. . . Union fumes over diverted salaries, pay cuts
. . . 400 sent on forced leave
Moorosi Tsiane
MOTHAE Mine, owned by Local Government, Police and Home Affairs Minister, Lebona Lephema, is facing damning allegations of deducting workers’ salaries for provident fund contributions without remitting the money to the designated insurance account.
From January to June 2025, workers’ payslips reflected regular deductions supposedly for the provident fund.
However, according to the Independent Democratic Union of Lesotho (IDUL), no payments were made to the relevant fund manager during that period.
IDUL Secretary General, May Rathakane, expressed outrage at what he called the mine’s “illegal” practice, which he said came to light after the company sent 400 workers on forced leave last month and slashed their salaries by 50 percent without consulting the union.
“As workers’ representatives, we tried to engage mine management about the layoffs and salary cuts,” Mr Rathakane said.
“They promised to respond on Monday last week but, instead, on Tuesday they sent us a letter terminating our recognition agreement. That is when we realised something was seriously wrong.”
He added: “If they were acting in good faith, why terminate our recognition as the majority union? Why avoid dialogue on why they deducted provident fund contributions without remitting them? The law requires them to consult us before layoffs or salary cuts. Their actions suggest a deliberate attempt to evade accountability.”
Mr Rathakane said IDUL has refused to recognise the termination, insisting that the union remains the legitimate representative of the majority of Mothae Mine workers.
“We have formally responded to the mine, making it clear that the termination is invalid. We are still waiting for a reply. We want answers about why workers’ money was deducted but never deposited into their provident fund accounts.”
He said the mine attributed the layoffs to operational difficulties, including a critical machine breakdown.
Replacement equipment said to have been sourced from China, has now arrived, and some employees have been recalled. However, uncertainty remains over when or if the rest will return to work.
“The mine also cited challenges in the global diamond market, particularly the rise in counterfeit diamonds, as a reason for their financial strain,” Mr Rathakane said.
Kenny Lephema, the Minister’s son who is the Managing Director of the Lephema Executive Group, which now owns 70 percent of the mine, refused to comment.
“I am in no position to comment on these baseless accusations,” Kenny said.
Mothae Mine was controversially sold to Minister Lephema for a mere A$10,000 (approximately M122,811.46) by Australian mining company Lucapa, which had operated the mine since 2019.
The government owns the remaining 30 percent stake.
The deal also obligated Mr Lephema to inherit Lucapa’s undisclosed debts and to pay an additional A$1 million (about M12 million) for “outstanding technical services” previously provided to the mine.
The sale sparked allegations of conflict of interest, as Mr Lephema was already a serving Cabinet minister at the time of the acquisition.
