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Frazer Solar case date set

by Lesotho Times
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Mohalenyane Phakela                                                                                  

THE long-drawn out High Court battle between the government and Frazer Solar over a botched 2018 M1, 7 billion solar energy deal will now be heard to finality on 16 and 17 October 2022.

The case was supposed to be heard on Tuesday by the bench comprising of Chief Justice Sakoane Sakoane and Justices Moroke Mokhesi and Realeboha Mathaba.

However, it had to be postponed after the judges were informed that the government’s lead counsel, whose name was not given, was unavailable as he had contracted Covid-19 in South Africa.

South African lawyer, Nick Ferreira, appeared on behalf of the government alongside Advocate Motiea Teele and Attorney Qhalehang Letsika. Frazer Solar was represented by two South African lawyers who were only identified as Advocates P D Rood and F Pelser.

Adv Ferreira asked for a postponement, saying it would not be proper to continue with the hearing in the absence of his unnamed superior.

“The parties have agreed to seek a postponement after we relayed to them that the lead counsel who is from Johannesburg, contracted Covid-19 on Sunday.

“Both parties are mindful that there should not be a lengthy postponement because there are proceedings in South Africa which are in abeyance due to this matter before this court,” Adv Ferreira said.

Justice Sakoane then postponed the matter to 16 and 17 October.

In his application filed on 21 September 2021, Prime Minister Moeketsi Majoro wants the High Court to nullify a South African arbitrator’s £50 million (M856 million) damages award to Frazer Solar. The 2019 damages award was for the alleged breach of a 2018 contract the German company claims to have entered into with the previous Thomas Thabane-led government for the supply of solar power to Lesotho.

 

However, Dr Majoro has argued that the contract is not valid as it was “fraudulently and corruptly” signed by then Minister in the Prime Minister’s Office, Temeki Tšolo, who had no powers to sign.

Mr Tšolo has previously denied signing the deal on behalf of the government.

However, Dr Majoro insists that he signed and, in the process, violated national laws which stipulate how such contracts are agreed and how payments to third parties are made.

He accuses the former minister of acting outside his powers by “clandestinely” signing the agreement without the knowledge and approval of parliament, cabinet and himself as the finance minister at the time. He further argues that the deal should have been negotiated and signed by the Ministry of Energy and Meteorology, not by Mr Tšolo.

Frazer Solar had in April 2021, successfully petitioned the Gauteng High Court to endorse the award and allow it to garnish Lesotho’s revenue from the sale of water to South Africa in terms of the Lesotho Highlands Water Project treaty entered into by the two countries in 1986.

However, Dr Majoro has also petitioned the same court to reverse its decision. The case is pending.

 

 

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