Moroke Sekoboto
PRIME Minister Sam Matekane’s government’s decision to cut out middlemen from state procurement processes and buy directly from suppliers is “destabilizing” Lesotho’s small businesses.
This according to United African Transformation (UAT) leader, Mahali Phamotse, who insists the decision compromised the growth of the private sector, particularly Small Micro Medium Enterprises (SMME)s.
Dr Phamotse said if such businesses could no longer procure products and equipment on the government’s behalf, they would cease to exist.
She was addressing her recently formed UAT party’s special conference at Hlotse,Leribe, on Sunday, where the leadership of the party’s district committees for Berea, Leribe and Butha-Buthe, were introduced.
“The government is destabilising the economy by getting rid of the middlemen. They are destroying the private sector especially the SMMEs as they can’t bid for tenders to procure products like fertilizers on behalf of government anymore. Those in government procure straight from the suppliers for themselves and their own self-aggrandisement,” Dr Phamotse said.
“This move is therefore only benefiting a few rich individuals while neglecting the masses who are starving and suffering. “They’re procuring fertilisers and other agricultural inputs, only to steal and store it in their own storages. They are using fertilizers for themselves while the public cannot access the inputs.”
But government spokesperson, Maketekete Sekonyela, has dismissed Dr Phamotse’s remarks as “nothing but political rhetoric”.
Mr Sekonyela said no other government had ever been as passionate about investing in the private sector in the pursuit of growth as Premier Matekane’s seven-party coalition.
Dr Phamotse’s accusations stem from the government’s announcement in October 2022 that it had decided to cut the middlemen and buy direct from suppliers.
A case in point has been the consistent direct procurement of fertilizers and other agricultural inputs direct from manufacturers. This has been happening since the procurement of agricultural inputs for the 2022 summer cropping season.
Justification for the decision has been that eliminating the middlemen saved government funds that should otherwise be invested in development projects.
But Dr Phamotse told her UAT followers, that parliament had allocated M40 million to government for the procurement of fertilisers for the 2023 summer cropping season, but that Basotho could not access them. She said that amounted to “theft” of taxpayers’ monies.
“The parliament had awarded M40 million to the government for procurement of fertilisers and other farming inputs for the 2023 summer cropping season. But Basotho couldn’t access them which is theft of taxpayers’ monies,” she said.
“I am not impressed with the Ministry of Agriculture Food Security and Nutrition being awarded M1.3 billion because it is going to benefit a few.”
Mr Sekonyela said the government’s policy of procuring direct from the suppliers was much faster than “wasting time on the tendering process as Lesotho doesn’t manufacture fertilisers”.
According to Mr Sekonyela, Mr Matekane’s government was the first to prioritise a private sector driven economy.
“We are not sabotaging the private sector. This government prioritises a private sector driven economy. By buying directly from the suppliers we are cutting costs and saving time as we don’t manufacture fertilisers in the country,” Mr Sekonyela said.
“We have an obligation to protect public funds. The middleman is just there to maximise profits while the public suffers because they sell fertilisers at high prices. Government had to step in so that the fertilisers can be affordable.”
He added that Dr Phamotse had been in and out of government but had failed to leave “footprints in the sand of time”.
She was only opposing the government’s policy of eliminating the middlemen “because they want them (middlemen) to maximise profits at the expense of poor people”.
Dr Phamotse is the former ruling Revolution for Prosperity (RFP) legislator for the Matlakeng constituency, who was expelled from the party in September 2023 for voting with the opposition in parliament.
