…who really runs the project?
Mohloai Mpesi
A storm is brewing over Lesotho’s residence permit system amid revelations that the company awarded the lucrative contract is not the one actually processing applications — and allegations that a controversial businessman may secretly control the deal.
The Ministry of Home Affairs claims it awarded the contract to digitise residence permit services to Atlantic Hi Tech in 2018, a company officially owned by Chinese entrepreneur Xiaojun Yang. But on the ground, it is VFS Global — a multinational outsourcing giant — that operates at ‘Manthabiseng Convention Centre, handling expatriates’ applications.
Applicants complete VFS forms, yet the hefty M2800 “service fee” is paid not to VFS but into Atlantic Hi Tech’s FNB account (No. 62781886117), using VFS reference numbers. This bizarre arrangement has raised serious questions about who really holds the contract — and who pockets the fees?
The “John” Connection
Though Mr Yang insists Atlantic Hi Tech is his alone and that VFS is merely his “supplier,” industry insiders allege that the true force behind Atlantic is controversial businessman Yan “John” Xie.
Mr Xie, a one-time economic adviser to former Prime Minister Thomas Thabane, has long been dogged by allegations of shadowy dealings and of using local or foreign associates as fronts for his businesses.
Both Messrs Yang and Xie deny the allegations. Mr Yang calls VFS a “technical support” partner while Mr Xie insists, “I have no shares in Atlantic. Professor Yang is my best friend. VFS already had a relationship with Home Affairs long before I advised Mr Thabane.”
Yet multiple sources, including former Home Affairs Minister Motlalentoa Letsosa, point to John’s fingerprints all over the deal. Mr Letsosa told this paper he closed down VFS during his tenure after discovering it was charging fees and not remitting a cent to the government.
“Atlantic might be John’s company. John owns everything. He was running the Convention Centre when VFS operated there,” Mr Letsosa alleged.
But Mr Xie rejected the allegations as baseless.
Further adding to the confusion, he asserted the contract was in fact awarded to VFS Global, which later entered into an agreement with Atlantic Hi Tech to handle software-related issues. The government nonetheless says it awarded the lucrative contract to Atlantic Hi Tech.
However, Mr Xie said: “The work is of such big magnitude that it could not be awarded to companies like Atlantic, or ‘small boys like me’.”
“I am not hiding, Atlantic Hi Tech belongs to Mr Yang. I have no shares in his company, but he is one of my best friends….VFS had a long relationship with the ministry of home affairs even before I became the Economic Advisor of Mr Thabane. I think even the current minister knows them very well because they have always been providing services.”
He said Atlantic Hi Tech was only subcontracted to supply computers and software services.
“Mr Yang is selling computers at Maseru Mall. He is also selling software. He was subcontracted by VFS to supply them with computers and also do software services. I did not front for Atlantic Hi Tech, I don’t have relationships with Atlantic Hi Tech,” insisted Mr Xie.
“When VFS started a relationship with Atlantic Hi Tech, Mr Thabane was already out of office and I was sick, getting medical treatment in Australia. The most important thing is that before me, VFS already had an agreement with home affairs.
“Also, please understand, VFS is a big company; they don’t deal with small boys like us. They don’t do that because if there is corruption, the company will not be allowed in the stock exchange.
“What I know is that VFS had a contract, not Atlantic Hi Tech. In my experience, tenders like this need expertise and experience. Atlantic is a small company; there is no way they have these requirements.”
He claimed money for the residence permit services was paid directly into the Home Affairs account instead of Atlantic Hi Tech.
“The money directly goes to the Home Affairs account,” he said in remarks contradicted by a senior ministry official.
Mr Yang dodged the questions put to him as to what role his Atlantic Hi Tech exactly played and why money was deposited in his company account, yet the work was being done by VFS.
“VFS is our technical support and supplier only. Please note that any questions or inquiries related to administrative matters should be directed to the Ministry of Home Affairs.
“Our role is solely as the digitalization and technical service provider, and we do not handle administrative or policy-related questions,” Mr Yang said.
More Confusion
Even senior officials appear unclear who the ministry’s real partner is. Department of Immigration Director ’Mantŝebo Motŝoanakaba confirmed the ministry had a contract with Atlantic Hi Tech, “this company that you say sells computers,” but conceded that Atlantic “could have a working relationship with VFS Global.”
“To my knowledge, the ministry has a relationship with Atlantic Hi Tech, but Atlantic Hi Tech could have a working relationship with VFS Global. The ministry has a contract with Atlantic Hi Tech, this company that you say sells computers. That company has working relations with VFS,” Ms Motŝoanakaba said.
She said an expression of interest was issued, and Atlantic Hi Tech won the tender.
“It seems like all of them were going to partner with some companies because we wouldn’t have that know-how in Lesotho. The government chose this one (Atlantic Hi Tech), which partnered with VFS Global. I think even in South Africa they are using VFS Global.”
She revealed that the ministry collects a statutory M1500 fee, while Atlantic Hi Tech charges an additional M2800 service fee — funds which never reach government coffers. The Auditor-General raised red flags over this arrangement between 2020 and 2021, warning that the ministry was unlawfully failing to collect the full fees prescribed by law. MPs later rejected attempts to legalise the outsourcing arrangement, insisting fees should be paid directly to the government.
Then Acting Auditor-General, Monica Besetsa, had between 2020 and 2021, questioned why the home affairs ministry was not collecting the full application fee as per the 2017 regulations. The ministry’s attempts to resolve the situation had been rebuffed by MPs, Ms Motŝoanakaba said.
Ms Motŝoanakaba admitted that residence permits were still being issued but with a sizeable backlog. She said the government was now working with the International Organisation for Migration (IOM) and the World Bank to procure its own integrated immigration system to end reliance on private operators.
“The ministry is currently on the path of procuring the integrated system that will look into issues of borders, visas, and including these other functions. We are going to be helped by IOM and the World Bank.
“While we organise ourselves to get our systems and things, applicants pay that service fee (of M2800) and the M1500. Service fees do not go to the government; they go to the service provider. Meaning the M2800 goes to Atlantic Hi Tech. I don’t want to say VFS because the ministry does not have a relationship with VFS, but with Atlantic Hi Tech.
“Permits are still being issued but there is a backlog. But I can’t answer that one thoroughly. When we receive these applications, we do what we have to do and then transfer them to the office of PS, who then passes them on to the office of the minister for the decision.”
Unanswered Questions
Despite repeated requests for comment, VFS Global did not respond. Mr Yang dodged questions about why applicants pay into Atlantic’s account if VFS handles the work, while Mr Xie insisted he was wrongly accused of fronting for Atlantic.
Former Minister Letsosa, however, remains unconvinced: “When I stood up on this issue, John fled to Australia. He was using a Lesotho diplomatic passport, which I cancelled. It would not surprise me if Atlantic is his company.”
“I chased him (John) over the issues of park homes. There are park homes that John cheated people with. They were even coming to the ministry, stating that they had been cheated. When I stood up on this issue, he fled to Australia. I realized he was using a Lesotho diplomatic passport that he received in 2012, so I cancelled that passport. He even ran to court through his lawyer.”
The Bottom Line
Seven years after the contract was awarded, Lesotho’s residence permit system remains a tangled mess of outsourcing, opaque fee structures, and disputed ownership.
Who really owns Atlantic Hi Tech? Why does VFS process applications while another company collects the money? And why has the government allowed such a sensitive state function to drift into the hands of private operators with unresolved ties to controversial figures?
Until clear answers are provided, public confidence in the system — and in the ministry of home affairs itself — will remain deeply compromised.
