The Parliamentary Public Accounts Committee-PAC has expressed concerns over why the Lesotho National Development Corporation –LNDC, approved a loan to Lukis Manufacturing Company, despite the company not meeting the necessary loan terms. 

According to the Auditor General’s report, Lukis Manufacturing was unable to repay a loan of two million Maloti but was refinanced regardless. LNDC’s legal representative, Florence Motoa, revealed that, she had advised adherence to proper legal and administrative procedures for issuing loans.

However, a cabinet decision instructed LNDC to bypass these protocols to grant Lukis the loan. 

Furthermore, LNDC stated that, the Minister of Trade and Industry, Mokheti Shelile, pressured them to violate the law, suggesting he would be pleased if certain companies were awarded loans exceeding ten million Maloti. 

In light of these revelations, PAC has resolved to re-evaluate the situation.

 It emerged during the proceedings that, the minister had allegedly issued a memo to the cabinet requesting the loan for Lukis, though both the ministry and LNDC claim no knowledge of its authorship.

19th Nov 2024