Mochoboroane vows to resolve disputes at dairy

…says farmers will get their payments

Moroke Sekoboto

AGRICULTURE, Food Security and Nutrition Minister, Selibe Mochoboroane, has assured the Senate that the government is working to resolve the crisis at the Lesotho National Dairy, including the non-payment of farmers and a long-running dispute over the plant’s ownership.

Mr Mochoboroane said the dairy had failed to make payments to farmers since July, following the departure of South African operator, Denmar, from the plant, but assured the Senate yesterday that the government was working to address the problem.

“The dairy failed to pay from July after Denmar left the plant, but the government is working hard to solve that,” Mr Mochoboroane said.

He was responding to questions from Senator Seabata Motsamai, who sought clarity on the ownership, construction, management and current operation of the Lesotho National Dairy plant in Ha Leqele, as well as the agreement between Lesotho and Canada under which the plant was established.

Mr Motsamai also asked the minister to provide details of the agreement, including when it was signed, its duration and the respective obligations of the two governments.

He further sought clarity on the plant’s legal ownership, the legal basis for Lesotho’s ownership if it belonged to the government, and the arrangements governing its management and use during and after the agreement.

The senator also asked about the legal or contractual arrangement under which Lesotho Dairy Products (Pty) Ltd currently uses or operates the plant, including the duration and terms of the arrangement.

He wanted to know whether the company paid rent, fees or any other charges to the government for using or operating the plant and, if so, how much and on what basis.

Mr Mochoboroane said the plant was originally owned by three shareholders — the government of Lesotho, the Canadian government and the Lesotho National Dairy Board — each holding 500 shares.

“The original agreement that established Lesotho’s dairy industry infrastructure was finalised in 1987, with Lesotho having 500 shares, Canada with 500 shares and a local dairy organisation also having 500 shares. The problems started in 2016 when it appeared that Lesotho Dairy Products is also a shareholder,” he said.

He said the government was now investigating how Lesotho Dairy Products acquired its purported shareholding and would resolve the matter before the end of the year.

“We are working towards getting clarity on how they acquired them and soon we will finalise that. We will be done before December. The land that the plant is built on belongs to the government,” Mr Mochoboroane said.

The minister’s undertaking comes amid uncertainty over the plant’s ownership and operations, while farmers supplying milk continue to await payment.

Mr Mochoboroane did not disclose the amount owed to farmers but said resolving the operational problems at the dairy was among the government’s priorities.

The post Mochoboroane vows to resolve disputes at dairy appeared first on Lesotho Times.