— But DCEO’s handling of case raises eyebrows
Investigations Desk
Motena Lishea, the woman at the centre of a humungous M280 million fraud, which has sullied Lesotho as a safe investment destination, and which has cost hundreds of jobs, has been arrested.
Lishea was arrested and taken to court by the Directorate on Corruption and Economic Offences (DCEO) last Friday. She was bizarrely released on a mere M5000 bail despite the enormity of her alleged fraud.
However, the handling of the case by the DCEO, is raising eyebrows, amid allegations that a plan was being hatched by Lishea and greedy state officials to steal the money from its rightful owner, Platcorp Holdings, under the false pretext that it was laundered into Lesotho.
It is now thought the arrest could be a mere ruse to justify targeting the international investors who co-owned the company with Lishea.
Platcorp Holdings is an international business conglomerate with offices in South Africa, Kenya and Mauritius, among others. It operates across the African continent.
The Lesotho Times first reported about how Platcorp had been defrauded by its local partner, Lishea, mid last year.
Platcorp had invested at least M280 million in one of the country’s largest micro finance companies – Platinum Credit.
Ms Lishea had been entrusted with running Platinum Credit on the investor’s behalf pending change of ownership arrangements.
The Beginnings
Platcorp had decided to invest in Lesotho around 2020 at the height of the Covid-19 pandemic when citizens were facing job losses and were in dire need of cash. Lishea had by then started her small micro lender called Wazzah Limited which did not have resources to operate. It had nonetheless obtained the much sought after operational licence for micro lending from the Central Bank of Lesotho (CBL).
Platcorp subsequently bought into Wazzah as an easier way of accessing the micro lending licence. The company was then renamed Platinum Credit in May 2020.
A share purchase agreement was entered into between Lishea and Platcorp on 1 June 2020 in terms of which the latter purchased all the issued shares of Wazzah. Lishea had then controlled 95 percent of Wazzah with Nthabiseng Nthako owning the remaining five percent. The agreements were nonetheless not immediately consummated. The Covid -19 pandemic had severely constricted cross border movements and Platcorp representatives could not visit Lesotho to complete the deal.
But Platcorp had nonetheless begun investing in Platinum Credit with a view of completing the changeover of ownership once the Covid pandemic had receded and international travel resumed. The CBL also had to give approval for the share transfer agreement between Platcorp and Lishea in line with the law. Even though the owners of Platcorp had expected the approval to be granted expeditiously once conditions returned to normal, that did not happen.
In the meantime Platcorp had, in good faith, been releasing investments to Platinum Credit. It initially released US$2 million (about $40 million maloti at today’s exchange rate). More investments were released in batches to a total of M280 million, enabling Platinum Credit to grow rapidly to become Lesotho’s third largest micro-lender after Letshego and Lesana.
Theft and Fraud
After seeing the rapid growth of Platinum credit, courtesy of Platcorp, and sensing an opportunity that she could keep the business all to herself, Lishea had suddenly refused to consummate the agreements to transfer the business to Platcorp.
Since she controlled the company’s bank accounts with different financial institutions, she had started withdrawing large amounts of money from Platinum Credit for her private use. She splurged on posh cars, exotic holdings and a plush mansion.
Three directors at the company Nthati Khutlisi, Lindiwe Adontsi, Matseliso Petrus and the company secretary, Advocate Khati Mahase, quit the firm in protest. They did not want to be entangled in her fraudulent behaviour. They subsequently deposed affidavits accusing Lishea of essentially running down the company for her benefit but to the prejudice of its employees and the thousands of Basotho it benefited. One of the founding senior executives of the company, Teboho Manthanyane-Rampa, also quit.
DCEO
The DCEO was roped in by Platcorp to probe the theft and fraud running into millions. It successfully obtained warrants which it used to freeze Platinum Credit’s accounts held at Standard Lesotho Bank and Post Bank while probing the fraud. Lishea managed to steal millions from the Post Bank account in violation of a previous High Court Order.
Lishea then sued the DCEO to stop the anti-graft agency from probing her and to unfreeze the company’s accounts, claiming she needed to pay employees. Other legal battles ensued as Platcorp sought to recover its money.
The Central Bank of Lesotho and the Financial Intelligence Unit (FIU) were implored to probe the issue and help safeguard the Platcorp investment and the jobs it had created but there was little action.
More skullduggery was exposed including allegations that Lishea had forged her qualifications. She had misrepresented to investors that she held a marketing degree, among other things.
As more reports about her theft and fraud mounted, the expectation was that the DCEO would arrest her and charge her in court. However, the DCEO did not act. In fact, the DCEO went quite on the whole issue. They did not even pursue the search and seizure order they had obtained to freeze the bank accounts. which eventually held more M200 million so the case could be finalised for the investor to get its money back and possibly consider gaining a licence – separate from Lishea – and relaunching the business to preserve the 200 jobs that were now laid off.
Platcorp Directors
Platcorp, through its lawyers Webber Newdigate, had continued fighting to regain its investment. Within the milieu of legal fights, High Court Judge, Justice Moroke Mokhesi, ruled in Platcorp’s favour. The sheriff was able to attach the money held by Standard bank and which was released into Platcorp’s lawyer’s trust account for onforwarding to Platcorp Holdings. While the process to transfer an initial M21O million to Platcorp was underway, the DCEO appeared spooked.
After 18 months of inaction, the DCEO suddenly sprung into action and arrested her last Friday. The DCEO then went to court to get a new search and seizure order to attach Webber Newdigate’s Standard bank trust account and stop the money from being transferred back to its owners, Platcorp.
Bizarrely, in charging Lishea, the DCEO sought to arrest and charge the directors of Platcorp, who are all based abroad, alleging that they had laundered the money into Lesotho in the first place. Why such an allegation was never raised before is mind-boggling.
This has all prompted speculation of a grand scheme to deprive Platcorp of its money under the false pretext that it was laundered. There are rampant suggestions that Lishea had been driving a scheme to get the money forfeited to the state – as proceeds of money laundering – as a pretext to pilfering it into private pockets.
The manner the DCEO has gone into overdrive to stop the money from leaving Lesotho is only fuelling that speculation, with Lishea’s arrest being seen as a ruse to target the owners of Platcorp.
Unsustainable
However, allegations that Platcorp laundered the money into Lesotho are all nonsensical. The DCEO is arguing in new litigation that Platcorp laundered the money because it did not seek the CBL’s permission to remit it into Lesotho in the first place. However, in terms of Common Monetary Area edicts, Platcorp did not need the CBL’s approval to remit the money. That much the banks have confirmed. Moreover, Platcorp, as a reputable international conglomerate with investments worth billions of US dollars, has no reason to do anything illegal and compromise its reputation across international borders. It also works with reputable international financial institutions who would never countenance any malfeasances.
The Lesotho Times has done a lot of work and due diligence on this matter. We have established the bonafides of Platcorp. Accusing such a reputable company of money laundering is tantamount to accusing Elon Musk, the world’s richest man, of stealing a Fiat Uno.
Platcorp had planned to grow its investment in Lesotho to more than M1 billion if authorities had helped untangle it from Lishea and given it its own licence.
As things stand, it’s Lesotho that now faces the spectre of losing a significant international investor while all 200 Platinum Credit employees have been rendered jobless by the actions of a single conwoman.
The directors of Platcorp only found out through social media that they are accused – on what are clearly trumped-up charges. It is understood the directors have said they are willing to come and stand before court to vindicate themselves and their investment. The DCEO now faces a choice to vindicate Lesotho as a safe investment destination by helping a reputable international investor regain its stolen investment, or to besmirch the Kingdom’s reputation by aiding a nefarious agenda to have that investment lost.
This is a developing story and will be continued next week !!!
