MASERU – Allegations have emerged that Minister of Local Government, Police and Home Affairs, Lebona Lephema, is pushing the Lesotho National Development Corporation (LNDC) to rescue his struggling diamond venture with M108 (approximately USD6.09 million)million of public money.
Sources within Mothae Diamonds told Lesotho Tribune on condition of anonymity that the mine has been technically insolvent for months and that workers have borne the brunt of the financial crisis.
“Kenny (Lebona’s son) informed us that LNDC will rescue the mine with the needed M108 million, latest in Sept 2025. We have been sitting at home not being paid on time, some people don’t get their full salaries,” said a Mothae employee.
Another employee who spoke on condition of anonymity said she was forced to resign, and that to date she has not been paid her terminal benefits.
Repeated calls to Minister Lephema went unanswered.
The revelations deepen the crisis surrounding Mothae. Earlier this year, Lesotho Tribune reported that the mine had sent 400 employees home on forced leave, slashing their pay by half. Management claimed the move was driven by weak diamond demand in Europe, but trade unions accused the mine of breaking the law.
The Independent Democratic Union of Lesotho (IDUL), affiliated with IndustriALL, said the pay cuts violated the country’s labour legislation. IDUL general secretary May Rathakane demanded that Mothae respect workers’ rights to collective bargaining, warning against unilateral decisions that disregard employees and unions.
“Mothae diamond mine must respect trade union rights to collective bargaining and refrain from acting unilaterally where workers’ and trade union rights are concerned,” Rathakane said.
“Market volatility is not an excuse to withhold full wages,” said Glen Mphutlane, IndustriALL’s director of mining and diamonds. “Companies must plan for both booms and slumps rather than sacrificing workers’ livelihoods.”
The prospect of LNDC bailing out Mothae raises difficult questions about governance and conflicts of interest. The corporation is tasked with promoting national development, not propping up the private assets of sitting ministers.
Critics warn that if public money is used to save Lephema’s mine, it would set a dangerous precedent where taxpayers foot the bill for politically connected businesses, while ordinary Basotho struggle with unemployment and rising costs of living.
Labour groups are now calling on the government to intervene, not to rescue the owners, but to protect jobs and enforce the law. The allegations also place renewed pressure on Prime Minister Ntsokoane Matekane’s administration, which has promised transparency and accountability in public spending.
The Mothae diamond mine, located in the highlands of Lesotho, has been a magnet for controversy for years. In 2024, Australian firm Lucapa Diamond Company “sold” its 70 percent stake in the mine to Lephema Executive Transport, a local mining and construction company owned by Minister Lephema for a mere M100k (USD6k) without paying Government of estimated an estimated USD100 million.
Since then, the mine has struggled with falling revenues, delayed salaries, and industrial unrest. The latest reports of insolvency and a looming LNDC bailout have left workers uncertain about their future, while fuelling public anger about the intersection of politics and private gain.
With phones at the minister’s office going unanswered, the biggest questions remain unresolved:
– Why should taxpayers fund the rescue of a privately-owned mine?
– Has LNDC formally committed to releasing M108 million by September?
– And what safeguards, if any, will ensure that workers benefit, rather than political elites?
For now, Mothae workers remain in limbo, caught between a collapsing mine and a political storm. The controversy is unlikely to die down soon, especially as the deadline for the alleged bailout approaches.
