to be issued for the construction of a stadium, an indoor sports arena and athletes village as Lesotho prepares to host the AU Sports Council Games in December. A report on the News24 site notes that the cancellation follows widespread Lesotho media coverage of an August Finance Ministry document recommending that the deal should not be signed because of ‘irregularities’. Despite this, Finance Minister Moeketsi Majoro supported the initiative and Cabinet approved loans and guarantees for three construction groups, Nepco Two Consortium, MFT Lesotho and Design Edge, for R760m, R785m and R898m respectively. The controversial development was to be funded by Property 2000 which missed a key deadline by failing to provide funds within 21 days as agreed.

Full report on the News24 site