RECORDS indicate that the majority of foreign owned motor vehicle dealerships are deceitful, according to the Minister of Trade and Industry, Dr Thabiso Molapo.
business
Feb. 18, 2022
NEO SENOKO
3 min read
Motor dealers deceitful – Dr Molapo
MInister of Trade and Industry, Dr Thabiso Molapo
Story highlights
The trade ministry raises concerns that the motor dealers’ industry is seen as a hype of activity for among others money laundering
Studies indicate that used vehicles emit more carbon than new ones
The sector, he said was overshadowed by a lot of consumer complaints, money laundering suspicions as well as potential carbon emission glitches for the country.
“There are a lot of consumer complaints on this sector,” Dr Molapo said.
“For instance, last month we received a complaint from a Mosotho man who had bought a vehicle from a local dealer for M105 000 but the car was not mechanically fit.
“He came to us because the dealer was not willing to help.”
Dr Molapo said the ministry believed there were several similar cases, adding that many families were losing thousands of maloti.
He said these malpractices, causing a distress, called on the ministry to take decisive action against these irregularities by dealers in the used motor vehicle industry.
“We cannot just stand-by and let people suffer,” he said. “The ministry believes these numbers do not provide a true picture of how many Basotho are aggrieved and we are going to organise a countrywide consumer complaint meeting to find out how this is impacting on Basotho families and the economy of the country.
“We will bring back the results and the ministry will take appropriate action in response thereof.”
He said the ministry had also raised concerns that the motor dealers’ industry was seen by partners as a hype of activity for money laundering and terrorist financing conduit on the continent.
Lesotho is a member of the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG) and has an obligation to combat money laundering and terrorist financing activities in and out of the country.
Dr Molapo said his ministry was also responsible for monitoring this industry to combat activities such as money laundering and terrorist financing.
“Monitoring of this nature requires intensive surveillance and inspections and it’s quite costly,” he said.
Enjoy our daily newsletter from today
Access exclusive newsletters, along with previews of new media releases.
The country, he said, also had to take steps to minimise pollution including carbon emissions for the benefit of the people and so that future generations could live in a healthy environment.
“This is particularly important because Lesotho, like other member states, is involved in climate change negotiations that seek to minimise pollution including carbon emissions,” he said.
Studies indicate that used vehicles emit more carbon than new ones.
Dr Molapo said at less than five Basotho in the sector, the Government had made it much easier for the locals to participate in the business.
Set at M50 000 for Basotho enterprises with an annual turnover of between M200 000 and M5 million, the Minister said the license fees structure allowed locals to enter and compete in the sector.
The license fees of M150 000 applies to large enterprises of a turnover of over M5 million.
Tailored for you
