Mathatisi Sebusi
INFAMOUS Chinese businessman, Yan Xie, popularly known as John, has vowed to retain control of the government-owned Lesotho Promotions and Marketing Services (LPMS) building until the government settles an alleged debt to him.
Inside the seized building is equipment worth M3 million belonging to the Ministry of Trade, Industry, and Business Development. This includes machinery for quality testing of products produced in the country as well as equipment donated by development partners and other donors.
The revelation was made during a Tuesday sitting of the Economic Cluster Committee, where senior officials from the trade ministry disclosed that John had taken control of the building, preventing access to equipment crucial for certifying products for local and international markets.
The dispute has left essential government operations in limbo, with multiple ministries and individuals claiming rights over the building. Meanwhile, Lesotho’s capacity to certify local products for export and domestic use remains crippled.
Principal Secretary of the trade ministry, Palesa Motobako, informed the committee that John had been sub-leased one factory shell in the building. However, he has since confiscated the entire property, claiming the government owes him money.
“This happened when we were in the process of refurbishing the building,” Ms Motobako explained.
“We had already moved quality testing equipment into the facility when the contractor was suddenly barred from entering the premises by security guards, who said they were acting on John’s orders.”
Ms Motobako added that the ministry had several unsuccessful meetings with John to convince him to release the equipment or allow access to the building. According to her, John refused, saying he would not budge until the government settled its debt to him.
John claims his sub-lease agreement was signed with the former Minister of Small Business Development, Cooperatives, and Marketing, Chalane Phori.
However, Ms Motobako dismissed this agreement as illegal, stating that Mr Phori had no authority to sub-lease the property, which does not fall under his jurisdiction.
Ms Motobako also revealed that John is refusing to return a duvet-making machinery, claiming he has a contract allowing him to use it.
In response to the seizure, the Revenue Services Lesotho (RSL), which owns the building and originally leased it to the ministry, filed a court case in early 2023 seeking to terminate John’s sub-lease. However, the case has yet to be resolved, leaving the ministry unable to access its equipment.
“Our inability to access this equipment is now hindering our operations. We are unable to test commodities, which is critical for local products to qualify for domestic and international markets. Furthermore, we need access to the duvet machinery John claims to own, as it does not belong to him or Mr Phori,” Ms Motobako said.
Members of the Economic Cluster Committee expressed their outrage over the unresolved situation. Chairperson of the committee, Sello Hakane, said lack of a testing facility in Lesotho negatively affected the economy. He criticised the reliance on South African facilities for product testing while government-owned equipment lay idle and inaccessible.
“This situation is a disgrace. It degrades the country’s image, especially with donors who supported us with the testing equipment. We need to release ourselves from the grip of John and others like him who hold government assets hostage,” Mr Hakane.
Mr Hakane further stated that the committee would involve the ministers of finance, justice, and the RSL to expedite the resolution of the matter. He also called for urgent action to ensure the court case is prioritised.
“This matter is urgent and should have been resolved long ago. We cannot allow the country’s economy to be sabotaged in this manner,” he added.
Contacted for comment, Government Secretary, Thabo Sekonyela, said he was unaware of any debt owed to John. He called for clarity on the matter, urging John to specify the amount and provide evidence to support his claims.
“Is that person (John) still in the country? I have no knowledge of any money owed to him. If he believes he is owed money, he should come to my office to discuss the issue. He must clarify how much is owed, by whom, and under what circumstances,” Mr Sekonyela said.
Former Minister Chalane Phori denied any wrongdoing, saying he had not signed a sub-lease with John. Instead, he stated that he had a contract with Africomforters to manufacture duvets, and the machinery was placed in the building under the Ministry of Agriculture, Food Security, and Nutrition.
“I do not want to discuss issues that are before the courts. But for the record, I never signed a sub-lease with John. The ministry of trade should explain how they got involved in this matter and how they accessed the building. It seems like everyone claims ownership of the facility, but I was not responsible for leasing it,” Mr Phori said.
He further accused the trade ministry of not being forthcoming with the full details of the situation.
“They should tell the truth about who gave them access to the building. Africomforters was already operating there before they arrived, and now they want things to change,” he added.
John is reportedly in Maseru; however, employees at his Jackpot Supermarket denied this reporter entry to meet him. Instead, they requested her to leave her contact details, promising that John, who was said to be sleeping, would call her later.
