14 July 2022
FRAZER SOLAR REFUTES ALLEGATIONS AND
CHALLENGES LESOTHO TO SCRUTINISE THE MAFETENG SOLAR DEAL
SIGNED BY MOEKETSI MAJORO
In response to reports in the Lesotho Times of 7th July 2022 that an arrest warrant has been issued by the Directorate of Corruption and Economic Offences (DCEO) for alleged fraud, Frazer Solar has the following response:
Frazer Solar utterly refutes any allegations of fraud. This latest step by Dr Moeketsi Majoro is nothing more than a desperate attempt by a dying regime to try to extricate itself from a problem of its own making. Instead of helping his case, Ntate Majoro is likely digging a deeper hole for himself. The Majoro administration risks further damage to itself and to the reputation of Lesotho. Lesotho is highly reliant on foreign aid and foreign funding. Dragging foreign nationals and officials into domestic political issues via bogus criminal charges risks this vital financial lifeline for the kingdom.
Frazer Solar’s project was to be funded by the German government via its wholly-owned bank KfW. By accusing Frazer Solar of fraud, it appears that Dr Moeketsi Majoro is implying the German government is involved in the fraud too. Majoro’s own words in his affidavit supports this narrative as he states the alleged fraud was conducted by Lesotho officials in ‘collaboration with individuals from abroad.’ This presumably refers to German government officials in addition to Frazer Solar personnel, as these were the only foreign individuals involved. Should Dr Moeketsi Majoro continue down this path and accuse German government officials of fraud, especially when it is completely without merit, it is unlikely to end well for Lesotho.
Basotho must ask themselves who they believe – the German government or Dr Moeketsi Majoro. The German government was to fund Frazer Solar’s Lesotho project and subsequently funded further Frazer Solar projects in Eswatini. It is apparent, with all their checks and balances, they trusted and continue to trust Frazer Solar. Dr Moeketsi Majoro on the other hand is already involved in a separate DCEO fraud investigation regarding the Mafeteng solar project in which allegedly M1.7 billion (USD 100 million) was paid in ‘overpayments and bribes.’
Frazer Solar was awarded €50 million by the Arbitrator largely because Dr Moeketsi Majoro preferred the Mafeteng solar project over the Frazer Solar project. Therefore, the two cases are inextricably linked.
Frazer Solar has previously called on the DCEO to join the Mafeteng investigation into the Frazer Solar investigation. The key question remains - why did Dr Moeketsi Majoro refuse to sign Frazer Solar project but was happy to sign the Mafeteng solar project?
It is telling that despite the warrant being issued in April 2022, no attempt has been made to contact Frazer Solar’s legal team, all of whom are well known to the Government of Lesotho. Issuing a Warrant of Arrest, with an illegible signature and one that nobody in Lesotho seems to be aware of, is highly suspicious. It all seems very convenient and designed to help bolster Dr Moeketsi Majoro’s flagging fortunes ahead of the upcoming court appearance in September.
Frazer Solar challenges Dr Moeketsi Majoro, or anyone else that has any evidence of corruption or fraud, to immediately disclose it. If no such proof is forthcoming, then Basotho must see through this sham.
Frazer Solar says to the Government of Lesotho that no amount of threats or coercion against our personnel will lessen our resolve to continue to pursue this action and enforce our rights. Broadening the fight to frame foreign officials on bogus charges is counterproductive, self-destructive and ultimately even more costly for all Basotho.
References re Mafeteng Project:
Notes to Editors
In January 2020, an independent arbitrator ruled in Frazer Solar’s favour concerning a series of contractual breaches committed by the Kingdom of Lesotho, related to a renewable energy project developed by the company. Lesotho was ordered to pay Frazer Solar €50 million in damages but failed to do so.
Consequently, in May 2021, Frazer Solar’s lawyers commenced a worldwide enforcement action against assets held by the Kingdom.