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Feb. 28, 2020

OWN CORRESPONDENT

2 min read

Basotho to get shares in parastatals

Basotho to get shares in parastatals

MEC MP Tšepang Mosena

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MASERU - Basotho are now able to acquire shares in parastatal companies after the National Assembly adopted a motion which prevents foreign nationals from getting such shares in those giant corporations.

The motion was proposed by MP for MEC, Tšepang Mosena on Thursday. Mosena said the House should resolve to urge the government to open government investment shareholding to Lesotho citizens, either as individuals or through their companies or both.

This she said would to ensure that such individuals acquire stakes in state owned enterprises (SOEs) in an effort to improve the shaky economy of Lesotho and to encourage Basotho to invest in their own country.
Mosena said the SOEs shares have been dominated by foreigners while the government only owns minority shares.

She such companies often claim to be unable to make profit, but what is appalling is they still operate in the country.

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She made an example of the Lesotho Flour Mills and Sun International Hotels which she said are some of the SOEs in which the government has minority shares while the foreigners enjoy majority shareholding.
She also accused government of appointing board members to most parastatal corporations based on their political inclination to appease their followers who have no necessary skills.

She said when such companies fail to make profit; government spends a lot of money in foreign currencies to bail them out in loans, adding that cripples the economy of the country.
The motion received a green light from both the government and the opposition alike.

 

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