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LHDA faces M20 million compensation lawsuit

 

Moorosi Tsiane

THE Lesotho Highlands Development Authority (LHDA) has once again been dragged to court by communities affected by the construction of the Katse and Mohale dams, with residents demanding M20 million compensation.

They accuse the Authority of failing to honour compensation commitments that have remained unpaid for more than a decade.

The claim, filed in the Commercial Division of the High Court last week by Iketsetseng Basotho Multipurpose Cooperative Society chairperson, Relebohile Mosotho, alleges that LHDA has ignored repeated demands for compensation due under the Lesotho Highlands Water Project (LHWP) Phase I policy and a Memorandum of Understanding (MoU) signed between the parties.

The lawsuit follows a similar case filed in March by Thabana-Mahlanya Association, which is seeking M140 million from the LHDA. That matter is still pending before the court.

According to Iketsetseng Basotho court papers, affected communities were advised by LHDA to establish cooperative societies through which compensation payments would be administered to people whose livelihoods and natural resources were adversely affected by the construction of the Katse and Mohale dams.

Mr Mosotho states that the applicant society, also known as Makopoi Multipurpose Cooperative Society, comprises approximately 2500 members and was registered in 2008 specifically to facilitate compensation payments to affected communities.

“The society was registered on the advice of the Respondent (LHDA), and the purpose of its registration was to enable the Respondent to compensate members of affected communities arising from the construction of Katse and Mohale dams,” Mr Mosotho states in his affidavit.

He submits that although the society eventually received an initial compensation payment, the process was marred by disputes and litigation.

“The applicant was registered as far back as 2008 and has since received the first batch of compensation, of which there was a plethora of disputes and litigation in the process of manifesting the said compensation. Components of the same compensation obligations are also reflected in the Memorandum of Understanding entered into between the parties,” he said.

Mr Mosotho argues that the compensation was intended to cover the loss of various natural resources on which communities depended before the construction of the dams.

According to him, the LHWP Phase I Policy for Instream Flow Requirements (IFR) provides compensation for resources such as riverine resources, firewood, construction timber, medicinal plants and animal forage.

“In terms of the Lesotho Highlands Water Project Phase I Policy for Instream Flow Requirements, affected communities would receive compensation for riverine resources, firewood and construction timber, medicinal plant resources and animal forage,” Mr Mosotho said.

The cooperative maintains that the compensation was designed to help communities replace lost resources and support local economic development initiatives.

Mr Mosotho further claims that the last compensation payment was made in 2003 and that a second payment, which was due after a decade, never materialised despite numerous engagements with LHDA.

“The second payment was supposed to have been made 10 years after the first disbursement, which was in 2004. Hence, it should have been made in 2013 or 2014 in terms of the IFR Policy and the Memorandum of Understanding,” he said.

“The said compensation has not been paid despite consistent demands in meetings held with the Respondent. It is the duty of the Respondent to comply with the IFR Policy.”

Mr Mosotho argues that the outstanding amount has increased significantly due to the prolonged delay and accumulated interest.

“It is therefore worth noting that the claimed amount could fall short, regard being had to the time gap between now and when it was supposed to be disbursed,” he stated.

He concludes that, based on historical projections and accumulated compensation, the affected communities are now entitled to approximately M20 million.

“By this time and based on the projections as historically articulated, we are entitled to a compounded compensation of about M20,000,000,” he said.

LHDA is yet to file its responding papers.

The latest lawsuit comes amid a recent call by His Majesty King Letsie III for the authority to ensure that affected communities are adequately compensated.

Speaking at the launch of the Senqu Bridge in April in Mokhotlong, King Letsie III urged the LHDA to effectively compensate affected communities. The King stressed that livelihood restoration and environmental protection should remain priorities, noting that some people affected during the first phase of the project more than 30 years ago were still awaiting compensation.

He acknowledged the significant sacrifices made by affected communities, including relocation, loss of grazing land and disruption of livelihoods.

 

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