The party was launched at a press conference that was held in Maseru on Friday - just a day after Mahao was kicked out as the Minister of Law and Justice.
He was accompanied by other MPs including two other former ministers who were also axed with him.
Mahao who leads the new party said they formed the party following endless infighting within the ruling All Basotho Convention (ABC).
The disputes within the ABC, he said began in 2019, adding by end of that year, the fighting factions appeared to have buried the hatchet.
“We were only shocked when the infighting resurfaced recently,” he told the media briefing, adding that they suspect the scuffles will continue long after their departure.
The new party, he said will be registered at both the Law Office and the Independent Electoral Commission (IEC) by Friday next week, adding that they are already making preparations for their supporters to register into the new party.
He said they have already established 15 temporary committees which will oversee different departments within the party, such as the party constitution.