…in long-running ground rent dispute
Moorosi Tsiane
THE long-running dispute between the Land Administration Authority (LAA) and the Lesotho Highlands Development Authority (LHDA) over unpaid ground rent has finally been resolved, with the two entities agreeing to a M121 million settlement.
The settlement was presented before Chief Justice Sakoane Sakoane on Monday by Advocates Malunga Ndlovu for the LAA and Sekete for the LHDA, bringing to an end a dispute dating back to 2021.
The LAA had approached the Land Court demanding M240 265 097.38 in ground rent allegedly accrued since 1991.
Under the settlement, LHDA will pay the LAA M121 094 886.54 in full and final settlement of the dispute.
The matter was initially before Justice ‘Maseforo Mahase, who has since been suspended, before being taken over by Chief Justice Sakoane, who formally recorded the agreement as a court order on Monday.
The LAA is the government agency responsible for land administration and registration, among other land-related matters, while the LHDA is the implementing authority for the Lesotho Highlands Water Project (LHWP).
The LHWP is a multi-phased project established under the 1986 Treaty between Lesotho and South Africa to supply water to South Africa’s Gauteng region while generating hydro-electricity for Lesotho.
The project involves harnessing water from the Senqu/Orange River in the Lesotho Highlands through the construction of a series of dams for the mutual benefit of the two countries.
Although the LAA’s court papers do not specify the location of the disputed land, it is identified as Plot No. 36242-042.
According to the LAA, the LHDA was allocated 86.37 square kilometres of land on November 14, 1991, by the then Minister of Interior through a Ministerial Grant of Title.
The LAA subsequently argued that LHDA was legally obliged to pay ground rent in terms of Section 77 of the Land Act 2010, as amended.
Section 77(1) provides that: “There shall be payable ground rent in respect of leases, unless a lessee is exempted from such ground rent as the minister (of Local Government) may, by notice published in a gazette, determine.”
Represented by Adv Ndlovu, the LAA told Justice Mahase that it had repeatedly reminded LHDA of its obligation to pay ground rent through letters of demand and ground rent bills.
The LAA alleged that those efforts were ignored, eventually forcing it to approach the court.
“The applicant specifically pleads that the respondent (LHDA) breached its obligation as conferred by the law (section 77 of the Land Act 2010) in that there was and there still remains failure or neglect to perform in terms of the lease conditions, which include amongst others, the obligation to pay ground rent annually as and when it falls due,” the LAA stated in its court papers.
“The applicant served some reminders in the form of Letter of Demand and ground rent bills on the respondent. However, the respondent still has not paid the ground rent debt.”
The LAA maintained that LHDA remained indebted to it in the amount of M240 265 097.38, describing the continued non-payment as unlawful.
“The applicant specifically pleads that the respondent is indebted in the amount of M240 265 097.38 as ground rent and the said non-payment is both illegal and legally reprehensible, and for that reason the applicant is aggrieved,” the court papers stated.
The LAA consequently sought an order compelling LHDA to pay the full amount of M240 265 097.38 in outstanding ground rent and arrears.
LHDA initially opposed the application, but the two parties eventually returned to the negotiating table in an effort to resolve the dispute outside the contested court proceedings.
Their negotiations culminated in the settlement now endorsed by the court.
Reading the order on Monday, Chief Justice Sakoane said: “It is hereby ordered that the respondent (LHDA) pay LAA one hundred and twenty-one million, ninety-four thousand, eight hundred and eighty-six Maloti fifty-four Lisente (M121 094 886.54) in full and final settlement.”
He further ordered that the amount be paid “in accordance with the payment plan agreed by the parties”.
The settlement brings to a close a dispute that had seen two government entities locked in a legal battle over land occupied by LHDA since 1991.
